mymoneykarma - credit score - monitor your credit report

What is Section 80C ? Section 80C is the most renowned section of the Indian Income Tax Act. There are numerous tax saving options under 80C, such as ELSS and PPF. While investing under 80C is very popular, we bring you tax-hacks other than Section 80C. NPS The National Pension System was launched by the Indian government in 2009. The NPS offers a tax deduction for investments made up to Rs. 50,000, in addition to the deduction of 1.5 lakh rupees available under Section 80C. Your returns, however, depend on the asset class you have chosen. Usually, it is advisable to select a high-risk instrument like government debt. Rajiv Gandhi Equity Savings Scheme (Section 80CG) This is another scheme available for tax-saving. Under this, you can invest up to Rs 50,000 in approved stocks.  But this scheme is available for you only if you are a first-time investor. This scheme was introduced under the UPA regime and has not been promoted aggressively. A supposed overhaul of the project hasn't...

Expense tracking is highly significant for both business enterprises and individuals. Writing down monthly expenses in a diary or recording them in an excel sheet is a cumbersome affair, especially in times when you can haul the entirety of your financial management over to a smart app. Before delving deep into the nuances of money management apps, let's discuss the pain points of conventional expense tracking methods:     The hassles of paperwork or maintaining several excel sheets.     Considerable time consumption.     Too meticulous to follow daily amidst a busy work schedule.     Lack of assistance in making smart decisions toward investments.

What are Mutual Funds? Mutual Funds are professionally managed investments - a managed portfolio of stocks and bonds. Simply put, mutual funds are like baskets containing a diversified blend of stocks and bonds from various companies across different industries. When you purchase a mutual fund, you are basically buying one of these baskets that contains dozens (or even hundreds) of stocks from numerous companies. However, you don't get to buy a basket and lock it away for a certain period. As these are professionally managed investments, the fund managers decide what proportions of stocks your basket should store after carefully researching and predicting the market growth. They constantly shuffle the goodies in your basket to make sure that you profit from the market fluctuations. On an average, you can expect a steady annual return of at least 8% on these investments. So, even if you are a risk-averse person, your money isn't at stake, and you can peacefully invest in these...

How Much Does a Late Payment Hurt Your Credit Score? If once in a while you miss your payments and pay it within 30 or maximum 60 days, then it won't cause any lasting damage to your credit score. However, frequent as well as recent (in the last two years) payment failures can be detrimental. A payment delayed by 90 days or more can make your credit history to plummet and mess up your credit score for up to seven years. It indicates that you might repeat the mistake, and you become a risky borrower. Most credit bureaus follow this pattern: 30-60 Days Late: If it is a one-time failure, the damages are less, and you can quickly revive. Recent 30-60 days delay causes the most damage, but it wanes off over time. However, if it happens often, the damage can be severe. Ninety Days Late: This means severe damage to your credit score. The effects will remain for up to seven years. 120+ Days Late: If your payment gets delayed by 120 days, your debt will likely be sold off to a third-party...

Which Are the Popular Indian Credit Cards That Offer Priority Pass? Here are the three best Priority Pass credit cards for you. HDFC Regalia HDFC Bank’s Regalia Credit Card can be your next go-to travel companion. HDFC Regalia offers six complimentary international lounge visits, whereas Regalia First offers three complimentary international lounge passes per year. Axis Bank SELECT Credit Card SELECT Credit Card is tailor-made to suit your traveling lifestyle with a Priority Pass Membership. The card offers exclusive features like complimentary lounge access, 15% discount with Dining Delights, and much more. ICICI Bank Emeralde Credit Card With this premium card, you can enjoy unlimited complimentary access to international/domestic airport lounges. However, you can also choose other available credit cards under the Dreamfolks DragonPass Lounge Access Programme to suit your needs. How to Get Access to a Priority Pass™ Lounge The Priority Pass comes with a choice of three membership ...

Your Credit Card Should Be Suitable for Overseas Travel You might have a great card with innumerable benefits, but it doesn't mean that it is fit for traveling abroad. Before setting off, make sure that your credit card has EMV compatibility and doesn't charge you for foreign transactions. If your credit card has a small embedded golden square, be sure that it is EMV-enabled. These chip-enabled cards are more secure than the erstwhile popular magnetic stripe cards. The EMV chip cards work on a superior technology than the erstwhile magstripe cards and it is more difficult to hack into your account information through chip transactions than the ones through the magnetic ones. Travelers are prone to becoming victims of fraudsters. With the advent of these chip cards, the world has breathed a sigh of relief as it promises more security from credit card frauds. Most Indian credit cards typically charge a fee on every foreign transaction. It could be as expensive as 5% of your t...

