Pros and cons of ‘No cost EMI’ facility on credit card transactions

Are you planning to purchase a mobile or a wedding gift for your bestie, or any other home appliance, but don’t have sufficient funds to make the purchase? Don’t worry, the ‘No cost EMI’ feature offered on many credit cards is at your rescue. Not only that the feature allows you make an instant purchase without paying a penny, it will also enable you to pay the amount in easy monthly instalments at no extra cost.

If your credit card is offering ‘No cost EMI’ facility, you can give it a try for all your big-ticket purchases. Let’s look at the advantages and disadvantages of the facility to have a better understanding of the feature.

Advantages offered by credit card ‘No cost EMI’ facility

no cost emi

  • Easy conversion: With the EMI facility, the big-ticket purchases no more scare you. You can quickly convert the entire amount into EMI and pay it in small instalments every month.
  • Zero interest: While the typical EMI facilities offered on credit cards attract interest on the purchase value, the No cost EMI facility frees the cardholder from paying the additional amount on the purchase. The interest charged will be offered as discount and only the principal amount will be equally divided over the selected repayment tenure.
  • Quick processing: Conversion of transactions into EMI does not require any approval from the bank nor takes time for processing. It’s as instant as making an online purchase. When you opt for ‘No cost EMI’ using your credit card, the purchase amount will be blocked by your credit card issuer and after a few days, it will be converted into EMI. The first EMI will reflect in your next billing statement and will be included in the minimum amount due.
  • Flexible repayment: Most credit cards offer a flexible repayment tenure for credit card EMI transactions. The tenures range from 3 months to 24 or 36 months making it easy for the cardholder to repay in smaller instalments.
  • Positive impact on credit score: In case you have opted to make the big-ticket purchase using your credit card without using the EMI facility and for some reasons you were not able to repay the amount on time, you will end up in trouble. While partial repayment will attract interest on the remaining due, non-payment would lead to default. This could potentially impact your credit score.

On the other hand, opting for the ‘No cost EMI’ option would certainly save you from such situation as well as create a positive impact on the credit score as there won’t be any defaults.

Additional Reading: Amazon No Cost EMI, Flipkart No Cost EMI

  • Available across multiple products: Many credit cards are offering the no-cost EMI facility on a variety of products including mobile phones, washing machines, laptops, ACs, TVs, high-end cameras, refrigerators, kitchen appliances, furniture, etc.

A few drawbacks

While most of the features offered by the ‘No cost EMI’ facility look attractive, there are a few things cardholders need to consider before opting for the facility.

  • A one-time processing fee: There may not be any interest on the EMI amount, but banks typically charge a one-time processing fee to convert the transaction into EMI. It could typically vary from 1 to 2.5% of the transaction value based on the credit card issuer. However, compared to the percentage of interest which is usually charged on EMI transactions, the one-time processing fee may not make the purchase expensive.
  • Credit limit gets blocked till repayment: Even though you will be paying only a tiny portion of the total purchase value as EMI every month, the credit limit on the card will be blocked for the entire purchase value on the date of the transaction. Despite your monthly EMI credits, the limit remains frozen until the payment is made in full. This could potentially affect the future spending capacity on the card.
  • Pre-closure at additional cost: While some credit card issuers do not allow pre-closure of the EMI facility, some do allow but at a certain fee. Typically, banks charge 1-2% pre-closure fee for foreclosing the EMI facility.

By and large, the advantages offered by ‘No cost EMI’ outweigh the disadvantages, proving it to be a beneficial option for those planning to make big-ticket purchases using their credit cards. However, before choosing the facility, make sure to check with your credit card issuer about the availability of the feature on the purchases you wish to make. It’s just to carry out your purchases as per the bank’s policies to avail complete benefits of the ‘No cost EMI’ feature. Happy shopping!


