10-Jan-2018 written by : FSI-Team
With the year 2017 nearly drawing to close, it is time to take stock of the year gone by. One of the most important questions to ask yourself is with regard to your finances. You need to check whether or not your financial health is in order. One yardstick of the condition of your finances is your credit score. At the end of the year it is therefore a good idea to ensure that your score is up to the mark.
If you have not utilised the benefit of checking one free CIBIL score in a year, a facility provided by the country's premiere credit bureau, now is the time to do it. CIBIL gives all borrowers the benefit of checking on their score free of cost once in a year. Ideally however, you should check your credit score at least twice in a year to ensure that no errors or discrepancies creep into it. However, if you have not done it yet, it is good idea to pull out your CIBIL report without any further delay. Here is why:
As mentioned earlier, your score is a benchmark of your financial wellbeing. If your CIBIL score is above the level of 750 (out of 900) you have little to worry about. However if your score is not up to the mark, the credit report will bear witness to the same. A thorough check of your credit report will reveal the areas that need improvement.
For instance, you may need to work on the timely repayment on an outstanding student loan or a personal loan, that you may have availed of in the past. There may be other problem areas such as excessive outstanding debt on your credit card that is pulling down your score. By taking the annual free CIBIL score check, you can take the opportunity to improve your records and put your financial health in order.
Is 2018 going to be the year when you buy your first property or your first car? These are fairly long term commitments one makes financially. If that is what you have planned for the new year, now is a good time to check your credit health. Your credit score is an important facet that a probable lender will take into consideration while assessing your credit worthiness. A good score is thus a prerequisite if you wish to take any fresh line of credit in the upcoming year.
The same holds true if you are planning to apply for a job in a fairly large organisation of repute. Most large corporations are likely to ask you to submit your CIBIL report along with your application for a job. An impeccable credit report is indication of the fact that you are a responsible user of credit and thus are deemed capable of the new responsibilities you may have to shoulder in the new organisation. A good credit score and credit report thus works in your favour.
While others may be spending time putting their house in order, you may not have the luxury as you find yourself under some pressure at the end of the year. While the easiest way is to seek a personal loan to tide over immediate financial worries. However it may be a tad difficult with a unflattering score or get a personal loan without CIBIL score, if you have not accessed any form of credit earlier.
At such times, you may find yourself running from pillar to post if you approach a traditional lender. A traditional lender, such as a bank is unlikely to approve any credit application if your score is not up to the mark. It is thus recommended that you approach a non-traditional lender for easy access to finances. A P2P lending platform is one such option.
A P2P platform is a virtual lending marketplace where you can directly get in touch with a willing lender. If you are agreeable to his terms and conditions of repayment, your loan application may get approved within a matter of moments. The advantage of accessing credit from such a platform is that atypical factors are taken into consideration to assess creditworthiness, and credit score does not play a large role in this assessment.
Getting a personal loan without CIBIL score is therefore much easier on a platform such as this. Thus not only can you tide over the financial crunch you are facing, you may also get a chance to rectify or build your score. Once your credit repayment begins, make sure that you carry out periodic checks on your report to ensure that you get access to cheap and timely credit.