Paying credit card bills 10 days before they are due is a useful tip. My credit card bill is due on the 28th of every month. Once, I forgot to pay the bill - this was very early in my financial journey. My credit score tanked from 750+ to barely above 700. Lesson learnt the hard way. Will implement this tip to stop any such mistakes in the future!
My dad's cibil score is down only because he took loan from CITI BANK, which is now merged with KOTAK MAHINDRA BANK. Now, every time they (KOTAK BANK PEOPLE) call to repay the loan. He tells them he already paid it then why your bank people calling repeatedly. 😤 Its been 10+ years he payed the loan with interest. He have documents to prove that he already had paid the loan. It not only happened with him, but with multiple people.
@@molivia. Do one thing, lodge a formal complaint with Kotak bank via email to mark the loan closed from their end. If they fail to do so in one month, you can launch complaint in RBI ombudsman
Folks please make a video on how to close the cards and when to close the cards, the order in which the cards should be closed for someone for example who has 10 cards and wants to close the extra cards please. As even the closure would have impact I assume!!
I had 4 cards in the past and I closed all of them within 6 months & now after 1 year my score is 820ish. So, what I did was Find out which card had the highest interest rate and I decided to pay it off first but suppose the amount of all cards are more than your monthly salary and your whole income is going towards replayment what you can do it take a personal loan of the combined amount for all (eg: you have to pay 2lakh for your credit cards) the interest rate for that might be around 15-16% (Take it from banks only not apps they charge very high amounts). Pay off the credit cards and close them on the spot closing highest interest rate one first. Keep 1 card with lower limit open. That way you will be able to close the cards and get out of debt cycle. You will have more free money with which you could prepay your loan faster. And yes, you will see temporarily drop in your cibil score.
It's awesome information. Much needed for this era where everyone is loaded with leverage. And this video is much informative so that 70% of problems can be solved by them. Wow awesome
Checklist : How to improve your credit score? Here are a few key tips to keep in mind for improving your credit score: Open credit A/cs only when necessary Diversify credit types over time Make timely payments and do not default Keep credit card balances low & CUR less than 30% Check credit reports often to spot errors
Heys guys , Great video. Great efforts for letting others to get aware about Credit 💳 . Make videos on real estate, Black Money, a company named "Black Rock"(very less known how it works). Etc... Etc...
Amazing video, Got to learn a lot ❤ I had a doubt regarding the credit card debt cycle: When an old credit card is shut down (with lots of transactions) in order to get the new credit card with better benefits, the algorithm reduces the credit score temporarily. How is it rewarding you for new debt?
Hey Abhishek and Team of Zero1, your videos on Personal Finance are eye openers...could you also teach something like Technical and Fundamental Analysis of Stocks...it would be very helpful. Thank you ❤
If someone doesn't have credit card and never took any loan then what will be their credit score? Also is there way have a good credit score without using credit card?
My score in Experian and CIBIL are very different. In CIBIL I have 780 and in Experian I have 611. Now days there are multiple agencies and it is difficult for an average person to figure things out. can you make a video on this?
