Deepshikha

 A good credit score is critical as it can impact many areas of your financial life, from obtaining a loan to securing a lease or even employment. But, how do credit scores get calculated? Further, we will break down the factors that determine your credit score and how they get weighed so that you can better understand this essential number.  Payment History  The payment history is the most crucial element that determines your credit score. It carries the maximum weightage of 35% in the commonly used credit scoring model. Your payment history reflects whether you have been making timely and complete payments.   Failing to do so, i.e., missing or delaying payments, can adversely impact your credit score. Therefore, it is crucial to make timely payments, even if it's just the minimum amount.  Credit Utilization  Your credit utilization is the second most crucial element that determines your credit score, accounting for 30% of the total score. Credit utilization reflects the proporti

Cashback credit cards have gained popularity as one of the many types of credit cards available to us. With their numerous benefits including convenience, security, and rewards, credit cards have become an essential part of our daily lives. Specifically, cashback credit cards are gaining prominence for their ability to offer rewards in the form of cash back for purchases made using the card. In this discussion, we will explore the advantages of using a cashback credit card.   Rewards for Everyday Spending The primary benefit of a cashback credit card for Indian consumers is the rewards for everyday spending. Firstly, cashback credit cards offer a percentage of the purchase price as cashback. Additionally, the cashback can be earned on all purchases or specific categories such as fuel, groceries, or dining out. For example, if you have a cashback credit card that offers 1.5% cash back on all purchases and you spend Rs. 75,000 a month, you can earn Rs. 13,500 cashback every year. This i