Many people are unaware of the fact that credit cards are used by banks to give large amounts of money limit. Banks warn that credit score will go down if you do not pay on time. How important is the credit card for the needs a cibil score is just as important as the credit card.
This is because banks will decide whether or not to give you a loan based on your credit card score for any future loans. That is why economists say that credit card applicants and credit card users should follow these six tips.
How much to spend on a credit card.
If you have a limit of Rs 50,000 on your credit card, you should plan to spend Rs 20,000 on it. Without a plan, a credit card bill can be more than a salary increase of Rs 20,000 to Rs 30,000. Unable to pay on time, credit score drops. Credit card issuer banks charge for our home. So there should be a plan on how much the credit card will cost.
Limit should not be crossed.
No matter how urgent the credit card, do not cross the given limit. If a bank gives us a credit card with a limit of Rs 50,000, we should not draw Rs 60,000 or Rs 70,000 whether we need it or not. Doing so will completely reduce the credit score. Banks charge a variety of surcharges, such as surcharges and interest.
Spend only 30% on credit card
Some customers spend a limited amount each month to see if there is a limit to our credit card. Pay on time. But banks say doing so could lead to problems. They suggest planning to spend only 30 percent each month. Banks will monitor your financial status if you spend the entire amount each month.
Paying credit cards on time
Credit cards must be paid on time. Failure to pay on time will result in a complete loss of credit score. If we spend Rs 50,000 in a month, we have to pay the full amount. Otherwise the minimum amount must be paid. The total must be paid. Otherwise you will have to pay 4% interest.
Money should not be drawn from an ATM machine.
Many people withdraw money from their credit card ATMs. Doing so will cause the banks to charge a large amount of interest. All you have to do is make online transactions or swiping to get the money or you will be charged 4 to 5 percent interest.
Credit card details should be stored very carefully. Some games that children open by saving credit card IDs and passwords on the phone contain malware. Economists say that if you download the game app, you could lose money on credit with the help of Ackers malware. So use the credit card carefully with these tips.