Credit Health: Plastic money can also affect

There is little doubt that credit cards are a more convenient way to carry money compared to hard cash. From daily expenses to buying luxury goods, credit cards are extensively used even in India.

And it’s almost a norm to keep more than one credit card. Nothing wrong with that, as long as you can manage them with expertise. How to use the credit card is more important that the credit limit of the cards or how many you possess.

What will happen if your credit card is lost in the market while you are shopping? What if you use your credit card more than the prescribed limit?

Such things can cause a serious damage to you and your financial health.

Pooja and Ravi were living happily in Mumbai till the banks refused to grant him an auto loan. Ravi was a manager in a multi-national company, and drew a handsome salary. Puja, being a housewife, bought all essential household goods including fancy stuff to decorate her house.
              

She preferred to make the payments through credit cards instead of using cash. Ravi had two cards, one he had given to Puja and the other he kept to himself. Like any young couple they often went out for dinner and movies.

Then one day they decided to buy a car and applied for a loan.

 To their utter dismay, the loan application was rejected. In spite of Ravi earning good money, they failed to get a loan because of bad credit history.

Credit score

Credit score is a three digit numerical number which ranges from 300 to 900. Credit score is a snapshot of the credit history of an individual. It is calculated by the credit bureaux. The banks and financial institutions provide all the details of the individuals to the credit bureaux to check the creditworthiness of the individuals.

Credit history is the result of all past payments of an individual. It is an analysis of the payment history of an individual. Since the credit history of Ravi was poor, the bank was not confident to lend him money for purchasing a car as he had been not been regular while repaying his dues.

Also the card that Pooja used for shopping had crossed the maximum limit.

The use of credit card should be done efficiently. Mistake made while using credit cards can snowball into a major crisis.

On the other hand if used efficiently, credit cards can help you in increasing your credit score. But if used without care they can harm your financial health.

Source: Secondary

Financial Strength: Not Always Equal To Good Credit Health

Many people think that if you are financially strong, you can get whatever you want. You can conquer the world if you are financially strong, but what do you mean by financial strength?

Financial strength really means that you have good amount of funds to sustain yourself and your family for a period of time. At this period of time, requirement of loans for such people are not necessary. 

But in case if they require loan of expansion of their business or any other purpose, their income is not the only factor which is considered. The factors which are considered other than income, which are their credit score as well as their credit health. 
            

Credit score and credit health will be a new term for many individuals. 

Basically credit score is a three digit numerical figure which is a snapshot of the credit health of the individual. Credit score ranges from 300 to 900 for all the bureaus. Credit score is generally considered as the prime factor in approval of loan, credit card. Nowadays telecom companies and insurance companies also check the credit score of the individuals before their enrolment with them. 

Credit score are calculated by the credit bureaus of the country. Considering India, there are three bureaus which are Cibil, Experian and Equifax. High Mark is also been rising bureau in India. These bureaus collect all the information of every individual from all the banks and financial institutions in the country.  

On the basis of their present and past credit behaviour, these bureaus rate the individual. If the individual has been frequent in paying their dues, his credit health would be considered as good. On the other hand, if the individual has been defaulting the dues or not making the payment in time, his credit health would be considered as poor. 

Individual with good financial strength can have good credit score. Even individual with good financial strength can have a low credit score and poor credit health. Individuals with bad credit health can face many difficulties in the future.

This is also the truth that, people who are financially strong are careless regarding their payments. Being careless about their payments can turn themselves into defaulters. Defaulting on payments can have a negative impact on the credit report of the individuals. 

So, individuals who are financially strong should be careful with their payments. They should also see to it that they pay their due on time to avoid any negative remark on their credit report. 

Due to the negative remark on their credit report, their credit score gets low and their credit health becomes poor. The lowering of credit score and poor credit health can also lead to financial loss. 

Individuals with low score and poor credit health pay high interest rates on loans as well as on credit cards. To avoid payments of high interest rates, they should make efforts to improve their credit score and be credit healthy.

