My credit cards have become far too many and I wish to close two of them. How do I decide which one to close?
Even if you do not use your credit cards, don’t rush to close them. If you must close them, then do it over a period of time. Closing too many cards too quickly will harm your credit score. Also, if you must do so, it makes sense to close the card with the least credit limit. At the same time, ensure that your oldest card is not closed first. This can again affect your credit score.
I recently decided to purchase a car, but can’t decide on the colour of the car. I really find the range of metallic colours very tempting but I like white, too. What do I need to consider before I choose a colour. Can I also change the colour later?
Metallic colours add to the total cost of the car, besides fading over time. On the other hand, basic colours, such as black and white, retain their shine and originality and cost less. It doesn’t make sense to change the colour of your car often. When entering the description of your car in your registration certificate (RC), ensure the colour description matches with that of your car, or you could face problems when selling the car. Whenever you change the colour of your car, write a letter and submit it to the regional transport office and ensure the colour is changed in the RC.
I do not have enough money to pay the equated monthly instalments (EMIs) for my home loan but am expecting to get some funds soon. I am into the third year of my home loan and have not defaulted on my EMI payments till now. Should I take a personal loan to keep up with my EMI payments?
You can take a personal loan, but first look at other options you may have because personal loans are expensive. You can consider liquidating some of your assets that do not really fit in your long-term financial plan. For instance, you may have some tax-saving investments that may be maturing now or stocks that you would want to sell now or a fixed deposit you can afford to close. If you do not want to sell your assets right away, you can take a loan against them by keeping them as security. This way, your interest rate will be much less than from a personal loan.
Adhil Shetty is CEO & co-founder, BankBazaar.com
Queries and views at firstname.lastname@example.org