4 Common Mistakes That Hurt Your CIBIL
Many would say credit in itself is a mistake, end of discussion! But we at CreditSmart know better than that! Jokes apart, credit cards or short term loans have a place in everyone’s modern life today. How else do you expect to buy a nice home of your own, the latest iPhone, your dream car, or even sponsor your education in your choicest University? Credit must be accredited to make our life goody-goody! In case you are also planning to use your credit card to swipe a deal or take up a loan, let us share with you 4 basic principles that will keep you credit smart.
- Choosing a wrong card – Well, this is the worst credit mistake to make. Why choose a travelers’ card when you don’t travel or are not fond of travelling! Similarly it makes no sense choosing a fuel reward card if you only ride a bicycle! Choose a credit card after understanding the offers, stipulations and benefits. A wrong credit card is a big burden which will cost you money, both in short as well as long run.
- Being limitless will rob your happiness – So always borrow/spend as per your limit. Many billionaires have become a pauper in the name of greed. So keep your desires under strict control and swipe your credit card keeping your Card Limit in mind. Likewise, while taking a loan from bank, do not over-borrow. It is as simple as the childhood rule – do not chew more than you can swallow! It is important to keep a tab on your credit card spending. Wiser ones never delete their credit card statements to stay aware about their own usage and remaining limit, and also to identify any wrong charges that may arise.
- Being Lazy With Your Payments – Maintaining a credit card is a responsibility. You need to pay your bill on time or else you may be charged a heavy rate of interest. Same is the case with banks. As long as you pay your EMIs on time, things will be fine. Forgetting even a single EMI would cost you as bad as double. In fact, on time payments it’s the number 1 thing you can do that will reliably increase your CIBIL Score over time. So keep a time check on all your credit repayments.
- Under utilization of your credit card – Well, a credit card is a blessing only if you use it. An idle credit card won’t give you even an ego satisfaction! Nor will it help build your CIBIL score if you’re not frequently keeping it active. So use it to pay your groceries and shopping bills, any time you have a chance go for it. This will, many a times, fetch you valuable cash backs and rewards as well. Be aware while using it, don’t swipe yourself into debt, only spend what you can and look out for those handsome deals!
These are 4 mistakes, but there’s countless more! Just keep calm, and be Credit Smart.