When you apply for a credit card or a loan, your credit score is very important. It is a three-digit number that reveals an individual’s creditworthiness to banks and other financial institutions.
Credit scores are calculated using your credit history, which includes information such as your payment history, the number of loans or credit cards you have used, and so on. There are four major credit information companies in India: CIBIL, Experian, Equifax, and Highmark.
A high credit score increases your chances of getting a loan or credit card, whereas a low score completely negates your chances. Banks are hesitant to lend or issue credit cards to people with low credit scores because they do not trust them with their money.
Even if you have a low credit score, if you get a card or loan, your credit limit may be low or you may have to pay a very high interest rate. You must improve your credit score to avoid this.
Managing CIBIL While Traveling
Because of the lower cost of flying, many people are spending a lot of money on vacations. After that, no matter how much money you spend, it will not be worthwhile to pay to visit these landmarks. In India, there are over a hundred different traveling monuments that require admission fees. Foreign visitors typically incur two to three times the amount of debt. Travelers from all over the world frequently travel in large groups when visiting countries such as India and others.
When large crowds visit a monument, the owners and managers make a lot of money. The admission fee revenues provide a significant amount of funding to the Indian government each year.
Credit Card During Traveling
While cash is always necessary, using a credit card for your spending needs can greatly simplify international travel. You won’t have to deal with currency conversions, and you won’t have to pay unnecessary foreign transaction fees if you have the right credit card.
Pickpockets will be less of a threat as well, not only because credit cards are easier to conceal and keep safe, but also because even if your card is stolen, you will not lose money. Simply report your card missing, and you’ll be excused from any unauthorized purchases. Credit cards make it easier to spend money while traveling because cash is inconvenient, conversion rates are difficult, and cash is easily lost or stolen.If a credit card is stolen, it can be quickly suspended and replaced.
How To Avoid Frauds
Credit cards are an effective payment method because they allow you to obtain an instant line of short-term credit while conducting transactions. This increases your purchasing power while also providing benefits such as convenience, reward points, and cashback. Regular, on-time payments can also boost your credit score, making long-term loan approvals easier. However, in addition to all of these benefits, credit cards are vulnerable to fraud.
Keep an eye out for suspicious devices linked to PoS units. Always shake or jiggle the slot to check for loose cloning attachments, and always cover the keypad with your other hand while entering the PIN.
To pay at NFC (Near Field Communication) enabled PoS machines, simply tap the card. This significantly reduces the risk of skimming. Furthermore, transactions under Rs 2000 can be completed without the hassle of entering the PIN. This also reduces the possibility of your PIN being captured.
Block your card immediately by using your mobile banking app or calling your bank’s helpline number. This will aid in the faster detection and investigation of the fraud, as well as ensure that you are covered under ‘zero-liability’ for fraudulent transactions. Remove the compromised/stolen/lost card from any online shopping accounts where it may be saved. Because the attackers are likely to have your credit card crucial information, they may also have access to your online accounts.
Treat your credit card as you would any other valuable or cash in your wallet. Learn about all of the security features available on your card. Use it with caution to keep your finances safe.