A large part of your financial health depends on your credit score. For this reason, a low credit score can be a source of immense stress. A poor credit score can limit your financial options. It can happen because of missed payments, high debt, or even a lack of credit history.

A low credit score can lead to struggles in loan approvals, securing good interest rates, or even renting a house. However, even if you have a bad credit score, you can rebuild it. While rebuilding your credit score can feel daunting, understanding the best ways to rebuild your credit score can set you on the right path.

Understanding the Importance of a Good Credit Score

Before knowing how to rebuild your credit score, it’s essential to understand why it matters. In India, your credit score is a critical factor in your future. It determines your eligibility for loans, credit cards, and even certain types of insurance. A score above 750 is considered good. A score below this threshold requires action towards rebuilding credit.

Let’s look at how to rebuild your credit score.

1.     Start with a Secured Credit Card

One of the most effective ways to rebuild your credit score is by applying for a secured credit card. A fixed deposit backs secured credit cards. This reduces the risk for the bank. Also, it becomes easier for individuals with low credit scores to get approved for credit.

If you’re looking to rebuild credit, consider applying for a secured credit card. It can serve as a stepping stone towards a better credit future.

2.     Keep Your Credit Utilisation Low

Credit utilisation is the percentage of your credit limit that you are using. It plays a significant role in your credit score. A high credit utilisation ratio implies a high reliance on credit, thus negatively impacting the credit score. Ideally, your credit utilisation ratio should be below 30%.

For example, if your credit card has a limit of ₹1,00,000, try to keep your outstanding balance below ₹30,000. Maintain low balances and make timely payments. This way, you can improve your credit score without having to apply for multiple credit products.

3.     Set Up Payment Reminders and Automate Payments

Missed or late payments can severely damage your credit score. To avoid this, set up payment reminders or automate your payments. Most banks and financial apps offer features that allow you to schedule payments in advance. This ensures that you never miss a due date.

Whether it’s your credit card bill, loan EMIs, or utility bills, make all payments on time. This will have a positive impact on your credit report.

4.     Diversify Your Credit Mix

One of the best ways to rebuild your credit score is to have a diverse mix of credit types. This can include credit cards, personal loans, and auto loans. However, it is important not to overextend yourself. Managing different debts can prove your ability to handle various financial obligations.

For instance, if you only have a credit card, to improve your credit score, you can take out a small personal loan. Making regular payments on both can help rebuild your credit score. However, only take on new credit if you’re confident you can manage the payments. Missed payments will further harm your credit score.

5.     Avoid Closing Old Credit Accounts

It might seem counterintuitive but closing old credit accounts can hurt your credit score. The length of your credit history is a factor in your credit score. Hence, keeping older accounts open can be beneficial, even if you don’t use them often.

6.     Regularly Monitor Your Credit Report

In India, you’re entitled to one free credit report per year from each of the major credit bureaus. These bureaus are CIBIL, Experian, Equifax, and CRIF High Mark. Regularly reviewing your credit report is essential. It ensures that all the information is accurate and up to date. Mistakes in your credit report can unfairly lower your score. If you spot any errors, report them to the credit bureau immediately to have them corrected.

Also Read: The Role of Credit Cards in Personal Finance

Conclusion

Rebuilding your credit score can seem like a dream before you start. However, with the right strategies, it is possible. You can apply for a credit card or keep your credit utilisation low. Each of the options given above can bring you closer to a healthy credit score. The key is consistency and patience. Credit scores don’t improve overnight. But with time and responsible credit behaviour, you’ll see progress.

Explore IndusInd Bank’s credit card options today. Apply now and take the first step towards a brighter financial future.

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information. 

In today’s fast-paced world, convenience is paramount. Picture this: you’re driving on a highway, the wind in your hair, the open road ahead. Suddenly, you approach a toll plaza. You check your FASTag balance, only to realise it’s insufficient. The frustration is palpable, and now you’re stuck in a long queue. You must either scramble for cash or rush to recharge on the spot.

This is a scenario many drivers have encountered. FASTags have been adopted widely for seamless toll payments. However, managing the balance can sometimes get overlooked. The solution to this problem is simpler than you might think – FASTag recharge with a credit card.

