Line of Credit Vs Credit Card – What’s The Difference? Line of credit and credit card are two credit products that could serve as a perfect solution if you’re facing a cash crunch. In this blog, we’ll discuss their meaning, usage, differences and how they work. What is a Line of Credit Vs Credit Card? Let’s understand more about line of credit and credit card with the help of this table –   Line of Credit Credit Card Interest cost A fixed interest rate is charged on the utilised amount. Credit cards offer interest-free credit for a certain number of days. Interest is charged on outstanding amounts after that period.   Charges that are usually levied other than interest cost 1. Processing fee 2. Late payment fee 1. Overlimit fee 2. Cash advance fee 3. Annual fee 4. Late payment fee How to access money You can transfer the money from the line of credit to your bank account. 1. Online transactions 2. Payment through POS machines at retail stores, restaurants, etc. 3. Cash advance from ATM  Affects credit score Yes Yes Rewards No rewards Credit cards could offer cashback, reward points, lounge access, etc.  What is a Line of Credit? A line of credit is like a financial safety net. It helps you deal with planned and unplanned money needs. Under this, banks and other lenders give you a credit limit. You can take the amount you need from your line of credit and pay back in convenient EMIs. How Does a Line of Credit Work? To apply for a line of credit, you have to submit your basic details to the lender. Based on this information, you get a credit limit. Your credit limit offer is based on a number of factors like your credit score, repayment history and monthly income. You can take personal loans from your line of credit and repay in EMIs. When you make an EMI payment, your line of credit is replenished with the repaid amount. What is a Credit Card? A credit card is a plastic or metal card offered by banks and credit card companies. Individuals can use It to purchase products and services on credit. They get an interest-free period on the amount spent through their credit card. Also Read: Ways to increase your Credit Limit How Does a Credit Card Work? When you apply for a card, banks give you a limit based on your credit profile. This limit is the highest amount you can spend on that card. When the billing cycle ends, you get a statement which shows your current balance and all the purchases you made with that card. If you do not pay off the full outstanding amount each month, the credit limit card provider will charge interest on the outstanding amount. Pros & Cons – Line of Credit Vs Credit Card Now that you know what is a line of credit vs credit card, let’s look at their pros and cons – Interest Rate The difference between credit card and line of credit when it comes to interest rates is that you need to pay a fixed interest on the amount utilised from your credit line. Whereas, credit cards give you an interest-free period, post which they charge interest on the outstanding amount. Rewards Credit card users enjoy a host of rewards like cashback, discounts and loyalty points. There are no such reward programs for using a line of credit. Convenience Both credit card and credit line offers different types of conveniences. If you need cash urgently, a line of credit will be of great help to you. If you want to make cashless payments or enjoy discounts and cashbacks, a credit card should be your go-to credit instrument. When to Use a Line of Credit vs Credit Card Whether to use a credit line or a credit card depends on your financial need. You should go for a line of credit when you need money for paying off outstanding Credit Card bills, debt consolidation loan and other planned and emergency expenses. You should use credit cards for making day-to-day purchases, enjoying discounts on shopping and earning cashbacks. Conclusion Now you know the difference between credit card and line of credit. Both are immensely useful financial instruments if used responsibly and in the right place. A credit line serves as a financial cushion from which you can borrow money anytime, anywhere and a credit card is a convenient way to make payments on credit and save money through discounts and cashback. Apply Now Frequently Asked Question What Is The Difference Between Credit Card And Line of Credit? A credit card is a plastic or metal card which you can use to make payments on credit. A credit line is a loan instrument which gives you a credit limit. You can borrow money up to that limit, transfer it to your bank account and repay in EMIs. Can I Use a Line of Credit to Pay off a Credit Card? Yes, you can withdraw money from your credit line and use that amount to pay off your credit card bills. However, it’s advisable to only borrow the amount you can easily repay. Otherwise, you might end up falling into a debt trap. Which One is the Easiest to Get? A credit line, Credit Card or Short-Term Loans? It is easier to get a short-term easy loan or a credit line than a credit card. Can a Line of Credit Affect My Credit Score? Yes, a line of credit can affect your credit score positively as well as negatively, depending on your repayment behaviour and credit usage. Is it Possible to Pay Bills Using My Line of Credit? Yes, you can transfer money from the credit line to your bank account and use the same to pay your bills.

