Avoid These Mistakes When Applying For A Loan On Credit Card

Loans on credit cards can be instant solutions to your financial woes. But a little care is needed when applying for the loan. Avoid these common mistakes.

Going overboard on borrowing

A high credit limit gives you a high loan amount. But don’t go overboard when borrowing. Borrow only what is needed.

Not comparing interest rates

Different credit cards have different interest rates. Always compare to get the best rates.

Closing old credit cards

This reduces the credit limit and increases the credit utilisation ratio. Maintain your cards to maintain a good credit score.

Choosing a lower tenure

Lower repayment tenure = higher EMIs which might prove unaffordable. Choose a tenure that gives the most affordable EMIs for easy payments.

Missing EMIs

This can increase the interest, incur a late payment fine, which in turn impacts your credit score.
Pay your EMIs on time, every time.

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Get repayment tenures up to 18 months and repay affordably.