Apply PAN card for Minors 2018


The Permanent Account Number (PAN) which is a unique identification number is required by every tax paying citizen of the country. Issued by the Income Tax Department, the number is also required by all tax paying entities like companies, local authorities etc in the country. The 10-digit number is required for a number of purposes like paying taxes, making huge cash deposits and investments etc. While most individuals apply for a PAN card after attaining the age of 18 years, one can avail the card before reaching the age of 18 years as well. This is because the Income Tax Department has not prescribed an age limit for availing the PAN card. Moreover, the PAN card acts a valid identity proof for the individuals who possess the card issued by the Income Tax Department under the Central Board of Direct Taxes (CBDT). But the question arises as to how can a minor avail a PAN card? Read on to find out more about how can a minor apply for a PAN card.

Applying for a PAN card for a Minor

The process of applying for a PAN card as for a minor is a simple one. It is almost similar to the process of availing a PAN card undertaken by a person who is beyond the age of 18 years. A PAN card for a minor can be availed by applying for it either through

  • Online mode
  • Offline mode

The application process for availing a PAN card for a minor while applying for it online involves the following process:

  • Visit the Tax Information Network website of the Income-tax department.
  • Click on ‘Apply for PAN online’ tab
  • Next, click ‘Apply’ under the sub-heading ‘Application for allotment of New PAN (Form 49A)’ or ‘Application for allotment of New PAN (Form 49AA)’ depending on the place from where the minor belongs
  • Fill in the details asked for in the form that appears on the onscreen
  • Upload the documents
  • Make the payment of the processing fees
  • Once the payment is successful, a reference number appears on the screen signifying that the application was received by the department.

While if one intends to make the application offline, the process involved is as follows:

  • Download Form 49A or Form 49AA from the NSDL or UTIITSL websites
  • Fill in the form
  • Attach the copies of the documents required with the form
  • Make the payment of the processing fee
  • Next, submit the form at the authorised NSDL PAN card centres of UTIITSL centres
  • On successful verification, the official present at any of the authorised centres of NSDL or UTIITSL accepts the application and provides the applicant with a pan acknowledgement number.

 What are the documents required by applying for PAN for a minor?

While applying for a PAN card for a minor, the documents required to be submitted during the process of application is the same as those required when an adult when he/she applies for it. However, apart from the proof of identity and proof of residence which the father or guardian of the minor needs to provide, a copy of the minor’s birth certificate along with two photographs of the minor is also needs to be submitted with the application form.  

Application processing fees required to be paid while availing a PAN card for a minor

The application fees that is required to be paid by the father or guardian for availing a PAN card for a minor is the same as that for an adult. The application processing fee is Rs. 110 (Application fee 93 + 18% Goods and Service Tax) for addresses that exist within the country. While the application fees which is required to be paid by the guardian if the communication address is from outside of the country is Rs. 1020 (Application fee Rs.93 + Dispatch charges Rs. 771 + 18% Goods and Services Tax).

Why do a Minor need the PAN card?

A minor needs a PAN card for a variety of reasons. Be it for identity purpose, opening a bank account or for availing government schemes etc having a PAN card can come in handy. There is also the reason of the minor earning an income. Though, in most cases the earning of the minor is clubbed with the parent’s income in some cases the income is taxable in the minor’s name as per Section 64 of the Income Tax Act.


Guidelines for filling PAN card correction form

Permanent Account Number (PAN) is a 10-digit alphanumeric code assigned to all income taxpayers in India.

Non-Indian nationals doing business in India can also apply for a PAN card. PAN card is mandatory for financial transactions such as opening a bank account, the cash deposit of Rs.50,000 and above, and more importantly, to file income tax returns.

Guidelines For Pan Card Correction Form

pan card correction
here the process you will get to know about pan card correction

Best avenues to invest in 2017 to get higher returns

The last quarter of 2016 saw one of the most landmark decision taken by an incumbent Prime Minister in the country’s 69-year history since its freedom. PM Narendra Modi, with inputs from the Finance Ministry, brought into effect the demonetisation of Rs.500 and Rs.1,000 notes. This move, although took the country into a near meltdown, has somewhat appeared to stabilise the economy for the long haul.