Line of Credit: Understanding, Meaning, Basics & Types There are many times in life when you find yourself short of money. In such instances, there are many ways of arranging money like borrowing from friends and family, using savings amounts, etc.  One of the best ways to smoothly sail through such situations without affecting your savings is a line of credit. In this blog, we will learn about the meaning of line of credit, every thing you should know about it and the dos and don’ts to make the most out of this loan instrument. What is a Line of Credit? A line of credit is a credit facility offered by banks and other lenders. In this, you can borrow money up to a certain amount which is your credit limit. You can take as many loans as you want from your line of credit and you only pay interest on the amount you borrow. Consider it like a financial safety net to help you deal with immediate money needs. How is Line of Credit Work? Now that we know what is a line of credit, let’s find out how it works. A line of credit is similar to a credit card. You get a credit limit based on your credit profile. Whenever you need money, you can borrow the amount of your choice from the line of credit and transfer money to your bank account. You can then pay the amount over time in EMIs along with interest. Once you make the repayment, your line of credit is replenished. For example – With Zype, users can take multiple loans from their line of credit up to ₹5,00,000 personal loan and repay in flexible EMIs of 6, 9 and 12 months. Every time you make an EMI payment, your credit line will be replenished with the repaid amount. Also Read : How to get instant loans from your Zype Credit Line Types of Lines of Credit (LOC) There are two types of lines of credit  1. Secured Line of Credit When you get a line of credit by pledging a collateral, it is called a secured line of credit. For example – In a Home Equity Line of Credit or HELOC, the borrower’s property is submitted as collateral to avail the line of credit. In this, the limit of the line of credit would be based on the property’s market value. 2. Unsecured Line of Credit Here, the borrower gets a line of credit without providing any collateral. The interest rate charged is higher than a secured line of credit. This is because there is no pledged security and riskier for the lender. You can get unsecured loan up to ₹5,00,000 from Zype.  Advantages of a Line of Credit 1. Serves as a Financial Cushion You can instantly borrow money from your line of credit anytime, anywhere.  2. Take Small Loans You can take multiple loans as per your needs. From a Zype credit line, you can withdraw as low as ₹1,000. 3. Flexible Repayment Tenure You can repay your loans in convenient EMIs. 4. Hassle-Free Once your credit line is active, you can withdraw money anytime without needing to give more details or completing additional paperwork. Things to be Careful When Using Line of Credit (LOC) 1. Avoid Making Unnecessary Spends You should never forget that the amount you withdraw from the credit line is a loan and you would need to pay it back with interest. Hence, you should only use the credit line for necessary expenses and avoid indulging in impulsive spending. 2. Be Mindful of Your Line of Credit’s Interest Rate If you are a borrower with a low credit score, there might be a higher interest rate associated with your line of credit. In such situations, you should only borrow from the line of credit when necessary. 3. Be Responsible while Using line of Credit If you fail to repay EMIs on time, it would bring down your credit score and would make it difficult for you to borrow money in future. Using your credit line irresponsibly can negatively impact your credit profile. What is the Repayment Procedure of Line of Credit? After you have taken a personal loan from your line of credit, you will have to pay back only the borrowed amount with interest. Your payment due date and EMI amount will be according to the terms of borrowing agreed by your lender and you. Here’s an example to understand this better: Consider you have an available line of credit of ₹1 lakh personal loan and take out ₹40000 out of it. You will have to pay back only ₹40000 with interest according to your personal loan repayment plan. Application Process for Line of Credit Completing your application process for a line of credit is an extremely simple procedure. All you have to do is provide your personal information and documents required by your lender. After you have completed your application, the lender will assess your profile and approve you for a line of credit. The increase in the number of loan apps have further made this process easier. You can skip lengthy applications and the need to physically go to the bank to get access to the money you need. Steps to Apply for a Line of Credit The steps of applying for a line of credit are similar across lenders – You submit the necessary details and documents, the lender checks your credit profile and generates a credit offer for you.  Let’s understand this better by exploring the process of activating the Zype credit line – Install our instant loan app from the Google Play Store or Apple App Store Create your account and add basic details like name, mobile number, PAN number and employment details. Based on these details, Zype will generate a credit offer for you in less than 60 seconds. After this, complete the KYC process to unlock your line of credit. Now your credit line is

