Best Way to Raise Credit Score Fast with Credit Card

All banks and financial institutions check the credit history and score of a customer before extending a line of credit to them. A good credit score makes a customer eligible for the best credit cards in the market. Hence, it becomes imperative for all customers to have a good credit score. 

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Some tips that will help you increase your credit score are as follows:

• Multiple credit options: There are many customers who apply for multiple credit options at one time like a credit card along with a loan. When you do this, the banks and financial institutions will check the credit score. However, multiple attempts to check will hamper your credit ratio, which will bring down the credit score. It is mandatory that you wait for one credit option to get cleared before you try for another one. 
   
• Get the best credit cards in the market: If you do not own a credit card, then go for one. This will increase your credit score. Look for a card that reports to all the credit bureaus in India. In case you do not qualify for a regular credit card, go for a deposit one. 
   
• Make regular payments: After you get the best credit cards in the market, it is imperative that you make regular payments. Sometimes people only pay the minimum payment due, thinking that it is surely a regular payment they are doing. This is not the entirely the truth as minimum payments are approximately 70% interest and 30% principle amount. Hence, the principle amount keeps on piling, which adversely affects your credit score. So, it is better to pay a little more than the minimum payment. 
   
• Go for an installment loan: Getting a credit card will only improve your revolving credit score, but you also need to check the installment credit line. Hence, getting a car loan or personal loan will be the best idea. Paying regular payments on your credit card will increase your score surely but paying monthly EMIs regularly will increase it by manifolds. This way any financial institution or bank checking your credit score will know that you are responsible enough to take care of both lines of credit. 
   
• Regulate your credit card expenses: One of the best ways of getting a good credit score is by regulating your spending habits. You have the best credit cards with you with ample benefits but that does not mean that you will use them to the limit. The last statement balances are reported to the credit bureau, which, if enormous, can affect adversely on the score regardless of the fact that you might have paid it in full. Always ensure that you spend less than 30% of your credit limit on the card. This way you will have a floating limit to carry on. Also in case you are a compulsive shopper, then create SMS and email alerts for credit limit usage. This is the best way to keep a track of your expenses.

All these tips should initiate a better credit score for you. However, the best way would be to keep a track of your expenses and ensure that your payments go on time.

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Pros and Cons of Credit Card Balance Transfers

Credit card balance transfer is the process of transfer of outstanding amount that is due, from one credit card to another. Banks have been offering this option of credit transfer from another card at a lower interest rate to attract more customers. Nonetheless there are a lot of underlying factors to be looked at before considering this option. The low interest rate on remaining balance applies only for a limited period and there are various other clauses and conditions to be considered while going for this option, as discussed below.

If the current interest rate is much higher than the interest rate offered by the Bank to which you are considering to make a balance transfer to, then it is a wise option. If credit card balance transfer ensures a good rate of savings in terms of interest paid as well as taking into consideration other fees and charges such as processing fees and so on, it is a advantageous move. If the overall balance, once transferred, is being paid offer in the specified promotion period during which a low interest rate applies, it is a very rewarding option. But many people tend to be unable to manage their credit card purchases and thus end up having more debt. In turn they wouldn’t be able to pay off their outstanding in time. Most credit card companies consider this factor while offering the balance transfer option with low interests for a limited period after which higher interest rates are chargeable.

Customers should be careful not to buy new products and services using this new credit card since, only the amount which is transferred is liable to this deducted interest rate. New purchases do not have an interest free period. Infact, interest is charged from the first day of purchase. In order to benefit from the balance transfer to a new credit card, the customer has to keep in mind that they have to first finish off payment of the existing debt. Another factor to be considered is the processing fees. A one time processing fee is charged during the time of balance transfer , and if you are not careful with the amount charged this might reduce the benefits you aim to achieve through the process. Also while calculating interest charges, service tax that is applicable on interest charges have to be accounted for. High rate of interest on the credit card also means high service tax payable.

Carrying a large revolving debt has a negative impact on the overall credit score. The percentage of total debt to the total credit is considered while calculating credit score. Transferring balance to another credit card and adding on credit and again transferring it repeatedly is not a good option since it reflects badly on your credit score.

Balance transfer is a good option if it is managed carefully. It enables the customer to save on the interest paid out as well as helps to pay off the outstanding amount more quickly. But if the process is not handled with care, the customers might fall into a debt trap. Balance transfer should be made solely with the purpose of paying off debt and not for adding on to it in the meantime and care has to be taken of stretching expenses beyond income limit. 

Useful links:

Credit card offers 0 balance transfer 12 months

SBI Credit Card Balance Transfer Procedure

Balance transfer facility in HDFC Bank Credit Card

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Best Citibank PremierMiles Credit Cards in India

Citibank, a prominent name in the global market, has gained huge popularity in the Indian banking sector, owing to its excellent customer service and a wide range of products to suit the need of every customer. Citibank offers a wide range of banking solutions to customers that include credit card facilities. Different types of credit cards are available for different utility such as travel, shopping, fuel as well as lifestyle. 

