Credit Card : All the information about credit card 2022


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We are going to discuss credit card

  1. What is the benefit of having a credit score over 800
  2. How to get offers on credit card EMI:5 Best tips
  3. All about  minimum payment on credit cards

Most of them are taking the help of the loans to address some key necessities in life like purchasing a home or car or addressing an emergency.

There are different types of loans available to address the different needs of the people.  Whether you are taking the loan to purchase a home or car and it can provide financial aid to tackle some emergency in life, lenders need your credit score to determine your creditworthiness before applying for the loan.

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The current article lets you know why the lender looks at your credit report to determine your creditworthiness to approve the loan.

The highest credit scores are FICO 8, FICO 9, and FICO 10. This score is given to those who have been paying their bills on time for a significant period and have no adverse information on their credit report.

In general, these credit scores will be based on your payment history, as well as your balances and risk history.

It is important because it helps determine how much access an individual has to finances and other opportunities, such as buying or renting a home. Learn more about the importance of credit scores in Canada.

It is important because it helps determine how much access an individual has to finances and other opportunities, such as buying or renting a home. Learn more about the importance of credit scores in Canada.

What is the benefit of having a credit score over 800

Classification: Credit Score Classes

Credit scores range from 300 to 850, with higher numbers generally indicating better credit histories. For example, a score of 700+ is considered excellent.

There are many reasons why it is important to check your credit score. First, you can ensure that your credit is in great standing and you’re not paying more than others for the same thing.

For example, if you check your credit score and it shows that you have a lower score than someone with similar financial characteristics, then there may be some discrimination going on and this should be reported immediately to the proper authorities.

Second, checking your credit score regularly can help you in dealing with lenders and creditors in the future. It’s important to show that you’re in good standing with your debts, and also with the financial system generally. This is often done by presenting references, meaning that you’ve been in good standing for a significant amount of time.

Why is your credit score important?

A credit score is important for several reasons, but the most common is to help you get a loan. The higher your credit score, the higher your chances are of getting a loan from a bank, without paying too much interest or fees. Think of it as a guarantee that you’ll be able to pay back your debt.

However, if your credit score isn’t so hot, you could have trouble getting any kind of loan. Even if you have good intentions to pay it back, bad credit can mean being denied for certain loans altogether.

In this sense, it pays to get a good credit rating before borrowing money or applying for any other line of credit. Here’s a quick overview of why it’s so important to know your credit score and keep it in good health.

  1. Easier loan approvalsIf you want to buy a house or buy a car, having good credit will make it easier to get approval for the loan. A good credit score can convince lenders that you’re trustworthy and can be relied on to pay back your loans, while also keeping your interest rates low. However, if you have bad credit, it’s more likely that your application will be denied.
  2. Avoiding fees- If you don’t get approved for loans because of your bad credit history, you could end up paying high-interest rates when accessing short-term financing options like payday loans or cash advances.
  3. Better credit means better interest rates-The lower your credit score, the higher the interest rates you’ll pay. This is why it’s important to keep your score as high as possible. The higher your FICO score, the better the interest rates you’ll be offered for loans, mortgages, or even credit cards.
  4. Easier rental approval-If you want to rent an apartment or a house, several landlords require that you have good credit history before accepting your application. Even if this isn’t stated in their contracts, many landlords are more inclined to accept potential tenants with good credit history over those with bad scores.
  5. Keeps creditors at bay-It’s common for creditors to threaten debtors with legal action if they fail to pay back debts on time. However, if you have a good credit history, creditors are less likely to take legal action against you for late payments.

  6. Protecting your identityHaving a good credit history keeps your identity safe from thieves because it’s hard for them to open new accounts in your name when they see that you have a reliable credit history already. Credit monitoring services go over information from credit bureaus regularly to help ensure the security of their client’s identities.
  7. Motivation to save money– Having a good credit score encourages responsible spending habits, since people are less willing to spend more than they can afford when they know that their spending will be listed on their report. Bad spending habits are harder to change once you have a bad credit rating because creditors will be less willing to work with you.

credit card infographic

Conclusion- Credit Score Matters

In conclusion, your credit score is extremely important. It will represent the amount of money you have access to, as well as the opportunities you have as a result of it. In general, good credit history is seen as a positive thing.

Having a high credit score can mean that you will be able to get financing much easier and at much lower interest rates. However, if your credit score is less than desirable, there could be a lot of things going on that could prevent you from getting approved for certain services and loans.

A credit score is very important for your financial life.

It’s worth noting that there are times when you should use cash instead of credit. If you’re making a large purchase, it might be better to pay cash upfront if the price of the item is more than its sale price over time.

Credit cards offer rewards, but if you can’t repay your debt on time or at all, paying with cash might help you avoid punishing interest rates.

Though if you are dealing with low credit scores issues, and want financial help, then, you can consider getting help from the best finance lender and get the best help from them for the same. 

 Credit report

This is a great handy tool for the lender to determine the creditworthiness of the borrower before approving the loan.  An impressive credit score will increase the chances of getting a loan. Here is how your credit score will determine your creditworthiness.

Payment history

This is the major component of the credit report that determines your creditworthiness. If you are prompt in the repayment of EMIs and payment of the credit card bills,  it will have a positive impact on the credit score, and it will surge up.

On the contrary, if there are delayed or missing payments of credit card bills or loan EMIs, it will negatively impact your credit score. By this, the lender will be able to analyze your creditworthiness in repaying the loan on time.