Ways to Increase Your Credit Limit In today’s time, getting access to money has become a matter of just a few taps. Whether you want to buy a new bike or have any unexpected expenses, all you need is an active credit card or a credit line to take care of it.    Just submit information like your name, PAN, and income details based on which your credit worthiness will be determined, and you’ll be approved for a credit limit.   Your credit limit depends on factors like your monthly income, repayment history, credit utilization, etc. But if you’re unhappy with the limit you’re approved for, there are ways to increase it. Read this blog to find out 5 such techniques in which you can increase your credit limit instantly. Some Factors that Determine Your Credit Worthiness:  1. Credit Score: Your credit score is a three-digit number that is a numeric representation of your credit behaviour. This is the first thing that the lender will check before giving you a loan offer.   Read More: What is the Minimum CIBIL Score for Personal Loan 2. Repayment History: The credit bureau records the repayments you make across all your personal loans and credit cards. This record also contains information about your missed and late repayments 3. Monthly Income: Your monthly income helps with risk calculation to determine the disposal income that you can use to repay the existing and new debts.  4. Credit Utilization: Your credit utilization is the percentage of the total credit limit that you use. When using credit cards, the best practice is to keep your credit utilization below 30% 5. Credit Age:  This is the length of time you have been accessing credit. A longer credit age gives more insights to the lender to assess your profile and understand your past credit behaviour to give you an offer.    Be it a personal loan or credit card, your lender will carefully assess these factors before offering you a certain limit. If you’re unhappy with the amount you’re offered, you can always apply for a higher limit. Benefits of Applying for an Increased Credit Limit 1. Stronger Financial Back Up During Emergencies  Even if you don’t need an increased limit, it can serve you as an emergency fund. There is always peace of mind in knowing that you have instant access to money for any unforeseen times.   2. Increased Access to Funds  An increased access to money means more flexibility in managing your expenses or purchasing things you have been delaying due to lack of funds.   3. Lower Credit Utilization  If you apply for a higher limit on your credit card while maintaining the same expenses, you will reduce your utilization. This is seen has a healthy credit behaviour among lenders which can help you increase your credit score.   4. Attractive Rewards   If you’re a credit card holder with a higher limit, then you can spend more using your card. Repaying all your credit bills on time allows you to access higher rewards for purchasing flight tickets, gifts, etc.   5 Simple Ways in Which You can Increase Your Credit Limit 1. Keep Using Your Credit Limit Actively  If you want to increase your credit limit, then it is important to show good credit behaviour and develop trust with your lender.  The first step towards this is being an active user of the credit card or line.   Make sure you are making all your repayments on time. This will build trust with your lender and show more creditworthiness. When you apply for a higher limit after being an active user over a long period of time, it provides more data to the lender to evaluate your profile for a higher credit limit.  2. Make Sure You’re Following All the Good Practices of Using Your Credit Limit  While it is important to use your credit limit actively to develop trust with your lender, it’s more important to follow the good practices of using your credit line or card.   Follow these steps to use your limit responsibly and increase your chances of getting a higher limit with your current lender:   – Pay All Your EMIs on Time: This is the first thing your lender will check while evaluating you for a higher credit limit. It is crucial to ensure that you’re not defaulting on your repayments and are showing a positive repayment history.   – Maintain a Credit Utilization of 30-40%: If you’re using a credit card, then it is important to limit your utilization to 30-40%. Usage above that can indicate credit hungriness which can have a negative impact on your credit profile.   – Pay More than the Minimum EMI Amount Every Month: Make sure you’re paying more than the minimum amount on your statement, every month. This way you can avoid falling into a debt trap and become a more responsible borrower.   3. Provide More Information to Your Lender   If you want access to more money, you can always request your lender for a higher credit limit.   You might have to back your request with additional information like your bank statement, income proof, or reason for requirement to increase your chances of approval.   4. Work on Improving Your Credit Score   If you’re unable to get an increased limit even after requesting your lender, start working on improving your credit profile. A high credit score, good repayment history, and low credit utilization are some green flags they look for.   Doing this will automatically increase your chances of getting a higher limit.   Read More: How to Improve Cibil Score? 5. Apply for a New Credit Limit or Credit Card   Different lenders have different eligibility criteria based on which they offer you a credit limit. If you’re unhappy with the credit limit you currently have, you can always apply for a personal loan or credit card with a different bank or NBFC.  Read More: What is NBFC? What is the difference between Bank and NBFC? Zype is a loan app that offers loans up to Rs 5 lakhs with an easy application process. All you need is your PAN and to be salaried to get an approval within 30

