Skip to main content

Secured cards can help you build your credit score

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

Today securing credit is not a mean task. Gone are the days when your ability to repay would be the only binding criteria for credit. Like a student who is awarded admission in a reputed institution only on the basis of his progress report, which gives an idea of her ability to present the knowledge she is expected to deliver, today, for every credit-seeker, there is Credit Information Bureau India Limited (CIBIL) credit report. It is a report that gives details of all transaction done by you related to repaying credit. Repaying on time and before due date naturally enhance your CIBIL score. While most recent borrowers may be aware of CIBIL, there are very few of them who know that a CIBIL score of over 750 is a clear indication that you are conscientious borrower. Unquestionably today if you intend to secure credit, a CIBIL score is a must.

As we speak about the importance of having a CIBIL score, at any given point in time, there is a category of individuals, who are into a sticky situation. These are those who have a very low CIBIL credit score. This can be due to defaults on loans availed in the past. These individuals now have realised the importance of high credit score, but now no bank wants to give them any credit. So, they cannot do much to improve their credit score and invariably get in touch with us. Let us see if there is a way out of this difficult situation. A magic wand that can help you deal with this situation is 'the secured cards'. For the beginners, these are a type of credit card. They function like any other credit card issued by banks. The only difference here is the credit limit. In Secure Cards, the credit limit is set against the fixed deposit you have kept with the bank. The bank does not take any credit risk while issuing you a credit card.

Let us see how it works. The bank asks for a fixed deposit from you. If you make a fixed deposit of Rs 1,00,000 the bank will issue you a credit card with a limit of say 60 percent to 70 percent of this fixed deposit amount. So you get a credit card with a limit of Rs 60,000 to Rs 70,000, depending upon the bank's rules. Since the credit card has got an asset the fixed deposit to back it, it is known as 'secured credit card'. The credit card holder can use this credit card like any other card. The rate of interest on these cards is lower than the other unsecured credit cards. However, on all other parameters the secured credit cards are as good as other unsecured credit cards.

If the credit cardholder does not pay the credit outstanding, the bank has the right to liquidate the fixed deposit and recover money. Banks allow individuals to a threshold where the outstanding amount including interest is below the fixed deposit amount. Thus, the bank safeguards its interest. In this process the credit card holders enjoy a credit card facility which can be a payment mechanism too. In a period of six months to one year the secured credit card outstanding if paid on time before the due date, the credit cardholder builds a sound credit history and earns high credit score. It is a win-win situation for both the bank and the credit cardholder. Hence, you get a credit card and a good credit score. The bank on the other hand gets a fixed deposit and credit card. These credit cards can also be used by individuals who do not have a credit history and want to build credit history - typically those who have just got a job and may go for a home loan after couple of years.

Banks nowadays are making conscious efforts to help individuals to access credit facilities by offering secured credit cards. Axis Bank, Development Credit Bank, and ICICI Bank are among many banks that offer such secured credit cards. Hence, it is important for you to make the most of these credit cards, and build a strong credit history and earn a high credit score.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

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

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...
Read more

Mutual Fund Review: L&T MIP

        This fund won't deliver chart-topping returns. However, over the long run it will not disappoint and end up beating the category average The fund has seen numerous changes at the helm. When Katare took over in October 2007, he made dramatic alterations to the portfolio. On the equity side, he increased the number of stocks to 11 (November) from 2 (September). On the debt side, he added Certificates of Deposit (CDs), while earlier Treasury Bills (T-Bills) and cash accounted for 88 per cent (September 2007) of the portfolio. In November 2007 he exited T-Bills for good. The results impressed. In the last quarter of 2007, it delivered 12.83 per cent (category average: 6.12%). In 2008, the first quarter performance was nothing short of impressive, a return of 9.93 per cent (category average: -3.97%). While other players increased their portfolio maturity, Katare maintained a low maturity profile. While the average maturity of the category was 2.81 years that quarter, th...
Read more

Reconfigure investments to reap benefits in DTC

    Investing for tax benefits under the new Direct Taxes Code ( DTC ) will be different in several ways from what taxpayers are familiar with right now. This will require some reconfiguration in the nature of investments for the investor and they need to be ready to tackle the changes that will come about once the new DTC is implemented from financial year 2012-13.One area of interest for most taxpayers is the manner in which they can extract the maximum tax benefit. Here is a look at the situation and also how it changes from the existing position. Basic deduction: At present, there is a deduction of Rs 1 lakh that is available for an individual when they make investments under specified areas such as provident fund, public provident fund, national savings certificates, equity linked savings scheme and insurance premium, among others. This benefit is available under Section 80C of the Income Tax Act. This has been replaced by a new Section 68 under the DTC where there is a deduct...
Read more

PF e-Passbook

  Provident Fund e-Passbook   The Employees Provident Fund Organisation now runs an e-passbook service that enables members to log in and access their provident fund accounts . This facility enables tracking of the money and ensuring that the employer's contribution has been deposited into the account. This facility is available to those whose accounts are with the central provident fund commissioner for maintenance and can be availed at members.epfoservices.in . Registration A member can register at the portal easily by using PAN , Aadhar or passport number as the log in and the mobile numbers as the PIN . This combination enables easy retrieval of information. Accounts After logging in, the member has to choose the state where the employer is located, and enter the code number of the employer, account number and name. These details can be obtained from any existing PF document . PIN To download the passbook, the member will request...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked 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