Un serviced debt

Due importance is given to unserviced debt when the lender is going o sanction the loan. If you chuck off unserviced debt like several loans or outstanding bills on various credit cards, it is going to impact your credit score negatively.

On the contrary, if the loans in your account are less than the income you generate and you have no credit card bills pending, you will have a positive impact on your credit score.

This will let the lender know your creditworthiness as he will be able to analyze the risk of defaulting the loan before it is approved.

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Extended credit will have a positive impact on your credit score. As long as there are no dotted lines about the mismanagement of the loan, it will undoubtedly contribute to raising your credit score to more than satisfactory levels.

Credit mix

A credit score is also impacted by the credit mix you have. The lender needs you to have the right credit mix in different categories of credit. Though it is not going to bring a huge difference in your credit score, having the right mix under various sections of credit will long way in providing your creditworthiness to the lender when you apply for any loan in the future.

When you have good creditworthiness,  the lenders are more interested in offering loans to you. You can even get the loan at lower interest rates when your creditworthiness is good.

A credit score plays a vital role in determining your creditworthiness, which is essential for the lender to approve the loan.

How to get offers on credit card EMI:5 Best tips

Use Credit Card EMIs to Fetch the Excellent Offers during the Festive Season

A credit card is a manageable debt available to customers when they are looking to spend beyond their means. An excellent feature of the credit card, “use now pay later “makes It a dear option for everyone to conduct digital transactions.

Unlike other means of digital transactions that insist you have money in the account, credit card usage will no longer need you to have cash in your account to conduct a transaction so, it is known for increasing purchasing power of the user.

However, you are ought to repay the credit card bill every month, missing the repayment of the bill penalize you with huge interest rates. A good alternative to address this scenario is to convert your outstanding bills into EMIs.

There are many benefits of converting outstanding bills of the best credit cards into EMIs, let’s discuss them further.

Easy repayment option during a cash crunch

Repayment of credit card bills during times of cash crunch is the biggest hurdle that anyone will face. Rather than missing the repayment of the credit card and being hampered by a late fee, you can easily convert the outstanding bills into EMIs.

Converting outstanding bills into EMIs will help you manage the credit card bills easily as the total outstanding credit card bills are now paid in small monthly equated installments.

Cutting down interest outage

When you miss the payment of the credit card bill, you will be liable to pay huge interest on the outstanding amount which stands somewhere between 1.5% to 3.5%.  Converting the outstanding bill into EMIs will reduce the interest outage.

It is important for you to know the late payment fee of different cards and Compare and apply for a credit card online. Converting the outstanding bills into EMIs will reduce the interest on the credit card balance helping you to repay the outstanding amount quickly.

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Improve Your Credit Score

Irrespective of holding the best credit card in India, your credit score will be impacted if you don’t pay the credit card bill on time. Converting credit card bills into EMIs makes it easy for you to pay the bill on time. Not only it give you comfort in repaying the bill, but it also improves your credit score greatly.

No Loan Approval Required

All the credit cards that are available online do not provide an EMI conversion facility; you should check for this feature Compare and apply for a credit card online.

If your current credit card is not offering this EMI conversion option, you can transfer the balance to the best credit card in India that offers an EMI facility.

Unlike other loan products which need approval from the lender, you can easily convert outstanding credit card balance into EMI if the option is available.

Attractive Online Offers

Most of the best credit cards in India tie-up with the retailers that offer attractive discounts on converting the credit card purchase into EMI, the discount you receive on the product will subside the interest you pay on EMI conversion.

Additionally, you will enjoy the convenience of repaying credit card bills in easy installments.

All about  minimum payment on credit cards

You might have elders suggesting that you should not borrow money to enjoy luxuries, and should restrict your needs to your income levels. Today’s scenario is completely different, banks have come up with different loan products and tempting offers to encourage people to buy something even when they don’t have cash in hand.

As the lending institutions are giving you an option to repay the loan amount in monthly installments, this is considered the most feasible option by many people in the country.

Crashing the temptation of the loan products entering the credit cards into the market,  these credit cards offer interest-free credit for a short interval and have become the most desired option to transact in the market.

Credit card

As the name suggests, the user is provided with interest-free credit up to a certain limit till the due date. The credit card’s billing cycle is 50 days in most cases, and you are liable to pay the used amount without fail on the due date. Failing to do so, will attract penalties in the form of a high rate of interest rate.

When you try to pay a credit card bill on the due date, you will be an option to pay the amount in full as well as minimum card payment.

It is advisable to pay the complete bill, however, the option to pay the minimum due should be considered in rare cases.

Here are a few reasons why paying the minimum due on the credit card bill is not advisable.

It will sink your credit score  

It is okay to use the option of the minimum payment due on rare occasions when emergencies crop up. If you make it a habit to make minimum due payments regularly, then it may sink your credit score. Paying the minimum due every month will harm your credit score because 30% of your credit score is determined by the outstanding bills you have on the line.

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Inflate your monthly bills

The minimum payment on the credit card dues just constitutes 3% to 4% of your credit card due. Paying the minimum due will push the outstanding balance to the next billing cycle and your credit card bills get inflated and become difficult to manage as the high rate of interest is charged on the outstanding bills.

Managing the credit card turns out to be a burden 

Leaving the credit card bills unpaid is the biggest mistake that one should avoid in life. Credit cards come with a high rate of interest of 20%- 24% and it will be difficult to manage these credit card bills.


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