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Credit cards and your financial future: How they impact your credit score and loans

The article from Moneycontrol discusses the significant impact of credit cards on an individual's financial future, particularly focusing on how they affect credit scores and loan eligibility. Credit cards, when managed well, can help build a positive credit history by demonstrating responsible credit usage, timely payments, and maintaining a low credit utilization rate. Conversely, mismanagement such as late payments, maxing out credit limits, or defaulting on payments can severely damage one's credit score. A lower credit score can lead to higher interest rates on loans, reduced loan amounts, or even loan rejections. The article also highlights the importance of understanding credit card terms, keeping track of due dates, and not closing old credit card accounts to maintain a longer credit history, which positively influences credit scores. Additionally, it advises on the strategic use of credit cards to improve creditworthiness, like using them for small, regular purchases and paying off the balance in full each month.

Read the Full moneycontrol.com Article at:
[ https://www.moneycontrol.com/news/business/personal-finance/credit-cards-and-your-financial-future-how-they-impact-your-credit-score-and-loans-12890889.html ]