Credit Card If you take a credit card, then many rules and financial discipline have to be followed. Today, in this article, we are going to tell about the mistake related to credit card, due to which your credit score can fall rapidly and it can take a long time to recover.
Getting a credit card has become very easy these days. If you have a salary account then it is easily available. But with a credit card, some people tend to increase their expenses too much, due to which they have to take a loan to meet their needs. In such a situation, many people default in paying the EMI of the credit card.
What is the effect on credit score?
If you delay the payment of credit card EMI. So it has a negative impact on your credit score. Your credit score goes down rapidly and your credit profile also deteriorates. Due to this, you have to face a lot of difficulties in taking more loans.
Let us tell you, the effect of delay in EMI remains on your credit score for a long time. Because of this, it takes a long time for your credit score to normalize. A credit score above 750 is generally considered good.
Benefits of having high credit score
There are many benefits of having a high credit score. With this, you get a loan easily at low interest. Along with this, your credit profile also remains strong. With a high credit score, your insurance premium also remains low. With a good credit score, you can easily apply for a new credit card.
Tips to keep credit score above 750
- Pay credit card EMIs on time.
- Always pay the credit card bill in full.
- Use up to 30% of the credit card limit.
- Never opt for minimum payment.
