Joint Personal Loan: Important Things to Consider Before Opting

Getting a joint personal loan is a great option to avail of a sizeable loan amount if you’re unable to meet the lender’s criteria independently. With the fintech advancements, personal loans are more accessible than ever, but availing them can be a hassle if you don’t meet the lender’s criteria. 

To overcome this, lenders allow you to apply with a co-applicant or co-borrower. This can be a spouse, parents or siblings with a good credit history and income. A joint loan is not only a viable solution to boost your eligibility but also helps you secure better loan terms. 

Read on to learn more about a joint personal loan and things to consider before applying for it. 

How Joint Personal Loan Works

A personal loan is an ideal option to meet all types of financial requirements, as it does not have an end-use restriction. However, not having an optimal credit score or a minimum monthly income can lead to rejection or loan offers with a high-interest rate. So, the quickest way to boost your eligibility is to apply with a co-applicant having a good credit score and higher income. 

To apply, both applicants submit the required documents to get a joint personal loan. They also share the burden of repayment, which means they have equal EMIs. They have equal ownership over the funds as well. 

Things You Should Consider  

Consider these factors when opting for a joint loan to ensure easy repayments for all the parties involved. 

  • Eligibility Criteria 

Both co-applicants must meet the lender’s parameters to get loan approval. While the specific parameters may vary slightly, here are some common joint personal loan eligibility criteria you can refer to.  

Parameter Requirements 
Nationality All Indians can apply
Age Any individual between 21 years and 55 years of age can apply 
Employment All salaried employees with a stable job and working in MNC, public or private limited companies can apply
Minimum In-hand IncomeYou must have ₹15,000 in non-metro cities and ₹18,000 in metro cities to apply but it may vary depending on lenders
  • Credit Score 

Most lenders consider credit scores under 750 less-than-ideal. In this case, you can get a joint personal loan with your family member if they have a higher credit score. This will boost your chances of approval and get a loan at a lower interest rate.

  • Debt-to-Income Ratio 

Since you and the co-borrower are equally responsible for repaying the loan, both should have a debt-to-income ratio under 40%. Lenders check this to verify if you can afford the EMIs. If either of you have many ongoing loans, this will directly impact your borrowing capacity. 

  • Income 

Lenders consider combined income in a joint loan, so choosing a borrowing partner earning a considerable sum every month is imperative. 

  • EMI Amount 

When deciding on a suitable monthly instalment, both borrowers must choose an amount that fits their budget. If one of them fails to make the payment, both their credit scores can take a hit. So, you should decide on a comfortable amount beforehand. 

  • Interest Rates 

When you opt to get a loan with a co-applicant, it gives lenders better repayment assurance. You can leverage this fact to negotiate for a lower interest rate, reducing the financial burden on both borrowers. 

Now that you know all the key points for a joint personal loan application, you can get started by choosing from various digital lenders. One such option is the Fibe Instant Cash Loan, which allows you to get a loan amount of up to ₹5 lakhs at competitive interest rates. 

With Fibe, you don’t have to worry about a low credit score or time-consuming application process. This is because of our alternate credit score system through which we can offer funds even to those who are new to credit.

Furthermore, we have a completely digital application with no physical paperwork or visits required. Another reason to opt for Fibe is its flexible tenure option, 2-minute disbursal, zero foreclosure charges and more. Download our Personal Loan App or apply on our website now. 

FAQs on Joint Personal Loan

Is it better to get a joint personal loan?

Getting a joint personal loan boosts your eligibility and increases your chances of approval. It also helps you opt for a large amount at a lower interest rate than applying for a loan independently. 

How does a joint loan work?

With a joint personal loan, you apply with a co-borrower who shares the ownership over the loan account. Lenders assess their eligibility and offer a loan based on combined income and repayment capacity.  What’s more, all the borrowers share the responsibility to repay the instalments.  

How many people can be on a joint loan?

There is no legal limit for the number of borrowers on a joint account personal loan, and it depends on the lender’s policy. 

Know What’s a Credit Builder Loan & How to Build a Better Financial Future

A credit builder loan does not operate like a regular loan. As the name suggests, this specific type of loan caters to anyone who wants to improve their credit score. Whether you are new to credit or don’t have a good credit score, opting for this type of credit is beneficial. 

Read on to learn more about this type of loan, how to get it and more. 

What is a Credit Builder Loan?

One of the easiest ways to build your credit history and score is by paying your loan EMIs on time. However, you can only get a loan with a good credit score. To overcome this paradox, some lenders offer a different type of credit focusing on building creditworthiness instead of financial requirements. 

This loan works in the reverse order: you get the funds after you have made all the EMI payments. To simplify, you choose your loan amount by calculating a suitable EMI when applying for this loan. Lenders keep this loan amount secure in a savings account for the chosen tenure. 

After paying all the EMIs, they credit the funds to your preferred bank account. Lenders report your good credit behaviour to the credit bureaus during the tenure. This way, your credit score increases with every EMI that you pay on time. 

Pros and Cons of a Credit Builder Loan

Before you plan to apply for this loan, note these key points to make a well-informed decision.  

Pros

  • It helps build your credit score if you make timely payments
  • It gives you access to credit even if you are not eligible for traditional loans 
  • It improves your chances of future credit 
  • It helps boost your savings 

Cons

  • It has a risk of hurting your credit health, even if you miss even one EMI 
  • It gives access only to a small amount of credit 
  • You may have to pay higher fees and interest rates than other loans  
  • It limits your choices, as many lenders don’t have this option 

Steps to Get a Credit Builder Loan

Follow this process and apply for a loan to boost your credit score: 

Research for the Right Lender

Since not all lenders offer this form of credit, it is not readily accessible. However, with proper research, you can find a lender offering a credit builder loan. 