To improve their score and make themselves credit healthy, individuals can take the help of credit health management companies. These companies assist individuals to improve their score and maintain their credit health.
Visit: www.cibilconsultants.com
Source: Secondary

Ignorance: Credit damaging factor

Mr Rajeev had a well-established business. Being the only child, he, with the support of his father, consolidated his family business. Rajeev maintained good ties with people as well as with his bank. As he kept a huge balance in his account and made big transactions, he was a prominent customer of the bank. The bank handled all his issues, which helped him to concentrate on his business better. At some point of time, Rajeev planned to expand the business abroad. But for doing so, he needed a huge amount of fund.

                           

As he was a prominent customer of the bank, he was confident that the bank will finance the intended expansion. But the bank rejected his loan application.Rejected? How can the bank reject his loan, he was a prominent customer? The reason for denial was stated to be Rajeev's low credit score. With such a credit score, even if he had applied for a smaller amount of loan, the bank would have refused that as well. Had Rajeev been ignoring his credit health?

Did his plan of expanding the business abroad end here? Did Rajeev become successful in improving his credit score and credit health?

Nowadays, people are not aware of credit score. They are least interested. People do not consider these factors important. They do not even know the meaning of credit history. According to a recent survey, above 90 per cent of the respondents were not aware of their credit scores.

Credit score is a three digit number which ranges from 300 to 900. It is considered that a score of 750 and above is a good one. The credit score is decided by the credit bureaus. Banks provide all the information of an individual to these bureaus to check the creditworthiness of an individual. With the information provided by the banks, the credit bureaus calculate the credit score. Unaware of his credit score and credit history, Rajeev was irritated and depressed. His low score and poor credit history restricted him from getting loan for expansion. Not only his bank, but other banks as well denied to grant him loan. Afterwards, Rajeev contacted many financial advisors but in vain. On discussing his problems with a good business client, he was suggested to contact a good credit health improvement company. Rajeev was also unaware that there are organisations who help individuals to improve their credit health. These companies assist individuals not only to restore a bad credit health but also teach them how to maintain a high credit score for future.

Source: Secondary

Get loan with almost NO or bad Credit score?

An individual with low or no credit score has a hard time getting a loan as they are looked upon as a lending risk that may default and leave the lender in losses. People with no credit find themselves into a muddle state since, banks refuse to give them credit as they have no credit history and they need credit to build themselves a credit history. So what do you do in such situations? How do you get credit to build your credit history:

Be ready to pay a deposit: 
Understand that you do have a bad credit score and you’ll be needing to pay a deposit to get a card or loan. Many people shy away from secured cards as they have to pay a deposit against it. But remember that, a secured card is the best way to improve your credit score, as in almost all cases you’ll be denied a card or loan with bad credit. So, this is the easiest of all to build your credit score quickly and then apply and get accepted for better loans.

Also, make sure you apply for a secured card which reports your on-time payments to the credit bureaus. Some cards do not do so, and all your efforts of being credit responsible will go to waste as your good habits aren't reported to your credit report and there will be no difference to your credit score.

Credit builder Loan: 
This is something similar to a secured card but in the form of a loan. Here, the bank will lend you a small loan for an object you needed to buy. The object is being held by the bank while you make monthly payments to the bank and the possession is given back to you when you pay off the whole loan. This not only gets you the object which you wanted to buy but also helps you build a good credit record.

Avoid Multiple credit applications:
In all these though, you need to avoid applying for multiple credit lines. Applying for multiple credit lines  at the same time does more damage than help. Multiple credit applications leads to several hard inquiries against your credit report which lowers your credit score. So be slow, research well and be selective about the credit you apply for. It is very dangerous for people with no credit as they look as an individual having no credit to bursting into the credit scene which can be bad for their credit health. Don’t waste your time on credit cards or loans which require excellent credit- it is a waste of time as well as a dent in your score due to the multiple inquiries.

Discuss with lenders:
Talk to your lenders before you apply for a loan. Some lenders have services wherein they can pull out your data, which may be not be included in your credit score but may show your repayment patterns and credit worth. Though, it is not included in your credit score, but the lenders may be willing to take a risk and give you a loan despite your bad credit.

