Credit Advice

Common mistakes we Indians do unknowingly which hurt our credit score

Mistakes are said to be the best teachers. One does learn from the mistakes but in some cases the mistakes can turn out to be quite expensive. No one would disagree to the fact that avoiding mistakes and taking proactive steps that lead to avoiding difficult situations is the best policy. But agreement and implementation are two different things.

Can bad credit score impact your business too?

Just like one would have trustworthiness among friends, folks and colleagues, one needs to have credibility with the lending institutions as well. As the trustworthiness among the worldly people would help in personal growth, the credibility among the lenders would aid achievement of financial objectives. Akin to trustworthiness that would help in professional growth, the credibility with banks will give seamless access to funds that would be needed for both personal and business.

Is it Good for Your Cibil Rating to Have Your Cards Completely Paid Off?

Your credit rating is based on several factors one of which is credit cards usage. If your debt is low and you pay your bills on time, then you can expect a high credit score. However, repaying the debt in full and then not using plastic money ever isn’t the best thing that you can do for the rating. To understand why, let’s first take a look at how different credit card activities affect your rating.

Simple ways to understand your credit report better

Awareness about credit rating, the calculation process and its importance is still low in India, however now it is catching up. People are beginning to understand why it is important to be credit healthy and what can be done to improve one’s credit health. Thus it is very important that you look at your credit report from time to time and also understand it so that you are able to figure out what makes your credit score good or bad. Below we discuss simple ways that can help you in understanding your credit report better.

Will Employers Dig into Your Credit Report Before Offering You a Job?

Your credit report plays a big role when you apply for loans and other forms of credit. For instance, if your score is low, then you may not get standard interest rates on home loans, personal loans, etc. You may not even qualify for a loan in the first place if your score is too bad. However, does your credit report also affect your employment opportunities? Do employers check the credit reports of the candidates they interview for jobs? Let’s find out.

Common Mistakes Young Employees Make in Their Early Financial Life

Managing personal finance isn't easy. However, young professionals who don’t have a lot of experience in that often make mistakes that cost them a lot (no pun intended).

Having a High Credit Score is More Rewarding Than You Think

You must have probably heard from your friends and acquaintances that having a high credit score is really important if you want to get personal loans, credit cards, etc. easily. This is 100% true. However, what you may now know that a high score can make your life easier and more comfortable in many other ways. Some of these are:

Five New Year credit solution ideas to help you save money

With the year drawing to a close rapidly, it is time once again to start setting new year resolutions for the year ahead. How about this year you make resolutions that will help you improve your credit health and your overall financial well being as a result? Here are five ideas of how you can go about improving your credit health in the ensuing year.

High credit score shows responsible financial behavior

There are a lot of things which determine if your behavior and we tend to work a lot towards it. An excellent behavior gives you respect in the society and is good for mental health. There are many other behaviors which are important but are not obvious to the naked eye. Let's take financial behavior here as an example, your financial behavior is really important for maintaining a good standard of living and also for your mental peace.

High credit score shows responsible financial behavior

There are a lot of things which determine if your behavior and we tend to work a lot towards it. An excellent behavior gives you respect in the society and is good for mental health. There are many other behaviors which are important but are not obvious to the naked eye. Let's take financial behavior here as an example, your financial behavior is really important for maintaining a good standard of living and also for your mental peace.

How to check your financial stability with these guidelines

For most part of our adult lives, we find ourselves worried about finances. After all, there are million things to take care of, and even after working hard, you may find it difficult to achieve financial stability. You may be telling yourself that financial stability can be achieved when you earn a higher salary or simply when your cash flow increases. The truth however is you can achieve financial stability even with your present income. Here are five ways in which you can assess your financial stability.

Is it Possible to get perfect Credit Score Of 900?

As the famous saying goes, "nothing is perfect under this sun". When it comes to the credit score, it means that one would never be able to attain the perfect score of 900, if the saying was to be believed. While attaining perfection on the credit profile still may be doubtful, but one can definitely get to a point where the scores will be perfect for him.

Understand how to better manage your credit health

Many events in life can lead to an urgent requirement of funds. In such instances, what one looks towards is access to loans, advances and credit. However, the seamless access to credit is while depended upon one's repayment capacity, one’s credit health has a bigger role to play. Despite having the required income to service the loan, the applicant may not be able to get approval on loan application if the credit health is not up to the mark. This may lead one into desperate state of affairs in case the funds were needed for meet an exigency.

How Credit Scores are Important to Business Owners

The Indian banking system is expanding as more and more people are becoming a part of it. This in turn means more people are seeking loans to fulfill their dreams and aspirations; the lenders unlike before now rely on more objective ways of deciding whether to sanction the loan to an applicant or not. Thus the credit rating of the applicant is crucial whenever he/she applies for a loan. This is true for individuals whenever they want to apply for a loan but what about business owners?

Precautions to take before you become a loan guarantor

A friend in need is a friend indeed! This is such an old saying. And true too. It's good to help people. But, when it comes to financial helping, specially when it is signing something officially, there are a few precautions that are better to be taken! Let's talk about a loan guarantor. There are a few cases where the loan is not directly approved because of the following option.