 Citibank Cards at a glance

 

In the shopping category, the Citibank Credit Cards available are Citibank Rewards Card, Citibank Rewards Domestic Credit Card, Citibank Cash Back Credit Card, First Citizen Citibank Titanium Credit Card and Citibank Platinum Credit Card.

The fuel cards are IndianOil Citibank Platinum Credit Card and IndianOil Citibank Titanium Credit Card; while under the lifestyle credit card category, the Citi Prestige Credit Card is included.

In the travel category, Citibank PremierMiles Card provides miles as all the expenditure on tickets can be redeemed for flights, hotel stays and car rentals. Miles can be redeemed or transferred across over 100 domestic, international flights and hotel bookings.

The benefits of the Citibank PremierMiles Credit Card are:

• Bonus miles where 10,000 miles is obtained on the first spend of Rs. 1000 within 60 days of card issuance and 300 miles on the card renewal
• Faster Miles – Here, the miles are earned per Rs. 100 spent on air ticket booking, car rentals and hotel booking at PremierMiles website and other airline partners such as yatra.com and goibibo.com
• Never expiring miles provide the freedom of evergreen miles that never expire and can be redeemed at any point of time
• Get double the miles – A real joy miles earned by booking through the frequent flyer program where miles are added both ways, miles through FFP and through the Citibank PremierMiles Card
• Fly when you want, where the card holder can fly anytime and redeem anytime without any blackout dates
• Simpler redemption process, in which you can transfer miles to airline partners
• The card holder can keep a record of the reward tracking by simply sending an SMS request.

The features of the Citibank PremierMiles Credit Card include flexibility, while managing a credit card account becomes simple and easy through online banking, phone banking, SMS banking and mobile banking. The payment methods are even simpler through online e-pay, NEFT/RTGS, ECS, ATMs or Drop box.

Citibank PremierMiles Privileges

The Citibank PremierMiles provides the following privileges like complimentary access to airport lounges where gourmet meals, unlimited beverage and Wi-Fi are available. Complimentary air accident insurance cover up to Rs 1 Crore and lost card liability cover of Rs. 2 Lakhs is also available. Other privileges include dining privileges, shopping privilege, travel privileges, Citibank world privilege, EMI privileges at consumer electronic & mobile phone outlets, leading retail and e-shopping, payment options and instant loan on the Citibank PremierMiles card.

Enjoy while travelling as Citibank PremierMiles Credit Card is the best option for frequent flyers and travel lovers where the benefits, features and the privileges are immense.

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SBI Credit Card Balance Transfer Procedure – Five steps to get stress free

No one enjoys the feeling of staring at credit card dues that need to be cleared and that too, with an added interest of up to 18%, which is the norm in most cases. Especially for a cash strapped consumer, the difference between paying the premium and the additional high rate of interest can change a manageable scenario into one that bites deeply into the pocket. As far as credit card companies go, deferring payment will only worsen the situation for the consumer. The best solution, in these circumstances is to transfer the balance to a more reliable bank, which also offers a lower rate of interest. 

Through the SBI Balance Transfer option, one can be assured of the fulfillment of both the criteria mentioned above.

As per the scheme, a customer may transfer the high rate credit card balances of other credit cards onto the SBI credit card, wherein the interest payable is as low as 0%, thus creating a circumstance of complete convenience.

The entire procedure is a matter of six steps, in case of a new user and just three steps in case of a customer already registered on the SBI card website.

If one is a first time visitor to the SBI card portal, all one needs to do is fill up the registration form with the appropriate details of the SBI credit card. Once this is done, an OTP will be generated and instantly sent to the registered mobile number. After logging in with the Card number and the OTP, one can then create an appropriate user ID and password. On entering the portal, the option ‘Book Balance Transfer’ can be found to the left of the screen. Hereon, it is just a matter of filling the balance transfer form and clicking ‘submit’.

The SBI Balance Transfer options bestows multiple advantages. For one, once the balance is transferred, the interest payable for the first two months is 0%. A 2% service charge may be levied, which, compared to the monstrous 18% is almost negligible. Therefore the opportunity to save on the high rate of interest in other credit cards in wide open.

The second advantage is that the interest rates post the 60 day period is also extremely low in comparison. It rises from 0% to just 1.7%. This again, is valid up to six months, during which time the customer also does not need to pay any service charges.

Third, by transferring balances from all other cards into the SBI card, one creates a single, unified, savings-driven payment option that is dependable and hassle free.

And finally, convenience. The request for Balance Transfer will be processed within just three working days through Visa Credit Card Pay for all Visa cards. What is more, the cheque will be delivered within a mere 3 working days if the customer is located in a metro. Even otherwise, the duration if delivery is limited to just 5 working days.

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