Source: Secondary

To fulfill your dreams, don't ignore your credit health

Can you imagine how credit score and credit history can obstruct in fulfilling your dreams!! 

Nowadays credit score and credit health are gaining importance. These things are analysed by Banks, Financial institutions, Insurance companies, Telecom companies and even by Employers. People with low credit score and bad credit health face a lot of difficulties in getting finance from the market.

As the rising importance of credit score and health, every individual have to mark these things important in their personal finance and keep themselves updated; otherwise they could face difficulty as faced by Mr. Manish Kumar.

Mr. Manish, a middle class businessman was happy with his life. He was very good in his work which inspired him to expand his business which could change his life in the future. His dream was to have a respected name in the market. He did not want to be a billionaire, but just wanted a good name in the market.

He did not have sufficient funds which he could invest to expand his business. After all his thoughts, he finally decided to apply for loan for bank. He was confident that his loan will be accepted. 

One day while he was working in his office, he received a call from the bank which informed him that his loan was rejected. He was shocked to hear this news. He was totally depressed. He asked his agent (advisor) the reason for rejection, which informed him that his loan was rejected due to his bad credit health.

Manish was unaware about the term “credit health”. He was also unaware that bad credit health could affect in his loan approval. He also came to know that his credit score was low i.e 550 as he had defaulted payment in the past. He never knew that defaulting on payment could raise this impact on his report and reduce down his credit score.

Where credit score is a three digit number which ranges from 0-999 for all the bureaus. It is calculated by credit bureaus. The three major bureaus in India are CIBIL, Equifax and Experian. These bureaus collect data from all the banks and financial institutions in the country. Generally a score of 750 and above is considered to be a good.

Individuals with score lower than 750 will find it very difficult to avail loans and credit cards from banks and financial institutions. 

Maintaining a good credit health and credit score is nowadays essential for individuals, if not taken proper care will result in rejection of loans and credit cards or will have to pay high interest on the same. 

Many people like Manish are unaware about their credit health. Nowadays credit health is considered to be important part of personal finance of every individual. Credit health is considered equally important to your physical health, so people should be credit healthy because “Credit health is real Wealth”.
Source: Secondary

Importance of Hiring Credit Repair Agencies

Your credit score plays vital role in determining your financial health. It not just helps in getting your loan approved, but there is much more associated with it. It is important to keep a check on your credit score to enjoy sound financial health and goodwill. There are many ways of attaining good credit score. If you have tried your hand at fixing your credit report but have been failed to attain desired results, you can always take help of credit repair agencies to improve credit score. There are many benefits of hiring credit repair agencies for improving your credit score. 

·         Most of the people are not aware of credit repair process such as how to get credit report from CIBIL and how to improve credit score; credit repair agencies can help you with all these problems. 

·         These firms have sufficient resources to handle your disputes. They usually have a team of experts having complete knowledge of rules and regulations governing credit repair procedures. 

·         You don’t need to dedicate your important time to fix your credit report. Your hired firm will take care of all your credit repair tasks. 

·         They will analyse your credit report and will suggest you the right ways to improve your credit score over a period of time. 

Credit repair agencies help in improving your credit score and maintaining your credit health in long run. It is important to choose credit repair agencies wisely to reap maximum benefits out of it.

Source: Secondary

Low credit score can be fixed !

Credit health improvement firms handhold customers through each stage of their programmes till their credit health is enhanced

Almost a year ago, a customer was running from one bank to another, desperately looking for a mortgage loan. But his application was getting rejected by all banks, one after another. Then through some of his friends he came across a professional company that worked in areas of improving one’s credit health and he in fact signed up with this company. His credit score at that time was 623, forcing most private banks refusing to lend him. He then had to go to a known NBFC (non-banking financial company) for a loan and managed to get his loan done at the rate that was 1.5 per cent more than what private banks were offering.

Obviously that meant that he would have to shell out close to Rs 15 lakh over a period of 20 years. The professionals then worked on his credit health and got his score up to 815. Now he is going in for a loan with a MNC bank at a much lower rate.

