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 for your credit score. However, if you are struggling to maintain an ideal credit utilisation ratio, you should follow these tips.

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History of this topic

What is a credit card limit and why is it crucial for your finances?
2 weeks, 6 days 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, …

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 …

How to use credit cards efficiently without falling in a debt trap? Key tips to remember
2 years, 7 months ago

How to use credit cards efficiently without falling in a debt trap? Key tips to remember

Live Mint  

Soon after you get your first salary, you might want to get access to money on credit to be able to buy beyond your immediate means. For instance, if your credit card limit is Rs 3,00,000 and credit expenses amount to Rs 2,50,000 – then you would exhaust 83 percent of your credit limit. Instead, if you raise the credit …

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