However, one of the prime effects of demonetisation was that avenues that were deemed profitable for investors lost their charm. In this article, we will talk about a few instruments you can invest in to get better returns for your money.


  • Post Office Recurring Deposit

The age-old Indian post office has underwent a major paradigm shift over the last few years in a number of ways. Of the many, one of the things that stand out is the introduction of deposit schemes. These schemes offer good returns for investors and is almost matchable with fixed deposits of similar terms. At the time of writing this article, post office deposits offer 7.3% returns, which compounds quarterly, for a 5-year period.

For instance, a regular Rs.100 investment will yield a return of Rs.7,250.50 returns once the scheme matures.

  • Public Provident Fund (PPF)

Public Provident Funds (PPFs) has long been one of the most preferred investment avenues for a vast majority of risk-averse working professionals. These funds mature after a 15-year period and offers a opportunity to renew for 5 years every time from there on. Besides, PPF is also eligible for tax deduction under Section 80C of the Income Tax Act.

  • Sukanya Samriddhi Account (SSA)

SSA is basically available for parents of a girl child, which enables them to invest so as to build a corpus to fund the education and other things relating to the girl. This account requires a minimum of Rs.1,000 to be opened and the guardian can add multiples of Rs.100 every time they want to add to the account. The account has an upper limit though, meaning parents can only invest a maximum of Rs.1.5 lakhs per calendar year. A benefit of this account is that it is available for tax deduction while the returns non-taxable. Also, the maximum interest such accounts offer stands at 8.5%

  • National Savings Certificate

National Savings Certificate (NSC) is yet another save avenue that offers guaranteed returns. Currently, the returns offered stands at 8% for a five year term. An account can be opened for as less as Rs.100 while there is no upper limit to the amount that can be invested. An advantage of this fund is that you can use it as collateral for any loans.

These are some of the best investment options you can invest in if you are tired of fixed deposits and their falling interest rates.


Maharashtra Linking Social Welfare Schemes To Aadhar

The Maharashtra government, in an effort to reduce dependency on cash, will be making all payments linked to its various welfare schemes by directly transferring the amount into the beneficiaries’ accounts. As part of this move, all beneficiaries’ accounts have to be linked through Aadhar Card, which will be used for authentication purposes.

The state cabinet has approved a Bill to make the Aadhar number necessary for beneficiary authentication. Among the schemes that will come under this scheme are the payments related to scholarships, pension and LPG subsidy.

The government provides up to 44 benefits to eligible individuals, including tarpaulin for farmers, agricultural pumps, seeds and cooking gas pipelines.

The government expects to see substantial savings as it will be plugging leakages in the system by eliminating bogus beneficiaries who claim substantial amounts.

A similar scheme was adopted by the Central government in the previous year. seeing its success, the Maharashtra government also decided to implement it.

Increase your Equifax,Experian,CIBIL Credit Score

It’s a common misconception that credit scores cannot be changed or increased. Every financial decision you make and step you take that’s on record, and related in any way to credit, is recorded by Credit Information Companies (CICs) like CIBIL, Equifax, Experian, etc. and this is what determines your score.

A lower score is an indication of irresponsible behaviour with credit. For example – not paying back loans on time, delaying credit card dues by only paying the minimum monthly amount, over-borrowing, over-utilizing credit despite a large income, having an unfavourable credit utilization ratio, etc. All these things can damage your credit score and will be mentioned in your credit report. Negative remarks and lower scores will mean that you won’t be able to get loans approved in the future.

A higher score, on the other hand, is an indication of responsible credit behaviour. For example – meeting all your EMI payments on time, clearing off credit card dues in full before they compound, debt consolidation, low credit utilization ratio, etc. All these favourable practices work towards building your credit score and sustained practice of this type of financial behaviour could even send your score well above 750 or even 800.

