By Admin 
Credit Card Limit: In today’s time, credit card is not just a means of payment for people, but it has also become an important part of people’s lifestyle. Often people use it for many needs like online shopping, travel, movie tickets, EMI and cashback offers. In such a situation, a question often arises in people’s mind that when their salary is Rs 50,000 or Rs 60,000, then why do banks give them a credit limit even higher than that.
Actually, banks not only look at your income, but also look at your credit score and payment records. However, getting a higher credit limit does not mean that you spend the entire limit.
Why is the credit limit more than the salary?
Along with your salary, banks also check your credit score and payment history. If you have a good credit record then your chances of getting a higher limit increase. The biggest advantage for the bank in this is that the more payment you make through the card, the more commission the bank gets from the merchant. Not only this, but if you do not pay the full bill, banks also earn from interest and late fees.
Daily Savings: A big fund can be created by saving just Rs 10, know how much and how will you get the return.
How much should you spend with a credit card?
It is considered better to use credit card only up to 30% of the take-home salary. That means, if your salary is Rs 45,000, then try not to spend more than Rs 13,500 from the card. If you use the limit too much, it may affect your credit score.
Is it right to have more than one credit card?
- It is not wrong to have more than one card as per need.
- But it is important to make all card payments on time.
- Use auto-pay or reminders so no payment is missed.
- Avoid using credit card for every small purchase without any need.
Income Tax Notice: Income tax notice sent to the house of the deceased, High Court gave a big and important decision