Each major step in life can cause changes in the existing situations. But it should not affect your credit behaviour. Read more below on managing your credit during your milestones, whether pursuing education, getting married or planning a vacation.

Getting married is an auspicious event. You are joining two souls and two families. But what about your credit profile? Will it get merged? The answer is no. Even after you are married, your credit scores are calculated individually. So, checking your individual and family expenses is vital to ensure your credit is unaffected.

When thinking of a car or home:

Be it for home loans or car loans, it is a discussion whether to apply jointly or individually. Before you make that decision keep this in mind!! Since the credit score is separately calculated for each person, the scores are both considered when you apply jointly. If your significant other (SO) scores lower, it might affect your approval terms. 

So the person with the higher score should apply for the loan. This brings advantages like better interest rates and more lenience in the terms.

When going on vacations:

Vacations are the breaks we deserve from the hectic lifestyle we wear every day. Who wants to consider their bills and credits while sipping cocktails at the beach and enjoying the Sun? Why sunburned by the bills after the vacation also? 

• When planning to travel, it is customary to take a loan to meet the related expenses. But only take what is required. You need a precise itinerary and budget. This will also help to reduce confusion regarding places to visit and costs. Travel loans usually have interest rates from 10% to up. So, making sure your budget is appropriate and not unnecessary will help you manage your repayments better. 
• Ensure your accounts are funded for the necessary upcoming credit payments so as not to have any rushes and difficulties during those exciting days.
• As the credit score depends on your credit mix (i.e. the types of credit you have; unsecured and secured credit), it is better to manage your mix correctly so that the number of unsecured loans becomes too high. 
• Upon using credit cards, do not go over the utilisation limit. If you use it abroad, keep the exchange rate charge in mind. Otherwise, use a separate forex case. But keep your credit card for emergencies.

Securing education loans

Pursuing graduation and post-graduation from renowned institutes is an essential milestone in anyone’s life. While it is an incredible opportunity, education has become a costly affair now. When financing for education loans for your children, here are credit score tips you should keep in mind:

• Instead of choosing your current bank for the loan amount, always check the offers from the other lenders to see which is best for you. Banks now provide various other features than the interest rates being low. Plan according to your needs and make the best decision.
• Check the advantages of the institutions. If it is institutes of national importance, there are options to finance without collateral! Usually, for all education loans under Rs. 4 Lakh, collateral is not needed. For the premier institutes such as IIMs, IITs, NITs, etc. much higher amounts can be borrowed without submitting any collateral.
• When applying for education loans, the child mostly won't have a credit score. Hence a ‘guarantor’ will be needed. This is usually done by the parents or the student's guardian. It is best that the guarantor has a good credit score to get the loan approved. With an excellent credit score, you also get more attractive perks.
• You can also claim tax benefits when it's tax season under Section 80E of the IT Act. The interest you pay can be claimed under this act and will help with your upcoming tax expenses.

Learn more about the education loan tax benefits at https://www.credyfi.com/blog/section-80e-education-loan-tax-benefits

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As they say, life is a ride with ups and downs. Having a shoulder to lean on can make that long (and short) journey more enjoyable and enduring. It brings you a lot of responsibilities, and you can tackle those with a bit of planning. Be it your home, holidays or child’s education, planning and being helpful to each other can bring you closer to that financial freedom you aspire to get!