Skip to main content

Higher Credit Limit

Apply for Best Creadit Cards Olnine
 
 
 
A higher credit limit, if not utilised, improves your credit score.
 
A higher credit limit can help you build a better credit histo ry. Take the case of Devendra Kumar. Kumar spends almost `40,000 on his credit card every month. Though he pays off the entire bill in time, his high credit utilisation of almost 80% (credit card limit is `50,000) is a red flag for lenders. It implies that he is at the risk of exhausting his card limit and could have trouble repaying his dues.

Credit bureaus take the credit utilisation ratio into account when calculating an individual's credit score, which is then used by banks to determine one's loan eligibility. "While computing the overall score, 20% weightage is given to credit utilisation and recent credit behaviour of the consumer," says Harshala Chandorkar, Chief Operating Officer, CIBIL. A high credit utilisation ratio means a lower score. Now, if Kumar get's his credit limit increased--subject to the credit card issuer's conditions--his credit utilisation ratio will come down. For instance, if the credit limit is raised to `1.5 lakh, his credit utilisation ratio for spending `40,000 a month will fall to 27%. A credit utilisation ratio of 20-30% is preferable. In case the ratio is higher, the applicant is seen as credit hungry. Banks may charge a higher interest on loans to individuals with a low credit score (high credit utilisation). They are seen as risky customers

Most banks revise users' credit card limit from time-to-time based on their repayment history, transactions, outstanding loans and rise in income. A cardholder can also request the issuing bank for a hike in credit limit. There is usually no additional cost involved, though an increase through a card upgrade may attract charges. Another way of increasing one's credit limit is by opting for multiple credit cards. However, holding mutliple cards is not the best way to secure a higher credit limit, especially, if you are a shopoholic--you may end up lowering your credit score. A single credit card with a higher limit is a the best solution. You will also save on the annual fee on multiple cards.

 

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

Popular posts from this blog

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
Read more

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...
Read more

Franklin India High Growth Companies Fund

Franklin India High Growth Companies Fund Online One of the key developments that the Street is keenly waiting for is a cut in interest rates by Reserve Bank of India . With demand rising gradually, a rate cut is expected to boost earnings growth for companies. In such a situation, schemes which invest in high growth companies are best suited, especially when seen from a long-term perspective. One such scheme is Franklin India High Growth Companies Fund. Fund managers Anand Radhakrishnan, Roshi Jain and Srikesh Nair strictly follow valuation parameters when it comes to choosing stocks.Valuation parameters, such as enterprise value, price-to-earnings growth ratio, forward price-to-sales ratio and discounted earnings per share, play a critical role in selecting companies for investments. Taking into account these parameters, the fund managers invest in companies which are poised for high growth in their respective sectors. This approach has been in favour of the scheme and it has perform...
Read more

Know the loan-eligibility before buying a house

WHILE on a house-hunting spree, prospective buyers do a great amount of homework before identifying their dream home - the location, property rates in the vicinity, carpet area, developer's reputation, proximity to the railway station/bus stop and so on. Once these aspects score high on the satisfaction front, a decision is made. However, very rarely do the buyers evaluate their own eligibility for getting a loan before finalising the house. Often, the loan sanction is taken for granted. As a result, they get a shock when their loan request is rejected. Therefore, it is best to objectively assess your repayment capacity and take into account other factors before applying for a loan. Here are a few reasons why your loan request could be turned down: Inadequate Income: The bank or HFC may refuse a loan if your earnings fall short of the minimum desired income level prescribed by the lender. Irregular income streams, too, could play spoilsport. At your end, to eliminate this possibi...
Read more

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now