[ad_1]
Index Fund Corner
Sponsored
| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Key findings from the survey
- 47% of respondents face higher interest rates due to a low credit score.
- 38% have been denied loans, restricting their financial options.
- 26% struggle to rent a home or secure a job because of poor credit.
How a low credit score affects you
Higher interest rates on loans and credit cards
Banks see a low credit score as a risk factor. This leads to higher interest rates, making loans and credit cards more expensive in the long run.
Loan and credit card rejections
A poor score can lead to outright rejections for loans and credit cards. This can prevent individuals from making major financial decisions, such as buying a home or funding education.
Lower credit limits
Even if a lender approves a loan or credit card, they may offer a lower limit. This reduces financial flexibility, especially in emergencies.
Impact on job opportunities
Some employers check credit scores before hiring, especially in finance-related roles. A poor score may signal financial irresponsibility, affecting career prospects.
Increased financial stress and limited options
A low credit score limits borrowing choices, often pushing individuals toward high-cost options like payday loans. This creates a cycle of financial stress.
ALSO READ | CRED launches ‘Svalbard’ — a new suite of tools to manage your credit card
Steps to improve credit health
The survey also found that 58% of respondents want better credit monitoring tools, while 56% seek automated payment reminders. These findings indicate a strong intent to improve financial habits.
To maintain a good credit score:
- Pay bills on time.
- Keep credit utilisation low.
- Monitor your credit score regularly.
- Avoid frequent loan applications.
- Clear outstanding debts promptly.
ALSO READ | How to check your credit score for free and improve your financial health
[ad_2]
Source link