Is “Lifetime Free” Credit Card Really Free? You must have heard of a bank or a credit card company offering a lifetime free credit card. This usually means that they have waived off the “annual fee” charged on it. This is exactly why it is also called a “zero annual fee credit card.” A credit card annual fee is a cost you will be charged every year from your account. You pay this fee to keep using the card. What is a Life Time Free Credit card? The phrase “Lifetime free credit card” sounds too good to be true, doesn’t it? But is this claim legit? Let’s find out if it is really a “no strings attached” benefit. When you avail a credit card, you may have to pay a joining or annual fees on it. However, there are many financial institutions who offer a credit card without such charges. Those cards are known as free lifetime credit cards.  Two Types Of Life Time Free Credit Cards Credit Cards With A “Minimum Spend In A Year” Rule The annual fees on these cards are waived off if you spend a minimum amount in a year that is specified by your card issuer. No Condition Attached Lifetime Free Credit Card. In these cards, there is no minimum amount that you need to spend and no annual fees would be charged. 6 Charges You Should Look Out For Before Getting A Credit Card 1. Interest Rate2. Joining Fee3. Cash Advance4. Transaction Fee5. Late Payment Charges6. Overlimit Charges7. Card Replacement Fee 5 Benefits You Can Get Out Of A Lifetime Free Credit Card 1. As we saw earlier, you don’t need to pay annual fees. You can buy anything you want and pay later without extra charges as credit cards provide up to 60 days of the interest-free period. 2. Some credit cards give reward points for every transaction. 3. These can be redeemed to get exciting offers. 4. Some credit cards also offer a certain percentage of your spends as cashbacks on every transaction. It also improves your credit score when you pay back on time. 5. Many card providers offer attractive insurance, travel and shopping benefits. 3 Tips To Help You Choose The Best Credit Card Don’t Believe The Sales People Blindly There are instances when sales people sell credit cards over cold calls and lie about the card being lifetime free. Never take a credit card without understanding the terms & conditions clearly. Because If you refuse to pay the extra charges later, it will negatively impact your credit score. Choose A Card On Which The Reward Points Never Expire This will ensure that you can spend your reward points without worrying about them expiring. Ensure that there are no fees to redeem your reward points. Ideally, you should never choose a credit card which requires you to pay extra charges to redeem reward points you have earned unless the rewards are worth are worth spending the extra money on. 2 Things You Should Know About Lifetime-Free Credit Cards A Lifetime Free Credit Card Might Start Charging An Annual Fee In The Future. After mid-2021, HDFC started charging annual fees on its MoneyBack credit card which used to be a lifetime free credit card until then. The Lifetime Free Benefit Of Your Credit Card Might Not Be Applicable When You Upgrade The Card. When your credit score increases, you might want your bank to upgrade your lifetime free credit card for a higher limit and more privileges. Make sure you confirm with your bank that the upgraded card is also lifetime free. Also Read: What is the Credit Limit? How does it work?  Check Eligibility and Available for free Credit Online  You have to meet your credit provider’s eligibility criteria for availing a free credit card. But what’s more important than that is to inquire whether the financial institution provides a lifetime free credit card in the first place.  Age: The borrower needs to be at least 18 years old or above.  Annual Salary: While this completely depends on the requirement of the credit provider, you need a minimum monthly salary of Rs. 25,000.  Nationality: You need to be an Indian with a valid PAN or Aadhaar card. Documents Required For Lifetime Free Credit Cards  You need to submit the required documents and information of the credit card provider to complete your application.  Here are some documents that you should keep handy to expedite your credit card application process.  Identity Proof  This includes your PAN, Aadhaar card, Passport, Driver’s License, etc. to verify your identity.  Address Proof This includes your KYC documents like Aadhaar card, Passport, Utility bills, etc. to complete your KYC process.   Income Proof You may have to provide your income proof like your bank statements or salary slip. Credit card providers often ask this to check your capacity to pay your credit card bills.  How to Apply for a No Annual Fee Credit Cards Online?  The procedure of applying for a life time free credit card depends on the credit card provider you’re choosing. In today’s date, the online application process with no paperwork has made credit even more accessible. To apply for a credit card, you can simply visit the credit provider’s website or complete the application on their portal/app.  Conclusion Lifetime free credit cards may be an attractive option as you could avoid annual fees, but it’s important to compare different options, read the fine print and understand the terms and conditions before signing up. Apply Now Frequently Asked Questions What Is A Free For Life Credit Card? A free for life credit card is when you don’t have to pay any kind of joining or annual fees on your credit card.  Is It Free Of Charge To Get A Credit Card? While you may have to pay an annual or joining fees on your credit card, there are many providers who offer you one without any charges. This is also known as lifetime free