Compare the Options 

After you have created a list of a few reputed lenders, compare their loan terms. This helps you shortlist the one offering the lowest interest rates and nominal fees. 

Choose the Loan Amount 

You need to decide on a loan amount you can afford to repay before applying. This is because a higher loan amount will attract a higher interest rate. It further increases your EMI, so choosing a comfortable amount is imperative. 

Submit the Loan Application 

After finalising the lender and loan amount, you can apply online with the required documents on the lender’s website. 

Make Timely Payments 

Following the approval, pay your EMIs on the specific date to boost your credit score. 

While this option is particularly designed for people with damaged credit scores, finding a lender offering this type of credit can be difficult. An alternative to this is to choose lenders who don’t rely on credit scores, like Fibe.

With the Fibe Instant Personal Loan, you can secure up to ₹5 lakhs at competitive rates and a convenient tenure of up to 36 months. Thanks to our alternative credit scoring system, you can apply even with a low or no credit score. This is also why we approve up to 98% of the applications without hassle. 

You can easily check your eligibility on our online platform or app and apply instantly. In addition, we levy zero foreclosure charges, so you can close your loan before the tenure without paying any surplus amount. Download our Personal Loan App or visit our website to opt for this loan and build your credit score with ease. 

FAQs on Credit-Builder Loan

How does a credit builder loan work?

To simplify, here is how a credit builder loan works. 

  • Find a lender that offers this type of loan and apply for it.
  • Choose a preferred loan amount as per your budget restrictions.
  • Lenders deposit the amount in a certificate of deposit or savings account.
  • You start paying fixed monthly instalments.
  • After you have paid all instalments, the loan amount minus any fees gets disbursed into your account.
  • With each timely repayment, your score increases. This reverse process reduces the lender’s risk while improving your financial health. 

Are credit builder loans secured or unsecured?

Credit builder loans are of three types, as described below. 

  1. With a pure credit builder loan, the loan amount gets credited into your account. But you cannot access it until you have paid the complete loan with interest.
  2. With the secured credit builder loan arrangement, the funds available in your savings account act as collateral until you completely repay the loan.
  3. An unsecured type is the most common method for this arrangement, where lenders deposit the funds into your savings account. After complete repayment, you can use it as you prefer. 

How to Make Advance EMI Payment Online: A Detailed Guide

EMIs make loan repayments easy by spreading them across monthly instalments. But what if you have some extra funds and want to pay more — or even finish your loan sooner? That’s when the question arises: ‘Can I pay EMIs in advance?’ 
Yes, many lenders allow advance EMI payments or prepayments — often through simple online options. It’s a smart way to reduce your interest and become debt-free faster. 

However, it’s important to check prepayment charges, how it affects your loan tenure and whether it suits your current budget. 

Read on to understand how advance EMI payment works, its benefits and what to keep in mind before you go ahead. 

What is an Advance EMI Payment?  

When you take a loan, lenders decide on a fixed instalment amount based on your repayment capacity and other factors. You need to pay this amount on a designated date each month for the chosen tenure. 

If you make a payment before the date or more than the decided amount, it counts as an advance EMI payment. For example, say you pay a home loan EMI of ₹15,000 on the 5th of the month. Now, if you make a payment on the 3rd of the month, this is an advance payment towards your home loan.  

Difference Between Advance and Arrear EMI Payment 

Also called standard EMI, arrear is a type of EMI payment where the lender doesn’t deduct the first EMI from the loan amount. This type of EMI is ideal for borrowers without having sufficient funds to make a down payment. Thus, lenders disburse the entire loan amount after deducting only the processing fee.  

In contrast, advance payment is when the lender deducts the first EMI, along with a processing fee, before disbursement. The benefit of this is that it lowers your principal loan amount. Consequently, your EMI and interest also decrease.  

To better understand, here are the key differences between advance and arrear EMI payments.  
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Also Read: Online Loan Payment 

Benefits of Paying EMI in Advance 

Here are some of the advantages you can enjoy with advance EMI payment 

  • It is wise to use your surplus funds as it lowers your debt liability.  
  • It helps you lower your monthly EMI repayment burden, helping you budget your finances smartly.  
  • It improves your credit score, as paying your EMIs before the due date reflects positively on your finances.  
  • It lowers the payable interest amount, as the advance payment lowers your principal amount.  
  • It allows you to opt for a lower tenure, which helps you save on interest and achieve financial freedom sooner.  

Things to Check Before Paying EMIs in Advance 

  • Foreclosure Charges: Some lenders levy fees for prepaying part or all of your loan. Always check this with your lender whenever you take a loan. 
  • Loan Type Rules: Fixed and floating-rate loans may have different prepayment policies. Make sure you confirm with your lender. 
  • Interest Impact: Ask whether prepaying reduces the interest or just shortens the loan tenure. 
  • EMI Cycle Date: Timing matters. Paying close to the billing cycle may cause delays in adjustment. 
  • Updated Loan Statement: Ensure your new balance and EMI schedule reflect the advance payment. 
  • NOC or Acknowledgment: Get written confirmation or receipt to avoid future discrepancies. 
  • Financial Priorities Check: Don’t deplete your savings. Ensure prepayment doesn’t affect your emergency or investment funds. 

