Need 850 credit score? See what's holding you back!

As you already know, your credit score is an extremely important three digit number (an 850 credit score equals a perfect score). It sets the stage on whether you will get approved for a loan, and the interest rate you’ll pay on a new home loan, refinance or credit card.

So, what if I told you there’s a tool out there that can show you what’s holding you back from having a higher credit score. 

With Score Analysis, you’ll find out the top four reasons why YOUR score isn’t higher and see what you can do to fix the issues over time.

 Understanding these categories can help you make better financial decisions in the future and may even help you improve your credit.
                              

Here’s a closer look at what influences your credit score.

Payment History – The most influential category when it comes to your credit score. Your payment history is a record of your payments over time. Lenders and creditors look to this as a sign on whether you will make late payments or miss them altogether.

Age & Type of Credit – Each account on your credit report has a “date opened” field. This is the age of your account or how long it has been open. As for type of credit, the different kinds of credit you have impact your report and score. For example, credit card, mortgage, and auto loans.

% of Credit Limit Used – This is otherwise known as utilization and it evaluates the overall usage of your available credit. Experts suggest keeping your utilization under 30% on each of your accounts.

Total Balances/Debt – This is the total amount of money you owe to each of your lenders.

Recent Credit Behavior – Opening new accounts and the credit inquiries for a mortgage or credit card, all fall under this category.

Available Credit – Your available credit is the amount of credit that’s available to you at any given time. It’s also tied to your percentage of credit limit used, or utilization.

Source: Secondary

Financial concerns to be aware of when traveling abroad!

Traveling to a different country raises financial concerns that don’t apply when traveling domestically. Here are some things to keep in mind if you’re planning a trip abroad:

Tracking exchange rates is easy. Thanks to the internet, it’s easier than ever to figure out the exchange rate for foreign currencies. Google has a simple converter that’s easy to use.

Get some foreign currency before you go. When you arrive in a foreign country, it’s a good idea to already have some local currency on hand to pay for expenses like transportation and meals. You can order foreign currency online through some banks and services, and most large chain branches can get you foreign currency if you give them advance notice. The rate they exchange your money for will be lower than what you see online, so you may want to shop around for the best rate.

Know how you’ll get additional cash while abroad. Check with your bank to see if your ATM card can be used at your destination to obtain additional cash, and ascertain what types of fees you’ll be responsible for. If the fees will be high, you may want to take as much cash with you as possible, but if fees are reasonable, you might want to wait to see if you actually need additional cash while you’re there.

Be aware of credit card conversion fees. You can likely use your credit card while abroad, but before you go on your trip, find out if you will have to pay any foreign currency conversion fees, or a fee for letting you make charges in a foreign currency. There are cards that don’t charge any conversion fees, so if your card issuer does impose a fee, you might want to get a new credit card before your trip. Alternatively, you can try to limit your card use while you’re abroad to locations that will charge you in dollars, rather than the local currency.

Carry a chip and PIN credit card. In other countries, merchants may only accept credit cards with chip and PIN technology because such cards are generally considered to be more secure (the card’s information is stored on the chip, rather than in a magnetic strip). If you intend to use a credit card while abroad, be sure to check which type of card is more common at your destination.

Consider the safety of your destination before departing. Some destinations, like Japan, are generally very safe for tourists, and many of the locals carry large amounts of cash without hesitation. In other countries, however, pickpockets are common, and tourists are a popular target of crime. Before you depart, check to see what kind of precautions are recommended for your destination. You may want to purchase certain types of gear, such as a money belt, to protect your valuables.

Travel with adequate insurance. Before you go abroad, check with your insurance providers – including your health insurance and driving insurance providers if you plan to drive – to make sure you’ll be covered. If your coverage is insufficient, purchase travel insurance for your trip. You hopefully won’t need it, but you’ll be happy you have it if you do.