Patience is the key to improve your low credit score

Your credit score may look like an innocuous three digit number, but it packs quite a punch! This score is based on the assessment of your credit behaviour or how diligent you are in handling your loans and credit cards. As a result, it is mandatory for all lenders to refer to this score as a part of your credit assessment process when you apply for a fresh loan or credit score. If your score is poor because of your past credit behaviour, it can stand in the way of you getting access to cheap and timely credit.

Why maintaining good CIBIL Score is tough but important?

Increasingly Indians are becoming aware of the importance of health. We can see a lot more individuals hitting the roads or gyms or going for various activities like Yoga and swimming to maintain their physical wellbeing. Just like physical health, one needs to manage good financial health as well. Just like one would sweat out to maintain physical fitness, one would constantly need to work on the varied financial aspects to be able to have an economically stable life.

Just started working? How to Create Good Credit score?

Awareness among today's youth is unparalleled. Never in past the youth who have just started to work understood the importance of financial well-being so effectively. Their aspirations are to buy a property, a car and to take an international holiday. What is more important is their understanding that to achieve all this they need to be on right side of credit bureau.

6 routines of people who have high credit score

Credit scores have become an integral part of every one's life today. These three digit numeric expression of one's credit profile today impact far more aspects of life than just the availability of loans and credit. As the awareness on importance of credit score has grown, more and more people are seeking to understand as to what should be done to manage and maintain the scores so that not only are they able to save lakhs of rupees as a result of better credit profile but are able to have these scores facilitate achievement of their financial objectives.

Credit Score Management Tips

• You go on a holiday and splurge on shopping using your credit card.
• You are travelling and miss to pay your car loan EMI.
• You settle an old credit card account.

Should senior citizens worry about their credit score?

Financially conscientious individuals are aware of the fact that it is important to have a good credit score in order to get a fresh line of credit. However, usage of credit facilities is usually associated with young and middle aged adults. This is why, there is a misconception that if you are an adult above 50 years of age or a senior citizen, your credit score may not as important.

A Suitable and Safe Way to Check Where Your Credit Stands

There is a family emergency and you need urgent funds to fulfill it. You seek financial help from friends and family and you get empty responses. In the mean while you get a suggestion from your friend that you can apply for a loan and immediately think of banking on the idea.

Few late payments are hurting my score. But wait. They are not mine!

Imagine this. You apply for a home loan after you have made all arrangements for the down payment and have set your heart on the dream house. You have all your papers in order and go to your chosen bank's branch to submit your application. You wait with bated breath for your loan to get approved.

5 Common Credit Score Questions Everyone Has!

Your credit score affects a number of aspects of your financial life. It is necessary to be clear about what this number is, how it is calculated and what you can do to raise your score. Here are answers to 5 common credit questions that everyone has!

4 Lessons You Should Teach Your Child about Credit Score

Parenting is the toughest job. However hard a parent may try, but shall not be able to cover everything. And in the end the missed lessons that the child missed learning from parents could turn out to be a vital one when he is faced with the challenges of the world.

3 Ways to Get Things off Your Credit Report

A credit report plays an important role when you try applying for a loan at urgent situations. Not only when applying for a loan but whenever you are trying to make any lending transaction with the bank, the credit score is always verified.

How Many Times Should I Check My Credit Score In A Year?

Credit score is a very tricky attribute. One needs a lot of patience and a systematic approach to keep the score intact or in a growing phase if it is not upto that level. You need to start making timely payments of the credits which are due. So here, the credit refers to any kind of loan you have taken from banks or financial institution or any person and if they are listed with the credit bureaus. With that, it also is consists of the credit cards.

How Much Can My Credit Score Drop In A Month?

There are a lot of things in life which until not needed, we do not bother to have information of. The same goes with credit score. Not many of us know what is a credit report, how does credit score impact one's life, what is the importance of maintaining a good credit score, until you do not come to a stage where you desperately need a loan or a financial product.

Find Out the Easy Ways to Get Your Credit Score Up

There are a lot of things in life which until not needed, we do not bother to have information of. The same goes with credit score. Not many of us know what is a credit report, how does credit score impact one's life, what is the importance of maintaining a good credit score, until you do not come to a stage where you desperately need a loan or a financial product.

My Credit Score is 650. How Much Loan Can I Take if I Want to Buy a Car?

There are numerous advantages of having your own personal vehicle. However, most of the decent cars are quite expensive and it's usually not a good idea to get a used one due to the high maintenance costs and the depreciation factor. So, what can you do if you don't have enough money to pay the full price of the car you want? Well, a loan is always a good option.

5 Credit Mistakes Many Borrowers Make

Accessing credit has become easier than ever before owning to a large number of financial institutions that offer credit for various purposes in the form of credit cards or loans. So be it the dream of owning a vehicle or that of higher education or weekly shopping there is some kind of credit available for all requirements. Despite lenders advertising how easy the process of borrowing is and how easy the terms are, a borrower needs to be aware fully of what he/she is doing so that they can avoid mistakes when accessing credits which can cost them dearly.

How private is my credit score?

