Credit card companies closely observe the shopping patterns of their customers. Besides, she also pays full attention to the CIBIL Score of her customers. Those who use their card well and pay their bills from time to time and do not make any defaults, they get the offer to increase their credit card limit. Now knowing this you will feel that the free limit is increasing, you should take it immediately. However, before taking advantage of this offer, you need to consider some things.
First see what your expenses are
If you want to accept the offer to increase the credit limit, then first see what your actual expenses are. If your expenses are more than your current limit and you feel that you should have more limit, then you can take the offer to increase the credit limit.
Who should not take this offer?
If you are among those people who are very fond of shopping and keep buying something or the other from your card every day, then you should ignore the offer of higher limit. If you increase the limit of your card, you will start feeling that you have too much limit. In such a situation, you will not miss buying goods in sale or even on EMI from the mall. Let us tell you that even if you buy the goods on EMI, the entire amount of the goods is blocked from your card.
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If you start purchasing a lot of goods on EMI through credit card, then initially you will find the EMI burden to be nominal every month, but gradually it will keep increasing. In this way, after a few months you will come to know that a significant part of your salary is going only in paying EMI. So if you do a lot of shopping then do not increase the credit card limit at all.
Get out of the credit card trap in these 2 ways
If you have incurred huge debt due to credit card, then the first thing you need to do is to limit the use of credit card. Repay your dues immediately, even if you have to take a personal loan. Keep in mind that you will get a personal loan from the bank at only 12-14 percent interest, whereas you have to pay 30-42 percent interest on credit card dues, which is almost three times the personal loan rate. So immediately take a personal loan from any bank and pay your credit card bill. Get some installments of personal loan made and keep repaying it gradually. Also try to use credit cards as little as possible.
Another way to pay your credit card bill can be to talk to the company and get your balance converted into EMI. That is, if your bill is of Rs 1 lakh and you are not able to pay it, then you can get its EMI done and then pay it off gradually. You will not have to pay 42 percent interest on making EMI.
Although there are a lot of credit card benefits, but there is no mistake that this credit card becomes a problem for the ji. You have to adopt a smart approach while using the credit card. Shop with credit card only as much as you earn. Many times people go on making purchases through credit cards without thinking and due to this they get trapped in the trap of credit cards.
