Showing posts with label Credit card. Show all posts
Showing posts with label Credit card. Show all posts

Tuesday, July 12, 2022

What Rules Should You Follow When Using a Credit Card?

Photo by <a href="">Avery Evans</a> on <a href="">Unsplash</a>
Photo by Avery Evans on Unsplash

There are over 365 million active credit card accounts, and the average US household has $5,300 in credit card debt. Credit card debt isn't necessarily bad - even any type of debt should be managed carefully - there are several pros to having money on a credit card.

The amount of money a lender is willing to give you - otherwise known as a credit limit - will depend on your credit score. Your credit score is something you build up over time as you begin to take out credit, which is one of the reasons why a credit card is a good investment.

That soon changes if you don't follow the rules of owning a credit card. Below, we'll explore what rules you need to follow when using a credit card.

Rule #1: Pick The Right Card For Your Needs

There isn't a one size fits all credit card. There are different types of credit cards and offers available to people with the right credit score. For example, you can have a credit builder credit card, balance transfer cards, or low-interest cards.

Which card you select will depend on your needs. If you want a credit card to have some fallback money to rely on, a low-interest card or even a credit builder card would be wise. 

People with a poor credit score and looking to improve it should also look for a credit builder card. Chances are, someone with poor credit wouldn't get accepted for any other card.

Rule #2: Don't Miss Your Payments

Missing payments is a big no-go when bearing the responsibility of having and using a credit card. Missing your payments can result in detrimental damage to your credit score. 

To classify as a late or missed payment in the US, it has to be 30 days after the due date, which differs from countries like the UK, France, and Spain. In the UK, a late payment is recorded as soon as the day after someone misses a payment.

In the US, however, people have 30 days to try and find the money to pay the fee. The minimum payment is calculated based on the amount of money you've spent on the card and your annual interest rates - it's the minimum amount you must pay each month to avoid fees. 

If you're struggling to meet the minimum payment because you have multiple ones due at once, its easy to consolidate your credit card debt and bring everything into one payment. Follow the link for more advice.

Rule #3: Don't Exceed Your Credit Card Limit

Exceeding your credit card limit is a no-go if you want to keep your credit score looking healthy. Your credit card limit is given to you based on the amount companies think is safe to lend you. 

The first thing that's likely to happen if you exceed your credit card limit but pay it back straight away is a fee. A credit card balance in arrears for a prolonged period could lead to increased interest rates and or even rejection from future credit card applications.

The most common cause of an exceeded credit limit is failing to pay the minimum payment, which results in late payment fees, and then interest rates taking money from the account that isn't there. 

People that have reached their credit limit should take care to ensure there is enough money there to cover the monthly interest rate charges and the minimum payment.

Rule #4: Keep Your Credit Utilization Rate Low

Your credit utilization ratio is simply the amount of credit you're using. For example, if you have three different credit cards and two store cards equal to $10,000, and you've spent $1,000 across them all, you're only utilizing 10% of the available credit. As a general rule, lenders like people to use 50% or less of their available credit.

Credit scoring models favor people with a low credit utilization rate because they think they're doing an excellent job at not overspending and have better money management skills than someone close to or has exceeded their credit utilization. 

The lower your credit utilization and the higher your credit score, the more likely you'll be accepted for loans and credit cards with lower interest rates, and the more lenders will be willing to give you.

Rule #5: Only Spend What You Can Afford

A simple and conclusive rule - only spend what you can afford. Just because a credit card company gives you a specific amount; doesn't mean you need to splurge it. Any expert will advise that credit cards should either be for building credit by carefully spending small amounts and paying them off or as a last resort if money is short. 

The less you use, the less you'll pay in interest, and the smaller the minimum payments will be. Be wise with your spending and only spend what you can afford to pay back.

Credit cards are a lifeline. They're also not to be underestimated by not following the credit card rules. Careful spending and repayment are essential, as is understanding how credit cards work and the specific terms and conditions of your credit card agreement. 

How you use your credit cards will influence your credit score, and your credit score determines purchases like houses, cell phones, and cars.

Wednesday, April 13, 2022

8 Things You Can Do Today to Stop Stressing About Money

According to the APA (American Psychological Association), 72% of adults suffer from financial stress. Being anxious about finances is absolutely natural.

You will be thinking about it whether you have a lot of money or not. The stress could be related to rent, loans, savings, taxes, and much more. The financial stress makes you reconsider everything from crucial expenditures to occasional splurges. 

Whether you decide to spend money on groceries or decide to enjoy an exciting day in the escape room, it all leads to anxiety and stress. as well.

Monetary stress has too many downsides like poor sleeping habits, stress ulcers, decreased immunity, and depression, to name a few. Although advice cannot remove all the stress about money, some careful and quick strategies might come in handy while you are stressing about money.