In today's digital world we are all over the Internet via social media channels like Facebook, Twitter, Instagram etc. We share our thoughts, what we are doing, where are we going to our friends via social media, but then there are some things which we like to keep private from everybody. Like if someone posts he or she has got a new job, do they post their annual CTC as well? The same way if someone shares, they are blessed with a baby; do they share their medical expenses? But are they really private?

I am Unable to Fetch My Free Credit Report, Please Help!

Keeping a tab on your credit score is the key to financial security and easy loan approvals, etc. To create awareness about the credit reports and help people realize the importance of their credit profile, the Reserve Bank of India (RBI) has asked all the credit information bureaus to offer one free CIBIL report or credit report per year to all individuals who have a credit history.

20% Consumers Have Different Credit Scores from What Their Lenders See

According to a recent study by the Financial Protection Bureaus that's based on 200,000 credit files from three of the biggest credit bureaus Experian, Equifax, and TransUnion, 1 in 5 consumers is likely to receive a credit score that's different from the one used by their lender.

Fraud Alert vs Credit Freeze - What is the Difference

A personal loan can help you manage your small debts; help you manage a marriage or any other sudden circumstances. This type of loan falls in the category of unsecured loan, as one does not have to keep collateral security to get the loan sanctioned. Because of no collateral in place you will need to pay a higher interest rate as compared to other loans that are available in the market.

3 Tips to Get Your Personal Loan Approved

A personal loan can help you manage your small debts; help you manage a marriage or any other sudden circumstances. This type of loan falls in the category of unsecured loan, as one does not have to keep collateral security to get the loan sanctioned. Because of no collateral in place you will need to pay a higher interest rate as compared to other loans that are available in the market.

4 Financial Challenges You Face in the Beginning of Your Career

So, after spending years in college, completing multiple internships, and appearing for multiple interviews you finally grab your dream job. You feel on the top of the world as if all your wishes have come true. However, little do you know that there are several financial challenges ahead of you that you need to overcome. These are:

What Do I Do When My Credit is Dismal?

Often people may discover about their dismal credit scores when their loan application is rejected or they are unable to get a credit card. A credit score above 700 is thought to be good and anything below that might raise problems for the applicant who is seeking credit. How serious the problem is will depend on how bad the score is, is it just a little low or is it dismal? Reasons for a dismal score could be different but whatever they might be it is almost certain that you will need to put in some serious effort and have patience if you want to better it.

Correcting errors on your credit report. A must do

There are several factors that impact your credit score. Even if you on your part think that you are doing everything right to keep up a high score, errors and discrepancies can impact your score otherwise. Because of the large amount of data and information that is exchanged between lenders and credit bureaus every day, it is not uncommon for errors to enter your report. If you do not keep a periodic check on your credit report, these very errors will be responsible for pulling down your CIBIL score.

Does the Way Student Loans Are Reported, Hurt Your Credit?

Loans are not good or bad, it's the way the borrower treats them makes all the difference. So irrespective of the kind of credit one has whether in the form of loans or credit card borrowings their treatment impacts the way they are reported which in turns forms the basis for the credit score. Education loans are given on easy terms so as to ensure that no deserving student misses a chance to get higher education due to lack of funds.

Don't Let Simple Mistakes Derail the Credit Rating

The importance of credit rating in current times cannot be emphasized enough. Though there are still many people who may not be aware about the importance of the credit scoring, the awareness about it is fast growing. Awareness about the significance of credit rating is not sufficient and it is essential that there is awareness about what goes into making a credit score good or bad.

I Closed an Account. When Will It Disappear From My Credit Report?

You started planning your finances and are thinking that you have too many credit cards which you don't need and the cards are giving you a hard time. When you first opted for a credit card it was just a need for emergency situations and you promised yourself, you will use it only when you need it.

Credit Repair Guidelines for Better Results

A good credit score is a gateway to your good financial future. However it is sad that many people do not pay attention to their credit scores until they need a loan. By paying attention to your credit rating from the beginning, you could stay credit ready always. Neither would your score tumble down ever nor would you require guidelines to repair the credit report.

Five ways teens can start building credit from now

We are living in a world where there is rampant credit usage. However, to access credit at competitive rates of interest, one needs to have a good credit score. To build and maintain credit from an early stage in life is thus of utmost importance. Not only should we strive to improve our own credit score, we inculcate good financial habits in our children right from the start. If you have children who are in their teens or are in the cusp of adulthood, you can in fact help them build a good credit score from scratch. Here is how to do it.

4 Ways Your Credit Score Can Empower You

It takes a lot of hard work to maintain excellent credit and stay at the top of the credit score ladder. But it is definitely worth the effort as a good CIBIL score helps you take charge of your financial life. 4 ways in which an excellent credit rating will help you save money and empower you are:

Credit Report Red Flags That You Must Keep an Eye on

Your credit report is extremely important. Not only has it expressed about your financial health, but also a little something about your personality as well. Currently

Habits that might put you in bad debt

A person is made out of his habits and we all have our own preferences and conducts that impact our lives. Now these habits can affect our lives in a positive or in a negative way. Till the time these habits contribute positively it is fine but if the same have negative influence it is a cause of concern and needs to be changed. Especially when these habits are impacting our financial lives.