The same company came across another customer, whose credit report had a delinquent account tagged, which he claimed was not his. He didn’t know about this and had applied for loan for his son’s education. He had already visited the bank and also the bureau to get it rectified but nothing happened. After trying all by himself for months, he had to sign up with a professional company, which in turn, helped him get this account off his credit report and now he is getting to send his son abroad for higher studies.

These two incidents will have to be seen in the wake of the fact that Credit Information Bureau (India) or Cibil, founded in August 2000, has now been playing a critical role in India’s financial system. Whether it is to help loan providers manage their business or help consumers secure credit faster and at better terms, the use of Cibil’s products have led to a massive change in the way the credit lifecycle is managed by both loan providers and consumers.

Cibil collects and maintains records of an individual‘s payments pertaining to loans and credit cards. These records are submitted to Cibil by banks and other lenders, on a monthly basis. This information is then used to create credit information reports (CIRs) and credit scores, which are then provided to lenders in order to help evaluate and approve loan applications. Credit score and CIR not only helps loan providers identify consumers who are likely to be able to pay back their loans, but also helps them to do this more quickly and economically.

This translates into faster loan approvals. Cibil officials said that the bureau works towards catalysing growth of credit in the country through solutions that enable well-informed credit decisions, technology that enables superior information availability and people that provide high quality services. The importance of an individual’s credit score or credit health can therefore be hardly over-emphasised.

Credit health is a state of complete financial well being. The absence of indebtedness merely does not necessarily mean being credit healthy. Optimum utilisation of the credit facilities to leverage yourself without falling into a debt trap is necessary for your social as well as emotional well being. Credit health has several components including a good track record, a good credit score, good income-expense ratio, absence of delinquency, healthy debt burdens loads, the ability to access credit on favourable terms and a host of other parameters that Cibil and other professional companies have researched over the years.

Credit score has relevance in almost every facet of life from loans, rates of interest on loans, telecom connections, jobs, rental markets through to insurance premia. People have now started checking credit health of their would be spouses before marrying and before renting out their flats / houses to future tenants.

An individual’s credit health is measured by a three-digit number on his bureau report. Higher the score, the better is his credit health. A score of 750 and above is considered good. A person’s credit history is a record of how he/she has used and managed credit in the past. Every financial transaction in one’s life involving credit is recorded in one’s credit history – from one’s payment history on one’s credit card, to one’s history on paying off one’s car loan, to any suits that may have been filed on him/her.

Professional counselors said that everybody makes mistakes. That’s why there is an eraser on every pencil. If an individual is willing to keep walking and walking down the right path, there is no reason why can’t one be shown the right path to enhance his credit, protect his credit and improve his credit health.

Unfortunately, there is limited awareness of the concepts of credit, credit health, credit scores, etc, among the general population. In fact, a recent survey revealed that 86 per cent respondents had not heard about any credit bureau and 92 per cent were unaware of their credit scores. Only 4 per cent had checked their credit scores in the last one year. That’s not all.

Almost 98 per cent respondents could not decipher a sample credit report when they were shown one and 91 per cent people who default on credit are unaware of any of the negative consequences of their actions. Overall, credit awareness and credit protection, according to the survey, are extremely low. But the good news is that as people become aware, they want to improve their scores/credit health.

As individuals approach professionals to bail them out in this regard, these professional counselors in their turn help people renew, revamp and retain their credit health. Their expertise lies in using a combination of analytical tools, a state of the art product suite and multi stage guidance to handhold you through the various stages of a credit life cycle and make you a credit healthy individual.

Various services offered by these trained counselors include: credit health improvement and tracking like compilation of reports from bureau, analysis of reports, error tracking and reconciliation and assistance in loan processing.

Credit health improvement companies offer unique programmes and guidance to assist one to avail loans, credit cards and other credit facilities on more favorable terms through enhanced credit health. To resolve a customer’s credit issue, companies first aims to interpret credit reports accurately. It follows it up with a process of identifying errors with the credit reports, if any, and then does a comprehensive analysis. In the final phase, these companies lay down a detailed roadmap for the customer to improve his or her credit health.

