There always comes a time when no matter how well you plan and save for the future, an unexpected expenditure shows up at your doorstep. Emergency expenses such as a major medical bill can put a significant financial burden on you and your family. However, there are ways through which you can address unexpected costs and turn them into something less problematic. First thing is to start saving as early as possible. Get into the habit of making regular deposits into your savings account. Whether it is bi-weekly, weekly or monthly, create a schedule and stick to it. Next, you can make use of a credit card. Apply ICICI Credit cards function on a deferred payment basis which means you get to use your card now and pay for your expenses later.
The money used does not go out of your account, thus not denting your bank balance every time you swipe. In case of any medical emergency, you also have the option to apply for a personal loan. Personal loans are unsecured loans which means you are not required to pledge any collateral or security to avail it. You also have the flexibility to choose a tenure which suits you best. Lastly, you can choose EPF. It acts as a saving tool for employees. You can withdraw total corpus or six times the monthly salary (whichever is lower) from the provident fund for the medical treatment purpose. Hence, in case any medical emergency arises, you can choose from the above-mentioned ways. These are the best ways to meet any unfortunate circumstances and get you out of trouble.
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Lack of awareness while applying for the loan or credit cards can lead you to a debt trap which, in turn, may severely affect the future of you and your family. Hence, you must be aware of all the reasons that might lead to rejection of your application. If you have not paid your ICICI Credit Card bills or EMIs on time, it will show up on your credit report and may result in your loan application being rejected.
Hence, it’s always advisable to check credit score before applying for a loan or a credit card. Switching jobs on a frequent basis may not be very well received by your lender. Same is applicable to your residential address. Further, your application could get rejected if you do not meet the minimum income criteria set by the bank you wish to apply with. If you already have multiple loans running and the total EMIs you pay is more than 50% of your monthly income, you risk being denied a loan or credit card. Apart from income documents, banks also review your bank statements to understand your banking behavior. If the crediting of your salary is untimely or inconsistent, then there are chances that your loan application might get rejected. The lenders also initiate physical verification of your home and workplace to ensure your stability and standard of living.
If there is any wrongful or misleading information, your application may get rejected. Lastly, banks or other financial institutions always do the valuation of the property before sanctioning the loan. You are also required to provide the complete chain of titles or property documents before you get the approval of your mortgage loan. Now that you are aware of all the reasons for rejection of your loan application or credit card, you may want to be diligent and wise about your choices.