Worst Credit Score Tips That You Must Not Follow

It has been about 17 years since the first Credit Information Bureau of India, popularly known as CIBIL was established. However, even after 17 years of existence, Indian populace merely has topical understanding on how it works and what should one be doing to manage a good score on their credit report. When people are not even aware that CIBIL is not the only bureau, there are three more that extend credit scores, namely, Equifax, Experian and Crif Highmark. Expectation on understanding of objectives of the bureau, how they function and factors that impact one's credit score seems to be farfetched.

Reasons why 750 cannot be a good credit score

Indians are increasingly getting exposed to credit and are also getting to know about the importance credit holds in the process of meeting their financial objectives. Also, as per the second survey carried out by Credit Sudhaar on awareness of credit score, the number of people being aware on the credit bureaus, credit score and credit report has increased multifold over last two years. The general perception is that the CIBIL rating, as people call it, if is over 750; leads to assured approval of loan application. But this may not be true and people with over 750 credit score may also get rejected. Let us find out the reasons.

Unable to understand your credit report? Here is what you should do

If you happen to take a quick headcount of people around you, you would find 9 out of 10 people using credit in some form or the other. Credit usage is omnipresent today and thus to have a good credit score is of primary importance. A good credit score is indicative of good financial health and opens up doors for you when you are in need of credit.

Starting your Career? You Needn't Fear CIBIL

Credit Bureaus such as CIBIL, Equifax, and Experian keep up to date information about your financial activities such as pending loans, credit card payments, etc. So, if you have ever taken a loan in the past or used a credit card, then it is likely there is a credit report under your name in at least one of the most popular credit bureaus of India, even if you are not aware of it.

Practical Reasons to Review Your Credit Report Right Now

Some people were asked the last time they checked their credit report. Less than 10% admitted to have checked it once in the last six months. Most of them confirmed they had not checked their report ever because "they didn't feel there was a need for it".

A Free CIBIL Report May not be as Useful as You Think

Monitoring your credit score is extremely important to ensure that your creditworthiness stays intact. And to make that possible your credit report or CIBIL report can be of great help.

How Do Late Payments Impact Your Credit Score?

Missing a payment can happen to anyone, unless you are a software programmed to repay every instalment. Don't let that give you sleepless nights; it is merely a human oversight. Lenders and underwriters, too, are human beings and they understand if you have been late once or twice. But if you have been late more than a few times, then be prepared to face consequences.

Stuck With a Low Credit Score?

Credit score - It can be an asset for some while a source of tension for others. It all depends on where your number lies between the range of 300 to 900. A credit score is derived from the information in your credit report which shows the various loans that you hold with different banks, your repayment behaviour, outstanding dues and other credit related activities. Good credit habits and timely repayments of debts lead to a good score. Before the banks consider lending money to the borrowers, they evaluate them on the credit score parameter to judge their defaulting risk. While a high score strengthens one's ability to obtain funds, a low score is a sign of trouble.

What happens to your credit history when you change the spelling of your name?

You are identified by your name in every official record. Thus, when you change the original spelling of your name, you need to go through the exercise of updating your name in every place it matters to avoid trouble and confusion at a later date with your lender. If you have recently changed the spelling of your name and are wondering what impact it will have on your credit history, here we are with some relevant answers today.

Guidelines to Build Credit Worthiness for Self-Employed Individuals

If one wants to have access to credit modern times they need to be creditworthy; lenders like to assess the creditworthiness of an applicant before they agree to lend to him or her. Whenever one applies for a loan the first thing the prospective lender does is check their Credit Report. Based on this and many other factors the loan would be sanctioned or rejected. Often self employed find it hard to build their credit worthiness as compared to those employed in regular jobs.

Why errors on your CIBIL report can be devastating?

"Mistakes are a part of life. But it is the response to the error that counts." says Nikki Giovanni a famous American writer and activist. Quotes such as the above are meant to inspire the human race and encourage them to learn from mistakes and errors in life and treat them as stepping stones to success. But what if an error is not your fault? What do you do in such cases? The reason we bring this up today, is to tell you that if errors and discrepancies creep into your CIBIL report, it can have devastating consequences despite the fact that you had little to do with it.

5 Reasons Why You Should Check Your Credit Report

"Give me one reason on why I should not check my credit report", retorted Ashi. No matter what she said Sid was not willing to hear her. "Bah! What a waste of time and money it is. You give me one reason on why you should check your report?" countered Sid. "One? I will give you five�, replied Ashi calmly. Here is what she said:

'Close' Not 'Settle' Your Credit Dues

If you are stuck in a vicious circle of debt and are struggling hard to exit then possibly an option to "settle" dues with the lender would sound enticing. Don�t ever make the mistake of "settling" loans as its harsh effects will reverberate far into the future.

Way Forward For Credit Bureaus in India

When you are new to the world of credit, you need trade lines (loans in general term) to demonstrate that you are a responsible buyer and build your credit score. But access to loans and other credit instruments might be an uphill task. So where and how do you begin your journey? Thankfully there is a way out. Here are some tips that will help you build your CIBIL score from scratch.