Buying health insurance for parents is one way of doing so. The Indian market is currently flooded with many options for senior citizens. There are several family floater healthcare plans specifically designed for senior citizens as well. Many insurance providers are now coming up with attractive health insurance policies for people of ages 55 to 60 . Many reputed companies such as Star Health and Bajaj Allianz have rolled out several plans, such as the Senior Citizen Red Carpet plan, that are customized for senior citizens. You can compare the features of different policies here and make a proper decision. 8 Best Health Insurance Policies for Your Parents 1. Star Health Red Carpet Plan This policy covers citizens of up to 69 years of age. The sum that can be availed is from Rs. 1 lakh to Rs. 5 lakhs. The policy excludes diseases that have been treated 12 months before the inception of the plan, pre-existing diseases (within a waiting period of four months), and diseases occurring wit...

What Are Dining Credit Cards? Dining credit cards can make a world of difference to your wallet whenever you wish to eat out. These credit cards offer several exciting dining deals, such as discounts and freebies at a wide range of partner restaurants and food outlets all across the globe. Now, you may have another question. Is It Only for Foodies? No. It can be for each one of us. The dining card allows you to earn exclusive dining privileges even while you slurp through a delicious Ramen bowl. However, not all credit cards offer privileges on dining expenditure. Regardless of whether you're a foodie or not, you must select a credit card that can help you save. So, make sure to have a credit card that delivers exclusive dining benefits. What Types of Dining Credit Card Offers Are Usually Available? Now that you know you can earn while enjoying a meal at any of your favorite restaurants, it's time to take note of the different types of dining privileges offered by dining cards...

What Are Cash Back Credit Cards? These are particular types of credit cards that pay you back a certain percentage of the amount you spend for every transaction in the form of rebates or points that you can exchange for gifts. The usual rebate rate is 1-2% of the transactional amount for most credit card companies. More than half of the credit companies offer cash back credit cards in India. Types of Cash Back Credit Cards:   Different types of cash back cards come with various benefits that we’ll cover in this article. A good cash back card can help you cover expenses, build credit, or even grow your savings. Before picking a card and starting the application process, you should have a good idea of your spending habits. Cash back cards are often designed with certain types of spenders in mind. The cash back card will work best for you if its reward structure fits your buying habits. There are three common types of cash back credit cards . 1) Flat rate: Some cash back rewards car...

Credit Scores Come from Credit Reports:   The very first thing to understand is that credit score comes from credit reports. Yes, credit reports are the only place where you can find the scores. You get the report once a year from special bureaus like Equifax, Experian, and TransUnion. Just apply to them, and you should be getting the report within a few weeks. However, do remember that these get updated weekly and even several times daily. This is why it is essential to know how long it takes for a credit report to be updated. When Do the Lenders Report to the Credit Bureaus? This is one confusing question that bothers everyone. And most annoyingly, this question does not have an answer. There is no such rule or law that insists upon a particular date for the lenders to submit their records to the credit bureaus. However, there are patterns that one could observe to understand the trend of a lender’s reporting habits. Typically, the card-issuing companies report to the credit bu...

What is a Credit Score? Fortunately, there is not much confusion regarding credit score meaning. The maximum credit score one can have is 900. The closer your score is to that number, the better you are at paying your debts on time. The good news is that there are organizations from where you can get your credit score free of cost. Yes, it is true. You can get a credit score check for free. These financial bodies are Equifax, CIBIL, CRIF High Mark, and Experian. Factors That Determine the Calculation of Credit Score: Repayment History - Repayment history is assessed to determine the transactional record and punctuality of the person in paying the debt before the due date. Source of Credit - Information from different sources about the person's credit details. Credit History - The credit history of the borrower is checked to determine when and how the person has been taking and dealing with credit in the past. Application for Credit - Credit applications are assessed to know how...

