Credit cards: Ensuring a low credit score doesn’t affect your application

A credit card offers you the perfect opportunity and flexibility to make any financial expenditure. Additionally, it offers you the opportunity to borrow funds from the bank or financial institute, wherein which, you can repay it back within a fixed period. However, when it comes to applying for any of the credit cards, there will be certain factors you need to consider. One of these factors includes your credit score. But how does it play a role in your card application?

For one, you might be in for a rude shock, if you find that your application had been rejected, or card rates that are unaffordable. This is where the credit score will come into play.  Your lender will take into consideration your credit score, the basis of which, the appropriate card rates will be provided. If your credit score is low, there is a high chance that your application will be rejected, or you will get card rates that go beyond what you can afford.

While the acceptable limit for a credit score is 650, a score higher than 750 will help you get a better credit card rates. If you think your score is lower than the above-given rates, here are few steps you can take to ensure that your card application is approved right in the beginning:

Check to see if your repayments match: The first factor you need to check is your repayment history of any financial products you have borrowed. In other words, if you have applied for a loan or any other financial products that include borrowed funds, you need to check the repayment history. The reason behind this is that the details of your credit score will come mainly from your lender. If there are any discrepancies in your repayment history, your lender will normally send it to CIBIL. Therefore check to see if your repayment history is matched along with the lender’s to eliminate any possibility of inconsistencies. In the event there are, you can take the appropriate steps to change it.

Repay all current debts: While your repayment history can affect your credit score, so can your current debts. That is because any debt you take on, you will need to have the ability to repay it back. Your credit score indicates the amount of debt you current have, and whether you have repaid it or not. Taking on any additional credit cards is equivalent to taking on additional debt, whether you use it regularly or not. So to improve your chances of getting your card application approved ensure that all your debts are paid off. If you can’t pay off the major debts, ensure that the smaller ones are paid off. Once your debts are paid, ensure that the lender’s system is updated before you begin the application process for the card.

What are the factors that determine the best credit card in India?

The concept of having convenient access to a large sum of funds can often terrify a person or even overwhelm them with self-indulgence. A credit card, for that matter, is the perfect tool that allows individuals to purchase products of large sums on borrowed funds from the bank or financial lender. However, at the same time, the credit card user will also need to repay back the borrowed funds, albeit with an added interest after a particular period.

However, with the right financial responsibility and the ideal credit card, you will be able to make financial expenditures that are financially viable to you. While the financial responsibility lies on your habits and decisions, choosing the right credit card needs careful consideration, especially with all the credit card factors offered by the lender. Here are some of the important factors you should take into consideration when choosing the best credit card in India:

Interest rate:

If not the most important, is the most imperative factor that needs to be taken into account when opting for a credit card. This interest rate, also known as the annual percentage rate in the terms of credit cards, is the rate of interest charged to the credit card on an annual basis. This charge is calculated on a part or full portion of the unpaid balance. Before applying for a credit card, always check the interest rate offers along with the possibility of hidden costing.

Credit card limit

The credit card limit on a card determines the maximum amount the lender will let you borrow on a single card. This limit is decided based on your income, assets, and current credit score. When applying for this credit card, you must ensure that your limit isn’t too high, as exceeding the limit can incur a penalty for extra expenditures.

Fees and penalties

A credit card comes with a variety of fees and penalties, which differ on the lender. Some of the fees that are included with a standard credit card include annual fees, joining fees and late payment amongst many others. You should also be aware of hidden fees, by diligently going through the credit card terms before applying for it.

Incentives and rewards

Apart from other factors of a credit card to consider, rewards and incentives are two factors you can look forward to. The best credit card in India do come with plenty of these programs, but it depends on the lender that is providing you with the credit card. The best way to make the most of these incentives and rewards is to opt for a credit card that matches your lifestyle. You can even ask your lender for an upgrade after a certain period.

Why should you use your credit card for online transactions?

Banking cards are a great convenience in today’s day and age. One of the main benefits of these cards is that it can be used for cash payments as well as cashless ones. However, amongst the different banking cards, the credit card has proven to be the most favorable one. It is used as a vehicle for both online as well as offline transactions, making it one of the most convenient tool. Here are different reasons as to why this makes a noteworthy tool for your online transactions today:

Get cash back and rewards for every transaction:

One of the main features of the credit card is usage of borrowed funds. Most credit cards provide you with a fixed days of not more than 45 days to pay of any incurred expenses. However, while you may use the borrowed funds to make a purchase, at the same time you ca get cash back offers on selected purchased items. These offers allow you to make purchases on a wholesaler’s price, which is the best solution for those who want to safe funds. At the same time, your card will also allow you to earn credit points, which can be later redeemed for other items for free.