How to increase your CIBIL score fast?

Well, the honest answer to this is that there’s no real way to fix your CIBIL score overnight. It will take at least a few months to get the ball rolling in that regard. Three months is the soonest you could expect to see any positive change in your credit score, without making huge lump sum payments to clear off pending loans. In 6 months, you could see a gradual incline in your report, and in a year, you could even change your overall score by a huge margin. That is, of course, if you heed the following suggestions and make the right decisions with your money:


  • Use your credit card: This may have been what damaged your score in the first place, but using your credit card in the right way is one of the easiest ways to increase your credit score. Using your credit card right means setting a tiny limit – say 10% of your monthly income – and using the card for recurring purchases up to that amount. Suppose you earn Rs.70,000 per month – use your credit card for Rs.7,000 every month on a recurring expense like groceries or fuel. Using your credit card is basically utilizing credit facilities offered by financial institutions. A small amount like this is easy to clear off on or just before the due date, and won’t hurt your wallet. Consistently clearing off these small-term and small-scale borrowings will reflect positively in your report. This is just step 1, however, but it is absolutely necessary.
  • Clear each and every EMI: While the general rule is that you can miss one EMI if you’re in a pinch, but two would result in dire consequences, it’s advisable not to miss any EMI payment for any loan no matter what the reason. People sometimes actively miss EMI payments just to make use of the one month grace period, but don’t realise that it goes on a permanent record. This permanent record is your credit score. Pay all your EMIs as and when they become due, and you won’t have the problem of dealing with penalty interest or a damaged credit score.
  • Check and re-check your Credit Information Report (CIR) for errors: The CIR or Credit Information Report generated by CIBIL is not impervious to errors, and since the data collection is largely computerized – it leaves a lot of room for silly errors and mistakes that could negatively impact your score. Take for example the case involving Mr. A Dutta of Mumbai. He purchased a property at a particular address, and his credit score was destroyed after this purchase. Why? Because the previous buyer of that property had defaulted on his home loan, and the address was marked with a red flag. Mr. A Dutta had his credit score damaged through no fault of his, but just because the system implicated Mr. A Dutta thinking that he was the one who defaulted on the home loan. The system reports all the data it has to Credit Information Companies (CICs) like CIBIL, and CIBIL doesn’t have to verify this information before it makes it available to lenders and financial institutions. What matters at the end of the day is what’s written in the report, and if you’re like Mr. A Dutta, you will have to contact CIBIL through their website and report the fact that there is an error in your CIR.
  • Make sure you take NOCs (No Objection Certificates) from every lender after you’ve cleared your outstanding dues: Usually when we have some overdue outstanding amounts that we owe to lenders, we arrange for a settlement for a lesser amount than the total owed. While settlements do damage your credit report in a small way, not having a NOC (No Objection Certificate) issued by the lender can have disastrous effects on your score. Most people are just so happy after clearing off their dues that they don’t bother getting this highly important document. The old loan details will appear in your CIR as an open loan that’s not been cleared, but can be removed if you have a NOC as proof.
  • Don’t inquire for loans unless you’re sure you want to borrow: Making unnecessary loan inquiries lowers your CIBIL score – yes, that’s true. This harmless act could have serious consequences. Inquire for a loan only when you absolutely need it and when there’s no other way for you to move forward except taking out the loan. This applies for all kinds of loans – home loans, car loans, personal loans, etc. If you are inquiring to find out your eligibility, don’t do so in a formal fashion after approaching the bank – but use any of the loan eligibility and loan EMI calculators available online.
  • Pay attention to your Credit Utilization Ratio: Granted, this may not be a term you’re familiar with but you will in the coming months as CIBIL and other CICs become known as the reason people aren’t getting loans. Your Credit Utilization Ratio is the amount of credit you take on as compared to your regular income. Consider the following example: Mr. A earns Rs.70,000 per month, but uses his credit cards up to Rs.50,000 per month and clears off the dues before the due date, and before they gather penalty interest. While this is responsible financial behaviour in the sense that dues are paid off before they’re due – it is also a form of very irresponsible behaviour, as Mr. A would not be able to meet that large payment if his income should stop for whatever reason, for even a month. It is unlikely that he has been able to save enough with his salary to clear off his Rs.50,000 debt in any given month, and it’s obvious that this will remain as an amount owed until he re-establishes his source of income. By which time the same Rs.50,000 would be a far greater amount thanks for penalty interest compounding. Mr. B, on the other hand, has an income of Rs.70,000 but uses his credit card every month for Rs.20,000. This is a considerably smaller amount of Credit Utilization Ratio, and Mr. B would easily be able to clear off any outstanding debt on his card should his income stop for whatever reason. CICs consider the amount of credit taken on versus the earning capacity of the borrower to decide whether they are intelligent and responsible in terms of financial management.