Steps to Pay Your Loan EMI in Advance 

To pay your EMI in advance, you can opt between the lender’s web or mobile portal. Here are the steps you can follow: 

  • Step 1: Go to the lender’s net banking or mobile banking portal. 
  • Step 2: Log in with your credentials.  
  • Step 3: Go to the loan section.  
  • Step 4: Select the loan account and amount.  
  • Step 5: Select your preferred payment method.  
  • Step 6: Complete the process by following the instructions on the screen. 

If you make a payment with the steps before the due date, it counts as an advance EMI. Note that this is a general overview, and the specific steps may vary depending on the lender.  

Following the steps mentioned above, you can pay your EMI amount in advance and reduce your financial liabilities. 

For this, you can opt for the Fibe Instant Loan, which has no use restrictions, alternative credit access, and competitive interest rates. You can enjoy a loan amount of up to ₹5 lakhs with swift dispersal and repay with a comfortable tenure that fits your budget. Download our Personal Loan App or apply on our website now.  

FAQs on Advance EMI Payment 

Is it ok to pay EMI before the due date? 

Of course! There is no harm in paying your EMIs in advance. Contrastingly, it helps you enhance your positive credit history, boost your credit score and avoid the risk of defaults.  

Is advance EMI payment good or bad for credit?  

Paying your EMIs before the due date is good for credit. This is because when you miss an EMI, your credit score drops. With advance EMI payment, you eliminate the possibility of missing the date, which is why it’s a smart idea for maintaining good financial health.

Can I pay all EMIs at once?  

Yes! And it’s called pre-closing the loan account. For this, you need to contact your lender and make a one-time payment for your complete loan amount plus interest. So, if you have a question, ‘Can I pay EMI in advance all at once?’ then you need to go in for a loan pre-closure. 

What is Creditworthiness: A Guide to Improve Credit Score

Do you know what creditworthiness means and why it is an essential part of your financial health? It simply enables you to get credit on time at lower interest rates. Financial companies check it based on a 3-digit score report generated by credit bureaus.

Evaluation of this score takes many factors into account. Learning about these factors can help you to improve your credit score and get easy access to credit cards and loans. Read on to know its meaning, how to check it and tips to improve your score. 

Creditworthiness Meaning

This concept unites two words: credit, which refers to loans or credit cards and worthiness, which refers to suitability. Creditworthiness means how worthy you are to receive additional credits from lenders. So, how is it measured? Financial institutions check creditworthiness through your:

  • Past behaviour with credit
  • Earnings to see how easily you can repay
  • Debts to see your existing financial obligations

So, why do lenders care about how creditworthy you are? It is simple. Offering credit to a person who is financially unstable or reckless increases the possibility of irregular payments. Based on your creditworthiness, companies decide on the loan amount which you are likely to repay on time. 

It is important for you to monitor your credit score and learn how your relationship with money impacts your score. You can check your score in 2 minutes on Fibe for free and get a detailed credit report, too!

Here are some practices that are good for your profile to build and maintain your creditworthiness:

  • Maintaining a good repayment history
  • Having a stable income
  • Utilising credit carefully
  • Maintaining a long credit history
  • Having low debt-to-income ratio
  • Applying for credit cautiously

Checking Your Creditworthiness

The first step to improving your credit score begins with checking it often. You can find many websites to check your credit score.

You can follow these steps to check your credit score and improve it accordingly, if necessary. 

  • Step 1: Visit the website of any one of the four credit bureaus
  • Step 2: Enter your basic information, including the PAN card 
  • Step 3: Verify with OTP
  • Step 4: Check your CIBIL Score

Creditworthiness: How to Improve It

Once you have checked your credit score and feel there’s room for improvement, you will have to work on a few aspects. This requires consistent effort, such as:

  • Pay bills on time
  • Reduce your debt
  • Keep your utilisation ratio below 40%
  • Seek credit only when you need it
  • Cultivate and manage your debts carefully

Factors Affecting Your Creditworthiness

To better understand the meaning of creditworthiness and what influences it, remember these 4 Cs:

Character

This factor assesses how trustworthy a borrower is. To determine it, lenders will check creditworthiness and your credit history. Paying your loan EMIs and credit card dues on time helps showcase your responsible behaviour and vice versa.

Capacity

With this factor, lenders check your repayment ability, which is reflected by:

  • Income sources
  • Business/personal debt
  • Cash flow
  • Debt-to-income ratio
  • Capital

Another way lenders verify a lower risk of default is by evaluating your investments. For example, if a business has invested in assets or instruments, they are less likely to miss EMIs in future. Similarly, if a buyer has made a sizable down payment on the house, they may typically find it easy to afford EMIs.

Collateral

With secured loans, lenders can auction the asset to recover the loan. So, the value of the collateral you offer has a significant impact on your credit profile. A high-value asset will help you secure high-value funding and vice versa.

Conditions

The last factor that determines your creditworthiness is the external condition, which includes:

  • Market conditions
  • Employment sector
  • Geographic location
  • Job security and growth potential
  • Company/Lender policy
  • Geopolitical conditions

Tips on Improving Creditworthiness

Here’s what you can do to boost your credit profile:

  • Review your credit report every few months and fix any inaccuracies
  • Pay all your credit card bills in full and on time and avoid missing any EMI payment dates
  • Apply for a credit card or loan carefully and not for many credit facilities at the same time
  • Keep your old credit card accounts open to showcase lengthy experience with credit
  • Optimise your debt-to-income ratio by keeping your total EMIs under 40% of your income
  • Maintain low utilisation by using less than 40% of your credit limit
  • Check the eligibility criteria and other requirements before applying to avoid rejection
  • Avoid applying for a loan or card with a low credit score
  • Show all your sources of earnings to show a better repayment capacity

Armed with this knowledge, you can gradually improve your credit score. This will help you get a loan or credit card at more affordable interest rates in the future. However, improving your score takes time.

