Using your credit card smartly is an essential requirement these days. This is because it will assist you to create an ideal CIBIL score. And, to make that happen, never forget to repay the complete due amount in one go.
So, if you are experiencing a cash crunch, then it would be best to start using a credit card as it is the best and easiest way to make acquisitions in a cashless manner. It has been noticed that in recent years, the number of bank card users has grown to a great extent. And, with this boost in the demand, bankers are all set to offer the customer with credit cards. Now, if you want to apply for a credit card then you can easily check CIBIL score for credit card online.
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A credit card is the easiest way to get instant financial help even if you are out of funds at some point in time. The best part about this card is that you spend the money you want and can repay it afterwards. Make sure that all the payments are made on time as late payments will affect your credit score.
If you are using the credit card in a smart way and making payments timely every month then nothing could be better than that. There are many credit card users who always keep a perfect balance of spending and payments. The lenders these days reward those card users with an increased spending limit on the card. This allows them to achieve their financial goals in a few seconds.
On the other hand, if you skip making any card payment or pay the money after the due date then you might have to also pay the late payment charges. So, be very careful with the repayment of the card. All this could have a negative impact on the score and might also affect access to more credits in the future.
Mentioned below are the tips that could help you make the best use of your credit card together with boosting your credit score:
Pick a card that is best for you
While applying for the credit card, you will definitely be served with multiple options. It is highly recommended to act smart and choose the one that goes best with your needs. Always keep in mind that using multiple cards will increase the chances of lowering the credit score. Another drawback is that your credits will keep increasing as you have more credit cards. So, it is better to have the one that suits your needs and usage style.
Always remember that your repayment behavior will be closely assessed by the lenders. So, never skip a repayment as this might impact your CIBIL score. However, make sure that you pick a card and credit limit that goes well with your budget. Try and limit your card spending as this habit will help you control your bill and you will be able to make the repayments on time. And, if you have a habit of overspending with the credit card then you strictly need to turn away from that habit. It is important because this will have an extremely negative impact on the CIBIL score.
Credit cards with zero interest
Planning to go for a holiday and spending from your credit card? A credit card with zero percent interest will do great as they offer no-cost EMI on huge spending when the interest charges are waived off from the order amount. It is easy to pay back the amount and it also decreases the chances of missing any payment. This ultimately drops the chances of any negative impact on your CIBIL score. So, while getting a new credit card, be very careful about this point as these types of cards have no hidden charges like the annual fee, processing charges, and more.
Full repayment in one time
While you get a repayment time limit of almost 45 days, it is highly recommended to clear the payments by the due date. If you end-up paying just the minimum card dues, then you will have to pay the interest on the amount left to be paid. The payment made within the 45 days window will be an interest-free payment. If you exceed that time limit then you will have to pay extra money. And, on top of that, your credit score will get disturbed with this. You need to be very careful with that because the interest rate could reach 35 percent, which will definitely be hard to pay off. So, to be ready for an emergency situation where you might require funds instantly, keep up your credit score with timely repayments and credit limit control.