Research the customs of your destination. Customs vary dramatically by country, so be sure to do your research before you leave home. Find out if tipping is common at your destination, and if so, is it normally added to your bill or are you supposed to calculate it yourself? How much is customary? Do merchants at your destination haggle, and if so, what’s the best practice for foreigners? If you know these types of issues before you arrive, you can avoid unpleasant surprises!

Declare your acquisitions when you return. When you return to the your country, you’ll have to fill out a customs declaration form and list what you acquired while abroad. Therefore, it can be extremely helpful to keep a list of your acquisitions as you make them, and to keep receipts for your purchases.

Visit: http://www.cibilconsultants.com/
Source- Secondary

Lifestyle factors to consider: Own house or rent?

One of the biggest debates in the world of personal finance is whether or not you should buy or rent when it comes to housing.
“There are pros and cons to each side of the debate,”. “What it comes down to, though, is your personal lifestyle and what works for you and your long-term financial goals.”
Proponents of buying a home point to the fact that you have the opportunity to build equity that can serve you well in the long run. When you own a home, you own a large asset that can be useful down the road. Not only that, but there is the potential for appreciation, especially if you live in a desirable real estate market that sees home values increase at a strong annual rate.
On the other hand, supporters of a renting lifestyle point out that most homes aren’t located in areas where you’re going to see an appreciation of 5% to 10% annually. For most real estate markets, the annual appreciation is going to be closer 2% to 3%. On top of that, you have costs including interest paid, maintenance, repairs and property taxes. Many home buyers will be lucky to break even.

The reality is that whether you buy or rent a home should depend on your personal situation and your goals. What’s right for one person might not be right for another. In fact, your preferences might change at different points in your life. As you consider the choice to rent or buy, here are some lifestyle factors to consider:

                             

How long you plan to stay?

“Buying a home essentially ties you down to a location, “If you know that you are going to move around a lot in the next few years, it might make more sense to rent.”
Unless you plan to become a landlord and rent out the property after you leave, buying for a short period is likely to result in losses to your budget. Renting offers more flexibility in living arrangements since you can leave with greater ease, and you don’t have to worry about trying to sell the home before you take off for your next living arrangement.

Convenience

There are a lot of inconveniences that come with owning a home. You handle maintenance and repairs. If you have a yard, you need to take care of it. When you rent, though, many of these items are taken care of by the landlord. You don’t have to worry about maintenance, and if something breaks, it’s someone else’s responsibility.
“Many rental communities, especially if you live in a luxury apartment or condo community, come with conveniences and amenities you might not get if you buy.” Amenities like a workout room, pool, clubhouse and even walking trails might be present in some rental communities. If you like these amenities close to your home so that you don’t have to drive to the gym or if you like the idea of having nearby facilities for gatherings, renting can match your idea of lifestyle convenience.
While some suburban communities have HOAs that provide some amenities, they often cost extra, while access to rental amenities are often included in your monthly payment.

Location and market

You should also consider the location and the real estate market. If your lifestyle preferences are for a big lot and lots of privacy, buying a home outside of a city center might make sense — and be less expensive. However, if you like living near urban amenities, it might be too expensive to buy, and renting might make more sense.
In some markets, the cost of buying comes with a lower monthly price tag than renting. In these markets, even if you prefer to rent, you might be better off buying. If renting is much cheaper on a monthly basis, though, that could be the right choice for now. You can invest or save the difference in cost and later when circumstances are different, you might be able to change your approach.
“No matter your preferences, it might be worth it to rent for six months or a year before deciding, especially if you are in a new area,”  “This allows you to get a feel for the location and get to know what you like or don’t like about it. You don’t want to be in a position where you buy in a new area, and then end up leaving less than a year later — and are stuck with this house to unload.”

Risks

Finally, don’t forget to weigh the risks associated with buying and renting. “With buying, you run the risk of ending up needing to sell even if the market drops,”  “Even homes lose value, and you could be out tens of thousands of dollars.”
However, there are risks associated with renting as well. Landlords can increase rents to the point where you are priced out of your housing, and you are forced to move. You also don’t build equity. Unless you are investing (and that comes with its own risks) to increase your net worth without the help of a home, you could wind up in financial trouble down the road.
Carefully think about your financial situation, and make a decision to buy or rent based on what is likely to work best for you and match your lifestyle.