What is Minimum Due? The minimum due on credit card is the bare minimum bill amount that you have to settle each month to evade paying penalty charges. While some lenders fix a flat amount as 'minimum due,' some others calculate it as a certain percentage of the outstanding credit balance in a particular billing cycle. If your bill amount for January is Rs.10,000, and the minimum due is 5% of your outstanding balance, then you just need to pay Rs.500 within the due date to avoid late payment charges. The minimum amount due is much lower than the total outstanding due. Convenient and affordable, right? What's the Problem? Well, many fail to recognize the danger hidden behind the garb of convenience. You might manage to escape the late fees by paying the minimum due, but the remaining outstanding amount will get heftier in the next billing cycle due to the addition of interest and taxes. Before you realize it, you might slip into a deadly credit card debt trap that can esca...

As a famous quote says, "We have planned for life, but sometimes life may have a different plan for us". There could be circumstances where one can plan ahead and save lots of money in travel by booking cheap flights or can choose other modes of transport as per the convenience; but what if one has to book a flight at the last minute to travel for an emergency? The flight can definitely be booked on an immediate basis, but is there any chance of booking it at a cheap rate ? Most of you will say "no", especially in India, because the price surge of airline companies remain high at such a short notice. But you will be happy to know that there are ways of saving money during emergency situations as well.   Contact the Airline:     In emergency situations, calling the airline may help you and it can be done in a few steps: Tell the airline about your circumstances. Ask them how they can help in getting your tickets at the best rate, especially in the situations whe...

There could be innumerable reasons for your credit score to drop . Let's discuss the most crucial ones:     Your credit utilization rate could have increased.     You could have missed a payment on one of your credit accounts.     A disparaging remark could have been added to your credit score report.     You may have closed an old credit account.     You may have paid off your loan.     You may have recently applied for a new loan or credit card. Increase in Credit Utilization This refers to the percentage of your credit limit that you are using. It is a high-impact factor when it comes to calculating your credit score. You can calculate your credit utilization rate by applying the following formula: (Credit Balance/Credit Limit) * 100 = Credit Utilization% Your credit utilization rate tells the lenders how reliable you would be with a loan. Low credit utilization is the best for maint...

Your Credit Card Should Be Suitable for Overseas Travel You might have a great card with innumerable benefits, but it doesn't mean that it is fit for traveling abroad. Before setting off, make sure that your credit card has EMV compatibility and doesn't charge you for foreign transactions. If your credit card has a small embedded golden square, be sure that it is EMV-enabled. These chip-enabled cards are more secure than the erstwhile popular magnetic stripe cards. The EMV chip cards work on a superior technology than the erstwhile magstripe cards and it is more difficult to hack into your account information through chip transactions than the ones through the magnetic ones. Travelers are prone to becoming victims of fraudsters. With the advent of these chip cards, the world has breathed a sigh of relief as it promises more security from credit card frauds. Most Indian credit cards typically charge a fee on every foreign transaction. It could be as expensive as 5% of your tot...

Why Did My Credit Score Drop? There can be a few surprising but very pertinent reasons for a sudden fall in your credit score . Let us dig deep into them. Old and Inactive Accounts Have you ever found an interesting promotional offer in a shopping mall or a retail outlet and applied for a credit card? Well, I did at some point in time. And being my ever-forgetful self, I had conveniently forgotten about it. An inactive account is of no profit to a lender, and a lender can automatically close it without giving you notice. Also, there’s no standard law to decide on how long your account needs to be inactive for before the lender can automatically deactivate it. The solution to this problem? Well, I have learned my lesson, and so I have set up my internet bill to be auto-deducted every month from another one of my long-forgotten credit cards. You could do the same. Remember to set up auto-pay so that you don’t miss a single payment. A New Hard Inquiry My mobile phone connection was pat...

Are You Averse to Government Scheme Benefits? No? Good. The central government introduced a scheme in 2015 - the Affordable Housing Scheme for All or Pradhan Mantri Awas Yojana - which is active till 2022. This scheme applies to both the urban and rural populations. According to this scheme, the government offers an interest subsidy of: 6.5% for Economically Weaker Sections (EWS - households with an income range of ____) 6.5% for Low Income Group (LIG - 3 Lakhs-6 Lakhs). Middle Income Groups 4% for Middle Income Groups-I (6 Lakhs-12 Lakhs) 3% for Middle Income Groups-II (12 Lakhs-18 Lakhs). The eligibility condition to avail this scheme is that you shouldn't have a dwelling unit on your name or in the name of any family member, in any part of India. If you don't have a home yet, you come under any of these brackets, and are able to manage down payment; then isn't it the right time to buy a home for you? For people who prefer under-construction properties, the GST ...