1. Start a money journal

The first and foremost thing to do is to keep a journal. Any financial planning must start with a journal. According to a study, journaling your issues before getting into budget planning reduces stress by a lot. So, if you are stressed about your problems, put them down in words first. This will give you a clear idea of what your concerns are.

Next, go through the concerns one by one and categorize them based on priorities. For example, is your immediate concern paying off loans or balancing your credit score? Are you worried about emergency funds or retirement plans?? Note these concerns down from most important to least.

After categorizing them, make another list to break down the steps you need to handle the money accordingly. Finally, you can get down to business and start following your carefully laid down steps.

2. Plan a Budget

Planning a budget will reduce a lot of stress about money. This is also connected to journaling. Planning a budget will help sort your finances well. It will help you reanalyze a lot of expenses you make.

If you discover you are spending more than you earn or spending unnecessarily on something, budget planning is going to be your friend. Starting a budget will help you in tracking all those expenses and help reduce certain expenses so that you can save more or pay off those loans.

Start by fixing an ideal budget based on your earnings. Categorize your necessary and luxury expenses. Then you can carefully increase or decrease your input into different categories.

The best way to go is to download an app that keeps track of your budget and the expense you allotted to each category. Most of these apps will provide you with regular reminders and emails in case you fail to follow the budget.

3. Examine Your Accounts

When you are planning your budget, you must re-evaluate your expenses. And how to do that?? Look into your previous transactions. Sort them out into categories of necessity or luxury expenses. 

Monthly or yearly expenses should be sorted as well. You will be surprised by the number of people paying for subscriptions they forgot to cancel. So, take a look at your bank statements and transaction details from the last few months at least. 

Cancel the memberships or subscriptions you do not want anymore. Ask for refunds if some payments were made without confirmation from your side. 

Cancel any credit cards you were roped into getting. Be firm in your position and cancel all unnecessary expenses weighing you down. Confirm everything and keep all the receipts.

4. Close Old Accounts

Handling multiple accounts can be very confusing and lead to stress. So, closing an inactive bank account would be a wise idea. Having multiple accounts may also lead to an overdrawn account if you forget about it. 

An inactive account may also fall prey to fraudulent activities. So close any old account you do not use regularly or one you might not need again. Another task would be to set all your regular bills to autopay so that you do not have to worry about overdue payments.

5. Lower your bills

Try lowering some of your bills if you are too stressed about money. It will help reduce the immediate burden. According to Emily Guy Birken, author of End Financial Stress Now (2017), “Internet and cable service is an easy place to start because they’re used to be negotiated with,” so try lowering your internet or cable bill first. 

Try negotiating for a lower deposit or monthly rent if you are lucky enough to find an understanding landlord. If you have pending medical bills or similar social undertakings, try contacting the respective billing departments. If you are absolutely unable to pay certain bills, contact social welfare agencies.

6. Adjust Tax Withholdings

According to Emily Guy Birken, adjusting tax Withholdings at work will be one of the fastest ways of adding more money to your budget. Change your tax withholding status to a lower refund (if you do not already) to increase your regular paycheck.

For this, you need to talk to your organization’s HR department. They will be able to guide you through this process with additional help from the IRS (Tax withholding Estimator) calculator. The IRS calculator would be able to specify the changes you will need to make. Depending on your employer, the changes will start reflecting from the next paycheck itself.

7. Handle Your Credit Card Service

Contact your credit card provider for details about your credit score. A good credit score will benefit you while applying for loans or while managing old payments. Pay off overdue bills and look into the previous transactions as well. If you are in a bind, call your credit card service to ask for a lower interest rate. If you are a dependable customer (why do you need a good credit score, you see), they might consider such a thing.

A low-interest rate will inevitably prevent more interest from accumulating. It will help you pay off the balances faster and might even increase investment when you are financially more secure. This is sure to reduce some of your stress about money.

8. Manage Loan Payments

Student loans and mortgages are crippling millions and preventing them from gaining financial stability. If you are under federal loan payment, you can ask for a lower loan payment plan. If it is a student loan or mortgage plan, you can consider the IDR or Income-Driven Repayment plan. The Debt-to-Income Ratio takes into consideration the IDR and helps you pay your loans accordingly. Although, mortgages and student loans may have different regulations.

This will make a huge difference in your finances, although the repayment time period gets extended. It will act as a breather if you are stressing too much about money. But if you plan your budget properly and pay your taxes on time, it will not be a burden.

If you are planning on repaying some other loans quickly, you can also try the Debt Avalanche Method. This method basically means using leftover money (after monthly expenses) to pay off loans at a high-interest rate. This will decrease the overall time period required to pay off the loans. But this is a risky method and should not be tried without expert advice.

