Credit Card Tips :

Your credit score plays a major role in getting loans and financial products. A strong score means better chances of approval and lower interest rates. One of the easiest ways to boost your score is by managing your credit card wisely. Here are four simple moves that can make a big difference.

Credit Card Tips :

1. Pay Bills on Time

Your payment history is the most important factor in your credit score. It makes up about 35% of the score. Always pay your credit card bill before the due date. Even one missed payment can bring your score down. To avoid this, set reminders or enable auto-pay. Paying the full amount instead of the minimum balance is the best approach.

2. Keep Credit Utilisation Low

Credit utilisation refers to how much credit you use compared to your limit. For example, if your limit is ₹2,00,000, try to keep spending under ₹60,000. Experts suggest staying below 30% of the limit. A lower ratio shows that you are not dependent on credit for daily expenses.

3. Do Not Close Old Cards

Many people think closing a credit card is a good idea, but it can harm your score. Closing an old card reduces your total available credit and shortens your credit history. Both can negatively impact your score. If the card has no annual fee, keep it active, even if you use it rarely.

4. Maintain a Healthy Credit Mix

Having different types of credit—like home loans, personal loans, and credit cards—can improve your score, provided you pay on time. Lenders like to see that you can handle multiple obligations responsibly.

Smart Tips for Better Credit Health

Always pay in full and on time, avoid applying for too many cards at once, and check your credit report regularly for errors.

Credit card usage in India is growing rapidly, making proper management more important than ever. These simple steps can help you build a strong credit profile and achieve financial stability.

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