These companies also handholds customers through each stage of their customised programmes till their credit issues are resolved and credit health is enhanced.

The process of credit health improvement, of course, does not come free. Various packages are made available and the key features and charges vary according to the plan. These programmes will, over time, help customers to avail loans, credit cards and other credit facilities on more favorable terms through improved credit health.

The bottom line is credit score is a crucial indicator of an individual’s credit health. Most lenders use it for determining loan payment potential of an individual. Not just loans, but jobs, insurance premiums and so many other important things now depend on your credit score. It is therefore important to remove all discrepancies from your credit report to improve your credit health. Sensitising people about their credit behaviour and score always help them manage their finances well and improve their credit health.
opt for suitable credit health improvement packages available at www.cibilconsultants.com.

Source- secondary

When to check your credit report and improve your credit score?

Whether you are planning to buy a home, a car or even a new credit card, your credit score has immense affect on your loan processing. A credit score is a 3 digit number that shows numeric summary of your credit health. Such score is derived by credit bureaus by analyzing your credit history. The score usually ranges from 300 to 900 points and the higher score suggests more chance of getting approval of your loans. If you are in dilemma to find how to improve credit score, following tips may help you:

ñ      The first and foremost easy action to improve your credit score is to pay off all your bills on time and pay regular installments on your loan default. Even, if your credit score is trembling, you just follow the technique of paying all the bills on time. You need to maintain no late payment status for at-least seven years.

ñ      It is important to put a limit on your credit card use and utilize it only for certain ways. Your credit score would be on the higher side if you will make less use of credit cards as well as will avoid using too many credit cards. The ideal would to be use between 10% and 20% or less of the total credit available.

If you don’t have any idea how to get credit report and improve your credit score, it is better to take help of professional credit agencies. These agencies become your friend and guide in showing you the right way to improve your credit score.
Visit www.cibilconsultants.com and book an appointment now !

Source: Secondary

It is important to stay credit healthy

A sound credit history can be your most precious financial assets. If your credit health shows that you had been prudent in paying off your debts, you will not only be able to qualify for credit whenever you need it, you will also be able to borrow money at the lower interest rate. Lenders use these credit reports to evaluate your ability to repay, your character and any joining to take a decision to entrust you money. These ratings are also used by debt financing firms, investment banks and dealers to know your credit potential. If you find that there are discrepancies in your credit report but neither have time nor knowledge how to remove name from CIBIL defaulters list, it is better to hire an experienced and professional credit repair agency.

By delegating responsibility of eliminating errors from your credit report into the hands of professionals, you can utilize your time and efforts in completing your other essential tasks. Also, professional firms make sure that your credit repair process is completed without any procrastination by taking immediate action on all procedural formalities. 

There are many who believe to take help of professional credit repair agency at-least once in a life time so as to understand all the procedures and tricks to eliminate problems with CIBIL report as well as to understand the procedure so next time, they can do it themselves.

Remain credit healthy and creditworthy by opting for appropriate credit health packages at www.cibilconsultants.com

Source: Secondary

Role and significance of credit repairing agency !

Credit score is a crucial indicator of an individual's credit health. Most of the lenders use it for determining loan payment potential of an individual. It is important to remove all discrepancies from your credit report to improve your credit health. If you want to enhance your credit health, first of all ask for free online credit report from credit bureau and check it for errors.

If you are finding it too difficult to cope with negative information on your credit report or with endless demand for payment of your outstanding credit, seeking help of a professional credit repair agency is the best thing to do. Credit repair is a process of fixing your credit report through a series of measures taken by credit reporting agencies. A credit repair agency assist you in setting up a strategic repayment plan, deals with your debtors to convince them to accept payment at lowest interest rate as the debt will be consolidated and also suggest you the most holistic ways to repair your credit condition.

Majority of people troubling with negative credit score are not aware of how to get online credit report. Credit repair agencies make the whole process simple for you. Credit repair requires specialized knowledge and expertise in the field. These agencies usually have a professional credit repairing team to help clients in improving their credit scores. Before you hire a credit repairing agency, it is essential to do a bit of research so as to take educated and informed decision.