For any credit related information or advises, visit: www.cibilconsultants.com
Source: Secondary

For Successful Financial Cleaning

There’s a good chance that momentum has dissipated for you. You’re not alone. According to a study done last year by the University of Scranton, only eight percent of people successfully complete their resolutions. With your finances though, it’s not too late to make positive changes and see the benefits quickly. As we move into spring and the days get longer and warmer, here are five tips to help inspire some financial spring-cleaning to get your finances in order.

Understand your situation

It may feel like having to face up to harsh reality, but any financial improvements you make are guesswork if you’re not working from a real picture. Checking your credit score and reports first is important, as it can direct you to the parts of your financial profile urgently in need of attention. A personal financial management tool that aggregates your spending can give you an itemized picture of just where your money is going. You’d be surprised at how much money you’re wasting in areas of your life you’re not paying attention to.
                             

Set a specific goal

It’s not enough to just want to “spend less” or “be better.” As well-intentioned as these sentiments are – and as strong as they may feel to you – they aren’t going to help. Set a specific goal to achieve within a defined timeframe. When you think about spending less, what comes to mind? Looking at your credit report, or a breakdown of your spending, where does it appear that you’re going wrong? Flesh out that desire for improvement, and turn it into a real task. Give yourself a deadline that you can look forward to.

Look for small changes with a big impact

Closely peruse your credit card bill. Think critically about what you pay for and what you actually use or need. Is that Time Magazine subscription leaving you with a pile of old magazines in the corner?  If you’re not using your gym membership, even the cheapest monthly commitment can represent hundreds of wasted bucks. Swap a deluxe cable package for a few well-placed streaming services, or cut streaming out altogether. Take a good look at your mobile bill. You might be paying for a big data plan alongside unlimited calls and texts just out of convenience, but not actually need it. Take a second look at the market to make sure you’re getting the best deal for insurance. 

Beyond this, simple lifestyle tweaks can have massive financial impact. If you buy lunch or eat dinner out most days, packing a lunch one extra day a week and making an effort to cook at home more often can save you hundreds of bucks. Rather than heading out to the movie theater, watch a movie at home. The sacrifices don’t have to be big, but the savings will be.

You can make it fun

Financial prudence doesn’t have to be a drag. Treat yourself when you achieve your goals. Give yourself something to look forward to. Celebrate, responsibly, when you get there. If you have a partner, share the success with them. More than anything, it’s something to feel good about.

Source: Secondary

Check- Check! Credit Check!

When you think of a credit check, chances are your thoughts jump to loan transactions. After all, the point of a credit history is to provide context for your past credit transactions as a way to predict the default risk you pose to a current lender. The reality, though, is that your credit profile is used for other financial transactions.
Just because you aren’t borrowing money, it doesn’t mean that your credit information isn’t being used to make judgments about your level of financial responsibility. Here are five non-loan financial transactions that may require a credit check:

                           

1. Cell phone service

A person recently signed up for new cell phone service. Before the company would open an account for him, they ran a credit check. This isn’t unusual, many carriers want to make sure you’re going to pay your bill as agreed. Others worry about letting you walk out of the store with a phone that will be paid for in the service contract.
Poor credit means that you may be limited in account choices. “You may only have access to an account with strict data usage and calling limits if you have a poor score,” . Additionally, if you want to upgrade your phone later, your carrier might make you pay for the upgraded phone up front, rather than letting you make installment payments.
Some Internet service providers and cable/satellite TV companies also run credit checks before opening accounts for new customers. If you expect to access entertainment in this way, you need to be aware of the possibility that your credit history will be accessed and used to judge you.

2. Insurance premiums

“Many auto insurers review credit scores when setting rates,”  “Poor scores are highly correlated with future claims insurance. You may pay more for car insurance if you have a poor score.”
Some states ban insurers from using credit scores to make these decisions, but there is still the chance that you could pay hundreds of extra dollars a year on your auto policy as a result of your credit situation. 