To build your credit history while also getting quick access to funds, you can rely on the Fibe Instant Personal Loan Online. Get up to ₹5 lakhs at competitive interest rates with nominal paperwork. This is a 100% digital application and has easy-to-meet eligibility criteria and swift disbursal.

Fibe’s alternate credit scoring models help you access funds with ease and repay flexibly in up to 36 months. With it, you can not only improve your creditworthiness but also use it without any restrictions. Download our Personal Loan App or apply on our website.

FAQs on Creditworthiness

How can I check my creditworthiness?

You can check it by getting a credit report from any one of the four credit bureaus in India, which are:

  • TransUnion CIBIL
  • Experian
  • Equifax
  • CRIF High Mark

On Fibe, you can check your score online in just 2 minutes for free.

What are the factors that determine creditworthiness?

Here are the factors that affect your credit profile:

  • Credit history
  • Credit score
  • Total debts versus your income
  • Income
  • Down payment
  • Collateral, if any
  • Total utilisation of credit

What are the steps to build creditworthiness?

To boost your credit profile, inculcate some good financial habits, which include:

  • Check creditworthiness periodically by assessing your score and report
  • Paying your EMIs on time
  • Reducing your credit utilisation ratio
  • Borrowing a variety of credit options, with and without collateral
  • Repaying loans and credit card bills in a disciplined manner
  • Avoiding applying for credit with various lenders simultaneously

Why Is Creditworthiness Important?

Credit cards and loans are important financial tools that will help you in need or in any sort of emergency. This is why your creditworthiness is important, as it will help you to get:

  • Credit card approval
  • Loan approval
  • Low interest rates
  • Better terms on credit
  • Negotiation ability

9 Exciting Places to Visit During Summer in India

Looking for a slice of history or a trendy hotspot for your summer holiday destination? No one could blame you if you’d rather sit back and relax at a picturesque locale or want to be on the go with adventure sports. No matter what you want to do, there are many good places to visit in summer in India. 

Best Summer Holiday Destinations in India for 2024

You can check out some places for the summer of 2024, with the popular activities you can explore.

Andaman and Nicobar Islands

Surrounded by cerulean seas, it has many beautiful beaches and historical sites waiting for explorers. 

  • Get relaxation on Radhanagar Beach in Havelock Island or visit any of the other 572 islands like Neil Island or Parrot Island
  • Check out India’s only active volcano on Barren Island or the historical Cellular Jail in Port Blair
  • Go for a boat ride through mangrove forests and see the limestone caves on Baratang Island

Auli

This beautiful hill station is in the Chamoli district of Uttarakhand, best known for its snow-clad mountains and skiing tours.

  • Experience a thrill on the Auli Ropeway ride, which reaches a height of 1,110 metres
  • Plan a trip to the UNESCO World Heritage Site, Nanda Devi National Park, to see the rarest species of flowers 
  • Trek to the Chenab Lake and enjoy the serene views 

Chopta

As one of the most recently popular places to visit during summer in India, this village has the most scenic meadows and mountain views.

  • Walk the Tungnath Trek and get a glimpse of the Mandakini River from the peak at 3,680 meters
  • Enjoy adventure activities such as rock climbing, mountain biking, rappelling and more
  • Visit the Kedarnath Wildlife Sanctuary and go for an alpine jungle walk among coniferous Deodar trees

Apply for Personal Loan

Kodaikanal

This destination in Tamil Nadu is ideal for those who enjoy lush forests, beautiful waterfalls and serene lakes.

  • Plan a picnic at Kodaikanal Lake, Berijam Lake, or Mannavanur Lake, with a boat ride or night safari 
  • Visit the Guna Caves (with a guide) as well as the Pine Forest on the way where you can spot deer and other wildlife 
  • Take the opportunity to visit the Kodaikanal Solar Observatory Museum, which has collected the oldest continuous series of solar data in India

Pahalgam

Situated in the Anantnag district of Jammu and Kashmir, this place is well known as the ‘Village of Shepherds’.

  • Enjoy camping at the picturesque Lidder River and enjoy treks into the lush and dense forest surrounding it 
  • Shop for saffron, willow baskets, Pashmina shawls, walnut wood boxes and more
  • Play golf at the 18-hole Pahalgam Golf Course, which offers a beautiful view of the mountains 

Gangtok 

The capital of Sikkim, this is one of the most popular holiday places in the North East.

  • Try yak cheese and buy bamboo and cane baskets from Lal Bazaar and MG Marg 
  • Visit the monasteries to admire the Tibetan architecture and culture in Enchey Gompa, Rumtek, Pemayangtse and more
  • Try River rafting on the Teesta River or go yak riding to the Tsomgo Lake

Ladakh

This group of islands or archipelago is a beachy paradise with its 36 atolls and amazing coral reefs.

  • Go on a bike ride to high-altitude lakes, such as Tso Moriri and Tso Kar
  • Visit the Hemis Monastery, Alchi Monastery and Phuktal Monastery to view breathtaking architecture, statues and paintings that date back centuries 
  • Try butter tea, apricot pudding, thukpa, tingmo and other regional delicacies 

Also Read: Travel Loan for Dream Destination

Manali

With the Beas River running through the entire town, Manali is a popular site in the north of Himachal Pradesh, offering a complete package for a family vacation.

