credit card
If you work anywhere, you must be getting calls from credit card companies with offers 2-3 times a week. Credit card usage is increasing rapidly in the country. There is a lot of craze for it among the youth. Credit cards give you the freedom to shop freely. People are making huge purchases with credit cards on both online and offline platforms. Some people even pay their utility bills through credit cards. Nowadays many such third party apps have come, through which people transfer money to themselves in the name of house rent, maintenance fee or education fee payment.
People are also trapped in debt trap
Credit cards are fulfilling people’s financial needs, but a large number of people are also getting trapped in the debt trap. The habit of continuously making big purchases through credit cards and transferring cash to oneself increases the debt. Many times people have to pay credit card bills by taking personal loans. All this spoils the credit score of the customers. Let us know what percentage of your credit card limit you should spend, so that your credit score does not get spoiled.
how much to spend
If you are using credit cards excessively, your credit score may drop. Ideally, you should use 10 to 15 percent of the credit card limit. Spending more than 30 percent of the limit can make your credit score stable or deteriorate. For example, if your credit card limit is Rs 1.5 lakh, then you should not spend more than Rs 45 thousand from it every month. Also, keep checking your credit score from time to time. Closing your old credit cards can also hurt your credit score. Old credit cards mean that if you have not been managing your credit for a long time, your credit score gets affected.
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