Proving that you are responsible and intelligent when it comes to your finances, and that you can be trusted with credit is what any CIR (Credit Information Report) is all about. It is a document that either instils confidence in the lender that you can repay what you owe, or tells the lender that the chances are high that you may default on your loan.

Clear out the errors and make sure you handle your finances responsibly, and you won’t have any problem with CIBIL, Equifax, or Experian.

Which banks to approach for loans if you have a low Experian Credit score

Are your loan applicants constantly getting rejected due to “insufficient credit score” by Experian Credit score? Well, there are still ways to get a loan depending on which bank you choose and how well you negotiate with the bank representative.

Experian India

Credit scores are only one of the factors considered by banks and lenders before approving a loan. Granted, that it is one of the more important factors, but the way you pitch your loan requirement to the bank could be the difference between having a loan approved or rejected, despite a low credit score.

When you approach the bank, you need to have a well-thought-out idea of why you need the loan, what you intend to do with it, and how the loan would enable you to increase your level of income to such an extent that you are able to repay the loan on terms acceptable to you and the bank. Convincing the bank representative of why you need a loan shouldn’t be that difficult, if you’re smart. If you don’t have a proper plan as to how you intend on repaying your loan, maybe you’re better off not taking the loan in the first place.

A well thought out plan should include the following:

  • Your reason for taking the loan. If you want a loan to travel or go on holiday, and you have a bad credit score, don’t even bother approaching the bank because you going on holiday is not going to generate any money for the bank. If you want a loan to set up a business that you believe will succeed and your customers will be able to pay for the product or service, the bank may consider you to be a viable candidate.
  • Your spending plan. While this is entirely your business, telling your bank where you intend to spend and how much you intend to spend and for what purpose, could instil a sense of confidence in the bank that you have your ducks in a row. Again, spending here shouldn’t be on a dead investment like a fancy new car or a high performance stereo system, it should be spending in the form of investments in assets that can generate income, or can help you generate income.
  • Your business plan. The product or service you wish to produce and sell to the masses must be clearly thought out and all contingencies should be anticipated. The business plan should be constructed in a future where the bank has approved your loan application, and you must be able to communicate the projected growth or planned rollout of your product or service in the market.
  • You repayment plan. After the bank approves your loan and you’re established – how long will it take for you to realize a profit on your venture? You can negotiate the first repayment and when the EMIs start at this stage, by communicating to the bank that the money taken as a loan can only start generating an income after “x” number of months / weeks in your particular case.
  • Contingencies. Any plan is only as strong as the preparation put into it. Preparation is incredibly important, but excellent preparation is only half the battle won. You must plan for everything that could potentially go wrong at every stage of your venture, and plan a countermeasure to deal with it. Communicate this with the bank and they will be confident that you are deserving of the loan as you have every intention of paying it back, and won’t use contingencies as excuses to delay payments.