All of these are advice aimed to decrease your stress about money. You can start practicing some of these methods from today itself. But at the end of the day, do seek professional advice and plan for a better future.

Author Bio: Charlotte Lin is a content creator at She’s a passionate young woman, mother to an amazing nine-year-old, and an avid reader. Over the years, writing has helped her explore and understand the world as well as her own self. She loves to travel, meet new people, and spend quality time with her daughter. You can find her on LinkedIn.

Thursday, February 10, 2022

Why You Need a Credit Card to Improve Your Finances

A credit card can be a powerful tool for improving your finances. Many experts recommend using a credit card for everyday purchases, little things like groceries or fast food, to quickly build and improve your credit score in preparation for the big things.

That being said, there are also other benefits to using a credit card, such as earning rewards and building a credit history. Here are the reasons you need a credit card to improve your financial situation.

To Build Credit

A credit card is one of the easiest and most effective ways to improve your credit score. This is because every time you make a purchase with your credit card, it is recorded on your credit report. Having more information on your report can only help build up your score (assuming you pay off the balance each month). 

A good trick to this is making small purchases that you can then immediately pay off, such as trips to fast-food restaurants or small amounts of groceries. In no time at all, your score should begin to build and improve.

To Build Wealth

If you're trying to get rich, the best advice is to use credit cards wisely. Purchasing items with a credit card can help you earn rewards that you can use towards things like travel or gift cards. 

You could even use your points or miles towards a valuable item such as a television or new watch. The key is to use your rewards to build wealth instead of just getting free stuff.

To Earn Rewards

Credit cards offer benefits, such as cashback and travel rewards, that other types of financing don't offer. With a credit card, you can earn up to 2% cashback on purchases or travel rewards that you can use towards flights, hotel stays, and more. 

Rewards are becoming increasingly popular with credit card users because they offer great benefits for you to take advantage of.

To Take Advantage of Promotions

Credit cards often come with promotions that allow the cardholder to take advantage of benefits, such as double miles on every purchase. Promotions are a great way to save money and offer cardholders valuable features that you can use for everyday purchases.

To Build Credit with a Minor

If you have a child under the age of 21, getting them access to a credit card can be very difficult. Even when they turn 18, unless they can prove they make their own income, they likely won’t be approved on their own. 

This is because federal law or a credit union, one like FCCU - First Community Credit Union, requires that anyone under the age of 21 be subject to a limit on how much they can spend using their credit card or even approved. 

This essentially means your child, or you yourself if you’re under 21, can’t build a credit history — which can be problematic for someone who wants to build wealth, especially if they begin living on their own at 18.

However, if you or your child are under 21 and want to build credit, you can ask a parent or guardian to add you as an authorized user on one of their cards. 

This essentially allows you to piggyback off their credit history. Plus, since your name will be on the credit card, you will be more likely to use it responsibly as opposed to racking up massive charges and leaving the owner of the card to deal with them.

In conclusion, there are plenty of reasons to use a credit card when paying for things. If you're looking for ways to build credit or want the best way to earn rewards, then using a credit card is the right choice for you.

Thursday, June 17, 2021

Why Merchants are Using Chargeback Management Outsourcing Solutions to Effectively Avoid Chargeback Fraud

Chargebacks have massively negative impacts on the businesses of online merchants. Chargeback fraud affects their business reputation, threatens their relationship with banks (ability to accept payments from credit cards), and costs them a lot of unnecessary chargeback fees. There are three main types of chargeback fraud –

  • Card Not Present Fraud - Transactions where actual credit cards are not swiped, inserted, or tapped at terminals.
  • “Friendly” Fraud - Consumers make purchases only to dispute the charges later.
  • Account Takeover Fraud - Cybercriminals steal/hack consumers’ payment information to use them to make fraudulent purchases and chargeback attempts.

Merchants don’t just lose the item they sell to these fraudsters or the money they refund – the exasperating truth is that each fraudulent chargeback attempt costs online businesses a lot more in hidden fees. 

Merchants who fall victim to chargeback frauds also have to deal with -
  • Extra transaction fees (typically 4-5% of the transaction amount)
  • Unnecessary operational costs to deliver the products to the fraudster; costs like packing, shipping, delivery, etc., make up 15-20% of a merchant’s revenue. All these costs are unnecessarily lost because of chargeback frauds.
  • Marketing and lead generation expenses go to waste every time a sale results in a chargeback.
Chargeback fraud costs online businesses way more than they’re aware of. Add indirect costs like customers leaving negative reviews or customers deciding not to do business with your online store because of the security risks to the mix, and you have a huge problem.

These problems only seem to keep growing. One report claims chargeback fraud attempts increase by 20% every year, costing online merchants billions in lost revenues. 