3. Renting an apartment or a home

Even though you aren’t borrowing when you rent an apartment or a home, the reality is that you are still expected to make regular payments. For some landlords, a poor credit rating could be a red flag that you will be difficult to collect from. You might be turned down for some housing situations if you have a poor score. 
You might also need to get a cosigner for your lease if your situation isn’t up to scratch. In some cases, you will be approved to move into the rental, but you might need to make a larger security deposit. This can be difficult if you are short on ready cash.

4. Applying for a job

Even your ability to earn an income can be impacted by your credit history. Employers aren’t supposed to check your credit score, but that doesn’t mean that some won’t look at your credit report to identify possible risks. “This occurs most frequently for jobs where people handle money or other valuable items,”  Someone with a bad credit report might be considered a risk of embezzlement or bribes. “You may lose a good job opportunity if you have poor credit.”

5. Finding true love

Finding the right life partner is supposed to be about love and compatibility. It’s supposed to be romantic. However, there are also money components involved with identifying a life partner. “Many single people now exchange credit reports and scores before becoming serious in a relationship,” citing recent surveys that indicate that singles are interested in the financial viability of potential partners.
Even if your partner is willing to overlook your past financial indiscretions, he or she might be unwilling to combine finances with you until you get your credit score in shape. Even though marriage doesn’t have to mean that you share a credit profile, many partners are wary that your situation could affect them.
In the end, you need to be aware of the fact that a credit check isn’t just for loan-related financial transactions. Attempts to include other information in credit reports and scores are under way, since utility payments and rental payments can also be indicators of your level of financial responsibility. However, for now your credit profile is still one of the main ways that others — even non-lenders — decide whether or not you are an acceptable risk.

Source: Secondary

Financial health implications

No matter how reputed and reliable your brokerage house, bank and financial planner are, remember that it’s your money. Get involved. They will keep coming to you with numerous tips that they say are ideal for you; they may hard sell the products that they have to offer; they make call after call and send you mail after mail extolling the benefits of strategies. While considering everything that they say, do your homework and finally settle for what you think fits your portfolio requirement.

Here are a few simple snippets which will help you bring financial disciple in your life.
             

Never buy a product which you don’t understand

No matter what the company’s sales representative promises you or convinces you to believe, never put your money on something which you find too complex to fully comprehend and whose benefits you are not convinced about. So, first clear any doubts that you may have with the sales person and only then agree to buy it.

Shop for the best deal

If you are investing in a financial product, whether it is a loan or any other funds, involves your hard earned money. So it is important that you take time off to look at various options available in the market, compare them and then take a well-informed decision while choosing the right product. Each financial entity has its own terms and fees, and it is in your best interest to compare all the choices available and then pick out the best deal for you. A reduction of few basis points in the interest rate of your home loan or personal loan can end up in saving thousands of rupees for you over the long term.

Perform online research

As you get prepared for availing a loan, do not forget to carry out an online research on the best rates and schemes offered by different banks. There are different loan products available in the market as per different requirements. In addition to speeding up the buying process and making it less cumbersome, you also stand a great chance of getting your desired products at discounted rates.

Reveal the hidden costs

When you buy a financial product, you may forget to factor in the hidden costs involved which can influence the total cost of the product. Hidden costs involved vary from one financial entity in the market to another and some institutions may wave these completely, if you negotiate. So, ask the financial institution to give you details on the fees and charges involved.

Negotiate to gain a best deal

Every financial institution has its own interest rates and fees structure for customers which provide some scope to us to bargain for a better deal. However, before sitting on the negotiation table, you need to do your homework and get information on rates and charges prevalent in the market so as to assess the level to which you can bring down the price.

Visit www.cibilconsultants.com

Source-secondary

Own your dream home!

