The Threat of Debt Spiral

The Threat of Debt Spiral

The difficulty with credit card practice arises when people twitch assuming that they can pay for the purchases later on. The additional disposable cash leads to a incorrect sense of financial security particularly in these times of disrupted cash flow and income losses. Eventually, if you are unable to pay the bills in full and roll the outstanding amount into the next cycle, credit card interest rate will be applicable and it can go as high as 42% per annum….

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How to Take a Loan on Credit Card?

How to Take a Loan on Credit Card?

Typically, loan on credit card is obtainable on a pre-approval basis. Your credit card provider will inform you via SMS or email when you become eligible for a loan on your credit card. The maximum amount of loan that you can avail will also be communicated. To apply for a loan against credit card: Call the credit card provider’s customer care department Log in to your online banking portal and apply online If you have not received any such communication…

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How Much Time do you have to activate your Credit Card?

How Much Time do you have to activate your Credit Card?

In order to be able to use your card at POS machines, you should activate it as soon as possible using any of the methods that the bank offers. But if you have been caught up and could not activate it immediately, there is no need to worry. Mostly, there is no time limit to activate the card unless your bank has specified otherwise. However, the OTP sent to your number will be valid only for a limited period as…

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Bill Payment Terms and Conditions

Bill Payment Terms and Conditions

It is tremendously vital to pay your credit card bills completely and in full. And to do that, you must be well- familiar with a various terms and conditions that you can also find on the credit card MITC document. Billing Cycle: It is the 30 to 45 day time-frame depending on the creditor, for which you will be billed every month Statement Date: Also called as the billing date, this is the date on which your statement will be…

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Fees and Charges on Your Inactive Credit Card

Fees and Charges on Your Inactive Credit Card

You would be annoyed at the thought of paying fees on a card you have never used but the terms and conditions laid down by the bank would require you to do so. When you apply for a new credit card, you agree to the terms and conditions related to the said card. This also includes the joining fee and annual fee. So, if the card carries an annual fee, you will owe the same to the bank every year,…

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How is the Credit Card Annual Fee Charged?

How is the Credit Card Annual Fee Charged?

The annual fee that the credit card provider charges are unlike any interest payment you might sustain on your account. The annual fee is usually charged in a precise month of the year more usually on the subsequent month of your credit card opening anniversary or at the very initial of the calendar year or depending on the norms set by the creditor. On the other hand, some credit card providers divide the fees and assess them monthly to lessen…

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How Credit Cards Benefit Your Finances in COVID Phase?

How Credit Cards Benefit Your Finances in COVID Phase?

EMI Conversion Facility– Since a number of people are fronting cash flow issues, making purchases on EMIs could be a wise decision instead of paying in full and then making a partial payment. If you are unable to pay off your balances in full, you can get the same converted into EMIs too. No-cost EMIs on select items– Despite the lockdown, ecommerce websites are still offering no-cost EMI option on select items when you make the payment using your credit…

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Your Score Is Less Than 700. Now What?

Your Score Is Less Than 700. Now What?

Check your credit score yearly, at least to avoid surprises. And no, your credit won’t take a blow if you do this – it is considered a soft inquiry. If your credit score is lower than 700 then you should dig deep in your credit report and find out the reasons for bad credit score. Look at your credit card balances and credit utilization ratio. The closer you are to hitting your maximum limit, the more it may lower your…

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What Types of Information Can Impact Your Credit Scores?

What Types of Information Can Impact Your Credit Scores?

The two most crucial factors that affect your credit score is your repayment of the loan and how timely you pay your EMIs and card dues. If you are a month late in paying your dues, then your credit score might drop by 80 points. Next up is credit inquiries. They can affect your credit score in a major way. Typically, there are two kinds of credit inquiries, one is the soft inquiry and the other is hard inquiry. Soft…

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Ways to Rebuild Your Score

Ways to Rebuild Your Score

To get back on track and raise your credit score, you have to be vigilant about the following things: Make it a point to repay your debts and dues fully in time. A part payment specifies that you have hitches in repaying but no difficult in borrowing. Thus, do not let your outstanding debt snowball. Consider taking a personal loan to repay your outstanding credit card dues. This way you will get rid of a compounding interest and end up…

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