UNDERSTANDING CREDIT SCORE (CIBIL):
  Range: 300–900 | Good: 750+ | Excellent: 800+
  Factors:
    35%: Payment history — never miss EMI/credit card payment
    30%: Credit utilisation — keep below 30% of credit limit
    15%: Length of credit history — older accounts = better
    10%: Credit mix — loans + credit cards = better than only one type
    10%: New credit inquiries — hard inquiries reduce score temporarily
  
  Build credit score:
    Pay all dues on time (set auto-pay)
    Keep credit card utilisation low
    Do not close old credit cards (reduces average age)
    Check CIBIL report annually (free once/year at cibil.com)

GOOD DEBT vs BAD DEBT:
  Good debt (potentially): home loan (builds asset), education loan (increases income)
  Bad debt: credit card revolving balance (24–42% interest!), personal loans for consumption
  
  Credit card: PAY IN FULL every month — never carry balance
  Interest-free period: 18–55 days if paid in full
  Minimum payment trap: Rs.10,000 balance at 3%/month = 11 years to repay paying minimum

EMI CALCULATION:
  EMI = P × r × (1+r)^n / ((1+r)^n - 1)
  Where: P = principal | r = monthly rate | n = months
  Rule of thumb: every Rs.1 lakh at 10% for 10 years = EMI Rs.1,321/month
  
  Prepay high-interest loans first (avalanche method)
  Debt snowball: pay smallest balance first for psychological momentum

INSURANCE vs INVESTMENT:
  Never mix: ULIPs and endowment plans give poor returns AND poor coverage
  Correct approach:
    Step 1: Buy pure term insurance (Rs.1 crore for ~Rs.8,000–12,000/yr if young)
    Step 2: Buy health insurance separately
    Step 3: Invest separately in mutual funds/PPF/NPS

CIBIL SCORE: 750+ good | 800+ excellent | payment history 35% of score
CREDIT UTILISATION: keep below 30% of total credit limit
CREDIT CARDS: PAY IN FULL monthly — never carry balance (24-42% interest)
GOOD DEBT: home/education | BAD DEBT: credit card balance, personal loan for consumption
TERM INSURANCE: separate from investments | pure term only | ~Rs.10,000/yr for 1 crore
AVALANCHE: pay highest interest first | SNOWBALL: pay smallest balance first