Buying a house or making an investment, more so in a city, is a challenging task. It involves a huge sum of money. When you have painstakingly found a house that broadly suits your budget and most of your other criteria, put down the token. Getting over-optimistic about external factors changing could rob you of the chance to purchase your dream home. Here are some precautions which you need to follow as you navigate the purchase of any real estate property.

Before you Shop for the deal

Examine record of your finances. Before switching lender or contacting a real estate agent or window shopping for a new home, figure out what you can spend. Know your credit card limits and review your usage to prevent a potential approval pitfall.

First proceed with financing. Attaining pre-approval for a loan will make the loan approval process and process of negotiation smoother from the start.

Switch lender for better benefits. Try to get a professional who is both familiar with the area you’re considering and its home values – and who is well versed in the laws, timelines and deadlines. It allows you to lower the risk of ruining the dream of purchasing your own house.

Over the process of negotiation

Reading the fine print. If there is one piece of expert advice we hear often for consumers, it’s that it is always good to read the fine print before taking the ultimate buying decision. Fine print often lays down the terms and conditions for what generally the large print promises. Get the clarity on the matter to avoid any troubles in the future.

Keep everything in written. If you negotiate any extras make sure that they’re documented in writing and that all parties sign off on the extras.

Disclose the hidden expenses. Due to these expenses the total cost of your product gets hiked by a considerable amount; definitely more than you have calculated earlier. It’s better to know about hidden costs as these vary from one financial entity in the market to another. So, read these carefully and then take your decision accordingly.

Bargain to gain a better deal. Every financial institution has its own interest rates and fees structure for customers which provide some scope for you to negotiate for a better deal. You can also leverage your past record to good use while negotiating as banks normally don’t want to lose out on old customers.

Conclusion

Don’t take your self-decision. While seeking advice on purchasing a house, it is best to consult an experienced financial advisor. It’s always better to counter-check the suggestions of your advisors with others. It can safeguard you from making expensive mistakes.
Visit: www.cibilconsultants.com
Source: Secondary

Cyber Criminals Behind E-extortion

VADODARA: When you think of cyber crime, you may usually picture a hacker sneaking into networks and installing viruses designed to destroy data and computers. But cyber crime is not just about destroying computers and data for malicious purposes. Instead it is to steal information and data for financial gain.

This is what founder and CEO of Quick Heal Technologies Kailash Katkar said here on Saturday.

Katkar stressed that cyber criminals are not just making money and robbing hard-earned money of victims, their well-networked underground activities are making even the corporate sector victims.
        

"These cyber criminals work from countries which do not have strong cyber laws and are fully involved in extortion activities. They are constantly finding new ways to make money off innocent people," said Katkar, a school dropout, who created a Rs 187 crore anti-virus software business with a seed capital of Rs 15,000.

"In fact, our threat research and response team receives over one lakh unique virus samples on a daily basis. Just six months ago, our team used to receive nearly 75,000 unique virus samples and with the passage of time this number is expected to increase," said Katkar, who in 1985 had taken up a job at a local radio and calculator repair shop to supplement his family's income.

Talking about the growth of anti-virus software industry in the country, Katkar said last year, the total market was estimated at Rs 800 crore.

"The anti-virus software industry is expected to grow because of the penetration of smart phones. While internet is costly in India and computer penetration is still much lesser compared to the developed nations, penetration of smart phones has increased tremendously. This has led to development of security solutions for mobile devices," he said.

"Computers have been able to reach to only 10 per cent of our total population against 70 to 80 per cent PC penetration in developed countries. But penetration of smart phones has increased by over 100 per cent," he said.

'Americans can be easily hypnotized'

Vadodara: Americans can be easily hypnotized compared to any other population in the world. This is what world's most experienced hypnotist and world's first ever hypnotist to appear on television Andrew Newton believes.

"My experience suggests that Americans are the most regimented people on this planet. You can find them standing in queue everywhere and getting all kinds of permits to do small little things," said Newton adding that in contrast the Australian population is a bit aggressive and difficult to be easily hypnotized.

