Arjun MukopadhyayAsked on 5 February, 2019
What is a credit report?
Credit score, which represents one's ability to repay, is crucial for getting approvals for loans, credit cards, or other credit requests. This score is based on one's "credit report" prepared and maintained by credit bureaus. After a person takes a loan/credit card, the bank/lender periodically reports the individual's credit activities to credit information companies or bureaus that collect information and maintain "credit reports".
Hansika RodriguesAsked on 5 February, 2019
What are the advantages of having a good credit score?
Individuals having good credit scores can enjoy various benefits. They may have an advantage over others while availing credit from lenders such as faster loan sanctioning, lower interest rates, prepayment charges and processing fee waivers, and ease of getting new credit cards.
Pari SenguptaAsked on 5 February, 2019
Why is high usage of credit limit bad?
High usage of credit card limit results in high credit utilization ratio, which is bad for the cardholder's credit score. Credit utilization ratio is the percentage of the total available credit currently being used. Credit reporting agencies use this ratio while calculating an individual's credit score. Higher credit utilization ratio indicates the borrower's credit hungry behavior, which impacts the credit score.
Sai BanerjeeAsked on 5 February, 2019
What are some credit card mistakes to avoid?
If not used wisely, credit cards can be a huge burden. Here are some mistakes to avoid: Having too many credit cards; they increase expenditure. Paying only minimum due amount instead of focusing on clearing the outstanding balance. Defaulting on bill payment and high credit utilization. Withdrawing cash using credit card; it attracts very high interest. Ignoring monthly statement and blindly pay the bill.