Growth is something that everybody strives for. Among many other eligibilities of growth, one of the major criteria is high or can say the better standard of living.
Growth is normally backed up by the economy. Though with time and with the recognition of various other factors, now some qualitative non-economic factors are also encapsulated while measuring the growth factor. But there was a time when the income and saving index gave the conclusion. Saving was to be considered as the alternate of income. People used to save money, make a budget, and then went for fulfilling their needs, or somewhere desires. But now is different. Today the consumer behavior has changed. The saving attitude and making a budget are replaced by purchasing everything on credit cards and paying the bills later. The facility has given new wings to the desires and people are not afraid to buy the luxuries anymore. With the power of credit, they do not hesitate to fulfill their desires. Rather there are even some basic needs, like home, four-wheelers, commercial spaces, even mobile phones, which are included in the items purchased on credit; even on EMI’s.
Have you ever noticed, those customer care calls, even on Sundays, that want to sell you credit cards? It seems so easy. Right. Just say a yes and get your credit card in a maximum of one or two days. But then if it is that easy, then why do you think you get so many calls? You can do it on your own? Why do you need an expert to guide you in purchasing credit cards? Why is it so difficult to manage to get it that it has become a business? Let’s scroll and dive deep to see the what’s and why’s behind credit cards and first of all, “What is a credit card”?
A credit card is a simple plastic card that gives you the power to purchase your desires with a facility to pay for it later. It is similar to debit cards and even looks similar. The only difference is in debit cards, you pay immediately by swapping your card or by using the CVV number, and the transaction is over, but in credit cards, the transaction gets over when you pay the bill of your credit card through which you have paid for your purchase. In simpler terms, a credit card means freedom to purchase today and pay tomorrow without having any guilt of taking credit.
Why credit cards: https://www.valuepenguin.com/credit-cards/statistics/usage-and-ownership As per the survey done by value penguin, 86% of the US respondents own at least one credit card and most of them are senior citizens above the age of 60. The market saw a drastic change in the payment pattern of purchasing in the pandemic. Cash transactions are almost negligible and people have gone either to online payment more or are safer with this plastic money. Of course, this plastic money is way safer than carrying cash all the time, unless you are going too remote.
How it works: The so simple-sounding transactions have a long process behind the stage. The ownership of credit cards completely depends on the score you have. The banks you are dealing with checking your financial scores, analyze them, and then after many layers of procedure see if the customer is financially fit enough gets the credit card.
Eligibility: There are certain parameters on which the eligibility of credit card ownership is decided.
- The bank account status: What is the financial condition of the customer?
- Income slab: How much the customer earns?
- Stable income: Does the customer have a stable income?
- Established credit: What is the transaction history, especially regarding the payment of a loan, if any.
How credit scores are generated: The companies like Experian, maintain the credit score, and then the process is taken further. Many such companies work for generating the creditworthiness report of the customer to see if he/she is eligible for getting a credit card or not.
How to boost your score: There are many parameters checked before issuing credit cards to be the customer. Now when everything is gone on your apps, Experian has launched an app where you can manage, maintain and boost your score on your own. As per the Experian, look at the pointer to boost your credit card score:
- Credit Bureau: Not just any bank account, but consider those accounts where you can straight link to the Credit Bureau. This will help you with an easy and quick score procedure.
- Maintain low credit bills: No one wants a debt pile. It’s better to pay the bill asap and maintain the lowest debt amount.
- Single-shot payment: Treat money as money. Instead of making a small amount payment now and then, keep it neat and clean by paying in a single full shot. It is anyways impressive this way.
- Clear the past payments: No one wants to give credit to defaulters. Maintain your payment history clean. See regularly and frequently if there are any payment due and clear it immediately. This will increase your chances to boost your score and easy to process.
Now it must be clear to you how you can increase your score. Besides the good news is that The Experian App now makes it possible on your mobile itself. Get all the related data and updates on your mobile, make instant payments, see the payment history, and get the highest score on one go. Everything is in your hand now. You know the titbits of credit card scoring, you have the app that helps you build your score, maintain your credit score on your own, and enjoy your financial freedom.
