Are You Wrong About Credit Cards? 😱💳
Hello!!
How’ve you been? I am finally back with curating these mailers for you and before we spill the beans on this week's topic, let's play a little guessing game:
Read till the end to know what’s ideal for you!
Market ka haal: 📉 Yesterday, the Indian stock market took a bit of a tumble, with key indices like the Sensex and Nifty dropping over 1000 and 300 points, respectively. This sudden dip is a surprise, especially considering India's recent climb to become the fourth-largest global stock market, outpacing even Hong Kong. Despite this hiccup, the International Monetary Fund remains bullish on India's economic growth, projecting a robust 8% GDP growth this year. ✨ So, while we saw a widespread sell-off, there's no need to hit the panic button just yet. 🚨 This downturn is likely just a case of profit booking and some foreign investors pulling back temporarily. 📉💰
What I was up to: I am back from a long-due vacation, and I must say I’ve been feeling very productive since. While I was away, I had the incredible opportunity to hit the slopes in Gulmarg and try my hand at skiing🎿and man-oh-man did it feel good learning something new after forever! After I got back, Sayali & I had the pleasure of attending a Women's Day event hosted by Motilal Oswal. 🌟 It was fantastic to connect with fellow creators, soak in different perspectives, and gain valuable insights into trading. Overall, it was a super fun week! 🎉
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Humara Gyaan: Credit utilization, or the ratio of how much you utilize your credit across all your credit cards to your credit limits, is crucial in maintaining a healthy credit score and managing your overall financial well-being. While there's a lot of intel on the Right Thing To Do when it comes to this, here are a few things I need you to consider before taking a call:
📉 30% Rule: A Guideline, Not a Commandment
Setting a target of 30% for credit utilization is a good starting point. However, exceeding this threshold doesn't automatically spell disaster for your credit score. It's more about keeping your utilization within a manageable range. 📊💡
🚀 Balancing Act: The 30-50% Window
If you find yourself creeping over the 30% mark, don't panic. Aim to keep your utilization under 50% to maintain a healthy credit profile. Remember, it's not just about the number, but also about demonstrating responsible credit behavior by making full payments on time. 💪💰
💼 Loan Considerations: Why 30% Matters
While lenders may look favorably upon borrowers with utilization rates under 30%, exceeding this threshold won't necessarily disqualify you from getting a loan. However, keeping your ratio in check can still work in your favor when applying for credit. 🏦🔑
Another week, another dose of finance wisdom! 🚀 Using credit cards optimally is not just about hitting a magic number or following a thumb rule. Cultivate responsible credit habits instead, make your payments in full on time, and there’s no stopping you!
Until next week,
Niyati❤️
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