Did you know you can raise a personal loan to maintain a high credit score?
4 weeks ago

Did you know you can raise a personal loan to maintain a high credit score?

Live Mint  

If you are in urgent need of money and your credit card's limit is close to running out, you may consider raising a personal loan instead. Instead of exhausting the entire limit of this card and avoiding applying for another credit card at the eleventh hour, you can instead raise a personal loan. For instance, when your card limit is ₹12 lakh, and you have already used ₹6 lakh, then the credit utilisation ratio would be X = 50 per cent. Since a low CUR is essential for a high credit score, it is recommended to raise a personal loan when you need more funds than your credit card permits within a comfortable CUR range.

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History of this topic

Personal Loan: How does credit utilisation ratio influence loan eligibility?
1 week, 3 days ago

Personal Loan: How does credit utilisation ratio influence loan eligibility?

Live Mint  

A personal loan comes in handy when you need urgent funds as it does not require any collateral and can be utilised for multiple purposes. One such factor that has an indirect impact on your personal loan eligibility is the credit utilisation ratio. A credit utilisation ratio reflects the portion of credit you utilise from the available credit limit. Hence, …

Credit card: Should you ever use the entire credit limit? How does it impact your credit score?
3 weeks, 2 days ago

Credit card: Should you ever use the entire credit limit? How does it impact your credit score?

Live Mint  

If you use a credit card, you should remember that spending more than the ideal credit limit is not recommended. The ideal credit utilisation ratio is 30 percent. If your credit limit is ₹7 lakh, then as per the ideal credit utilisation ratio, you should not spend more than ₹2.10 lakh. A low credit utilisation ratio is typically considered good …

Credit Cards: Don’t make these 7 credit mistakes—Protect your financial future
1 month, 1 week ago

Credit Cards: Don’t make these 7 credit mistakes—Protect your financial future

Live Mint  

Your credit score is an important indicator of your creditworthiness, ability to repay loans, and overall financial health. Similarly, if you don’t pay the credit card outstanding on time, the high finance charges and interest rates on credit cards can derail your financial planning journey. Apart from helping you build or boost your credit score, credit cards can give you …

How can a simple ’Credit Utilization Ratio’ impact your borrowing power in India? An explainer
1 year, 4 months ago

How can a simple ’Credit Utilization Ratio’ impact your borrowing power in India? An explainer

Live Mint  

In the world of managing your money, there's something important you should know about – it's called the "credit utilization ratio." If you use a lot of the water in relation to how much you have, that's a high credit utilization ratio. A lower credit utilization ratio is typically associated with responsible financial behavior, contributing positively to your credit score. …

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