"The United States government is easily looking into emails and text message of its citizens in the name of freedom, democracy and security threat. This spying has a commercial aspect too as the same data is used for targeted election campaigns," said Newton, who has hypnotized over 60,000 people worldwide, including many famous names in the United Kingdom and abroad.

Newton, who has over 6,000 stage and television performances under his belt, said that in the UK like in the US, hypnotism has become a massive industry.

"Thirty years ago, there were just 400 hypnotists in the UK. Now, there are over 4,500 hypnotists, including those enrolled with the UK's national health scheme," said Newton, a senior lecturer in hypnosis at the Hypnoseakademiet in Norway, Europe's premier hypnosis and EFT training school.

"The word 'hypnosis' has always brought a sense of mystery and magic in our minds, but it is a complete science of the subconscious itself. It can't cure cancer but it is very useful for dealing with stress or combat insomnia," he said.

To learn about Identity Theft, contact www.cibilconsultants.com

Source: Secondary

Financial services in danger because of cyber crime

Cyber crime is a “growing threat” globally and the second most commonly reported economic crime affecting financial-services firms, according to a survey by PricewaterhouseCoopers.

It accounted for 38% of criminal incidents for financial companies compared with 16% in other business sectors, the accounting firm said in a report.

About half of the financial-services respondents said the potential risk of cyber attacks has risen over the past 12 months compared with 36% in other sectors. “Cyber crime puts the financial sector’s customers, brand and reputation at significant risk,” Andrew Clark, forensic services partner at PricewaterhouseCoopers said in the statement. “Regulators are increasingly viewing cyber crime as a key area of focus and financial institutions are expected to have appropriate systems and controls in place.”
                  

Cyber crime involves the use of computers or the internet and includes the theft of personal information, industrial espionage, reputational damage, financial theft and the disruption of services. About 29% of financial-firm respondents didn’t receive cyber security training, PricewaterhouseCoopers said.

Asset misappropriation such as embezzlement and deception by employees remains the most popular way of committing fraud in an organisation, the survey found.
To learn about Identity Theft, visit www.cibilconsultants.com
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

Rewrite Your Credit History For Financial Freedom

In India, most working people start thinking about their retirement after they are well into their 30s or 40s. However, to have a financially strong retired life, ideally one needs to think and also plan) about retirement soon after taking up the first job. That way, time would be on his/her side to build a substantial retirement corpus over the long term through a disciplined investment approach. In other words, time and the power of compounding would give one financial freedom during his/her sunset years. 

So what is financial freedom? "The word freedom evokes a sense of hope, inspiration, choice and joy all at the same time, and could mean very different things to different people ," says Vishal Dhawan, founder, Plan Ahead Wealth Advisors. 

"Financial freedom is something which can give us the same sense of emotions of liberation for the money side of our life," he adds. However, according to Dhawan, you need to remember that financial freedom is not a gift, but an achievement. "We have to put in active efforts to achieve this phase of financial freedom in our lives," he says. 

To achieve this goal, Dhawan suggests a few easy-to-achieve steps. These are knowing your exact financial position, crystallizing your goals, building a road map to reach those goals, followed by concrete action according to the road map, then sticking to the plan and, lastly, reviewing the plan periodically but not too frequently .

"These steps may not give you financial freedom tomorrow but remember that, just like a journey of a thousand miles begins with a single step, your journey towards financial freedom begins when you firm up your mind about achieving the same," he says. 

A related article by Vikrant Gugnani details the steps you need to take to have a financially independent life over the long run. 

Leaving positive footprints 

Here, we give you some idea about another aspect related to your financial dealings that can have substantial bearing on your financial freedom: Your credit history (called credit footprint) and why increasingly it is becoming important in every individual's life. As the term suggests , the credit history of an individual is that person's track record of dealings with various institutions like banks, home loan and other financial services firms and also other companies where an individual may have left some monetary dues — like telecom service providers, etc — knowingly or unknowingly . Put simply, if your credit history is good, you are always in a sweet spot to easily avail of loans from a lender or get a credit card from a card-issuing institution . On the other hand, if your credit history is bad, you may have a tough time getting a loan or a credit card. According to Mohan Jayaraman, MD, Experian Credit Information Company of India, individuals need to be very careful about their credit histories. However, the reality is that not many people are careful about the same and, over the long run, this may affect the financial life of an individual. 