5 hacks to start building your credit score from scratch

When you are new to the world of credit, you need trade lines (loans in general term) to demonstrate that you are a responsible buyer and build your credit score. But access to loans and other credit instruments might be an uphill task. So where and how do you begin your journey? Thankfully there is a way out. Here are some tips that will help you build your CIBIL score from scratch.

3 Things to Do When a Wrong Loan Is Reported On CIBIL Report

Recently we met Rajesh Kumar. His was a clear cut case of misreporting in CIBIL. This is what he had to say, "My personal loan application was denied as my CIBIL report showed that I had settled a Standard Chartered Bank loan in 2005. Till date I have never had any relationship with Standard Chartered Bank. It is completely false and baseless. What can I do to correct it?"

Can Cash Crunch Have A Bearing On Your CIBIL Score?

Dhaval was a complete teetotaller but the only thing he couldn't resist was trading in the share market. Sadly, he suffered great losses in trading during the crash of 2008 and 2009. Though he never meant to but due to shortage of cash he had to default on payments. At first he stopped paying his personal loan because there was nothing to lose. Then he stopped paying his car loan and finally his credit card bills.

When Does Bank Ask For A Guarantor?

Dilip Doshi still shudders remembering the day when he agreed to sign as guarantor to an ex-colleagues personal loan application. Little did he know that in doing so he was risking his own credit health. When his colleague started missing payments, the bank approached Dilip to repay the debts as he had guaranteed the loan, something Dilip was not prepared for. Even after selling the principal borrower's assets to recover the loan, Dilip had to shell out over a lakh of rupees to settle the loan completely. An experience such as this can leave any one with a bitter taste in the mouth.

Is a high CIBIL score a fad?

In recent times, there has been a surfeit of information about credit usage and the need for a high CIBIL score. Whether it is financial institutions, the banking and finance industry at large and even regulatory bodies, we find most messages emanating from these sources underlining the need to maintain a high credit score.

Will Getting a Free CIBIL Score a Year help Indians?

RBI, in its game-changing decision, has mandated Credit Information Bureau (India) Limited (CIBIL) to provide individuals with one free credit report every year. Till now individuals could buy their CIBIL score and CIBIL report from CIBIL upon a payment of Rs. 550/- per copy. Ex-RBI governor, Raghuram Rajan, stood by the decision because he believed it will help people review, rectify and maintain error free reports.

It is your credit score. You must know it.

Not for nothing is it believed that a credit score can make or break your financial health in today's times. Let us take a simple example wherein two people with a similar requirement for a home loan make an application, but only one of them is sanctioned the loan they had asked for, while the other individual's loan application is downright rejected.

Shocked To Get Rejected For A Job Due To CIBIL Score? Read On To Know More

Neelam had set her hopes high on her job application with a software giant. She had cleared all the rounds of screening and was expecting a call any day now. She was so sure of being selected that she had spent a large sum on her credit card knowing she would be able to take it on in the following month.Alas, she received an email from the company telling her she hadn't been selected. It brought her whole world crashing down around her. She had considered herself as the ideal candidate, with the right amount experience and the perfect academic background. Then what went wrong? The most shocking revelation - her poor CIBIL score was the reason for rejection.

Will Getting A Free Credit Report From Bureaus Help Indians?

In the absence of knowledge you are practically living in the dark. You are not sure of what to do, which path to take and where to go. But with knowledge comes the guiding light that brings clarity and enables you to take decisions that are right for you. In short, you cannot be misguided because you have the knowledge on how to handle things.

Credit Myths Debunked - Infographic

Credit reporting has been shrouded in a lot of mystery and it has given birth to many myths. Credit score is riddled with misconceptions and we hope to bust a few of them here. Since there is lack of knowledge about it people stay away from transacting using credit facilities. To bring transparency in the credit market and encourage use of digital money such as credit cards, it is important to bust these myths. So here we weed out those stories that have no place in the credit world.

Hacks for fixing credit score fast

If you own a credit card or if you ever took a loan, you must be aware that a credit score is an important instrument used by the lenders to evaluate your creditworthiness. Your past financial history is a strong reflection of how you are likely to meet your future debt obligations. If you have a sound track record of on time payments of EMIs you will have a healthy score and you can easily secure loans in future too.

Do I really need a CIBIL score of over 800?

A CIBIL score in today's times is virtually your ticket to good financial and credit health, hence it becomes very important to ensure that you always have a good score, one that will see you through when you want to avail of a fresh line of credit.

Safeguard Your Identity to Save Your Credit Health

In today's times everyone faces the risk of a break-in. It is nearly impossible to shield one's private information from identity bandits. Cases of identity theft are rising unrestrained and are affecting more and more number of people every year. Does that mean we must just accept their presence and reel under a cover of fear waiting for an incident to happen to us? No. Identity theft is a serious offence and there are some simple ways by which you can protect yourself.

CIC Act- How it empowers borrowers

In the year 2005, the Credit Information Companies (CIC) Act was formulated to provide the basic structure for the functioning of credit information companies and to streamline records of credit distribution that had thus far been the domain of banks alone. The primary objective of this Act was to help financial institutions make a correct assessment of the creditworthiness of prospective borrowers. The Act came at a time when lending institutions were looking alternative credit assessment methods and was thus considered a timely move.