  • Visit the Rohtang Pass, which is 4,000 metres high and try the cable car ride, skiing and other activities 
  • Book a riverside camp or igloo stay at the foothills of the Pir Panjal range or the Sethan village
  • Partake in adventure activities such as trekking, ziplining, paragliding, zorbing, river rafting, ATV rides and even fly-dining

Lakshadweep Islands

This archipelago is a beachy paradise with its 36 atolls and fantastic coral reefs.

  • Go scuba diving or snorkelling to see corals, turtles, eagle rays and more at Kavaratti and Bangaram Island
  • Enjoy activities like kayaking, canoeing, kite surfing, water skiing, windsurfing, parasailing 
  • Enjoy sunsets and sunrises from beautiful beaches at Androth or Minicoy Island

Given these places’ range of activities and resorts, you can have a luxury experience or a budget-friendly trip. Irrespective of your choice, don’t let finances hold you back. Consider the Fibe Instant Cash Loan to plan your summer vacation in 2024. 

This customisable loan offers up to ₹5 lakhs with a competitive interest rate and a flexible tenure. You can repay comfortably with an instalment amount that best fits your budget. Have additional funds? Foreclose the loan with extra charges and become debt-free. Download our Personal Loan App to explore more features and plan your vacation.

FAQs on Summer Holiday Destinations 

Which place is best for summer break vacations in India?

There are countless good places to visit in summer in India. But the choice depends on your idea of what is good per your budget, sightseeing preferences and activities. That said, some of these include:

  • Ladakh 
  • Rishikesh 
  • Manali
  • Chopta
  • Andaman and Nicobar 
  • Ooty 
  • Gangtok
  • Coonoor
  • Puducherry 
  • Wayanad

Which is a perfect holiday destination in India in summer?

Choosing from the list of perfect places to visit during summer in India depends on your unique tastes and preferences. However, Himachal Pradesh, Sikkim, Uttarakhand, Jammu and Kashmir are some of the most popular destinations that help holidaygoers beat the heat.

Which hill stations are the best for a summer vacation in India?

Popular hill stations you can go to for summer vacation in 2024 include:

  • Kasol
  • Manali
  • Nainital
  • Gulmarg
  • Kalimpong
  • Mount Abu
  • Ooty
  • Kodaikanal
  • Mussoorie
  • Kurseong

Credit Card Statements: What you need to know

A credit card statement is a summary of your card usage within a billing period. Simply put, it shows how much of your credit card limit you have used and how you have utilised it, i.e., the transaction details. 

Knowing what your credit card statement entails is important for better financial planning and management. That’s not all. It also lets you use your credit card wisely, which helps you get higher savings and maximum benefits from your card. 

Read on to get a quick overview of how to get credit card statements and what they contain. 

Process to Get Your Statement 

Generally, the issuer sends your credit card statement to your registered email ID every month. You can also download it by logging into your issuer’s web portal or app. Once you are logged in, look for the statement option on the dashboard. You can also check your previous statements by modifying the billing period.

Calling customer care and visiting the nearest branch are also viable options if you don’t prefer online options. You can also opt for SMS banking to request your issuer for a statement. 

Details in a Credit Card Statement

Want to know the extent of credit card information you can find on your monthly statement? Here’s what the statement includes:

Account Details 

This section gives all the basic information of the cardholder. You can check this to verify that the statement is for your card and there isn’t any error. Here are all the details it includes: 

  • Name 
  • Address 
  • Contact details 
  • Email address 
  • Account number
  • Billing cycle 

Account Summary

This section is the key part of your statement. It gives you a quick look at your dues, which is crucial when making payments. In this section, you can find:

  • Total payable amount 
  • Previous balance 
  • Available credit
  • Minimum due amount 
  • Statement date
  • Due date 

Transaction History 

This section of the credit card statement contains a detailed breakdown of all the transactions you’ve made. It includes:

  • Merchant or beneficiary name 
  • Transaction date 
  • Transaction amount 
  • Category of transaction 
  • Total transaction amount

Review this section with utmost care. Why? Well, it will help spot unauthorised transactions made using your card. If you see any such charge, you can take prompt action to protect your finances and identity. 

On the other hand, if you don’t catch these fraudulent transactions in time, you may face loss. This may also decrease your CIBIL score. 

Late Payment Calculations

In the section, the issuer displays the calculations for late payment charges and other penalties. As you know, this is an application only when you don’t pay your dues by the deadline. Don’t agree with the charges you see? No problem. Simply contact the customer care team on call, chat or SMS and get a solution. 

Rewards History 

The section of the credit card statement contains the details about your reward points and any cashback you earned during the billing cycle. It includes:

  • Previous reward points 
  • Points earned during this cycle
  • Reward points used in the current cycle 
  • New total of reward points
  • Expiration dates 

This refers to all the common credit card information that is included in all statements. Issuers also mention any changes in their policy or any other important information in a statement. 

Reading your statement carefully can help you avoid unnecessary expenses and penalties resulting from non-payment or delayed payment. It can also help you keep an eye on the points you have earned and look for ways to maximise your benefits. 

Looking for a credit card that offers accelerated savings and perks? Consider the Fibe Axis Bank Credit Card. With it, you can enjoy up to 3% cashback on all online and offline payments, pay zero annual and joining fees, get a 1% fuel surcharge waiver and more. 

As India’s first UPI-enabled numberless credit card, it also ensures maximum security for all transactions. Download the Fibe App or visit our website to apply online. 

FAQs on Credit Card Statement

How do you read credit card statements?

