Tag: credit card

3 Things You Can Do Once Your Credit Scores Are Up!

Its a real big task when it comes in improving your credit score and maintaing it once u achieve the benchmark. If the score is built nicely from very start, and maintained the same repayment schedules, it not possible only that one can not get the graphs up. It that case, one need not worry about anything.

But, if one is not responsible in the repayments, has been constantly irregular, the scores go on toss. It is then very difficult to get you graph up. However, it is difficult and not impossible. Once you have Low CIBIL Score, it is then your task to first investigate where you went wrong. Look into your detailed repoert and see where all have you made mistakes. Start from correcting the places where you have made mistakes. IF it looks difficult to understand, take help of some credit advisors. Speak with the banks. Make them understand what went wrong while your intention was to pay for the credits you had taken.

Start using your credit card wisely. Use as much as you can pay. Start repaying in small amounts. And clear the old debts. By this you will start replenishing the old debts. And start rebuilding the score. Its important to Improve CIBIL Score. Once your score is up, you can then plan things for which you planned but could not do. Lets look at main 3 things one can do once the credit score is up!

  1. Apply for a loan at lower interest rate.

While you were planning to apply for a home loan or a personal loan when your score was down, the banks or the NBFC must have charged you an expensive interest amount which would have surprised you! Once your scored are up, try applying for the same loan from the same bank and you would come to know that there us a huge difference between the interest amount then and interest amount now. Once the credit scores are up, it is a sign that you a responsible payer and would not be an liability for the financial institutions. And hence you get lower interest rate compared to earlier one.

  1. Get your loans sanctioned in no time

While your scores were low, you had to run and climb staircase of all the banks, you went, inquired but in the end what you had was just disappointment. You came back home everyday with sad face as no one was ready to sanction a loan for you. But as soon as you scores are up, you need not worry at all. Now as and when you will apply for loan, because your scores are up, you loans will will be sanctioned easily.

  1. Upgrade your credit card limit

Remember, while you wanted to get your credit card limit up, but were unable to it. Why? Because of credit score. Credit score determined your eligibility for many things. Specially it determines the credit worthiness. Hoe much credit worthy you are. What is credit worthiness? Credit worthiness is a phenomena which gives an idea about how much credit can you manage without any burden. So when your score is up now and you apply for a upgrade in the credit card limit, it will be approved in minutes.

When you try to improve CIBIL score, and you are successful, there will be many things which would be approved or sanctioned which you wanted to earlier and could not but now with a better score, it will no hurdle. Credit Score is a sensitive area, you need to work it very diligently in order to make things on perfect way. Stay credit healthy and keep you score good!


I Have A Debit Card, Why Do I Need Credit Card?

It’s an era of plastic money. Gone are the days where we had to carry a big chunk of cash and be worried all the time. While travelling to outstations, while making huge payments, while shopping, it was a task from counting notes to checking them if they are fake; all was a hazard. But while cards coming in picture, things have changed and these hazards have decreased. All you need to carry is a small 3’*2’ plastic card, in your wallet and you are sorted. The question then arises is which card is better? Credit card or debit card? Let’s discuss both in detail.

What is a debit card? A debit card is a card where you have the money already present in your account. You swipe your card or you withdraw the cash, the amount used is debited from your existing bank account. So you can not over spend. You can spend only that much, which is available with you. So, for people who are not calculative or over spenders, its best option.

Let’s talk about Credit Cards now. A credit card is an option which allows you to use the money even when you do not own it. So, whatever you spend in given to you on the credit based, for few days, mostly one month or the billing cycle of your card. So, if your billing date is 10th of every month, wherever you use your card from 10th of that month to 9th of next month every time the bill is reflected in that cycle of 10th. The benefit here as stated is that you can use the month in advance, even when you do not have. So it a good option when you do not have any cash in hand, but it’s too urgent to use, but at the sometimes, it is a thing which has responsibility. “With great power comes the great responsibility” as the quote states, you have the power to utilize the amount you don’t have, but you should be responsible enough to make the payment of the amount used by you on time.

As explained, both debit card and credit card have their own pros and cons. It’s on us that we fall in which category of people, and what fits us best. Now, the question arises here is: If one has a debit card, why should they have a credit card? There is one huge benefit of having credit card over debit card. And that is credit score. A credit card usage gives you an access to change your credit score. Credit score is the result of the payments you have made across your various credits. It’s also important when you are planning to take any loans, as your credit score is checked by banks or any financial institutions when you apply for the loan. So, a credit card is one of the fastest and easy ways to change your score drastically. But, you have to be very particular in making the payments, only then will the score would go up. Else it can drag you down if you are not a responsible payer.

So, the credit card works as a boon for you when you are actually trying to build your credit score or increase it. When you check your cibil report and see the detailed information, you would come to know that because of your credit card payments made on time, your scores have gone up. This work can not be done by a debit card.

With the major factors explained here, now its clear that what is the need for the credit card even when one has a debit card. All that is expected is that the person should act responsibly and patiently. If that happens, a credit card can create wonders.

The Credit Card Secret That Could Boost Your Credit

A credit score plays a very big role in your daily life. The credit score can determine the interest rate when you opt for a loan or any financial product. Even if you have a good credit score which is suffice for taking a loan, there is no harm in boosting your credit score a bit before going for the loan. If you have 700 hundred as a credit score which is excellent but gaining an extra twenty will do you no harm.

But how do we achieve it in short span of time?

So here are some credit cards secrets on how you can boost your credit score from good to excellent which will save you a lot of money.

Don’t keep your credit utilization zero, use it wisely.

It is suggested by experts that one should use some limit of their credit card instead of not using them. We Indians have the tendency to opt for a credit card just for backup purposes and never use it, but this will affect your score more severely rather than using it. Use your credit card for grocery shopping or so which most of the people tend to do it via cash. This practice will not only help you boost your credit score but you also get award points. Determine your usage limit every month.

Pay your bills on time

Once you have used your determined credit limit, do make sure you pay your credit card dues on time. A we all know we need to make payment every 50 days of the limit used, the more regular you are on making payments the more your credit rating boosts. Use your credit card wisely and make payments time to time.  Vice versa if you do not make the payment on time the credit score goes for a toss and then it’s a long way to go.

Don’t close unused credit cards.

If you get a credit card try making small transactions on a regular basis and do not close the credit card account. If you make a decision that you do no need a credit card and paid all the dues related to the same this will affect our credit score. Always keep your credit card open and make small transactions on a regular basis but do not close it.

Don’t get a new credit card unless you need it

Don’t go for a new credit card unless you need one. Getting a new credit card means you will have to use it and sometimes the credit card converts from need to luxury. As you start making luxury expenses, you realize you are paying more than what you expected on the credit card bills. Again you will be stuck with overdue and will find no way out of this.


Check for errors on your credit report

Not only you need to pay your dues on time but also check on your cibil report from time to time. You can opt for a free cibil report from various online portals and check for errors, just don’t go through any banks to check your cibil score, so it will indicate that you were applying for a loan and were getting rejected on the same. Get a proper idea about your credit score ups and downs.

This is a few things you can control about credit scores and take it to your advantage. It’s easy to own a credit card, but you can avail the benefits of it if you use it wisely and know the hidden features upfront.