Why are chargeback frauds on the rise? Some factors that contributed to this unprecedented growth in chargeback fraud include -
  • Technological Sophistication - Since technologies have advanced, customers have found more innovative ways to defraud online merchants. Merchants may look back at previous attacks and prepare their online platforms for those types of attacks. But, identifying new types of friendly fraud chargebacks or account takeover attempts is very difficult for them.
  • Online Banking – Online banking has made it easier for customers to file chargebacks as their phones have easy-to-access mobile banking apps. Technically, just by pressing a few buttons, fraudsters can make false claims and repeatedly commit chargeback frauds against various merchants. Unprepared merchants who can’t come up with evidence to disprove such claims made by fraudsters often end up being punished by the banks.
  • The Pandemic – According to some estimates, payment card fraud in 2020 cost online merchants in the U.S. $11 billion. Merchants who had to let go of their customer service teams suffered the most.
It’s clear that online merchants need help to address this ever-growing threat of chargeback fraud. Unfortunately, many online businesses assume that their chargeback rates aren’t good enough because their services aren’t good enough. 

Many merchants even misjudge their win-loss ratios because they don’t have the time/resources to track data regarding their chargeback courses from their payment processors.

These inefficiencies lead to exceptionally overestimated win rates. Fake data like that can compel any online business owner to keep their chargeback disputes in-house. 

Thankfully, many online business owners have woken up to the fact that their in-house chargeback management teams aren’t experienced or skilled enough to tackle the odd circumstances they find themselves in.

No one expected the pandemic to drive online sales and subsequently increase the number of chargeback fraud attempts. That’s why many top online merchants are opting for chargeback management outsourcing solutions. These chargeback pros offer –

  • Full-Time Dedication – The only job of a trained chargeback management team is to stay on top of the most recent fraud methods and techniques. They focus solely on safeguarding their clients’ businesses. In-house teams that manage online eCommerce platforms can focus on other responsibilities— not fraud prevention.
  • Standard Operating Procedures – SOPs in chargeback management companies, are tried and tested fraud-prevention techniques. Online businesses can spend years establish their own in-house SOPs. Or, they can avoid those costs and have their third-party chargeback pros immediately get to work on protecting their businesses against chargeback frauds.
  • Cooperation – Online businesses that already have well-jelled in-house fraud prevention teams can benefit even more from getting an outsourced managed services solution. The offshore and in-house fraud management departments can collaborate to make online platforms impervious to chargeback fraud attempts.
  • Relevant Skills – Experienced chargeback pros are familiar with the best and the latest practices for fighting new types of chargeback fraud techniques in the market. From tracking each suspicious customer to constantly monitoring chargeback dispute processes – these experts use highly customized tools to make sure chargebacks don’t drain their clients’ finances.
  • Insights - Chargeback pros give their clients insights into why and how chargebacks are occurring on their platforms. Based on this data, online businesses can craft customized strategies that work specifically against the types of risks their platforms face.

Having a multilayered fraud protection strategy is vital for online businesses looking to provide seamless online ordering experiences for their customers. Partnering with providers of managed services solutions can help them achieve these objectives.

Monday, March 1, 2021

10 Major Benefits of Using a Credit Card

A credit card is one of the most powerful financial tools that we have at our disposal and if used responsibly, it can provide many benefits in the long run. Today, we are going to look at top reasons why everyone should use a credit card for their expenditures

1. One-Time Bonuses

People with good credit scores can get their cards approved with added bonuses. You can avail of these bonuses by spending a certain amount in the first few months when your credit account is open. Other bonuses may include travel points, gift cards, and more.

2. Convert transactions into EMI

This is a great benefit that every credit card comes with. When you make a big purchase using your credit card, you don’t have to make full payment, you can easily convert that transaction into monthly installments, which gives you time to pay off the money over a period of time. This benefit allows you to fulfill your wishes without the burden of paying all the money at the same time.

3. Cash Back

The most significant benefit of using a credit card is cash-back. Whenever you use a credit card for making a purchase, you receive a percentage of total expenditure in the form of cashback. This allows you to save a lot of money in the long-run. 

If you are a platinum member, you might get cash-back offers up to 2% to 3%. So, before applying for a credit card, look at the list of partners that a financial institution is associated with.

4. Rewards Points

Another major benefit of using a credit card is the reward point system. The more you spend using your credit card, the more points you earn. These points can redeem to earn discounts, buy merchandise, groceries, and more. 

For example, if you get Citibank credit card, you can earn reward points when you spend money on fuel, restaurants, movies, and more. Contact your bank to learn more about the reward points.

5. Frequent-Flyer Miles

This point is for those who travel a lot. When you purchase your flight tickets using your credit card, you get flyer miles that can be used for either discounts or purchase tickets (if you have enough points). 

All major airlines have at least one bank that is partnered together and offer this benefit to their customers. So, make sure you check whether your credit card has this benefit or not.