Here is how to check credit card statement:

  • Review all the credit card information
  • Check the due dates and set a reminder if needed
  • Go through the details of your transactions 
  • Verify the interest amount and other charges, if any
  • Read the fine print for any additional charges or changes

Do credit card statements show transactions?

Yes, the statement includes details of all transactions made within the billing period. Verifying this will help ensure the issuer is charging you for the right amount and detect any fraudulent transactions. 

What is the difference between a bank statement and a credit card statement?

A bank statement contains information about the debit and credit transactions as well as the opening and closing balance of your bank account. A credit card statement contains all these details for your credit card and not your account. 

How do credit card monthly statements work?

When the issuer generates your statement, it contains all your credit card information. The crucial part is the transaction details for inward and outward payments. The statement also tells you how much you owe, the due date to pay it and any other pending dues. All this information helps you pay the bill on time and better manage your finances.

Credit Card Balance Transfer: What you need to know?

If your’re struggling to pay your credit card bills due to high interest rates, then a credit card balance transfer may be an optimal solution. Often, people cannot completely pay off their credit card dues, as the interest increases with every billing cycle based on the outstanding amount. 

In such a case, opting for a balance transfer can help you clear your debts affordably. However, credit card balance transfer is ideal only under specific conditions. Thus, it’s imperative to understand when to transfer balance from a credit card and its effect on your financial health to make an informed decision. 

Here is all you need to know.

How Does Balance Transfer Work

The credit card balance transfer is very straightforward. It starts with choosing a credit card offering a lower interest rate than your existing issuer. After that, you transfer your outstanding or unpaid credit card bill to the new issuer. 

Once done, your bill will be lower in consecutive statements.  This will help you save more money every cycle, so you will have additional funds available each month. You can use this saved sum to pay more than the minimum due. Over time, your outstanding amount will get paid, helping you repay your credit card debts hassle free. 

When Should You Opt for This

A credit card balance transfer is an ideal solution if the high interest rates affect your budget. Alternatively, if you have multiple credit card debts, opting for a balance transfer is right for your financial health. 

However, this option is only beneficial if you have a low introductory APR and have access to additional benefits. Therefore, you must thoroughly compare multiple options when choosing a new credit card issuer. 

Also Read: How to increase credit card limit?

Advantages and Drawbacks of Credit Card Balance Transfer

To better understand what is a credit card balance transfer, here are a few of its pros and cons for comparison.  

ProsCons
It offers you a lower interest rate on your outstanding credit card billsYou can easily manage the bill amount within your budget  Helps accelerate your debt repaymentsHelps improve credit score with timely repayments Improves your credit utilisation ratio, giving you access to more credit The issuer may require a good credit score without a history of default The credit card balance transfer may attract a fee of up to 5% of your outstanding amount, adding to your financial burdenIntroductory APR don’t last foreverHard enquiry for a new card may hurt your credit score temporarily 

Other Strategies to Pay Credit Card Debts

In addition to knowing what is balance transfer in a credit card, you must be aware of other options to make well-informed decisions. 

  • By prioritising your debt repayment and reducing unnecessary expenses, you can pay a little extra every month. This way, you can pay your dues faster without attracting much interest. 
  • With multiple credit cards, you can focus on paying the bill with the lowest interest rate first. This is a snowball strategy of repayment. 
  • Alternatively, you can start by closing the card with the highest amount, known as the avalanche strategy.
  • You can use your emergency funds.
  • In the worst-case scenario, you can ask your issuer for a moratorium period to sort your finances.

In addition, you can opt for debt consolidation with a personal loan. With the Fibe Instant Personal Loan, you can get sufficient funds for all your financial requirements, without any credit score check and minimum documentation. This is why it’s one of the best options for all your planned and unplanned expenses. 

You can secure up to ₹5 lakhs at an affordable interest rate and with flexible tenure options. Furthermore, it has nominal fees and charges, no foreclosure fee, 100% digital application, no physical paperwork and 2-minute disbursals. Download our Personal Loan App and apply now. 

FAQs on Credit Card Balance Transfer

How does credit card balance transfer work?

By getting a credit card balance transfer, you can reduce your interest liability every month. This way, you will have additional cash to pay more than the minimum dues. Using this surplus amount, you can close your credit card bill faster than you could have with a higher interest rate. 

Is balance transfer a good idea for credit cards?

Yes! Opting for a balance transfer is a good option if the high interest rates exceed your financial capacity. This is especially helpful if you are unable to clear the entire bill amount in a single go. As a result, the interest gets added to the outstanding amount, increasing your monthly repayment amount.

Do balance transfers hurt your credit score?

Since applying for a new credit card comes as a hard enquiry, a balance transfer does hurt your credit score for a short period. However, you can gradually improve your credit score by paying your bill in full and on time. 

How many times can I do a balance transfer on a credit card?

There is no limit to how many times you can opt for a balance transfer. However, be mindful of its effect on your credit score. Ideally, you should wait up to 120 days before you can initiate another balance transfer. Once you transfer the amount, clear your balance without delay so that your credit score doesn’t get affected.

How To Convert Your Credit Card Bills Into Affordable EMIs

Knowing how to convert credit card payments to EMIs is crucial to spread out the cost of your large purchases and make them more manageable. Opting for this can help ease the burden of repayment and keep you on track with your budget. To explore how to convert your credit card payments into EMIs, the benefits of opting for this facility and things to consider, read on.  