What is the Credit Limit? How Does it Work? Having a credit limit is like having a friend who you can always depend on, but for money… Need money for a medical emergency? It’s there for you!Out of cash but want to go on that trip? It’s there for you!Want to enroll in that upskilling course? It’s there for you! With your credit limit you would be able to have what you need, want or desire, now. Because life’s too short to wait. Here’s more about what it is & how it works. What is Credit Limit? Credit Limit is the amount of money that a credit provider is willing to offer you either through a credit card, credit line, or loan for your personal use. It is the maximum amount that you can borrow from the lender.Your credit limit plays a very important role when it comes to your finances. Based on how much percentage of the limit you use, it can increase or decrease your credit score. It is recommended to keep your credit card utilization around 30% of your total limit. Your credit limit also affects your chances of approval for further credit products. Lenders perceive individuals with high credit limits as more trustworthy borrowers. Your credit limit can be of immense help in covering emergency expenses like medical bills or car repairs. You can take a personal loan and split the repayment amount in convenient EMIs. Based on the information and documents provided by the borrower, credit providers determine the credit limit amount. If you want to increase your credit limit, you should make timely repayment of your EMI amount. You can get your credit limit offer up to ₹5,00,000 on the Zype app by entering your basic details like name, PAN, mobile number and employment details. Once you have entered this information, your credit limit offer is generated in less than 60 seconds. You can take multiple loans simultaneously from your credit line and repay with flexible EMI options. Also Read: Personal Loan EMI Calculator How Does Credit Limit Work? Once you apply for a credit limit, the credit provider assesses your profile & based factors such as credit score, your repayment history and income they offer you an appropriate amount to spend. Every time you spend money from your credit line, the amount is deducted from your credit limit. Think of it this way, you have a credit limit of Rs 80,000 & you spend Rs 24,000 for medical reasons. You would now be left with a credit limit of Rs. 56,000. This would mean that you have utilized 30% of the total limit. This is called credit utilization percentage. Also Read: Medical Emergency Loan What is Credit Utilization Percentage? Credit utilization percentage is the amount of credit you are currently using compared to the total amount of credit you have available. While it is always tempting to use your credit limit completely, it is a good practice to utilize only 25-30% of your total limit with one lender to maintain a healthy credit profile. Once your limit utilization exceeds 50% it could negatively impact your credit score. But there is nothing to worry about because all you have to do is keep a consistent check on the amount of pending credit through your statements. Factors that Affect the Credit Offer You Get A credit provider will look at the following factors to determine your credit limit: Income Existing loans & credit cards Repayment history Credit score Credit utilization It is always wise to make loan & credit card repayments on time in order to improve your credit score & increase your chances of getting a higher credit limit in the future. Conclusion Be it a limited time deal or a family emergency, a credit limit will help you out whenever you need cash immediately. You can get instant access to a credit line with Zype. Apply for a credit line in 3 easy steps & get approved for a limit up to ₹5,00,000 Personal Loan . Take unlimited loans from one credit line. Just select the amount you need, a convenient EMI option for repayment and transfer the money to your bank account in a single click. Apply Now Frequently Asked Question What Is The Meaning Of Credit Limit? A credit limit is the maximum amount of credit offered by banks and NBFCs on loan products like a credit card or line of credit. The credit limit amount is determined by factors like the borrower’s credit score, repayment history, income, maximum amount offered by the lender, etc. What Is The Credit Limit Per Month? The term “credit limit per month” means the maximum amount of debt you can borrow from a line of credit or a credit card in one month. This limit is evaluated by credit providers which can increase if you pay your EMIs on time. What Is The Credit Card Limit For A 50000 Salary? Salary plays a big role in determining your credit card limit. Your credit limit can be two or three times your current salary. With a ₹50,000 salary, you can get a limit up to ₹1.5 lakh personal loan. Your credit card limit is also based on other factors like your repayment history and your credit score. How Do I Know My Credit Limit? To know your limit for a line of credit or credit card, you need to complete the credit provider’s application process. You can read more about this on the lender’s website. You can get your Zype credit limit in less than 8 minutes by entering a few basic details like PAN and mobile number.

