how credit card pay vital role in credit score management

With digitization, the mode of payments is also changing. Now it’s no longer practical to carry the cash or a bundle of notes and the coins in one’s pocket. The credit card has turned the tables and totally changed the way of payment by leaving behind the way of cash payments. We can easily pay for things with only a one quick swipe or tap, even when we have no cash. 

There are many banks and financial institutes which provide credit cards related to various fields to their customers. Each credit card comes with specific benefits and features. With IOB credit card the experience of the customer to purchase become more delightful and cardholders also earn the reward points on every transaction that they make. The Indian Overseas Bank provides two credit cards to their customers one is IOB Gold Credit Card and other one is IOB Classic Credit Card. IOB credit cards are accepted internationally.

ROLE OF CREDIT CARD IN A CIBIL SCORE

Cibil score or credit score is a three digit number which represents the summary of an individual’s credit history or repayments history.

• Pay all the bills of cards on time - To make or maintain your CIBIL score good you have first and best key is to clear all your credit cards outstanding dues because unpaid outstanding amounts will reduce your CIBIL score. Also check your spending behavior time to time. This will result a positive reinforce of your credit score and always keep in mind that good financial performance is what a lenders search in their customers. 
• Use your credit card wisely-Do not use credit card for all your purchases, as credit utilization is an important parameter for your credit score. Always try to keep your credit utilization ratio not more than 30%, because if you use your cards beyond the limits then it could impact on your CIBIL score. So, it’s better to use your card under the limits to maintain your CIBIL score because a higher utilization of the card increases the repayment amount of your loan.  
• Keep old credit cards active- old credit cards accounts with non dues always increase your CIBIL score and give a positive impact to your credit score. So, make sure that all your credit cards are active. To more about iob card please visit https://www.applykaroo.com/credit-card/indian-overseas-bank-credit-card
• Credit application-  all cardholders thinks that that multiple credit cards means more credit and a better lifestyle, but the reality is just opposite to their thinking more credit cards has a negative impact on your CIBIL score.
• Credit mix- the loan which you apply has also an impact on the CIBIL score. Always try to have a healthy mix of loan means both secured (home loan, auto loans) and unsecured loans (credit loan, personal loan) because a single type of credit is likely to have a poor score.