How Do EMIs on Credit Cards Work

To put it simply, an EMI on a credit card helps you convert the amount you owe into smaller and affordable monthly payments. Here is how this system works:

  • This facility is appropriate for paying a small portion of what you owe and having the remaining amount carried to the following month, along with interest
  • The interest charged on an EMI facility is generally lower than the regular credit card interest rates
  • Some issuers even offer a no-cost EMI option as well
  • Credit card companies usually allow you to use this conversion facility for your high-value transactions
  • Remember that a late payment fee will be applicable if you miss or default on a repayment

Also Read: Credit Card Late Payment Charges

How to Convert Credit Card Payments into EMIs

Credit card companies allow you to leverage different ways to opt for a monthly instalment facility. Here is how to pay EMI with a credit card:

Identify Transactions

  • Since not all transactions will be eligible for the EMI facility, verify the minimum amount that you can convert into monthly instalments
  • Transactions made at certain merchant outlets, such as your fuel expenses, may also not be eligible   

Select the Bill or Transaction for Conversion

  • Once you have checked the transaction’s eligibility, select the transaction you wish to convert into EMI
  • It’s crucial to review the fees associated with this facility to determine if it falls within your budget

Choose Repayment Tenure

  • The next step is to choose a repayment tenure that aligns with your budget
  • Most credit card companies allow you to opt for a repayment duration ranging between 3 and 24 months
  • Note that the longer the tenure, the lower will be the EMI amount payable
  • However, you will end up paying higher interest charges in longer tenure as compared to a short-term duration 

Confirm Conversion

  • Once you have chosen the right tenure, confirm the EMI conversion to complete the process 
  • The issuer will credit back the amount of the transaction after completion of your EMI conversion process 

Also Read:  What is a credit card statement?

Things to Consider When Converting Credit Card Bills into EMIs

Before you opt for an EMI facility on your credit card, here are a few factors that you need to take into account:

  • Interest Rate: The amount of EMI you will have to pay depends on the credit card interest rate, which varies from bank to bank
  • Reducing Balance Method: Note that banks charge interest using the reducing balance approach, where interest applies to the remaining balance every month
  • Processing Fee: Some credit card issuers even charge a processing fee when you convert your bill payments into EMIs
  • Repayment Tenure: As mentioned earlier, you can choose a repayment tenure as per your repayment capacity, ranging between 3 and 24 months
  • Credit Foreclosure: You can prepay or foreclose the existing loan on your credit card in case you have accumulated the remaining amount by paying a penalty

Benefits of Converting Credit Card Payments into EMIs

Here are some of the pros of paying your credit card bills into affordable monthly instalments:

  • Budget Management: Opting for this facility allows you to manage your budget more effectively and maintain the desired cash flow for your other expenses
  • Easy Repayment: You can opt for automatic deduction of EMIs, which ensures that you never miss a due date
  • Flexibility: Most credit card companies allow you to choose a repayment tenure that aligns with your budget and financial goals

Before you opt for the EMI conversion facility, it’s crucial to manage your finances responsibly and ensure that the monthly obligations fit your budget. However, if you’re unsure about your eligibility, you can always apply for Personal Loan of up to ₹5 lakhs. Download our Personal Loan App or log in to our website to get funds at competitive rates and with minimal paperwork. 

FAQs on How to Convert Credit Card Payment to EMI

Does converting credit card bills to EMI affect credit score?

No, converting credit card bills into EMIs doesn’t impact your credit score. However, your credit score will be hurt if you don’t pay your monthly obligations on time.

How can I convert credit card payments to EMI?

Wondering how to convert credit card payments to EMI? You can opt for an EMI option through the credit card company’s net banking portal or the mobile app.    

How do I know if my card is eligible for EMI?

You can check your credit card’s eligibility for converting bills into EMIs on the card issuer’s web portal or mobile application. You can also contact their customer support team to know about your card’s eligibility. If you are wondering, ‘How to pay EMI through a credit card,’ you can also talk to the customer care representative if you are unsure of the process.

RuPay vs Visa: Which Card Is Right for You?

RuPay is India’s domestic card network. It is designed to make local transactions affordable and efficient. Visa, on the other hand, is a global payment network accepted in most countries. Choosing the right card network matters more than you think. The difference between Rupay and Visa cards mainly comes down to where and how you plan to use them. 

If you mostly spend within India, RuPay can be cost-effective and secure for everyday use. If you travel abroad or shop on international websites, Visa may offer wider acceptance and global rewards.

Understanding the difference between a RuPay and Visa card helps you pick what suits your lifestyle better.

What is a Visa Card?

A Visa card runs on the Visa payment network. It allows you to make transactions not just in India but across the world. Visa started with credit cards and later expanded to debit, prepaid and gift cards. Banks issue these cards while Visa processes the transactions through its global network. If you travel internationally, shop from overseas websites or want global acceptance, Visa cards are widely supported across countries.

What is RuPay Card?

RuPay is a payment network developed by the National Payments Corporation of India and launched in 2014. It was created to support domestic transactions at lower processing costs. RuPay cards can be debit, credit or prepaid cards issued by banks in India. They are widely accepted across the country and are increasingly being enabled for international use through RuPay Global. If your usage is mainly within India, RuPay offers a practical and cost-efficient option.

