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How can I build a positive credit history with a student credit card?

Curious about Credit cards for students

How can I build a positive credit history with a student credit card?

A student credit card can be a great tool for building a positive credit history if used responsibly. Here are some tips to help you use your student credit card in a way that builds your credit:

1. Make your payments on time: Payment history is the most important factor in determining your credit score. Late payments can have a significant negative impact on your credit score, so it's important to make all of your payments on time.

2. Keep your credit utilization low: Your credit utilization is the amount of credit you're using compared to the amount of credit available to you. It's recommended to keep your credit utilization below 30%. For example, if your credit limit is Rs. 50,000, try to keep your balance below Rs. 15,000.

3. Use your card regularly: Using your card regularly and making payments on time shows that you're a responsible borrower. However, be sure to only use your card for purchases you can afford to pay back.

4. Monitor your credit report: Check your credit report regularly to make sure there are no errors or fraudulent activity on your account. You can get a free credit report once a year from each of India's credit bureaus.

5. Apply for credit sparingly: Applying for too much credit at once can have a negative impact on your credit score. Only apply for credit when you need it and make sure you meet the eligibility criteria before applying.

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