6. Safety

Paying with your credit card is much safer than your debit card. When you use your debit card, the money is deducted from your account instantly. 

Similarly, if you lose your debit card, you are at major risk of losing your hard-earned money. But when you use a credit card, and you encounter any fraud, the bank will take it immediately. Plus, your money is also secured.

7. Grace Period

When you make a purchase using your debit card, your money is gone instantly. On the other hand, when you spend money using your credit card, your money remains in your account until your due date. 

This time between the end of the billing cycle and the due date is called the grace period. This allows you to repay your credit card while having the luxury of keeping your money in your account as well.

8. Insurance

Credit cards come with a number of customer protections that people are not aware not like insurance. Many banks offer insurance services to their customers who use their credit cards. This benefit is usually available to those who have a high credit limit.

9. Universal Acceptance

This is by far the main benefit of why everyone should have at least one credit card. All credit cards are accepted universally, this means if you are traveling, you can easily make payments in a foreign country using your credit card. 

You can rent a car, spend money on shopping, use to pay your hotel bills and more. You don’t have to worry about carrying the foreign currency with you all the time. Simply swipe your credit card and you are done.

10. Building Credit

A credit card helps you in building your credit score, which shows that you are responsible and can handle your finances. This is great for people who started working and looking to build their credit. When you spend money using your credit card and make timely and full payments, it impacts your credit score positively, which helps you in increasing your credit limit and enables you to apply for loans and more credit cards.

There are many other small benefits to why you should use a credit card, but these above-mentioned points are the main benefits that you get to enjoy when you use your credit card responsibly.

Friday, November 15, 2019

5 Things You Should Know for Loan on Credit Card

When a financial emergency strikes, or you just have to make a high-value purchase right now, and you don’t have the funds to meet it, the first thing you may think about is taking a loan from your immediate social circle or apply for a personal loan. However, there is one thing that most people have in their wallet which they can use to get a loan almost instantly and that is their credit card.

There are many benefits to taking a loan against your credit card as well as pointers that you need to be aware of. Here are some of them:

Instant loan:

When you need money right now, time is of the essence. With a loan on your credit card, you don’t have to submit documents, submit collateral, wait for approval, etc., as these loans are unsecured and pre-approved. The only eligibility criteria are that you have a good repayment track record.

Easy EMI:

For loans on credit cards, depending on the bank you are with, you can easily convert your purchases into EMI or convert the entire loan into EMIs that suit your pocket and flexibility. You can choose from a wide range of tenures. You can also choose whether the EMI has to go from the credit card limit itself or from another savings account on another card. This makes it easier to manage the repayments and makes it less of a burden on your monthly budget too.

Balance transfer:

You can choose to transfer your outstanding balance from any other bank’s credit card, which has a higher interest rate, to your loan on credit card which has a lower interest rate. You can even use it to consolidate all your other debts, especially on any other personal loan. 

This makes it easier to pay off all your debts through a single EMI on one card rather than multiple EMIs to multiple banks every month. Consolidating your debts into one loan on a credit card which has a lower interest rate makes for easier repayments and more savings in the long term.

Easy repayments:

Paying back your EMIs on credit card loans is easy as you have multiple modes of payments (depending on your bank). You could pay through netbanking, through the bank’s credit card mobile application, etc.

Top-up loans:

Top-up loans against credit cards are also offered by banks to eligible customers. This can be helpful when you want to have more money all of a sudden.

With so many benefits to taking a loan on credit card, there are also some things to keep in mind to ensure that your credit score is not affected and you continue to enjoy the benefits. These are:

Avoid late payments or defaults on your payments:

This can affect your credit score and any chances of getting a loan in the future, especially a loan on your credit card. So make sure to pay back your EMIs on time.

Long-range tenures:

While tenures over a longer-term may incur heavier interest rates, the fact is that it will be lighter on your pocket in the short-term, giving you more expendable income. Banks offer up to 24 months' tenure on loans against credit cards and sometimes more if you negotiate.


You can pre-close your loan taken on your credit card without having to intimate the bank in advance. There may be nominal pre-closure fees applicable.

Processing charges:

You need to be aware that there are processing charges on loans against credit cards that can range anywhere from 1% to 5% of the loan amount, depending on your bank.

Loan default:

A default on your loan against a credit card will have a more negative impact on your credit score than default on your credit card outstanding dues. This is because it is considered as a loan default, which is far more serious. Your credit score can take a beating because of this, making it difficult to get loans in the future. Even if you do get loans, it might be on terms that are difficult for you, such as higher interest rates and lower quantum of loans.

