When I was discussing with one my friend, he proudly says that he uses credit card for everything and pay the due before the due date, which makes him the most trusted customer for his bank. Here the important point is that, he even feels that it would improve his chance of getting more loan amount if he applies for a loan because of his repayment history of his credit card. Is that true?
kaikki halvimmat vipit, many has the wrong opinion on using the credit card and how it impacts the credit history when you applying for a loan. I would like to ask this question to my friend Say if you are paying the monthly credit card bill of Rs. 30000 when your take home salary is Rs. 60000. That means that your total expenses is 50% of your income and it is deliberately known to the bank by seeing your credit card payments. If you have the remaining amount Rs. 30000, then how can you pay the loan EMI if it is Rs. 30000? That is how banks would look into your credit history.
Many are not aware that credit card is a one kind of loan instrument for the bank customers. It is a temporary loan amount from bank with the free credit period where you need not pay the interest. Buying the most expensive goods with credit card and paying the EMI is one of the popular blunder by customers. The interest charged on credit card is very high.
When banks look into the credit card history while sanctioning loan amount for you, they consider credit card as the loan instrument. Obsessive use of credit card will lead to the less loan amount eligibility. Be wise when you are using the credit cards. Also note that dont fail any of the dues which will have the negative points on your credit report.
Dont run behind the reward points. Nowadays most of the banks and reward payment programs offering bonus points for using the credit cards. Dont fall prey for those lucrative offerings.