Obtaining a good CIBIL score - 4 deciding factors

The CIBIL score is that all-important deciding factor when it comes to your financial health, and making sure it is 'good' - and remains so - is something you always want to ensure. It can be the differentiator between a low rate of interest and the most competitive one, when you decide to avail of finance by way of a loan or credit card. Do keep in mind that to increase CIBIL score you need to be diligent when it comes to your finances.

How Is A High Credit Score Related To Happiness?

Just like having a healthy body, mind and soul are germane to one's growth and happiness, having a healthy credit profile is analogous to one's financial freedom, sense of security and growth. In the absence of stress, a person is calm and happy. Money cannot buy happiness. But what money can buy makes us happy. With more money comes more power. And everyone wants more power. Either you earn more money or save more, either ways your disposable income increases. A higher credit score lets you save more money and therefore brings greater happiness. Let us elaborate.

Hack Your Credit Utilization Ratio to Improve Your Credit Score

Credit Score is important for individuals today for reasons that go beyond taking a loan. Credit Rating is an indicator of individual's creditworthiness, it gives a comprehensive picture of one's financial health and in a lot of instances can form the basis for an applicant getting a job or not.

5 Money Management tips for youngsters

It is never too early to learn the financial skills that will have a profound influence on your whole life. We bring to your table 5 money management tips to demonstrate how to handle money responsibly and achieve long term financial success.

No credit score? Do not panic!

Some of us have been in a situation where we have applied for a credit card as a fresh jobber, but found out much to our surprise that the application has been rejected. Sounds familiar? If the reason for decline is the lack of credit history, do not be too surprised. And instead of hitting the panic button let us see what you can do to remedy the situation.

Did you miss out on planning your CIBIL score?

Getting a line of credit, be it a loan or credit card may be a tad easier than it ever used to be, owing to a larger number of willing lenders as compared to earlier, but it also comes with a caveat. While banks and financial institutions do look forward to lending, they also look at lending to the right customer profile. One of the first things that a lender would want to ascertain is the creditworthiness of a borrower, that is the likelihood of the loan going 'bad' or the customer defaulting on loan repayment on disbursal.

Tips for every girl to manage their money

It is important for a woman at every life stage to give a thought to her financial health. Whether investing in one's business or looking to bolster personal finances, it is imperative to explore various investment options, make a savings plan and more importantly, stick to it. More than a third of women while contributing extensively to the family coffers invariably lag behind in critical aspects such as wealth creation, and having a long-term investment plan.

Why does India Need Free CIBIL Scores?

Remember the revered year 2002? It was then that incoming calls to mobile phones were made free revolutionising the Indian telecom industry. Making incoming calls free was like a drop in the water as its ripple effects brought a boom in the segment. Soon, every person, no matter what economic strata, was carrying a cell phone. The time has come to make scores available for free and revolutionize the credit world.

Does marriage affect your CIBIL rating?

Life doesn't remain the same after marriage. It brings about significant changes in the lives of both the partners. The decision to take vows not only brings lifestyle changes but it affects one's financial life as well. You start thinking about savings, investments, and insurances more seriously than ever. You think about taking joint financial decisions. But does marriage affect your credit history records as well? Does it affect your CIBIL rating? What are the implications if one partner has a good CIBIL rating and the other does not? Let's explore.

non-traditional-score-models-are-impacting-our-buying-capacity

The world around us is accelerating at an overwhelming velocity and sometimes it becomes difficult to keep up with it. We constantly endeavour to bring the latest updates for our readers. Though some people would argue that CIBIL score itself is an alien concept, surely it would be surprising to all that the market is gradually transitioning towards newer score models. That's true. Lending institutions are considering "non-traditional" scoring models alongwith the conventional credit scores, as they believe it gives them a deeper insight into a person's characteristics as a borrower.

Best site for free credit scores in India

If you are an individual who is financially conscientious, you probably know or have been told about the importance of building and thereby improving your CIBIL score, so that it remains above the level of 750 and above (out of 900). As an individual who likes to keep financial matters sorted, it is quite possible that you put in your best possible effort to maintain good credit behavior so that you can increase your credit score.

Charges you should know before using credit cards

You've often heard the saying, "There is no such thing as a free lunch". Absurd? Not really. Life has a way to even out the "freebies". You will end up hosting your hosts for lunch one day, or find a way of repaying their kindness. Hence, no free lunch. The proverb is all the more true when you step into the world of hard-core finances. If an offer of a free credit card, without the need for any documentation, seems tempting, re-think your instinct to own one. Or, at least be better informed about this "free" bargain before you decide to line your wallet with a shiny new card.

What Accounts Reflect in Your CIBIL Report?

Mr. Arun Gupta, like any dotting parent had made several plans for his daughter's marriage. His dreams were shattered the day his loan application was rejected. It broke his heart when on the same day he found that his younger brother and another colleague had got a loan from the same bank. What was it that was hurting his credit aspirations? Something on his report may be.

Do Cheque Bounces Affect My CIBIL rating?

