4 credit related hacks to avoid in your financial life


Finance and money are important in leading a regular life. When you start young and embark on a career, you will have no idea on how your requirements and needs will shape up. Even as you grow and become successful, there are still emergencies that crop up which might need urgent financing. So always be careful how you lead your financial life because every small deviation might hurt your ability to get credit. So here are some things we could think of:

Keep those cards in control: Do not have multiple cards which are used often and upto their limit. This is a ruse which has been used in movies for comic effect where multiple cards are displayed by a joker to indicate prosperity but it isn’t the case in real life. While maintaining a card indicates that you are credit-worthy, having and using too many and not paying back indicates a person whose financial discipline is askew. So never use too many cards, never transfer balance from one card to another and never default on your payment.

Loans are not free money: The basic business of banks is to take deposits from people like you and I, at a low interest rate and lend it to others at a higher rate. They survive on the profits and a high default rate means that they go insolvent, drowning depositors. This is obviously not going to happen and the best loan providers will ensure your pay back loans. So do not treat personal loans as free money. You are responsible for paying them back and will face dire consequences not least of which your credibility if you default on EMIs.

Lack of awareness: The most incorrect thing you can do in this world is to not be aware on things related to finance. The thing that most affects you is your credit score called the CIBIL score. CIBIL records the credit history of all individuals and maintains a score which helps banks to take lending decisions. You must be aware of CIBIL, check your score intermittently and improve it if it is very low. Emergencies can crop up any time in life and you should not be cut-off from sources of funds because you neglected to be aware.

Leaping before you look: There is a general tendency among us to leap before we look and take the first good sounding offer that comes our way. Be it buying a smart phone or appliances, clothes or a car, our senses become heightened upon hearing an offer and that impulse to purchase bounds right out. Many that we know have taken a credit card, invested in a fund, taken a loan just because it sounded attractive. The important thing about any purchase is to find out if it suits your requirement. You will not buy size 10 shoes even if they are on 50% discount if you are a size 8. Similar is the case with finance, so look at hidden costs, compare rate of interest or rate of return, check affordability and then come to an all-round decision.

These are just a few things we thought you should be aware of. There are many specific things with every financial instrument that will affect you. But if you have any queries related to personal loans then do not hesitate to contact our experts. So what are you waiting for…we are expecting your call.