6 Quick Tips If You Have Gone Overboard With Your Credit Card Bills The temptation to spend is real. Thanks to credit cards, it has become incredibly convenient to make purchases. Also, their reward programs and promotional offers make it all the more alluring to buy items and indulge in luxuries that we don’t necessarily need. While it may be okay to cross the credit limit once in a blue moon, it’s important to manage the situation carefully to avoid getting into financial trouble. If you’re in a similar situation, here are 5 quick tips to come out of this problem: Pay The Minimum Amount Due Ideally, you should pay the credit card balance in full every month. However, in case of a cash crunch, you should at least try to pay the minimum amount due. Minimum amount due is a small fraction of the total bill that you are asked to pay by the lender when the complete bill amount is not immediately payable. Paying the minimum amount due would give you the following benefits: 1. You will save yourself from paying the late fee. 2. You will not be reported to credit bureau, so your credit score will remain unaffected. Although, this is not suitable for long-term as you will still be charged interest on the unpaid amount. Identify Your Most Expensive Credit Card Figure out the interest rate of all the credit cards you use. Start with repaying for the card that is charging you the highest interest rate. Then move to the card with the second-highest interest rate, and so on. This would minimize your interest charges. Convert The Outstanding Amount Into Emis If your credit card debt is higher than what you can repay in lumpsum, you can check with your bank and try to convert the outstanding amount into EMIs. This will help you to maintain your score and prevent you from becoming a defaulter. Take a Personal Loan You could swap your credit card debt with a personal loan if the loan interest rate is lower than credit card interest rate. With digital lending platforms like Zype, you could avail personal loans in no time. This is helpful in multiple ways: 1. It could help reduce your interest cost.2. It would help you clear all your credit card dues in one go.3. You could choose the EMI option that is most convenient to you. Talk To Your Bank Being honest with your bank can come to your rescue. Based on your relationship with the bank, your repayment history and your credit score, your bank might help you in following ways: Also Read: What is Personal Loan Repayment and Types of Loan Repayment Methods? 1. It might offer you an option to transfer outstanding balances from one credit card to another.2. It might waive off or reduce the late repayment or over-limit fees.3. The bank might offer you a debt consolidation loan wherein all your outstanding debts would be converted into a single personal loan with interest rates lower than that of the credit card.4. You could also negotiate the interest charges levied on your credit card. In Conclusion Coming out of credit card debt can have a significant positive impact on your financial and emotional well-being, and can help set you on a path towards financial stability and success. Apply Now

10 Tips to Use Your Credit Line Responsibly How To Use Your Credit Line Responsibly  A credit line that’s always available at your fingertips would make life easy. But to continue enjoying the ease of a credit line, it is necessary to make mindful use of it. Here are some tips to make the best use of your credit line: 1) Pay On Time, Every Time The thumb rule of handling any kind of credit is just one - paying your EMIs on time, every time. This is because the minute you miss the due date, you not only have to pay a late fee, but would also see a negative impact on your credit score.  2) Read The Terms & Conditions Thoroughly   At any cost, do not avoid reading the fine print.   The terms & conditions of your credit provider would give you a clear view of what you are getting into & what you must expect.    It would also make you aware of your rights and rewards which you could effectively utilize.  3) Do Not Utilize More Than You Need If you have received a credit line of Rs 1,00,000, make it a point to not use more than you need. Many financial advisors and consultants recommend this approach for maintaining a good credit score.    4) Go Through Your Monthly Statements Thoroughly Go through your monthly statements and look for errors such as missing information about your payments or extra charges levied by the provider.  Contact your provider immediately if you encounter such errors and get them corrected.  5) Be Clear Of The Purpose Behind The Credit Line Before availing a credit line, ask yourself why. Taking credit without knowing the purpose can create a risk on your cash-flows and ultimately can even lead to defaults. Once you have clarity, you will be able to borrow the appropriate amount and use the money more mindfully.  6) Plan The Use Of Your Credit Line Creating a financial plan for the utilization of your credit line and sticking to it could prevent you from delayed repayments and late fee charges.  7) Practice Safe Measures To Avoid Any Kind Of Fraud Please do some background checks and play store reviews to ensure you are taking credit from a legitimate lending company. This also helps to ensure that your personal & banking information is safe and is not being misused.  8) Consider Using The Auto-Pay Feature If you are having trouble with making timely repayments, you could consider setting up the auto-pay feature.  This would make the payment process easy and help you to consistently pay on the respective deadlines.  9) Self-Discipline Is Key A voluntary effort of not making impulsive expenses is bound to put you in a healthier financial position.  10) Use Your Credit Line For Building Your Credit Score  If you have little to no credit history, taking a credit-builder loan/credit line could help.  Taking small personal loans and timely repayments can help you build your credit history and your credit score. Also Read: How to Improve Cibil Score? Conclusion A credit line could be a good tool if used judiciously to build your financial health. Hence, it is highly recommended to practice healthy credit habits to maintain a handsome credit profile. Apply Now