Discover the Ease of FASTag Recharge Using Credit Cards

FASTag has revolutionised the way people make toll payments. It offers a convenient and cashless solution for drivers across India. Yet, maintaining a positive balance in your FASTag account is crucial to avoid unnecessary delays at toll plazas. Many people are unaware that they can easily recharge their FASTag using a credit card that saves their time.

Benefits of Recharging FASTag with a Credit Card

FASTag recharge is not the first use credit card holders think of. However, it can have these benefits:

·         Immediate Access to Funds

One of the primary benefits of a FASTag recharge using a credit card is the immediacy it offers. Other methods include transferring money from a bank account or loading a prepaid wallet. A credit card provides instant access to funds. This means you can top up your FASTag balance on the go. You do not have to worry about insufficient funds at the toll plaza.

·         Earn Rewards and Cashback

The credit card you choose while recharging FASTag plays a major role. If your credit card is linked with reward programmes, you can earn points or cashback on the transaction. For instance, RuPay credit card offers specific rewards for toll payments or recharges. This turns your routine transactions into opportunities to save or earn more.

·         Security and Convenience

Recharging your FASTag via a credit card is convenient and secure. Credit cards have advanced encryption and security protocols. Hence, credit card transactions help to protect your financial information. Moreover, with real-time transaction alerts, you can ensure that your recharge has been processed successfully.

Choosing the Right Credit Card

It is also crucial to choose the right credit card. Most credit cards can be used for FASTag recharge. However, choosing a card that aligns with your spending habits can enhance the benefits. For example, if you frequently travel on highways, apply for credit card that offers rewards for fuel or travel-related expenses.

Additional perks like fuel surcharge waivers or discounts on travel bookings can also add value to your overall travel experience.

Also Read: The Role of Credit Cards in Personal Finance

How to Recharge FASTag Using a Credit Card?

Now that you know the benefits, let’s walk through the process of a FASTag recharge through a credit card.

1.      Log Into Your FASTag Account

Start by logging into your FASTag account. This is typically managed through the portal or mobile app of the bank or agency that issued your FASTag. Most banks in India, including IndusInd Bank, offer an easy-to-navigate interface.

2.      Select the Recharge Option

Once logged in, navigate to the ‘Recharge’ or ‘Top-Up’ option. This is usually found on the dashboard or in the menu of the FASTag portal or app.

3.      Choose Credit Card as the Payment Method

Under the payment methods, select ‘Credit Card’. You’ll be prompted to input your credit card details such as your card number, expiry date, and CVV.

4.      Enter the Recharge Amount

Next, specify the amount you wish to recharge. You can recharge a higher amount to avoid frequent recharges depending on your travel frequency.

5.      Complete the Payment

After entering the required details, review the information, and proceed with the payment. You will need to authenticate the transaction using an OTP (One-Time Password). This OTP will be sent to your registered mobile number. Once the payment is authenticated, your FASTag balance will be updated instantly.

6.      Confirmation and Receipt

After the payment is successful, you will receive a confirmation message along with a receipt of the transaction. It’s advisable to save this receipt for your records.

Conclusion

Recharging your FASTag with a credit card is a smart and convenient option that offers numerous benefits. From instant access to funds and rewards to the security of transactions, this method simplifies the process and enhances your driving experience.

If you haven’t yet linked your credit card to your FASTag account, now is the perfect time to do so. And if you’re looking for a credit card that offers great rewards and perks for your travel needs, Apply now for a RuPay credit card from IndusInd Bank.

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information. 

Credit cards offer immense convenience and financial flexibility. However, mismanaging them can lead to severe financial stress. Many people unknowingly make mistakes like overspending or defaulting on repayments. These mistakes can affect credit score, increase debt, and even lead to financial difficulties.

Let’s explore some common credit card mistakes to avoid that ensure you use your credit card wisely.

Understanding the Pitfalls: Common Credit Card Mistakes

Before applying for a credit card, it’s crucial to understand the potential pitfalls.