The person who seeks to draw credit in future for building up a home or buying a car, CIBIL score is a very prized possession. They ought to take steps that help build credit rating. However at times, unforeseen events such as an EMI cheque bounce or outstanding credit bill, or default by a co-applicant, misreporting in CIR as "settled account" and many such events come as real shockers of life. You have no choice but to access the damage and begin the mending work. Here in this post, we will take up how cheque bounce ruins your CIBIL rating.

Summer Holidays! Manage Your Finances Wisely

Summer holidays are sheer bliss. Everyone looks forward to taking a break during summer and why not! Since childhood, the summer break means no more sticking nose in books and scratching brains for homework. It practically spells into lazy mornings, catching up on old friends & new, going for movies, learn something new, travelling and holidaying with family. It is also the perfect time to overdo your budget. Yes! We may not realise it in the excitement but often after the holidays are over when we sit down to go over the expenses, the bitter truth sets in.

How to remove my name from CIBIL blacklist/defaulter's List?

When one approaches a bank or any other lender for a loan the first thing that the prospective lender will do is get the Credit Information Report (CIR) of the person. Based on the CIR the bank will decide whether accept the loan application or not. The CIR has the CIBIL score which is a three digit number and it also has detailed information about all loans, personal details of the borrower, employment details etc. Generally a score above 750 is considered good enough to get a loan sanctioned but again it is on the discretion of the lender. CIBIL issues no directives for sanctioning or not sanctioning a loan to a particular person; it only collects the information about all borrowings of a person and presents it in a concise manner in the form of a Credit Report.

Credit Mistakes Which Can Create Problems after Retirement

Retirement is one important inevitable stage of life. It is time to give up on your official obligations and hang up those boots. A lot of people like to take up this segment of life with a bang. Some would sell their possessions to take a tour around the world which they couldn't go for in their prime, some would splurge on some very expensive gifts while others have no clue what they will do with all their retirement fund. What they forget is that for as long as you live, you need money to survive. Perhaps, even more because of the increased expenditure on health related issues. While you need to plan for your retirement very early in life, let's say right from your first job, yet it is never too late.

Credit Cards Guidelines for Newly Weds

The first thing we noticed about Mrs. Neetu Verma and her husband, Mr. Ashish Verma, was that they were a merry lot. If that wasn't enough to awe us, their near stellar scores of 875 and 850, respectively, made us applaud. We urged them to share their secret. This article is based on what they brought to the table.

CIBIL Data Not Updated? What to do?

You have recently found out that the personal loan you were banking on has been declined. Perhaps, your crooked CIBIL report played a role in it. While a rejected loan application is disquieting in itself, the idea of reforming your CIBIL report may bedevil you even more. Loosen yourself up because here�s the good news. This self-help guide will walk you through on how you can have your report fixed and set it straight.

How to Remove Late Payments from your CIBIL Report?

Late payments or missed payments are the biggest cause of poor credit health; repayment history has a 35% weightage in the credit score calculation. Sometimes the issue can be due to an actual delay by the credit report holder or sometimes due to an error by the reporting bank. Whether the default is due to the borrower having forgotten to pay on time or it is due to a willful default the lending agency will report it to the credit bureau (irrespective of the reason) which will update it as a default in your Credit Information Report (CIR).

You are just 5 steps away from a good CIBIL score

Having a good credit score can be the key to your financial future, as you are more likely to be offered home or auto loans at the most competitive rates. In the long run therefore being credit healthy can have a lasting, positive impact on your investments and savings as well. While loans for bad credit score are not impossible, they are not the ideal scenario that you would want to settle for.

Multiple credit cards: How to increase purchasing power

Credit cards have fast become a preferred choice of payment for users the world over, with over 72 percent of consumers holding credit cards. Closer home, India boasts of over 3 crores of credit cards users, and the numbers only continue to rise. Where consumers initially held only one card, today the average number of cards per person is close to 4. This means that cards have become more competitive as the usage has increased, leading to its own share of pros and cons.

Important things to keep in mind before applying for a personal loan

A personal loan is one of the easier forms of personal finance to avail of, and can be used for myriad reasons, right from renovating your house to going on a long overdue vacation or to even make a purchase, be it white goods or anything else. They are also a good way to consolidate debt, if you want to avail of one loan to clear away several smaller dues that you may have, be it on credit cards or any other loan(s).

Characteristics of individuals with high CIBIL scores

When it comes to credit scores, it has become increasingly important not only to build a good score but also maintain it and enhance it over time. This is because not just globally but closer home, even in India credit scores are fast gaining significance in one's financial life.

Are You A Guarantor Of A Loan? Your CIBIL Score Can Be At Risk

"I am a guarantor to my brother's loan. He has now defaulted on his last three EMIs. Due to this the bank has asked me to pay his dues. I have very humble means of living. How can I pay his debt of lakhs?" "..Can the bank attach my ancestral home to clear dues on a loan to which I am merely a guarantor and not an applicant?" ".. Why is my CIBIL affected? I have not defaulted on my payments. I have not applied for the loan. I only guaranteed a personal loan of my colleague. Where am I at fault?"

How to prevent a 30-day late payment from hurting your CIBIL score

"With great power comes great responsibility" said Ben Parker, a fictional character and the famed Uncle Ben of none other than a favourite superhero Spiderman. Uncle Ben could have well been talking about credit usage, that is relevant to all us today. If you have been bestowed with the "power" of credit, it is your responsibility to service your credit well and on time. That is the one recipe for success when it comes to increase your CIBIL score. Your CIBIL score is a three digit numeric between 300-900 that will decide your fate when you make an application for any fresh credit.