For opting services related to credit repair, book an appointment and select your required package with credit repairing agency at www.cibilconsultants.com

Source: Secondary

It's important to protect you credit score.

As we all know that credit score plays a very important role in availing credit line for any individual. Apart from individual, banks and financial institutions also provide credit to companies based on their credit score. 

Firstly let us understand what a credit score is and how it is derived. 

Credit Score is a three digit numerical figure which describes the creditworthiness of the individual and also for any company. Credit score ranges from 0 to 900 for all the bureaus. Credit score is calculated from the credit report provided by the credit bureaus of the country. 

In India, the major credit bureau is CIBIL. This bureau provide credit report based on the information provided by the member banks and financial institutions. It collate all the data received from the banks and financial institutions and provide credit report to individuals as well as to the companies. 

Credit Score plays an important role in the financial planning. Being an important aspect of the ones financial planning, many individuals do not take credit score very seriously. 

A recent survey reveals that 1 of 4 individuals have the awareness about the bureau. Also as per the survey, 92% are unaware of credit score. Not only that, it was also unbelievable that 98% of the individuals were unable to understand the credit report provided by the credit bureaus. 

It is really important for individuals to be aware about the credit bureau and credit score. For individuals who are aware about credit score and credit bureau, they are not aware about the parameters that are important for improving their credit health. 

For improving ones credit score, they need to work on the below important parameters: 

•    Length of Credit History

•    New Credit 

•    Types of Credit 

•    Income Expense Ratio

•    Debt Income Ratio, etc

Having proper knowledge on the above parameters and working properly on the same will help individuals and companies to improve their credit score. 

Many individual think that making payments on time for their debts will help to improve their credit score, but this is not the case. There are other various parameters which are crucial for improving their credit score and credit health. 

Also checking your credit report from time to time will help to keep a track on the lines of credit that you have taken. It also helps you to trace out those accounts which are not applied by you. Checking your credit report frequently will help you to protect yourself from Identity theft.
Check your credit score and derive credit report at www.cibilconsultants.com

Source: Secondary

Follow these steps to check your Credit Score

Credit Score represents the progressing status of your lending amount accounts over a period of time. CIBIL is credit report agency that provide you a credit score. It ranges from 300-900(CIBIL). Having a higher score means there is less risk for the lender. The Credit Score/Credit Rating can vastly impact the interests you pay for loans, insurance or mortgages.

Having an idea of your credit score is vital before you plan to get a new credit card or a loan. The lenders understand your Creditworthiness by your credit score. CIBIL score or credit score is the notation used mostly to represent the score.

Here are the steps:

1) Call or log on to www.cibilconsultants.com

2) Fill in the details on the appointment form

3) Upload all the require details/documents.

4) Pay Minimum charge for comprehensive credit report.

Once you get your credit score, make sure you repay/close any lending accounts that are still pending. Build yourself a credit healthy future by analyzing your credit score and relying on a good credit agency.

Facts of Identity Theft !

Identity theft protection comes in many different forms. The first step in protecting yourself is to understand a few basic facts about identity theft.

Identity theft protection services can help you monitor your account. It can remove your name from the marketing mailing lists and you shall be alerted for this. Its valuable and a time saver for many to pay a credit health company to keep track of customer’s financial health (accounts), credit reports and their personal information. Others opt out to do this in their own time.

Facts of Identity Theft:

a) Protecting your personal Information

b) Having paper shredder can help safeguard your identity (personal information) and pre-approved credit offers in wrong hands.

According to reports, Identity theft is one of the fastest growing crimes across India. Assuming your entire identity is the not the only way identity theft might occur. Someone using your PAN information or address or in cases a credit card or doing transactions on your behalf without your permission is Identity theft.

The Credit monitoring program will give you a credit score which is very useful. CIBIL report is most preferred across India by banks and customers

Identity theft protection shall give you a cover wherein you can secure your line of credit for any loss occurred due to misuse of your identity against your permission.

Avail your cibil report and improve your credit score at www.cibilconsultants.com

Source: Secondary