1.      Ignoring the Fine Print

Many people apply for a credit card without reading the terms and conditions. Ignoring the fine print can lead to unpleasant surprises. Key details about interest rates, fees, and repayment terms get overlooked. Always take the time to read and understand the terms before signing up.

2.      Missing Payment Deadlines

One of the most common credit card mistakes is missing payment deadlines. Late payments incur hefty fines and negatively impact your credit score. Set reminders or automate payments to ensure you never miss a due date.

3.      Paying Only the Minimum Amount Due

Paying only the minimum amount due each month is a mistake many cardholders make. While it may seem manageable, it leads to higher interest charges over time. Always aim to pay off your entire balance to avoid accumulating debt.

4.      Overusing Your Credit Limit

Maxing out or using a significant portion of your credit limit can harm your credit score. Credit utilisation ratio is the percentage of your credit limit you use. It plays a critical role in determining your credit score. Aim to keep your usage below 30% of your total limit.

5.      Applying for Too Many Credit Cards

Applying for multiple credit cards in a short period can be detrimental. Each application results in a hard inquiry on your credit report. Too many inquiries can lower your credit score. Also, managing several cards can lead to confusion and missed payments.

6.      Not Monitoring Your Statements

Failing to review your credit card statements regularly is dangerous. It can lead to unnoticed fraudulent charges or billing errors. Make it a habit to check your statements every month. Ensure that you report any discrepancies immediately.

7.      Ignoring Reward Points and Benefits

Credit cards often come with reward points, cashback offers, and other benefits. Ignoring these can mean missing out on valuable savings. Understand how to earn and redeem your rewards effectively.

8.      Using Credit Cards for Unnecessary Purchases

Do not use credit cards as an extension of your income. Using them for unnecessary purchases can lead to debt accumulation. Be mindful of your spending. Use your credit card primarily for essential and planned expenses.

Smart Credit Card Management: The Way Forward

Avoiding these common mistakes can significantly improve your credit card experience. Here are some additional tips for effective credit card use:

• Create a Budget
• Keep Track of Rewards
• Stay Informed of Terms and Conditions
• Emergency Fund

Choosing the Right Credit Card

Selecting the right credit card is crucial to help avoid common mistakes. Consider your spending habits, financial goals, and the benefits offered by various cards. For instance, IndusInd Bank offers a range of credit cards, such as the Platinum RuPay credit card that provides excellent benefits and rewards. Understanding the features and advantages of this card can be helpful.

Understanding Credit Card Fees

Understanding credit card fees is an essential aspect of smart credit card management. These include annual fees, late payment fees, foreign transaction fees, etc. Knowing these charges can help you avoid unexpected costs. Always read the fee schedule carefully before choosing a card.

Utilising Credit Card Benefits

Many credit cards come with additional benefits. These benefits can include travel insurance, purchase protection, and extended warranties. Familiarise yourself with the benefits your card offers. For example, your card could provide travel insurance. In this case, ensure you understand the coverage details and how to activate it when needed.

Monitoring Your Credit Score

Regularly monitoring your credit score is a vital part of managing your credit card. Your credit score impacts your eligibility for loans and interest rates. Many credit card issuers offer free credit score monitoring tools. Use these resources to keep a check on your score and take steps to improve it if necessary. Timely payments, low credit utilisation, and responsible credit card use are key in this situation.

Seeking Professional Advice

If you find managing your credit card challenging, consider seeking professional advice. Financial advisors can provide valuable insights and strategies tailored to your specific situation.

Also Read: What Happens When You Default on Credit Cards?

Conclusion

In conclusion, avoiding common credit card mistakes can save you from financial distress. Stay informed and manage your credit card wisely. This will save you from falling into debt traps.

Explore the credit card offerings by IndusInd Bank. Our range of credit cards includes the Platinum RuPay Credit Card, Legend Credit Card, and IndusInd Bank Pinnacle Credit Card, among others. All these credit cards provide a wide range of benefits tailored to different needs.

Apply for credit card from IndusInd Bank today and experience the advantages of smart credit card management.

Apply Now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information. 