Most of the above points are for loans taken to start businesses for the selling of goods or the provision of services, but they can be altered depending on your particular case. Just remember that the bank will undoubtedly approve your loan if you’re able to convince them that you can pay them back. A Experian Credit score, at the end of the day, is nothing more than a confirmation that you have performed well with debt in the past, and that you honour your repayments. If you can convince the bank of this without a Experian Credit score, your loan is as good as approved.

Even so, if you aren’t able to (or don’t want to) spend so much time in the branch manager’s office trying to convince him / her to give you money, you can always apply at these banks who accept a score below 750 / 800 for various types of loans:

  1. IndiaBulls offers home loans of up to Rs.50,00,000 to applicants with credit scores as low as 680 at 9.45% for a 20 year tenure.
  2. DHFL offers home loans of up to Rs.50,00,000 to applicants with credit scores as low as 680 at 9.50% for a 20 year tenure.
  3. HDFC bank offers home loans of up to Rs.50,00,000 to applicants with credit scores as low as 700 at 9.45% for a 20 year tenure.
  4. ICICI bank offers home loans of up to Rs.50,00,000 to applicants with credit scores as low as 700 at 9.45% for a 20 year tenure.
  5. IndusInd Bank offers personal loans of up to Rs.5,00,000 to applicants with credit scores as low as 700 at 14.50% for a tenure of 5 years.
  6. HDFC Bank offers personal loans of up to Rs.5,00,000 to applicants with credit scores as low as 700 at 14.49% for a tenure of 5 years.
  7. ICICI Bank offers personal loans of up to Rs.5,00,000 to applicants with credit scores as low as 700 at 14.49% for a tenure of 5 years.
  8. Bajaj Finserve offers personal loans of up to Rs.5,00,000 to applicants with credit scores as low as 700 at 14.49% for a tenure of 5 years.
  9. Axis Bank offers auto loans of up to Rs.5,00,000 to applicants with credit scores as low as 725 at 11% for a tenure of 5 years.
  10. HDFC Bank offers auto loans of up to Rs.5,00,000 to applicants with credit scores as low as 725 at 9.65% for a tenure of 5 years.
  11. ICICI Bank offers auto loans of up to Rs.5,00,000 to applicants with credit scores as low as 725 at 10.75% for a tenure of 5 years.
  12. L&T Finance offers auto loans of up to Rs.5,00,000 to applicants with credit scores as low as 700 at an interest rate that the bank will communicate to you, for a tenure of 5 years.

It’s important to note that banks will hold the fact that you have a lower Experian Credit score against you, and try to get you to sign the papers for a higher interest rate than the one advertised. Negotiation can go a long way here, and you can secure the loan you want for the rate you want.

The banks could also use the fact that you have a low Experian Credit score to approve a smaller portion of the loan. For example, a person with a high Experian Credit score (say around 800) applying for a home loan could have up to 80% of the property value financed through a loan, whereas a person with a lower Experian Credit score (say around 650) could have only up to 50% of the property value financed through a loan.

Don’t apply for a loan at too many banks at the same time. Keep it at one or two, as banks can find out how many other banks you’ve contacted for a loan, and this makes them weary of lending to you.

Approach your bank first. The bank in which you have your salary account or savings bank account already likes you (probably) and will be in a better position to listen to you and understand your situation.

Try NBFCs. Non-banking financial companies usually approve loans where banks won’t. Some may have higher interest rates or stricter conditions, but if you’re confident in your ability to repay – this is a viable option. Steer clear of loan sharks, stick to the registered NBFCs. NBFCs usually don’t care about your credit score, they just care that they’ll get their money back eventually.


The Correlation Between CIBIL Scores, Loans and Credit Cards

Any individual looking to obtain a loan or a credit card from a bank or a financial institution will most certainly need to possess a good CIBIL score in order to do so. While there are other factors involved in determining whether an individual is eligible for a loan or not, a high CIBIL score is the most important determinant in this day and age. In fact, it is nigh on impossible to acquire a loan or a credit card without a decent CIBIL score to highlight an individual’s creditworthiness.CIBIL

What Is A CIBIL Score?

