In today’s time, using credit cards has become common, but it is very important to use it properly, so that your CIBIL score is not affected.
1. Correct use of credit limit
Always spend 30% or less of your credit limit.
Example: If your credit limit is ₹ 1,00,000, do not spend more than ₹ 30,000.
Spending more than 30% can reduce your CIBIL score.
2. What to do if you have to spend more?
3. It is necessary to pay on time
Pay the EMI or credit card bill on time.
Late payment has a negative effect on the CIBIL score.
4. Get the incorrect information correct in the CIBIL report
Many times your CIBIL report may record old loans or misinformation.
In such a situation, go to the official website of CIBIL and request to improve the report.
5. Use only for needs
Use credit card only for essential things.
Avoid unnecessary expenses, so that the burden of interest does not increase.
conclusion
Using the credit card properly helps you maintain a good cibil score. Limited expenses, timely payment and improving wrong information will maintain your financial health.