Keep in mind that you can only take a loan against your credit card which is within your credit limit. While the interest rates on these loans are generally lower than that of cash withdrawals from your credit card, they are still in the range of 13% to 21%, depending on your bank. However, in times of a financial crunch, these loans are a boon. As long as you repay your dues on time and keep your credit score on track, a credit card will always be a best friend in your pocket.

Monday, June 24, 2019

5 Easy Precautions You Can Take Against Identity Theft

Did you know that on average, victims of identity theft spend at least 600 hours trying to clear their name? In addition to repairing the financial damage that’s been done, victims also have to prove that they are who they say they are. How unnerving is that?

As horrible as it sounds, there is a bright side to identity theft. Although you can’t be 100 percent sure it will never happen to you, there are things you can to protect yourself.

Monitor Online Accounts

If your bank offers online banking, sign up for it. Frequently log in to make sure you have no unauthorized transactions. Also, make sure to keep your login information safe. Never write it down or save it in your phone. also, never enable automatic logins.

Order Annual Credit Reports

You’re eligible for a free credit report from all three major bureaus. However, there are also apps that allow you to check your credit as often as you like. Credit Karma gives you instant access to your credit report for free. 

Sign up and check your report once a month for anything that looks out of the ordinary. You’d be surprised how many unauthorized accounts slip through the cracks.

Memorize Your Social Security Number

If someone gets a hold of your social security number, your credit can be destroyed in an instant. Play it safe and memorize your social security number. Make sure you contact a criminal defense group if your identity is indeed stolen. 

 Furthermore, make sure to be mindful of your surroundings when giving your social security number to customer service representatives.

Opt Out of Pre-Approved Credit Card Offers

You know those pre-approved credit card offers you get in the mail from time to time? Do not accept them. Tear them into pieces and throw them away. Thieves are notorious for using these kinds of offers to obtain other people’s credit card information. You can also opt out them to ensure you never get the offers again.

No matter how vigilant you are, there’s always the risk of identity theft. Even a disgruntled waiter can snap a photo of your credit card and go on a shopping spree. Play it safe and stay on top of your finances and purchases. 

If something doesn’t look right or you don’t remember giving that aforementioned waiter a tip, act upon it. The sooner you identify an issue, the sooner you can rectify it.

Thursday, February 7, 2019

How to Apply for a Credit Card: Need to Follow These 5 Quick Steps

Credit cards are fast becoming one of the most preferred types of plastic currency in India. Between January 2017 and January 2018, almost 7.39 million new credit cards were issued, pushing the number of total cards in circulation to 36.24 million. This sharp rise is thanks to the host of benefits cards available today, along with an easy to meet credit card eligibility criteria.

Many financial institutions also accept online application for credit cards, which helps save time and hassle of extensive paperwork. You only have to follow some quick steps to apply for a credit card.

5 quick steps to easily apply for a credit card

Know your eligibility –

A borrower has to meet some specific credit card eligibility criteria for application. Various factors like age, income, credit score, etc. play a crucial role in determining whether a lender will sanction a card or not. Although it varies between the financial institutions, following are some of the standard requirements.

  • Age – Your age must be between 25 to 65 years.
  • Credit history – You should have a good credit history to apply for a credit card. A defaulter will be treated as a risky borrower, and the lender might not grant the application.
  • Credit score – Most financial institutions require a minimum credit score of 750 to issue a credit card.

These are some of the general credit card eligibility criteria that you have to meet. Other than this, you must be an Indian residence and a salaried or self-employed professional.

Search for a suitable lender

The next step to apply for a credit card online should be a thorough search to find a lender that suits your requirements. You should pick a financial institution which offers the maximum set of varying benefits and features. You should also look at various loyalty programs before zeroing-in on one credit card provider.

After you define your requirements, check the details of a credit card plan. Remember to check the following –

  • Joining and annual fees.
  • Welcome bonus and reward programs.
  • Complimentary features.
  • Acceptance with various merchants and point-of-sale outlets.

You should also consider the different types of credit cards that a financial organisation has to offer. For example, Bajaj Finserv RBL Bank SuperCard has 6 variants that you can choose from- Platinum Choice SuperCard, Platinum Choice First Year Free SuperCard, Platinum Plus SuperCard, Platinum Plus First Year Free SuperCard, World Prime SuperCard and World Plus SuperCard. These different variants come with somewhat different benefits to better suit your unique requirements.

SuperCard brings the features of 4 different cards in one. It is a credit card, cash card, EMI card, and a loan card, packed in a single package. You can enjoy several industry-first features with this card.

Bajaj Finserv also has pre-approved offers for credit cards, personal loans, home loans, business loans, and a range of financial products and services. These offers help you save time by simplifying the process of financing. You only have to provide some necessary details online to check your pre-approved offer.

Collect the necessary documents

After you select a lender, contact them for further information on what you will need to apply for a credit card. You can also check their website to know how to apply for a credit card online. Every financial institution will also have a list of documents they require to approve an application. Here are some of the most common and essential documents.