A CIBIL score is a numerical representation of an individual’s credit history. Everything from loan and credit payments, bill payments, outstanding dues, etc is reflected in an individual’s CIBIL report, which shows whether he or she is financially stable or not. This is distilled into a numerical representation between 300 – 900 that represents the individual’s CIBIL score. Usually a score of above 750 is considered acceptable by banks and financial institutions to approve a loan or credit card application.

What Can An Individual Do To Improve His or Her CIBIL Score?

There are many ways through which individuals can raise their CIBIL scores in order to acquire a loan or a credit card. Some of the most common ones are as follows:

  • Pay off outstanding dues – Individuals with pending or outstanding dues on other loans or credit cards generally have low CIBIL scores. This severely affects their chances of acquiring loans or credit cards from lenders since it is a reflection of poor financial health on the part of the individual. By paying off these dues quickly and consistently, CIBIL scores are positively affected, which in turn prove the individual’s creditworthiness to the lender he or she is approaching. Outstanding credit card dues are generally considered to be one of the main causes of low CIBIL scores. Therefore it is in the individual’s best interest to pay them off as soon as possible.
  • Maintain low debt – Individuals with huge debts also have a lower chance of acquiring loans or credit cards due to the detrimental effect it has on their CIBIL scores. Lenders look into the amount of loan debt an applicant has acquired over a period of time, as well as his propensity to pay off the debt. Accumulating debts over a considerable duration negatively affects an individual’s CIBIL score, making it less likely for that individual to be granted a loan or a credit card. By maintaining a low debt balance, customers can keep their head above water even after taking on more loans.
  • Make payments consistently – Banks and financial institutions also take into consideration the frequency with which an individual makes repayments towards any other outstanding loans or dues he or she might have. Paying off other debts consistently helps increase an individual’s CIBIL score and acts as proof of the person’s financial health. Lenders are more likely to roll out a loan or credit card to such individuals, safe in the knowledge that the applicant will not default on any of the payments.

Top Credit Card facts for the festive season

The festive season has already hit Indians once again and the market is teeming with offers and discounts across all sectors of the economy. One very important aspect of shopping during festivals is money to pay for. With a host of personal loans and credit card offers making the rounds during festive periods, customers have a lot of paying options to choose from. Banks and other lending entities run special festive offers on credit card spends during such times. However, there are a few facts about these offers that if kept in mind will help you gain maximum out of your credit cards without being tricked into overspending.

  • Check your CIBIL report to see its updated

Checking regularly your CIBIL score and report is the best way to keep a track of your credit history. This makes it easy for you to plan your credit and know beforehand your points of improvement. Also, if you apply for credit without checking on your score and in case you get turned down by the lender, then it has a negative impact on the credit report. However, if you check your score before applying, you can improve it if it is poor before applying with any lending entity.



  • Credit cards have fees associated with them


It is good practice to find out everything about the related fees and charges for a credit card before availing one. Charges pertaining to credit cards include annual fees, joining charges, supplementary card charges etc. Late payment charges and charges for flexible payment via EMI are other fees that may be applicable to certain credit cards.


  • Credit cards let you withdraw cash but that’s expensive


Most credit cards offer you the flexibility to withdraw cash from ATMs. This is true for both domestic and overseas withdrawals. However, taking out cash via credit cards is an expensive transaction and may attract substantial fees and charges. Customers should take utmost care to avoid using their credit card to avail cash unless absolutely unavoidable.


  • Swiping your credit card overseas may be expensive


Many credit cards in the Indian market today offer both domestic as well as international applicability. Howevers, cards issued in India may cost you fees when swiped abroad. This is because of two factors, one is the conversion rate that is used to convert foreign currency to Indian Rupee and second is the foreign currency transaction fee that is applicable in cases of these foreign transactions made via your credit card. This fee is generally equivalent to 3.5% of the converted Indian currency amount.