Online purchases, payments and fund transfers:
Plenty of e – commerce websites have been coming up over the last few years, providing you with several opportunities to shop online for clothes, travel trips, accessories and other similar products. By using this card, you can purchase these items, especially if there is a great deal on offer. You can even use your card to pay bills, without requiring you to leave your home or workplace. With such online payment methods, you bills will be paid in mere minutes rather than in hours as it would take through the traditional route. You can even use your credit card to fund transferred from one location to another. You can even use this form of transfer for local transfers or international transfers.

Opt for customized cards:

Financial habits often reflect the financial needs of the individual. Therefore, not all generic credit cards will suit your financial needs completely. This is when you can apply for credit cards that are customized to suit your needs financially. These cards offer better rewards and discounts. Based on your income, your spending habits and your current debt, you can easily apply for any credit card that will suit your needs to perfection.

This form of plastic money has made all our lives considerably simple. Additionally, using the automated ECS transfers, you can simplify it much more. Through this card, you can avail numerous banking services, without visiting any financial institute.

Online mobile recharge: Steps to getting an instant mobile recharge

Owning a prepaid mobile connection will offer you plenty of benefits. For one, you can make any phone calls, send messages or even surf the net through your connection. All this can be done if you have sufficient balance on your phone. However, once your balance is finished, you will need to get the required recharge in order to access the above activities. Here is how you can go about getting an online mobile recharge today.

Step 1: Choose a good and reliable recharge website

Today you can find plenty of sources that can allow you recharge your phone. One option that is available is the banking website. All you need to do is log online and make the transfer from your bank account to your mobile phone. Alternatively, you can log online your mobile network carrier’s and make the required transfer. Apart from these two options, you can also access the third party websites that offer online mobile phone recharges as a part of their offerings.

Step 2: register with an account

Most of these options allow you to get the required recharge without the needs to register an account. You can directly give your recharge requirements, phone number and mode of payment to recharge your phone. However, getting an account on any of these websites will provide you with a lot of benefits. Through your account, you can get access to the best deals or even customized discounts on the online mobile recharge you use. Additionally, you will have access to different means of making the required payment such as credit, debit or net transfer from your bank account. In order to create an account, you will need to submit minimal details such as your name, financial details and you mobile number. Once you finish the process, a verification process will take place wherein a code will be sent through an SMS to the registered number.

Step 3: Enter your recharge domination

Once you have finished registering your account, you can opt for the recharge domination you require. In the case of recharging your phone through the bank account, you can put in a fixed recharge domination. However, with the mobile network carrier and the third party website you will have plenty of recharge options you can consider. You can check out the different offers and recharge options available provide by your network provider. Once you have chosen the required recharge option, you can choose the mode of payment through the credit, debit or online bank transfer. Once the transfer is successful, you will get an alert.

There are plenty of benefits to this form of recharge. Through this process, you save a lot of time without the need to depend on others for a recharge. Additionally, you can make these recharges anytime you require it, especially during the day.

Why millennials should opt for credit cards today

Banking tools such as the credit card offer plenty of financial benefit especially for those who are earning. These benefits can go a long way to help you build and furnish your financial profile, which in turn, allows you to opt for other financial products as per your need.

However, the benefits of this card can only be taken care off, if one opts for it. However, a large fraction of the working employment industry, that comprises of Gen Y also known as millennials are failing to utilize these benefits of a credit card to apply for. Although these credit cards do have their share of risks, completely ignoring them can also be detrimental the financial wellbeing in the long run. Given below are certain aspects of the credit card you should take advantage of in order to set up the future:

Credit cards are the best way to build a credit history:

No matter how much you will earn, there will be a time where you will need to rely on loans to satisfy your financial requirements. But in order to be eligibility for the best of the loan rates, you will need to have a credit history to support your application. Most banks and financial institutes are becoming stringent with loan applications. In other words, if your credit history is not up to mark, you risk getting a loan application rejection. Surely, at a young age, factors such as purchasing a home or opting for an education loan for your child may seem far distant. But when the times come, you realize you may not have the required financial profile to get the best rates for these loans. With the right awareness, you can start building your credit history as early as possible. You can take advantage of this benefit when you opt for a credit card to apply for.