Understanding the Dark Side of Credit

Like the two sides of a coin, there are pros & cons to everything in life, including Credit. While credit can help you not only in acquiring a product and pay over a period of time, apart from facilitating in achievement of your financial goals, if not managed, credit can lead to severely impacting one's CIBIL score and CIBIL rating. Read on to know more about the darker side of credit:

Why India needs free CIBIL score?

With lenders jostling with each other to get more and more customers onto their books, almost every individual around us is a credit user. People all around you may have taken home loans, vehicle loans or are seen brandishing two or credit cards in the very least. But ask these people about how many of them access their CIBIL scores in a year, and most of them are likely to draw a blank! Even if they do know about CIBIL, they are likely to tell you that they are not ready to "pay to access their own CIBIL score"? Is this logic justifiable? Or is this just another sign of irrational consumer behavior? Let's take a closer look.

Why should I finance my wedding with a personal loan?

With the average wedding costing upwards of Rs. 20 lakhs (or more!) these days - and that's not including the honeymoon! - it is no wonder that personal loans are increasingly popular to fund the wedding of your dreams. While a wedding should be a joyful occasion, it can be stressful for the couple and their families to put the whole thing together, often stretching finances beyond what had been budgeted. To avoid this strain, an increasing number of people are choosing to opt for personal loans, simplifying things and at the same time going all out to celebrate.

Whose loan is on my CIBIL report: Not mine!

Most of us when reading the above statement will be intrigued (I was as I thought that does not happen but a little research shows it does) while some who may have witnessed a similar situation may nod in agreement. So coming back to the situation at hand, it is possible that due to some error or oversight you may have a loan in your statement that is not yours or you feel is not yours. This not only has the potential to impact your CIBIL Score, but has the potential to adversely impact the underwriting decision when you apply for a credit facility.

Is it necessary to check CIBIL score while applying for a loan?

Planning to go on vacation? Buy a new house? Have business expansion plans? If the answer is yes, and you are looking for finance to meet these needs, there are various loan options available in the market today. When you apply for a loan, be prepared for various checks that the financer will conduct, primary among which is a CIBIL score check. Credit information companies or credit bureaus provide a credit report (of which the score is an integral part) that lenders call for when you apply for a fresh line of credit, be it a loan or even a credit card.

Errors and disputes on your CIBIL report can be damaging

In the world that we live in today, it is very important to have a good credit score, as it is a measure of your financial health. Not just lenders, but even potential employers have now begun to refer to your CIBIL score to assess whether or not you will turn out to be a trustworthy and responsible employee. You should therefore always be in a pursuit to increase your CIBIL score, and keep it at a level of 750 and above (out of 900).

Need for Credit Counselling

Credit counselling is an effective way to understand and manage your finances better. Additionally, it also educates individuals on how to control and manage debt.

FSI reviews Credit Sudhaar

Credit Sudhaar is India's premier credit health management company. Founded in 2010, it has grown significantly since then, contributing to making the country credit healthy. The company has its presence across various locations and offers a range of services for individuals. It is registered as an NBFC with the Reserve Bank of India.

Credit Restoration Requires Patience

We all have heard the common adage "a stitch in time saves nine" but nevertheless tend to forget it when we overlook small things erroneously or deliberately. Building a credit score takes time, both small oversights and big blunders tend to impact your credit score negatively. Once you credit score has been spoiled for whatever reason it pays to remember that it can be restored but the keywords are "patience" and "time"; after all nine stitches will take time!!!

Getting your credit report in an efficient way

How to find out your credit score? This is the most common question for any person intending to take a house loan, car loan or personal loan. It is a priority because the terms of loan approval largely depend on what's in your Credit report and score.

Know Your Financial and Credit Health � Register to Get your Credit Report Today!

Planning to buy your "Dream Home" or a "Vehicle" that you have been passionate to own or Get a "Credit Card" to help you purchase on credit or expand your "Business Venture"? Wishing for Your Dreams to Come True? Now that you have decided to Live Your Dreams, have you done a check on your personal / Company's Credit Worthiness?

Know well how to keep a track of the Credit alerts?

It is really very important to keep a track of your credit and then use it responsibly. The best way to keep safe from identity thefts and frauds, is to keep a regular check on the credit report and that of the credit score. This can be done if you activate credit alerts for your benefit.

How well do you know your credit score?

As great potentials of Indian money markets are tapped, we have a lot of foreign investments, taking place in Indian economy. Besides with an overall increase in standard of living, the demand for money is increasing as well. At such times, people are resorting to borrow money under the "Credit" term to fulfil their needs. Although presently Indian markets are flooded with number of creditors, it's often been seen that when need arises, people are not able to get through credit process on time.

Importance of credit monitoring

Credit Monitoring services alert individuals about changes to their credit report instantly- either via email, the instant message on mobile phones or by phone calls. Many people use credit monitoring services to help them watch their credit histories and to increase their ability to recognize a fraudulent activity.