Useful Beginners Tips for Credit Card Holders

Here are a few beginners’ tips that can prove useful:

- Pay the credit card bills on time. No exception.

- Mind your credit scores. If you feel your card details have been compromised, take it up immediately with the bank, which has issued you the card

- Pay your EMI regularly. Any default will damage your credit score and hence creditworthiness.

- Do not use too many credit cards.

- Avoid treating credit cards as easy money. This is the money you have to pay back with high interest if you make it a habit to pay only the minimum amount due every month.

- Do not buy unnecessary items just because it is available on zero credit and low EMI. Remember its money spent!

- Always try to increase your down payment when you take up a loan so that your monthly liability doesn’t eat into your savings.

Finally, credit doesn’t increase your purchasing power. It just brings future purchasing power to the present and gives you a false impression that it has increased.

Regards
Team The Equity Markets