Get to the Basics Rather than stating the obvious, we would like you to introspect and answer these questions in your mind:     Do you tend to overspend when you have access to a lot of money?     Do you often forget to pay your bills on time?     Do you go wild and surge into a shopping spree while traveling? If you have answered these questions with a strong and bold "no," then we believe that you are a responsible spender who knows how to keep expenses within limits. You should consider using your credit cards while traveling. Skeptical, right? Read on to understand its dynamics. Disadvantages of Cash Cash payments barely promise perks or benefits. If you flash money, you could attract unwanted attention. An outsider with cash is an easy target for thieves. If you lose cash, your money is gone. Need I say more? Using Credit Cards during Travel - Advantages What's in a credit card apart from some numbers and letters on plastic! It ...

Avoiding credit: You may think that if you have no credit cards with which to borrow, your credit score will be on top. Unfortunately, it does not always work that way. It may even seem counterintuitive, much like the Upside Down. After all, it makes more sense to have a high credit score if you have no debts and loans. In reality, it is not all that simple. Credit score is calculated based on the appropriate use of a particular mix of credit products. If you have been avoiding credit products such as credit cards, you would get what is known as a ‘thin file.’ A 'thin file' means that there is not enough data to assign you a credit score. When you close your unused credit card account: It may seem natural to close the credit card accounts that you have no plans of using. The problem is that doing so will lower your credit score. Your credit utilization ratio influences around 30% of your credit score. This ratio measures the credit used against the credit limit. For best ...

Credit repair is the process through which one brings an improvement in one’s credit score. Your credit score may have gone down for some reason. But the good news is that it does not need to stay there! You can definitely repair your credit score. It’ll take a bit of work, but eventually, you should be able to do it. You certainly can, but it will take a bit of time. Don’t expect the credit score to jump up within a day or two. It generally takes 6 to 12 months at the very least. Pay attention to your credit report: Now that you know why the credit report is so important, you understand why it is important to ensure that it is error-free. What you need to do is to check it regularly. Once you do so, you can easily find the errors to rectify them. In case the errors are severe yet disputable, you can always approach the concerned credit bureau for rectification. Clear all missed payments: Missed payments mar your credit score considerably. You want to remove this blemish as soo...

The choice between a balance transfer card and a personal loan lies entirely on the types of debt that you have. In case you are planning on consolidating and paying off different types of debt, a personal loan might be the most flexible option for you. A personal loans brings a lump sum to your bank account. You are free to decide how you want to utilize it. Balance transfer cards , on the other hand, are often restricted to a particular type of debt, usually credit card debts. However, some card issuing companies cannot do a balance transfer to their own credit cards. Moreover, a very few card issuing companies allow you to transfer other types of debts (like a student loan, mortgage or auto loan) Rate of Interest Personal loans barely offer zero interest promotional or introductory offers, but the interest rates might be lower than your credit card's APR. Alternatively, a balance transfer card could be your cheapest and most ideal option if you can repay the entire debt within...

Six Things That Wreak Havoc on Your Credit Score Avoiding credit: You may think that if you have no credit cards with which to borrow, your credit score will be on top. Unfortunately, it does not always work that way. It may even seem counterintuitive, much like the Upside Down. After all, it makes more sense to have a high credit score if you have no debts and loans. In reality, it is not all that simple.     Credit score is calculated based on the appropriate use of a particular mix of credit products. If you have been avoiding credit products such as credit cards, you would get what is known as a ‘thin file.’ A 'thin file' means that there is not enough data to assign you a credit score. When you close your unused credit card account: It may seem natural to close the credit card accounts that you have no plans of using. The problem is that doing so will lower your credit score. Your credit utilization ratio influences around 30% of your credit score. This ratio mea...

A lower credit utilization ratio is the best for maintaining a high credit score. It shows that you are keeping your expenditure within limits by using a small amount of credit. A high utilization rate indicates that you might not be able to pay your bills on time; therefore, a lower utilization rate - not exceeding 30% - is generally best for your credit score. You must remember that the credit utilization ratio in each of your credit cards is taken into account, individually as well as collectively, to determine your credit score. Reducing the Credit Utilization Rate : Pay Your Balance Early: The credit card issuing companies typically report your credit balance to the credit bureaus at the end of your billing cycle. You need not be worried about how much you are spending each month. If you pay a part, or preferably all, of your outstanding balance before the issuing companies report your credit balance, your credit utilization rate for the concerned cards will remain low. Red...