  • Credit card reward points are a good bet


Credit cards offer various unique and popular features that can work in your favor. One such feature is the credit card reward point scheme that most credit card providers offer. These reward points are redeemable across a host of online and offline platforms. These can be redeemed to obtain shopping vouchers, gift items, air miles, coupon codes etc. However, in order to make the most of your reward points, it is imperative to know their validity. This will ensure that you do not miss out on the redemption scheme and are able to redeem your points before they lapse or expire. Also, big purchases during the festive season, like those of electronics and furniture, add huge number of reward points that can be redeemed to avail a host of products and services.


  • Late payments of credit card bills is to be avoided


Late payments are one of the foremost reasons of customers getting entangled in a vicious circle of credit card debt. Late payments have dual repercussions of one, piled up payments to be made and two, late payment fee added to the original bill amount. This makes it extremely difficult for credit card users to balance in line with their regular monthly budget. Customers who once get caught in this circle of pending credit card payments make huge payments since late payment fee is charged as a percentage of the pending bill and as such accumulates into heft interest amounts.


With the above points in mind, it will no doubt, be easier and more rewarding for you to experience the festivities this Diwali season. Credit cards are a great financial tool to make wise use of and make the most of your purchases. So, happy shopping to you!

Check-up on Your Credit Score in 6 Simple Steps

When one thinks of financial check-ups, the most popular choice that comes to mind is the Credit Information Bureau of India Limited which is also known as CIBIL. CIBIL is the country’s standard format for credit scores and any bank, non-bank financial institution or any other financial institution will check the applicant’s CIBIL score before approving any applications for loans and hence it is imperative that one knows their CIBIL score.

With the New Year, many people set themselves goals of losing weight, being healthy, being fit and giving up vices such as smoking and as important as it is to be healthy and take up healthy habits and keep a check on one’s health, it serves one well if they checked up on their financial health as well. An annual check-up of one’s health is beneficial in many ways and can help diagnose and detect illnesses or anomalies earlier on, similarly financial health check-ups every year will keep your credit score in good stead.

Any person can be up to date on their CIBIL score by following these six simple steps

1)      Acquire and Fill up the CIBIL score request form online: The first step in acquiring the CIBIL score is to log onto the website of CIBIL and go to the section for applying for the credit score. The direct link to this section for accessing the request form can be reached by clicking on the following link.

2)      Filling in the details: Once the request form has been acquired, the applicant needs to fill in the necessary fields of information. The applicant will have to provide all details requested and the more details provided, the better. The details that are normally required to be filled in include PAN card, Passport details and other identity proof details such as a Driver’s license or Voters ID

3)      Submission of the form and Payment: After the applicant has filled in the form and verified it by entering the anti-spam codes, they are required to click on proceed to payment option which will direct them to the next page. This page will require them to authenticate a payment. The payment for credit score request is Rs 500. This payment can be made through Debit or Credit Cards or through Net banking facilities.

4)      Authentication: This step follows the payment. The system on the authentication page generates a set of questions, usually around 5 that are based on the details submitted and may range from details of the current loans or the details of the applicant’s bank account. A minimum of 3 successful answers should be given for authentication success

5)      Confirmation: The final step is confirmation. Once the confirmation message has been generated by the system, the applicant will receive the CIBIL scores within four business days. Applicants will also receive a payment receipt confirming the payment made towards the request

6)      The authentication fail step is needed only if the 4th step is unsuccessful. In case authentication is unsuccessful, a copy of the payment slip along with self-attested documents need to be sent over to the registered corporate office of CIBIL in Mumbai. Applicants can also reach out on the helpline number for any guidance which is +91-22-61404300.

The payment towards acquiring the CIBIL Score is a meagre amount and the process is relatively hassle free. The online process is convenient and allows applicants to view their credit scores and make sure they are on top of scores that are straying or falling below the desired levels.