  • Identity proof like passport, driving licence, Voter ID, PAN card, Aadhaar card, etc.
  • Address proof. This can include some of the above-mentioned documents and various utility bills including electricity bills, telephone bills, etc.
  • Recent passport-sized photograph.

You will have to submit all the required documents at the time of applying for a credit card. A missing paper can void your application.

Online application process

After you meet all credit card eligibility criteria, find a suitable lender who provides with an online application process. Visit their website and fill the application details with the necessary information.

You will have to submit the documents mentioned above. You will get a notification from the lender for updates or follow-ups.

Knowing the status of your application

After your application is accepted, you will find a response on your application and credit card status. These are categorized accordingly –

  • Under process – It means that the financial institution is still handling the application.
  • Dispatched – After a lender issues a card and sends it to you via post, it will show as dispatched.
  • On hold – Any discrepancy in the application process will cause the application to show an on-hold status.

Thanks to the easy to meet credit card eligibility, quick application process, and attractive features and benefits, credit cards are now the preferred mode of cashless transactions in the country. Applying for a credit card is easier. Go ahead with a pending application today.

Author Bio:
Gaurav khanna is an experienced financial advisor, digital marketer and writer who is well known for his ability to predict market trends. You can find Gaurav on Linked

Thursday, November 15, 2018

Denied a Credit Card? Know How Long you Should Wait to Apply Again

It is not uncommon for your credit card application to get rejected even when your credit history looks clean. It is important to stay calm and carefully analyse the reasons for the rejection. If you are planning to reapply for the same card or to apply for another card, it is recommended that you wait for about 6 months before you apply again. This would give you sufficient time to take corrective actions and ensure that your application is fool proof and gets approved the next time.

The first step that you need to take is talk to the credit card company in order to find out the reasons for your rejection. The reason could be any of the following:

Credit card eligibility

Different credit card companies have different eligibility criteria for issuing credit cards. There may be restrictions with respect to age, annual income, employment stability, and so on. 

If your credit card application was rejected due to non-eligibility on any of those counts, it would be pointless to reapply for the same card. You need to shop around for a card that is right for you. You need to find a card that you are eligible for and apply for it.

Error in filling out the credit card application

A credit card application may get rejected due to errors in the application form. If the rejection is due to such errors, you can talk to the credit card company and re-apply after waiting for a few months.

Error in the credit report

An error in the credit report is another common reason for rejection. An old non-payment may be reflecting in your credit score. Nowadays, it is very easy to get your credit report through any of the four credit bureaus, for free once a year. If you are planning to reapply for a credit card it is important to keep track of your credit score and work towards a better score

Too many credit card or loan applications

If you have applied for many loans or credit cards, it gives the impression that you are credit-hungry. It is important to time your applications well to ensure that only one or two applications are pending for approval at any given point of time.

Employment history

If you have changed your job many times or have been in the current employment only for a short period, it could result in rejection of your credit card application. Apply for a card only after you have been in a stable job at least for a year.

Work on your credit score before you apply again

If your credit card application has been rejected due to a low credit score, it is important for you to work on enhancing your credit score. You can do this by closing some of your loans, ensuring timely payment of bills and by maintaining a low credit utilisation ratio in your existing cards.

Once you do this, you can look for the best credit card in the market and apply again. For example, Bajaj Finserv offers industry-first features with the Bajaj Finserv RBL Bank SuperCard. Enjoy interest-free cash withdrawal from ATMs for 50 days, easy EMIs and a pre-approved loan limit that can easily be converted to an interest-free personal loan for 90 days. You can also earn up to 20,000 reward points as a welcome gift.

Availing finance is easier than ever with pre-approved offers on loans and other financial products. With easy and quick processing and disbursal of funds, you can utilise your time to focus on the important things. Simply share a few, basic details and check out your pre-approved offer.

Author Bio:

Gaurav khanna is an experienced financial advisor, digital marketer and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.

Wednesday, March 21, 2018

Ways to Get the Most from A Bajaj Finserv Credit Card

Bajaj Finserv, the popular non-banking financial company (NBFC), offers a range of credit cards in association with RBL bank. These Bajaj Finserv RBL Bank Supercards are packed with different rewards and benefits.

These Bajaj Finserv credit cards are unique, and can be used to meet all your purchases. From withdrawing cash to converting your credit limit into a loan, these cards are a rewarding way to pay for yourself. The low annual and joining fees also make them pretty affordable.

How to use Bajaj Credit Cards in a better way?

Despite having credit cards, many people do not use them optimally. People either end up in debt or use their cards too less, which doesn’t provide them all available benefits. You can avoid both using your credit card to build credit, and to save and earn money.

