How To Use The Right Use Of Credit Cards
Your credit profile can be negative in the long term by doing this, do not end the entire limit of the credit card.
[New Delhi]: At present, loan culture is spreading fast within the country. It is the most employed people in its catch. In today's time, almost every third employer is using a credit card at its convenience. Getting a credit card is like taking a loan from a bank. Those people whose income is low and their expenses are high, they use a credit card. These people then gradually pay the loan through EMI. The use of credit cards is enough to tell you a lot about yourself. Your credit card transaction is reported to the credit bureau, depending on which credit score is decided. When this credit score gets spoiled then you start having difficulties getting a loan.
What happens to credit score?
The credit score is a number of three digits This number is between 300 and 900. The higher the credit score, the better it is considered. Even a default credit score can be weak. 79 percent personal loans are allowed on a score of more than 750. Credit Information Bureau (India) Limited (CIBIL) gives credit scores, which are prepared based on your old financial history. While preparing this, Cibil takes into account your credit history.
What you need to know while using a credit card
Prior to the payment due date: It is very important for the credit score to be good, so that you can repay your credit card bill, the loan's EMI before the last date (Due Date). If you pay it on time, then your score will be good. If you do not pay it on time then your score will get spoiled. You may have to pay late fee by not paying a due date.
Pay the entire bill: You get a bill of credit card every month. In such a situation, you try to pay the full bill on time. If you are unable to pay the full bill for some reason, then try to pay the maximum amount and not the minimum amount. If you do not pay on time, you may have to pay a heavy interest on this.
Avoid overuse of credit card: Do not end the full range of credit cards. By doing so, your credit profile can be negative in the long term. If you make full use of the credit limit then the bank will put you in the category of credit history. Usually, up to 40 percent of the total limit should be used.
Keep your credit ENQUIRY low: If you apply for any credit card or loan, then your credit score may be reduced. Avoid applying for loans or cards in such a hurry.
Review your credit report: You should periodically review your credit card score. By doing so, you will know that there is nothing wrong in your report and if there is something wrong in it, then after review you will be able to correct it.
# Credit Cards
# Personal Finance
# due date
# monthly income
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