20-Aug-2016 written by : FSI-Team
Banker: Sir your credit score is not in line with our bank’s policy. Unfortunately, we won’t be able to give you a loan Customer: What credit score? I don't believe you. Show me my report. Banker: Sir, you can ask for your report online on www.cibil.com . After paying Rs. 550/-, you will be sent your report in your mailbox. Customer: Why should I pay Rs. 550/-? You are not giving me a loan, are you? And yet you want me to shell more out of my pocket? It's my report and I demand to see it, for free.
Believe it or not, it is a common concern among people who want to review their report but are unwilling to pay for it. Sounds just fine. If it's your report, should you be paying to review it? Internationally, you are allowed one free report every year from each of the three credit information companies. They are Equifax, Experian & TransUnion. However, no such measures are laid in India.
There are two things that need to be done to empower the consumers of India.
1. Increase awareness about credit scores and the significant role they play in our financial ecosystem. This is so that lending can take place smoothly and effectively, thereby increasing cash flow in the economy.
2. Make access to credit scores and report free, so that reviewing individual performance becomes easier. With a surge in borrowing, there is a proportionate increase in spending and therefore a rise in economic factors like employment and GDP.
Not just lenders, very soon we expect future employers, telecom companies & even life insurance companies to refer to your credit scores before indulging in business with you.
Until RBI takes cognizance of these suggestions and makes it a mandate, we at freescoreindia.com have decided to shoulder the responsibility of providing individuals, who are looking a free copy of their credit report and access to some easy quick fixes.
It's a very simple procedure. All you have to do is to get online and log on to www.freescoreindia.com. Enter all the details in the fields provided and recheck them before you hit submit. Once your details are submitted and you have sent your documents too, within 72 hours after that, a copy of your credit report will be sent to you. By applying for a copy of CIBIL report online, you will get instant access to your report and score but you will ofcourse have to pay Rs. 550/- towards charges for withdrawing it.
Getting your free copy will enable you to review your report, spot errors, get corrections done, manage your score effectively and abet you in attaining your financial goals. It's as good as winning a lottery. Lottery, not because you save "Rs. 550", but because you can now use that good score to save you many a buck.
You will agree that a lottery is a "windfall gain". That means, it is an unexpected rise in income which could be due to an inheritance or your raffle ticket just won! This unforeseen increment in your profits gives your budget a great thrust. Let alone your budget, it gives your confidence a great boost. Wouldn't it be just great if your credit score could result in something like this? No, we are not implying that your credit report is a lottery ticket but it is your ticket to peace. Let us explain this with an easy example.
Mr. Raj Singhania had a flourishing business and was a very conscientious man. He was particular about his debt repayments and only sought as much credit as much he could repay in full. Without doubt he had a great credit score. When his heart was set on a house he intended to buy he applied for a home loan of Rs. 1 crore with two banks. Due to his shining credit record, both banks dueled for his portfolio. Mr. Singhania was able to take advantage of his high credibility and negotiated and re-negotiated with the banks. Finally, he was able to settle on an interest rate which was 1% lower than the market rate. This way he was able to save about 10 lakh rupees!
If Mr. Singhania would have won a lottery for Rs. 10 lakh, this additional sum would have leveraged his income. Saving 10 lakh rupees in a fixed expense towards interest, also adds back to your household income. This money saved here can be used in a number of ways to your whims and fancies, just like you would have done with your prize money. One and the same thing.
Even if your score is not up to the mark, getting a free copy will set you on the right track, help you seek expert advice and give you an idea about the ways to improve credit score fast. Over time with an increase in your score, you can recreate your story just like Mr. Singhania's and let you save some of that hard earned dough.
Where a successful outcome of a lottery is governed by chance, the outcome of your healthy credit report and score is steered through your conscious and assiduous efforts. If you are not in a bit of a rush and are willing to wait for about three days then getting a free copy of your credit report is your best bet. Getting your report for free is a good enough reason for applying for one today. Using it to make a profit is even better.
After all, patience pays, isn't it? Only here it saves.