Obtain secured credit card, repay regularly to repair credit history

Use less than 30% of card limit; avoid frequent loan applications

Personal loans given by fintech players in the under Rs 1 lakh category have grown at a compounded annual rate of 75 per cent between financial year (FY) 2017-18 and FY 2022-23. After this rapid growth, there are signs of stress in fintechs’ loan portfolios, especially in the under Rs 50,000 ticket size, according to a white paper released by Experian in collaboration with the Digital Lenders’ Association of India (DLAI).

Reckless use of an unsecured loan (personal loan or credit card dues) can lead to a default, which impacts the borrower’s credit score negatively. This can lead to a situation