Credit Cards

While you may have closed a Credit Card, it is possible that the concerned bank has stopped reporting transactions on that Credit Card to the credit bureaus, but not actually reported the Card as CLOSED. If no transactions are reported on a Credit Card for (three months), the credit bureau would generally update the status of that Card as Inactive.

Ideally you should have a score of at least 750 in order to be considered eligible for a credit product. In addition, you should not have any negative status markings (like SETTLED) on your credit report. Please contact your lender directly in order to resolve this or we can assist you with this. You will need to make a payment to your lender before the SETTLED status is replaced with a CLOSED/NULL status. Please upload a copy of your CIBIL™ report or obtain an Equifax report on our website and we will guide you on the next steps.

It is advisable to first make sure that you are credit eligible. Ensure that you have a good credit score and meet the banks minimum salary, residence and employment criteria. Assuming you meet the criteria, you can pick the features you are looking for viz. airline miles, cash back, no annual fees, etc. and then pick the bank you like. At CreditMantri, we can assist you with this. Please visit our website and we can help you with all of the above steps.

When credit cards are issued on the strength of a fixed deposit, lenders do not consider other credit criteria. If you are able to provide an ID proof, address proof, signature proof and the requisite fixed deposit cheque, the lender is unlikely to reject this. If you require any assistance with obtaining a secured credit card, do get in touch with us on +91 72999 10800, or send us your telephone number and we will call you.

Amounts owed is a factor which makes a person believe that you need to maintain a balance in your account to increase your score but that is not the scenario. In fact, this can be detrimental for your score. This is because of something called debt utilization ratio. This is the ratio of the amount of debt you owe and the amount of debt you have available. Holding a balance in your credit card account does nothing to enhance this ratio or anything in your credit score. So how will a credit card improve your score? Using a credit card allows you to build a credit history. Therefore if you possess a credit card, then use it and pay it off every month (never, ever pay late) before the billing cycle is up. In this way you can build credit history without paying any money for interest and you’ll appear to be a responsible, savvy person who is reliable enough to be given a bigger loan in future.

1) you shall use the cards regularly AND 2) always make the payments on time for all the accounts. Credit score is calculated using data from the following five records: * Payment history * Amounts owed * Length of credit history * New credit * Types of credit used Every new credit card will be associated with a credit enquiry, which will have a very small, temporary negative effect on your credit score. How you use additional new lines of credit will have a long range of effect on your credit score, from positive to negative. The effect will be beneficial or positive if 1) you always pay on time and 2) if you keep your debt to credit ratio in a healthy range. The higher a person’s debt to credit ratio, the lower will be that person’s credit score. For example: Person A has five credit cards and Person B has one. Even though Person A carries greater total debt ($7800) than does Person B ($2700), Person B’s debt to credit ratio is very high, at 90%, and their credit score is likely to be affected negatively.

If your credit utilization ratio is very high i.e. above 50%, then you should either request for a credit limit increase or rather get a new credit card to increase your total available credit. If any of the above is not possible at this time for some reason, then just lower down your monthly purchases until it is possible. There is no point in keeping a credit card and not using it. Using your credit card rationally, which will include actions like keeping an eye on your credit utilization ratio, and that will eventually lead you to the point when you don’t really have think about it anymore.

because the banks do not pull your credit report for sending the replacement card. The new card that you will receive will be identical in every way to the old card except for the number, so that it doesn’t impact your credit limit or outstanding balance. As far as unauthorized usage is concerned, they will also not impact your score if you have reported about your card immediately and asked the bank or company to block that card from your account. If you fail to get those cards blocked from your account and you don't pay the charges off in time, then that will have a negative impact on your credit score.

It is also dependent on how much time you took to settle off the account after being marked as non-performing. If you currently do have active loans that you are servicing, and if you do not miss any payments, then it will probably take 8-12 months for your credit score to be back up to a decent level. If you possess a credit card, then you should also use it very wisely and make full payments on time. Never use more than 50% of your credit limit until it is absolutely necessary. If you currently do not have a credit card, then you should get a secured credit card against a fixed deposit and use it wisely. This will help you in getting get your score back up a little faster.

Therefore, if you are working for a well-known organization, then there is a good chances for you to get a credit card. The process of issuing a credit card varies from one bank to another. Most banks allow their customers to apply online via their banking website. You then need to fill a form that will ask you for your details. After completing that you will receive a call from bank within a couple of days for verification, and once completed, they will send you or ask you to collect your credit card from a bank branch.

Any loan rejection will impact your credit worthiness when you apply for a fresh loan, though it might not lower your credit score.

Multiple credit card applications in a short span of time is going to hurt your score, but it is not the function of number of cards you hold now.