The perception about credit cards is mixed among individuals. The general idea is that credit cards create debt and are negative for an individuals’ financial health. On the other hand, those who have used it, think differently.
For them, credit cards are not only a positive way to avail discounts on purchases but also to manage their budget and improve their credit ratings.
A credit card is among the first choices if you’re looking for how to improve CIBIL score quickly. You can become more creditworthy to lenders with a high credit rating in a short span of time if you use it smartly.
Read on to know how to be a smart credit card user and improve your credit score.
Managing Your Credit Effectively
A credit card company will check your credit score and history when you make an application. Your CIBIL score will go down with each inquiry because making one enquiry will deem you as a credit-hungry individual. Making multiple enquiries will make you look even more, which will be noted in your running credit history.
Help yourself with a healthy credit score by following up on the right habits. Those who know how to improve CIBIL score quickly keep their credit utilisation within 30-50% of the credit limit and so should you. This is one of the guaranteed ways to boost your CIBIL score.
Stick to One or Two Credit Cards
The rewards provided differ with credit cards. For example, an airline credit card gives you reward points on air tickets. You can redeem these points to get discounts on your future ticket purchases.
Similarly, fuel credit cards provide rewards when you purchase fuel. You can redeem these points to purchase free fuel up to a particular limit. These cards also provide full or partial fuel surcharge waivers with these cards.
Another similar type of credit card is a retail credit card. Also known as co-branded credit cards, these provide rewards when you shop from specific retailers.
If you go for movies a lot, then you can avail an entertainment credit card. You can earn attractive rewards when buying movie tickets with these cards. Furthermore, you can also get free movie tickets.
Pay the Bills on Time
Perhaps the easiest of all the ways on how to improve CIBIL score quickly is to pay outstanding credit card bills on time. Contrary to popular belief, a credit card can help you increase your credit score considering if you stick to the payment dates.
On the other hand, failing to pay the bill within the due date can not only decrease your credit score but also invite additional penal charges. These may include a high rate of interest, late payment fees, etc.
Credit cards have a grace period of up to 45 days, giving you ample time to pay the outstanding. All you need to do is follow up strictly on the dates.
Pay the Full Amount Due
A typical credit card bill comes with a minimum amount due and full amount due.
The minimum amount is either a specific percentage of the total or the same with interest. You can pay the minimum amount due if you don’t have the funds to pay the full. However, doing so will reduce your credit score. Moreover, you will still have to pay the total amount due on the next bill.
If you know how to improve CIBIL score, then you must also know that you should always pay the full amount due.
You must also follow these rules mentioned above to manage your credit card efficiently and increase your credit score. With the best CIBIL score, you can avail higher loan amounts sanctioned at the most attractive rates of interest.
Manage your credit cards smartly to get the best discounts and offers. More importantly, stick to the basics of credit usage and improve your credit score fast and easy.
For them, credit cards are not only a positive way to avail discounts on purchases but also to manage their budget and improve their credit ratings.
A credit card is among the first choices if you’re looking for how to improve CIBIL score quickly. You can become more creditworthy to lenders with a high credit rating in a short span of time if you use it smartly.
Read on to know how to be a smart credit card user and improve your credit score.
Managing Your Credit Effectively
A credit card company will check your credit score and history when you make an application. Your CIBIL score will go down with each inquiry because making one enquiry will deem you as a credit-hungry individual. Making multiple enquiries will make you look even more, which will be noted in your running credit history.
Help yourself with a healthy credit score by following up on the right habits. Those who know how to improve CIBIL score quickly keep their credit utilisation within 30-50% of the credit limit and so should you. This is one of the guaranteed ways to boost your CIBIL score.
Stick to One or Two Credit Cards
The rewards provided differ with credit cards. For example, an airline credit card gives you reward points on air tickets. You can redeem these points to get discounts on your future ticket purchases.
Similarly, fuel credit cards provide rewards when you purchase fuel. You can redeem these points to purchase free fuel up to a particular limit. These cards also provide full or partial fuel surcharge waivers with these cards.
Another similar type of credit card is a retail credit card. Also known as co-branded credit cards, these provide rewards when you shop from specific retailers.
If you go for movies a lot, then you can avail an entertainment credit card. You can earn attractive rewards when buying movie tickets with these cards. Furthermore, you can also get free movie tickets.
Pay the Bills on Time
Perhaps the easiest of all the ways on how to improve CIBIL score quickly is to pay outstanding credit card bills on time. Contrary to popular belief, a credit card can help you increase your credit score considering if you stick to the payment dates.
On the other hand, failing to pay the bill within the due date can not only decrease your credit score but also invite additional penal charges. These may include a high rate of interest, late payment fees, etc.
Credit cards have a grace period of up to 45 days, giving you ample time to pay the outstanding. All you need to do is follow up strictly on the dates.
Pay the Full Amount Due
A typical credit card bill comes with a minimum amount due and full amount due.
The minimum amount is either a specific percentage of the total or the same with interest. You can pay the minimum amount due if you don’t have the funds to pay the full. However, doing so will reduce your credit score. Moreover, you will still have to pay the total amount due on the next bill.
If you know how to improve CIBIL score, then you must also know that you should always pay the full amount due.
You must also follow these rules mentioned above to manage your credit card efficiently and increase your credit score. With the best CIBIL score, you can avail higher loan amounts sanctioned at the most attractive rates of interest.
Manage your credit cards smartly to get the best discounts and offers. More importantly, stick to the basics of credit usage and improve your credit score fast and easy.
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