Your videos are great but I still feel there is a kind of lagging. I do understand the background story is needed but still A-Z details are not required. May be worth to think on this 🙂
Thank you for the wonderful video sir. I have a question regarding the 30% rule: Let's assume I have only 1 CC with 1 lakh limit. So rule says I should only take out ₹30000 on January. Can I take out multiple transactions, each less than 30000 but total more than 30000, provided I pay one amount back before taking second loan, all in January? For example: On Jan 5 I use CC for ₹20000, on Jan 7 I payback ₹20000, on Jan 9 I take ₹25000 and I pay back ₹25000 by Jan 11. Does the above example adhere to the 30% rule? Thanks in advance for the help Sir 😇😇
Hi Yashwanth, thank you so much for sharing that idea with us! It’s a great topic, and I’ve passed it on to our content team. Really appreciate your input-stay tuned! 🙌
@@Zero1byZerodha been tracking my credit score since day 1, also I was I think 19 or 20 when I tried to track my score n then I found out I did not have a score to begin with, so I went a little crazy and took a gold loan, this option may not be for everyone, and closed the loan in 1 year but in the process a credit score their for me, you can say I paid for my credit score🤣, anyways since then, I have used my credit cards to grow my credit score and even been through a bad credit debt phase as well, thankfully I am more mature because of it, even though I am still 22😎 Also I still have no effing clue why I wanted a credit score 🤣🤣
@@Zero1byZerodha ok so I was 19 or 20 when I tried checking for what my credit score was and obvsly I was a student with no loans so there was no credit score, so I went a little risky and took out a gold loan, with due permissions, relax readers, and viola, 1 year later closed the gold loan and got the credit score. Technically it's a paid credit score 😂, anyways since then I have been researching n diligent and been through 1 bad debt trap phase as well and yeah that's a how I got 782 on cibil trans union and 788 on Experian. Although I have no clue why I wanted a credit score in the 1st place 😂😂, it did help me get a pre approved credit card from hdfc 😎😎
@@Zero1byZerodha ok so I was 19 or 20 when I tried checking for what my credit score was and obvsly I was student with no loans so there was no credit score, so I went a little risky and took out a gold loan, with due permissions, relax readers, and viola, 1 year later closed the gold loan and got the credit score. Technically it's a paid credit score 😂, anyways since then I have been researching n diligent and been through 1 bad debt trap phase as well and yeah that's a how I got 782 on cibil trans union and 788 on Experian. Although I have no clue why I wanted a credit score in the 1st place 😂😂, it did help me get a pre approved credit card from hdfc 😎😎
@@Zero1byZerodha i had got a credit card baised on fd when i was 18. I am not really spending money to have fun kind of guy. So over time the credit score went up. Right now i have 4 credit cards out of which only 1 is fd based and 3 are normal credit cards which aren't backed by fd
I am not sure, you are correct on 30 % CUR of all limit combined... I have 5 credit card of 5 lakhs each and i just 4 lakhs on 1 credit card.... And cibil tanked 20 points... so I think cur 30 % per card limit is ideal way.
What does diversifying credit type mean? What other credit types are available for short term with zero interest(when paid on due date) apart from credit cards?
Diversifying credit types means using different kinds of credit, like loans and credit cards, to improve your credit score. The idea is not to take excess of unsecured loans. Besides credit cards, you can consider options like store financing or "buy now, pay later" services, which offer zero interest if you pay the full amount by the due date.
@@Zero1byZerodha Thanks for the reply. Currently or in the foreseeable future, I do not require any loans so asked the question. Somehow in India store financing is linked to credit cards or very few offers it and difficult to find it. BNPL, I will explore it.
How can I resolve or remove a credit score impact caused by fraud? The incident occurred four years ago, and I have already sent numerous emails and filed a police complaint regarding the matter. However, the issue is still reflected as pending on my CIBIL report. Why is this happening?
How to “earn” money from your expensive transactions? Disclaimer: Risky as it involves equity Want to buy a phone worth 60k? Take a no cost emi of 6months Invest the balance money in etf/index fund I.e 50k Setup an SWP (systematic withdrawal plan) to get 10k every month Earn a little bit of extra money for the transaction you were anyways gonna pay fully Assumptions: no cost emi is available and you have the complete amount in your bank at the time of converting into emi You may just earn 1-2k on this transaction
I am facing an issue like in my credit report there is showing multiple credit cards which are not taken by me with high utilisation which is leading to a decrease in my credit score. I spoke to my bank regarding this they are saying I don't have such credit cards with my account.What to do in this case?
I have a habit of preparing the credit card debts, like right after I use it I send the amount to credit card. So I never kept track of bill date or last payment date. What impact does this have in my credit score?