Save more with credit card rewards:

Young adults who are looking to save more funds can always benefit from using a credit card that specializes in reward systems. By opting for this type of credit card, you can collect points, miles and cash back for your daily expenditures. These features can also be used whenever there is an urgent requirement for a particular product or service, wherein you don’t have enough funds. Opting for a credit card that is tailored to your specific need will do the trick. Opt for a card that will suit your financial spending profile while offering you the highest possible returns.

Credit cards may seem like a huge responsibility even for young adults who are just making their way into the real world. Keeping this mind, plenty of financial institutes and banks are offering credit card offers and deals with the highest transparency features that ensure you get the best of rates to suit all your financial needs.

How to use credit cards to boost your low credit score?

Credit cards are a great way to manage your finances, especially if you have multiple expenditures. However, in today’s financial industry, plenty of financial institutes are rejecting credit card application based on the applicant’s poor financial history.

However, all is not lost. Although you may possess a bad credit score, there are ways and means you can still get this credit card. One way to do so is by opting for a secured credit card. A secured credit card is provided to applicants who provide a collateral of equal value. In most cases, it is a termed deposit.

In this case, most banks and financial institutes will offer a credit limit which is up to 85% of the amount stored in the termed deposit. In the event you default on your card payments, the amount in your termed deposit will be seized. During this time, the termed deposit will continue to earn interest like a normally termed deposit.

Who should opt for this credit card?

For those who possess a low credit score or even a low credit history, this card is the best option. Additionally, those who are currently self – employed or unemployed can also opt for this card. Individuals who also do not match the income criteria of certain banks can opt for this type of card. Applicants who also reside in a blacklisted area or address can use this card. This also works for a company that has been blacklisted by banks or financial institutes.

What is the advantage of this type of credit card?

There are plenty of advantages of possessing this type of credit card. They include the following:

• An applicant can use it to improve one’s credit score. By using this credit card on a regular basis with timely repayment, the credit score of an applicant will improve over time
• Bad history is as valuable as no credit history. If you are not part of the credit score system, secured credit cards are your way in. Although possessing a bank account with a debt component will improve your financial profile, a credit card will go a long way. Eventually, you can apply for a loan with the required loan rates you want.
• Although you may put up your termed deposit as collateral, you will still continue to earn interest. In this way, your investment is still secured while improving your financial profile.
• A secured credit card is a better alternative to liquidating your termed deposits in the event you need emergency cash.

You can also increase your credit limit for your credit cards, to a better rate. Depending on the collateral value you provide, you can get a higher rate of credit limit that what a bank would provide you on a normal card.

How to make the most of your credit card rewards

Certain banking cards like the credit card aren’t only designed to make transactions convenient. With the right strategic decision, you can use it to reap valuable rewards and perks. Some of these rewards you will not get with physical cash.

Here are a few tips that will help you make the most of the rewards you generate from your credit card.

Opt for reward credit cards based on your lifestyles

Every individual has different financial requirements. Therefore, a standard reward program would not benefit every individual. In this case, you will need to see how much you spend on different categories. For example, if you shop at a particular retailer, you can use certain credit cards at these places. This is also applicable for online shopping and frequent travelers amongst many other categories. In these cases, you can apply for rewards that will get you extra reward points that can be redeemed for items in the same category. Alternatively, you can also get other forms of rewards such as free hotel stays of companion plane tickets.

Opt for cash back shopping portals

Anytime you shop online, you will earn certain features such as extra points, miles or cash back. What no many individuals don’t know is that your credit card bank has its own shopping portal. Through this, you can start your shopping spree, especially through certain cash back sites. Cash back sites such as Cashkaro, LafaLafa and Gopaisa will offer you great cashback rewards anytime you want to shop.

Know your reward categories

Not many are aware that there are different reward categories for a credit card. As mentioned previously, each individual often possesses a different financial requirement. Therefore, if you are collecting reward points during your expenditures, you must check the different reward point categories you are eligible for. In this way, you can ensure that you get the most of your expenditures in terms of your reward points.

Drop the annual free

Certain reward credit cards often charge annual fees. Credit cards such as the travel reward cards are one such example. Although the benefits of these cards are worth it, it would be double the worth if you manage to waive the annual fee. Do contact you credit card bank to know the ideal process to waive your annual fees.

Apply for a credit card during the biggest bonus periods

It is not uncommon for credit card companies to offer to sign up bonuses to those who are applying for credit cards. These sign-up bonuses can be worth thousands. When you time your credit card application at this time, you can make the most of your bonus sign up, especially against the normal sign up bonus.