You can make the most out of your Bajaj Finserv Credit Cards in some of the following ways:

1. Choose your Rewards Carefully 

All Bajaj Finserv Supercards come with great rewards. So, you need to choose the card offering rewards according to your taste. For example, if you are a frequent movie goer, the Bajaj Finserv RBL Bank Platinum Choice FYF Supercard would be great for you, as it offers special discounts on movie tickets. 

Similarly, if you like going on road trips, the Bajaj Finserv RBL Bank Supercard offers a waiver of Rs. 200 per month on fuel surcharge across petrol pumps.

2. Ensure Lower Interest Rates and Costs

While all Bajaj Finserv credit cards boast of an affordable interest rate, only a few have the reduced and almost nil joining fee, like the Bajaj Finserv RBL Bank Platinum Choice FYF Supercard. In fact, with the Bajaj Finserv RBL Bank Platinum Plus Supercard, you even get a welcome gift of 4000 reward points.

3. Don’t Be in A Hurry To Get A Card

While choosing your Bajaj Finserv Supercard, don’t be in a hurry to pick one. In fact, do not purchase any credit cards on a spur-of-the-moment decision. Take some time to compare all the features, benefits and rewards from all the different Bajaj Finserv Supercards, and pick the one that suits you best.

4. Avail the Credit Limit to Loan Benefit

The Bajaj Finserv RBL Bank Supercards offer an opportunity to convert their credit limit into a loan once a year. With this, you can get instant cash for up to 90 days and repay it easily in 3 EMIs. You can avail this and get money for any timely monetary support that you may need.

5. Be Sure of The Safety Features

Being cautious about your credit card is the smart thing to do, especially since an unsafe credit card could put your bank account at risk. The Bajaj Finserv Supercards all have inbuilt safety features like ‘In-Hand’ security and ‘Zero-fraud liability cover’. Ensure that your Bajaj Finserv credit card has these features- or some similar others- for better safety.

If you keep the above tips in mind, while choosing your Bajaj FInserv credit card, you can make better use of it. Additionally, don’t forget to pay back your EMIs on time to ensure the best experience with your credit cards. Lastly, remember to use your credit cards wisely.

Thursday, January 8, 2015

Four Mistakes to Avoid During Debt Consolidation

Many American families are being financially destroyed by debt. With the recent economic slumps and increases in interest rates, many people saw what they’d thought was manageable debt become a mountain that loomed over their future. Debt consolidation offers hope for people in this situation.

Debt consolidation has certain pitfalls, just like every other financial decision. The following are four of the most common mistakes that people make when going through this process.

Paying More to Consolidate

Many people assume that they will automatically save money in debt consolidation. This is not always the case. While the monthly payments may be lower, they often come with higher interest rates. Even if the interest rates are lower, paying over a longer period of time leads to more interest paid over time. Use an online debt consolidation calculator to see whether you will save money in debt consolidation or end up paying more.

Another way you could end up paying more is by using an inexperience debt consolidation company. Acting too quickly and failing to investigate a company’s claims can result in you paying far more to consolidate your debt than you should. Additionally, this course of action often results in constant harassment from bill collectors, adding even more stress to the debt consolidation process.

Not Dissolving Credit Accounts

If you decide to go forward with consolidating your debt, you would do well to be fully committed. An expert from Faber Inc says it’s much harder to break out of debt when you have credit cards and accounts in use. Immediately after these accounts are paid off, they should be closed. Failing to do this could lead to ending up deeper in debt than when you started. The best way to avoid the temptation to fall back on credit is to remove it completely—this may result in some serious restructuring of your budget, but will be the best move in the long run. 

Using Your Home or Other Major Assets as Collateral

Many people use a home equity loan or refinancing to consolidate their debt. It's easy to see why this sounds attractive. Mortgage rates are relatively low, often far lower than credit card interest rates. However, you are putting your home on the line for an amount of debt that is usually nowhere near its value. If you ever cannot make the payments, you risk losing your home over a relatively small amount of debt. For most people, this is much too risky to attempt if there is any chance that payments may not be met on time. 

Keeping the Same Lifestyle

Debt is often a symptom of a much larger problem. If you routinely rely on credit, you are not living within your means. Examining your average monthly expenditures and using this to create a budget plan is a great way to get started on cutting back. Make changes to your spending and your expenses to avoid acquiring new debt while you struggle to pay off the old. Maintaining these new spending habits will also result in long-term savings and a much healthier financial future. Many people who find themselves deep in debt worry about repeating the cycle for years to come—by forming healthy financial habits now, you can avoid a future in debt.

Debt consolidation can help people to dig themselves out of a hole. Because of this, many people don't pay attention to potential drawbacks of the process. Educate yourself before beginning this process to avoid these common mistakes, and debt consolidation can help put you on the path to a healthy financial future.

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