Credit cards are a lifesaver in a lot of difficult situations. Whether it is an emergency where you need sudden cash flow or a purchase that cannot be put off any longer. Unfortunately, many people view credit cards as just a convenient payment method, but they can offer much more than that. By using the right strategies, you can make your credit card work harder for you and turn potential pain points into advantages. This guide will explore how to use credit cards in innovative ways. By the end of the blog, you will know how to make the most out of this financial tool.

Explore Versatile Uses for Your Credit Card

Here are some practical ways to use your credit card that you might not have considered:

1.      Leverage Credit Cards for Everyday Expenses

Using your credit card for daily purchases can be highly beneficial. It helps to earn rewards, cashback, or points with each transaction. This can add up over time, providing you with savings or benefits. Ensure that you pay off the balance each month to avoid high-interest charges. Many credit cards like IndusInd Bank’s Samman Credit Card offer attractive cashback rates. You can spend on groceries, fuel, and dining out, so use your card for these categories for sure.

2.      Track Expenses for Better Budgeting

Tracking your expenses with a credit card can help you budget more effectively. Many credit card companies provide detailed statements that categorise your spending. This feature can be particularly useful for identifying areas of improvement. Your statement can show you where you can cut back and save more money. For instance, if you spend a lot of money on dining out, you can consider cheaper dining options or cooking at home.

3.      Simplify Payments with UPI Integration

Do you know how to use a credit card for UPI payments? This integration offers a seamless way to pay for various services and bills. To enable this, link your credit card to your UPI ID through your banking/UPI app. This method is useful if you prefer convenience and security in payments but also want to earn rewards or spend money better.

Using a credit card for UPI payments can also provide more security. With fraud protection, you can pay utility bills, make online purchases, or even transfer money without hassle.

4.      Maximise Benefits with Credit Card Offers

Credit cards often come with exclusive offers and discounts. These offers can range from travel perks to special deals. Regularly check your credit card’s promotional offers and take advantage of these opportunities. This could include seasonal sales, limited time offers, or partnerships with popular retailers.

Also, some credit cards offer special financing options. For example, many credit cards offer no-cost EMI options on big purchases during festive seasons. This can include like personal gadgets, home appliances and much more. This makes it easier to afford big-ticket purchases.

5.      Use Credit Cards for Large Purchases

When making large purchases, your credit card can be really beneficial. Using your credit card means you opt for Equated Monthly Instalments (EMIs) as repayment. Credit card EMIs allow you to spread the cost of your purchase over several months, making it easier to manage your budget without a significant upfront payment. This can be particularly beneficial for high-value items, enabling you to make purchases without depleting your savings.

6.      Benefit from Credit Card Reward Programs

Many credit cards come with reward programs that offer points for every purchase. These points can be redeemed for various benefits. These benefits include travel perks, merchandise, or even cashback. Understanding how to use these reward points efficiently can enhance the value you get from your credit card. Choose a card with a rewards program that aligns with your spending habits to maximise the benefits.

Some credit cards also offer bonus points for specific categories, such as travel or dining. This allows you to determine how to use your credit card strategically. Also, many credit cards have partnerships with airlines and hotels. A great example of this is IndusInd Bank’s Avios Visa Infinite credit card. This allows you to convert your points into frequent flyer miles or free hotel stays. This makes your travels more affordable.

Also Read: Understanding All About Credit Card Swipe Charges

Conclusion

Using your credit card in diverse ways can enhance its value and turn it into a powerful financial tool. A credit card can be more than a mode of payment. It can be a way for you to earn rewards, simplify payments, or take advantage of offers.

Are you looking for a credit card that offers great benefits and features? You should consider a lifetime free credit card. It is a credit card that doesn’t have an annual fee or joining fee for its entire lifetime. You can explore IndusInd Bank’s credit card’s lifetime free options like IndusInd Bank Legend credit card, Platinum RuPay credit card, Platinum Visa credit card, and Platinum Aura Edge credit card.

Apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information. 

In today’s fast-paced world, a credit card is more than a luxury. Having a credit card offers convenience while spending money. You can book flights, shop online, or dine out using your credit card. But choosing the right credit card among so many options can be overwhelming. Hence, it is important to first understand the types of credit cards that are available. This can help you make an informed decision.