RuPay vs Visa Card: Key Difference

Here’s a table explaining the difference between Rupay and Visa card and how cards on these payment networks differ:

Basis of DifferenceRuPay CardVISA Card
Card TypesDebit and credit cards, prepaid and gift cards Debit, credit, prepaid and gift cards
Year of Launch20141958
Speed of TransactionRuPay processes transactions quickly VISA processes transactions comparatively more slowly
Processing FeeThe processing charges are comparatively cheaper since they operate domestically The processing charges are comparatively higher because of overseas processing
AcceptanceRuPay cards are accepted by limited countries outside India, such as Singapore, Qatar and the UAEVISA cards are accepted in India as well as in most other countries
Fee StructureRuPay cards do not have any entry or quarterly charges for financial institutionsVISA cards come with quarterly and initiation fees for banks and other financial institutions
Withdrawal LimitationWithdrawals allowed in India; RuPay Global cards allow withdrawal overseas Withdrawals allowed in India and abroad

RuPay vs Visa: Which is Better

The right choice depends on how you use your card. When you understand the Rupay and Visa card difference, it becomes easier to decide what suits you. If most of your spending happens in India, RuPay can be a smart and cost-effective option. If you travel abroad often or shop internationally, Visa may offer better global acceptance.

Instead of choosing just one, many people prefer having both. That way, you get the advantages of each network. Once you understand the difference between RuPay and Visa card, selecting what fits your lifestyle becomes easier.

If you are looking for a RuPay option that supports your everyday spending, check the Fibe Axis Bank Credit Card. It offers up to 3% cashback on transactions, up to 4 complimentary domestic airport lounge visits annually and UPI payment support. It also comes with zero joining and annual fees! You can apply easily through the Fibe app or website.

FAQs on the Difference Between VISA and RuPay Credit Card

Is RuPay safer than Visa?

When comparing RuPay and Visa card difference, you don’t need to worry about the safety of your finances. Both networks follow strong security standards to protect your transactions. 

What are the benefits of a RuPay card?

You can enjoy the following benefits with a RuPay card:

  • Enjoy low transaction costs
  • Access domestic and international offers
  • Earn rewards on different payments
  • Experience quicker processing of transactions
  • Easily link RuPay credit cards with UPI 
  • Make contactless payments easily

Is RuPay accepted internationally?

Standard RuPay cards are mainly meant for use within India. However, RuPay Global cards can be used internationally at selected points of sale, online platforms and ATMs outside India. Understanding the difference between Visa and RuPay credit card is helpful here, as Visa has wider global acceptance while RuPay is expanding gradually.

What is a Down Payment: Here is what you need to know

Down payment—it is a term that appears a lot when you’re about to buy a big-ticket item. It comes into play when you plan to become a homeowner or car owner and sometimes even when you buy home electronics on EMI.

Knowing the meaning of the down payment in-depth and how financial companies calculate it can help you plan your finances better. 

What is a Down Payment?

If you cannot afford to purchase what you want outright it is easy to get financing for it. In such cases, financial companies require you to contribute to the cost of the product, which is not financed by a loan. This amount is nothing but the down payment. Check out its brief overview: 

  • Lending institutions require you to pay for a part of the total price to reduce the risk of default. 
  • The minimum payment for such loans ranges between 5-20% of the total purchase price.
  • The financial institution covers the balance amount, which you must repay in monthly instalments and the interest.
  • Certain loans also come with a zero down payment facility, which means you don’t have to pay any upfront cost.

Guide To Minimum Amount Need For a Down Payment

Lenders review various aspects when determining the minimum payment you need to make to get a loan. However, the following are the two major factors that influence the  

  1. Loan Type & Value

The down payment amount varies based on what you are financing and its value. 

  • A home loan usually requires a higher amount as an upfront cost 
  • A car loan usually requires a lower amount 
  1. Credit Score

Financial institutions consider your credit score to assess your experience and attitude with regard to credit. 

  • With a good record of timely and responsible repayment, you can reduce the requirement of the initial payment amount.
  • With a strong profile, you can finance your big-ticket purchase with an upfront payment of as low as 5% of the total price

Why To Make a Large Down Payment?

While making the minimum down payment may seem attractive, try to pay the highest amount as per your affordability for the following reasons:

  • Better Chances Approval: Lenders view you as a less risky borrower if you pay a larger amount when purchasing an expensive item, improving your chances of getting approval  
  • Lower Monthly Instalments: Paying more upfront also reduces the amount of EMI, reducing the burden of repayments significantly 
  • Cost Savings: With a reduced loan amount, you end up paying a lesser amount as interest charges 
  • Faster Ownership: Paying more than the minimum also ensures that you can more quickly become the full owner of the product you purchase  

There is no one-size-fits-all approach regarding down payment, and it depends on the financial company and what you plan to buy. Ideally, you must try to pay a higher amount to keep interest charges low and make your monthly instalments more affordable. 

However, if you don’t have the funds to make this payment, Fibe has got you covered. Our Instant Personal Loan offers up to ₹5 lakhs without the hassle of making a down payment. Download our Personal Loan App or log in to our website to enjoy quick funding with minimal paperwork.  

FAQs on Down Payment

Can I get a personal loan to make the down payment?

Yes, you can opt for a personal loan to pay the initial amount for a larger loan amount, such as a home loan.

Can I use credit as a down payment?

Yes, you can get a loan to finance the initial payment for another loan.

What is an example of a down payment?

Check this example:

Suppose you get a loan to purchase a car worth ₹10 lakhs. The lender may require you to pay a certain amount to get financing for the rest of the car’s cost. If the minimum payment that the lender requires you to make is 5%, you will have to pay at least ₹50,000  

How does a down payment work?

It is the initial payment that you have to make when buying an expensive item. Here’s how these payments work:

  • It is generally a percentage of the total purchase price and the loan amount covers the rest of the amount.

Certain lenders also allow you to make zero down payment, which means you don’t have to make any payment when availing of a loan.