Many of us consider credit cards as a simple solution when we are short of money, we just pull out the card and the job is done. But this same card, if used wisely, can give a new direction to your financial life. It not only fulfills immediate needs, but also gradually builds a credit score that makes it easier to take loans in the future and also gives you better interest rates.
But if you are even slightly careless like forgetting to pay the bill or spending more than the limit then this same card can become the reason for your tension. Therefore, it is important that we use it as a responsibility and not as ‘free money’.
Nowadays, a credit card is not just a payment tool, it is the key to your financial health and future loans. But did you know that a small careless step can spoil your entire credit score?
If you want your score to be 750 or above, then start adopting these things. These tips are no less than those of a financial expert—these are things tried in real life, by adopting which you can not only improve your score but also become a responsible borrower.
1. Do not forget to pay the bill and try to pay it in full
Do not take the last date of bill submission lightly. Late payment not only attracts late fees, but also stains your credit history. Try to pay the entire bill every month, not just the minimum payment. If you are prone to forgetting, then definitely turn on the auto payment option.
3. Don’t exhaust your credit limit
Even if you have a limit of Rs 1 lakh, try not to spend more than Rs 30,000 a month. This habit is called keeping credit utilisation low and plays a key role in improving your score.
Remember, lower utilisation = more loyal customers.
3. Don’t close old credit cards
Many people think that closing an old card will make things easier. But in reality, your long credit history is what makes your score strong. If there are no charges on the card, keep it active, even if you are not using it much.
4. Make sure to check your statement every month
Sometimes double charging happens by mistake on the part of the bank or merchant, or someone may have committed fraud. If you don’t pay attention, even a wrong entry can lower your score. Take out 2 minutes every month to check your list of expenses.
5. Keep an eye on the ‘health’ of your score
Credit score should be checked every few months on platforms like CIBIL, Experian. It is like a health checkup. If there is a sudden drop in the score, it is important to know the reason.
6. Have multiple cards? Track EMI or auto debit
If you have more than one credit card and you have taken EMI on any of them or have a subscription like Netflix, then it is very important to pay it on time. If you miss it, it will have a huge impact on your score.
Pro Tip: Note down all the cards and due dates in an Excel sheet or diary.
7. Avoid taking more cards than you need
Hey, I am getting it for free, why not take it? – so this thinking is dangerous. With every new card, your credit history and checks increase, which can reduce your score. Keep as many cards as you can manage.
Summing up…
Credit card is a convenience, but it is also a responsibility. If you follow some basic rules, then it is not difficult to take the credit score to 750+. A good score can not only get you easy loans, but also make your financial decisions strong.
