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MAD, which is 5-10 per cent of the total outstanding due, is the minimum amount you are required to pay to maintain your card account in good standing.
Paying MAD provides a breather at times of cash crunch and helps in getting away with the late fee and penalty, charged in case of non-payment of dues within the cut-off date.
It’s a no-brainer that a lower credit score categorises you under undesirable high-risk profiles.
For example, if the outstanding amount due on your credit card — with a limit of ₹40,000 — for May is ₹20,000, your credit utilisation for the month is 50 per cent.It’s been a great privilege and a life-changing experience.