How your credit card limit affects your credit score—And how to maximize it
2 weeks, 6 days ago

How your credit card limit affects your credit score—And how to maximize it

Live Mint  

In India, the know-how of your credit card limit is critical for maintaining a healthy credit score. A high credit limit can benefit your credit report by keeping your credit utilisation ratio low i.e., the ratio of total available credit you're using. That is why it is crucial to always keep your credit utilisation ratio to as low as possible, preferably lower than 30% of your total credit limit. Effects of low credit limit Simply put, a low credit limit is not healthy for your credit score and your overall credit report. Therefore, by knowing the underlying impact of your credit card limit on your credit score, and following the above given guidelines, you will be able to make smart decisions that improve your financial standing.

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History of this topic

How does the usage of credit card affect your credit score? An explainer
1 month, 3 weeks ago

How does the usage of credit card affect your credit score? An explainer

Live Mint  

Using a credit card affects your credit score in a number of ways. The factors which determine your score include the payment history, credit utilisation ratio and the length of credit history, among others. You should pay your balance multiple times a month or ask for a higher credit limit to keep utilisation low. You can keep old credit cards …

Top credit card management tips to boost your credit score: Spend smart, stay secure and more
2 months, 2 weeks ago

Top credit card management tips to boost your credit score: Spend smart, stay secure and more

India TV News  

Credit cards have become an essential tool in today's financial landscape, offering convenience and flexibility. However, inappropriate use of credit cards can negatively affect your financial health, especially your credit score. Stick to 10-15 per cent of your credit limit Experts recommended using only 10-15 per cent of your total credit limit to maintain a good credit score. How to …

Credit card: How paying more than the minimum can save you money
3 months, 2 weeks ago

Credit card: How paying more than the minimum can save you money

Live Mint  

Credit cards are a great way to make smart payments and earn rewards and great offers on your favourite brands every time you make transactions from your credit card. Credit cards come with a feature of minimum repayment amount that you can use if you have a financial constraint and for some reason are unable to make full payment of …

Credit Cards: How do they affect your credit score and loan eligibility?
3 months, 3 weeks ago

Credit Cards: How do they affect your credit score and loan eligibility?

Live Mint  

Credit cards are a great way to save smartly on your transactions and earn exclusive rewards and discounts on your favourite brands. Credit cards may affect your credit history and also impact your credit score as well as your future loans. Aim to utilise only 30-40% of your credit limit to maintain a low credit utilisation ratio, which is vital …

What is a credit card limit and why is it crucial for your finances?
3 months, 4 weeks ago

What is a credit card limit and why is it crucial for your finances?

Live Mint  

Credit limits in credit cards greatly impact your money decision making. If you've never used a credit card before, you're likely to have a small limit initially, which you can increase by using it responsibly. Benefits of higher credit limit Better credit utilisation ratio: A bigger limit results in better credit scores because it decreases your utilisation percentage. In conclusion, …

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

Why is your credit score important and how will it impact your future?
Trending News
4 months, 1 week ago

Why is your credit score important and how will it impact your future?

Live Mint  

Your credit score is an important number that influences every aspect of your life financially. A high credit score tells lenders that you are not very much of a risk, which translates to more favourable loan terms and lower interest rates. Loan limits: A good credit score can also mean a higher amount to be loaned, helping you access more …

How To Improve Your Credit Score? Know Best Range & Bust All Myths Here
11 months, 4 weeks ago

How To Improve Your Credit Score? Know Best Range & Bust All Myths Here

News 18  

Improving your credit score involves building a history of responsible borrowing and managing your credit well. Improving your credit score, whether it’s measured by CIBIL or any other credit bureau like Experian or Equifax, is crucial for accessing favourable financial products and services. Keep credit card balances low: Maintaining high credit card balances relative to your credit limits can negatively …

Here's how you can increase your credit card limit for greater financial flexibility
1 year, 1 month ago

Here's how you can increase your credit card limit for greater financial flexibility

India TV News  

Here's how you can increase your credit card limit for greater financial flexibility Using your card frequently and making full payments on time can result in automatic increases in your credit limit by your bank. If you're considering this option, using your card frequently and making full payments on time can often lead to automatic increases in your credit limit …

Credit score vs credit report: The differences that matter
1 year, 6 months ago

Credit score vs credit report: The differences that matter

Live Mint  

Your creditworthiness, as evaluated by your credit score and credit report, holds significant importance when seeking loans or credit cards. The pivotal factors influencing your credit score encompass: Payment history: The foremost determinant of your credit score is your track record of timely payments. The precise factors considered in this calculation may vary depending on the credit scoring model in …

What determines your credit card limit in India? Here are 6 key factors
1 year, 7 months ago

What determines your credit card limit in India? Here are 6 key factors

Live Mint  

Credit cards have become an essential financial tool in today's fast-paced world, providing consumers with the convenience and flexibility to make purchases and manage their finances. Consistently responsible spending and timely payments may prompt the bank to increase the credit limit, as it reflects a lower risk of default. Credit utilization ratio The credit utilization ratio, which is the proportion …

How To Increase The Credit Card Limit And What Are Its Benefits
1 year, 8 months ago

How To Increase The Credit Card Limit And What Are Its Benefits

News 18  

There is a growing trend of using credit cards these days. 3. Credit Utilisation Ratio : The CUR states that if your credit card limit is up to Rs 2 lakh, out of which you have spent Rs 20,000, then your CUR will be 10 percent. You can request that the bank increase the credit card limit. Sometimes, seeing the …

Credit limit: Is it wise to use it to the fullest?
7 years, 3 months ago

Credit limit: Is it wise to use it to the fullest?

India TV News  

Credit limit: Is it wise to use it to the fullest? They say that using the credit limit completely results in high credit utilisation ratio thereby denting your credit score. ● Using maximum credit limit results in higher credit utilisation ratio The credit utilisation ratio essentially indicates how much credit you have utilised from the total credit limit. For instance, …

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