Credit Card Bill: How correct is it to pay a credit card bill by taking a personal loan? Know the complete calculation here..

At present, everyone has started using credit cards. This makes bill payments very easy. But if it is not used properly, it can also cause headaches for you. The number of credit card users is increasing continuously. According to data from the Reserve Bank of India (RBI), currently more than 10 crore credit cards have been issued in the country. Along with this, credit card expenses have increased by 17 percent in a year and have crossed the figure of Rs 1.65 crore.

In such a situation, if the credit card expenses increase, then there is a problem in paying it. Many people have trouble paying their credit card bills. In such a situation, they can pay the credit card bill by taking a personal loan.

How correct is the bill payment by taking a personal loan?

Paying credit card bills by taking personal loans is a very good strategy. Even though a personal loan is expensive, it is much cheaper than a credit card. The interest rate of a personal loan is 10.5% to 20.6%. At the same time, 40% interest is charged on the interest rate of credit card dues.

For this reason, taking a personal loan to pay the credit card bill is a very good way.

Keep these things in mind before using a credit card.

Control your expenses

Many people use credit cards indiscriminately and face problems while paying their credit card bills. If the credit card bill is not paid on time, then the CIBIL score also goes down.

Many times it happens that users take loans to maintain the CIBIL score and get trapped. To avoid getting trapped in the debt trap, one should always control expenses.

Interest rate of more than 40%

An interest rate is charged for not paying the credit card bill (credit card bill payment penalty). This interest rate is quite high. Almost more than 40 percent interest rate is charged on credit card bills.

Make sure to pay the minimum due
Suppose in any situation you are not able to pay the credit card bill in full. In such a situation, you must pay the minimum due of the bill. However, you should not do this continuously, or else the interest due will keep increasing.

Pay special attention to these things when choosing a credit card
If you use a lot of credit cards for grocery or shopping, then you should select a credit card in which you get maximum reward points.
If you want, you can take a card according to your needs so that you can avail maximum reward points and cash back.
Before taking a credit card, compare the credit limit and interest rates on revolving credit.
You should also know well about the terms and conditions of the credit card.
Know well about the charges levied on the credit card.

PC Social media