This blog explains about the five types of credit cards. A comparison of their unique features will help you choose the best one for your needs.

1.     Reward Credit Cards

Reward credit cards are perfect for those who want to earn points or cashback on their spending. These cards offer rewards for every purchase you make. You can redeem the reward points against various benefits, including gift vouchers, air miles, and even discounts on products and services. Reward credit cards are ideal for frequent shoppers and travellers. They can use this card to maximise their spending benefits.

Features of Reward Credit Cards:

• Earn points or cashback on every transaction.
• Redeem points for gift vouchers, air miles, and discounts.
• Higher rewards are available for specific categories like dining, shopping, or travel.

IndusInd Bank Legend Credit Card & IndusInd Bank Pinnacle Credit Card are good reward credit card options.

2.     Travel Credit Cards

For frequent travellers, travel credit cards are a great option. They offer several perks that are useful during travel, such as free airport lounge access, air miles, and travel insurance. Travel credit cards make travel for business or leisure easy. They provide substantial travel-related benefits. These cards can enhance your travel experience and provide value for your money.

Features of Travel Credit Cards:

• Earn air miles on every purchase.
• Complimentary airport lounge access.
• Travel insurance and emergency assistance.

Travellers can consider IndusInd Bank Avios Visa Infinite Credit Card

3.     Cashback Credit Cards

Cashback type of credit cards has a straightforward benefit. They offer to give a percentage of your spending back to you as cash. This is perfect for people who prefer immediate savings rather than accumulating reward points.

Features of Cashback Credit Cards:

• Earn a percentage of your spending back as cash.
• Extra Cashback on specific categories like groceries, fuel, and utility bills.
• Easy redemption of cashback.

IndusInd Bank Platinum Aura Edge Credit Card are perfect for individuals who want to save money on their everyday expenses.

4.     Secured Credit Cards

Secured credit cards are ideal for individuals with a low credit score or those new to credit. These cards require a fixed deposit as collateral, which determines your credit limit. Secured credit cards are a great way to build or repair your credit history.

Features of Secured Credit Cards:

• Available for individuals with low or no credit score.
• Requires a fixed deposit as collateral.
• Helps in building or improving your credit score.

5.     RuPay Credit Card

RuPay credit cards are part of India’s domestic card scheme. They integrate with a secure and efficient payment platform. These cards promote cashless transactions in India. They also provide unique benefits tailored to Indian consumers.

Features of RuPay Credit Cards:

• Lower processing fees compared to international card networks.
• Special offers and discounts on domestic transactions.
• Enhanced security features for safer transactions.

IndusInd Bank’s Platinum RuPay Credit Card is an excellent choice. By having these kinds of credit cards, you can support India’s domestic card network while enjoying the benefits of a credit card.

Tips for Choosing the Right Credit Card

Selecting the perfect credit card can be a daunting task. Here are some tips to help you make an informed decision:

1.      Assess Your Spending Habits

Identify where you spend the most money—be it shopping, travel, dining, or fuel. Choose a card that offers the best rewards or cashback for these categories.

2.      Consider the Fees and Interest Rates

Look into the annual fees, interest rates, and other charges associated with the card. Some cards offer a waiver of annual fees for the first year or upon reaching a certain spending threshold.

3.      Evaluate the Rewards Program

Compare the rewards programs of different cards. Some may offer higher points or cashback for specific spending categories.

4.      Check for Additional Benefits

Look for cards that offer additional perks such as travel insurance, concierge services, and exclusive access to events and lounges.

5.      Read the Fine Print

Understand the terms and conditions, including the expiry of reward points, redemption options, and any limitations on earning rewards.

By following these tips, you can find a credit card that aligns with your lifestyle and maximises your benefits.

Also Read: Benefits of a credit card – 10 reasons why to use a credit card

Conclusion

Choosing the right credit card significantly enhances your financial experience. This is applicable whether you’re looking for rewards, travel benefits, or straightforward cashback. IndusInd Bank offers a wide range of credit cards tailored to meet various needs.

Explore the different types of credit cards IndusInd Bank offers and find the perfect card that suits your lifestyle and spending habits. Visit IndusInd Bank Credit Cards to learn more and apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.