Handling credit cards is not an easy job. Maintaining a good credit score, making timely payments, keeping a track of expenses, and a lot more. You may think you are doing all the right things to maintain good credibility, then one bad month appears, and you spend more than you can cover up in a month and then it becomes a long credit cycle. Things are easy nowadays, apply credit card online, get it delivered at your doorstep, that’s where it begins.
As long as you have a credit card at your disposal, you tend to use it more than your salary or the money in your savings account. The reason for this is the access and feasibility you get as a customer. Nobody wants to spend their hard-earned money on one single payment, everybody would rather just use a credit card and be comfortable with paying monthly installments. Using a credit card is not a sin but using it recklessly can affect your finances and may even push you onto a debt trap. Now, not everybody is a mess when it comes to managing finances, there are people who have managed to master the art of maintaining good credibility with banks and financial institutions. Today we are discussing 5 signs which tell us that you are already a pro when it comes to handling credit cards.
1. YOU HAVE A 750+ CREDIT SCORE
Maintaining a good credit score can be a strenuous task, every lender in the market requires you to have a dream credit score so that they feel safe lending you money, and you have left no stone unturned to achieve maintain a 750+ credit score. It takes a lot to achieve this score and if you have maintained it for a while now, well hands down you’ve been an expert at maintaining a good credit score.
2. GOOD CREDIT HISTORY
We all know how essential it is to have a good credit history because a good credit history indicates that you are diligent when it comes to making timely payments. This is a very good practice as it goes on to show that you will not become a bad debt for a lender and will return the borrowed sum in stipulated time. If you have been making payments on time and have never failed a pay date, then you are the go – to guy for banks and lending institutions.
3. YOU WATCH OUT FOR LOOPHOLES
Everyone checks their credit score but not many remember to go through their credit report in order to find out any loopholes in the analysis. Why is your score low? What went wrong? Where are you lacking? What do you need to do in order to achieve the expected target? If you ask yourself these questions and search for answers so that you can work on it, then kudos to you! You know how to maintain your credibility.
4. YOU KNOW WHEN TO DO A SOFT CHECK
Less people know this fact that if you check your credit score. It is considered as a soft check which does not impact your credit score. When you apply for a loan or credit, the lending institutions perform a hard check which may impact your score. So one should check their credit score right before applying for a loan. So that you are assured that the loan will get approved. If you know this and you make sure that you perform a soft check. Beforehand then you will get approved almost every time you apply for credit. If you want to check free credit score, just log on to CreditKaro.com and check your score for free.
5. YOU ARE NOT CREDIT HUNGRY
There is difference between being credit savvy and credit hungry. If you do not track your expenses. Do not keep a track of your credit history or your credit report then you are just a desperate borrower in the eyes of the lender. which makes the lender more skeptical, on the other hand if you have exact knowledge of your practices. And you are diligent with repayments, lenders are more than willing to lend you the money. There is a fine line between the two, and if you understand this, then congratulations, you are a pro.
If you are not following theses practices, it is never too late to start. You can always give everything a fresh start and if you start today, we are sure you will catch up real soon, and if you are already following the above steps then you are a pro with handling credit cards, give yourself a pat on your back! For more such interesting content keep coming back to CreditKaro.com.
Till then…happy buying!
Additional Reading – Top 10 Credit Cards in India