Taking care of your history 

According to Jayaraman, the first step is to take out a consumer report from any of the four registered credit bureaus after presenting appropriate know your client (KYC) documents like a PAN card, driving licence , Aadhaar card, or some other government-approved proof for an individual and his/her address. There are four sections in this report. The first is the demographic report in which there will be the name, age, address, etc. You should check if these things are correct, or get it corrected in case of any wrong entry. The next section is the credit summary which gives details about loans, credit cards, etc, that you have taken. 

The third section is called the credit tradeline where the status of the loans, credit cards, etc, is given. The report will also give you data about how many credit cards you hold and the status of each. It could be that you may have used a credit card many years ago but have not cancelled it, although you think it was cancelled. 

As a result, some huge dues may have piled up in that credit card account . In such a situation, you need to correct the tradeline data. 

The fourth section is about the number of enquiries the credit bureaus got about your application for loans, credit cards, etc. In other words, it gives the whole summary of the number of times you have gone to banks and other lenders for loans, credit cards, etc. 

For a smooth financial life, although the first priority is to have a disciplined and well thought-out long-term investment plan, having a good credit score, which comes from a solid credit history, is also essential, according to financial advisers. 

Source-secondary

India: Third Most Affected Nation By Online Banking Malware

Growing Internet penetration and rising popularity of online banking have made India a favorite among cyber criminals, who target online financial transactions using malware, security solutions provider Trend Micro said. According to the firm, India ranks third after Japan and the US in the tally of countries most affected by online banking malware during the April-June quarter of 2014.

Japan topped the list with the highest number of online banking malware infections this quarter due to VAWTRAK. In May alone, it saw 13,000 malware infections. The US saw about 5,000 malware infections during the month, followed by India at 3,000 attacks.

"India posed for cyber criminal expansion with an average of 2.5 million malware detection in a given month. Also, 33 per cent more malicious apps were downloaded and network traffic from affected computers continued to rise," TrendLabs Director Myla V Pilao told PTI. TrendLabs is Trend Micro's research and development center. These and many such incidents show that cyber criminals will always adapt to new trends and situations whether in the use of new malware or targeted attacks techniques to continue their attacks, she added. 

She said the severity of attacks has intensified against financial and banking institutions as well as retail outlets globally.

"Total attacks have exposed more than 10 million personal records as of July 2014 and that strongly indicates that organisations need to adopt a more strategic approach to safeguarding digital information," she said. Such incidents often lead  to stealing of consumer's personal information like customer names, passwords, email addresses, home addresses, phone numbers, and date of birth.

These types of personal privacy breaches have affected organisation's sales and earnings, while leaving customers unable to access accounts and dealing with service disruption, Pilao said. "The pace of change in technology sector has never been as rapid as it is now, and as a result we see firms struggling to keep up with the latest developments," she said. Pilao added that it is essential that Indian businesses treat information security as a principal constituent of business  strategy as time and again it has emerged as one of the top countries witnessing cyber crime. 

"The incidents observed during this quarter further establish the need for a more comprehensive approach to security," TrendLabs Director Myla V Pilao said. 

A report by another security solutions firm McAfee said India is the fourth most affected country in Asia, with 786 phishing domains and 1,557 servers hosting suspect content. Also with 145 spamming domains originate from India, the country is the eighth most affected country in the Asia Pacific region.

According to government's cyber security arm Computer Emergency Response Team-India (CERT-In), 62,189 cyber security incidents were reported in the first five months of the current calendar year. Also, till May this year, 9,174 Indian websites were hijacked by various hacker groups spread across the world.

Learn about identity theft at www.cibilconsultants.com

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