Debts shape your CIBIL

Paying off or defaulting on your debts plays a major role in shaping your CIBIL report. One late payment on your debts could affect your credit score in a very negative way. So, what does it need to pay off these debts faster in order to maintain your credit score at a good score?

There are two main ways to get rid of debt faster:

1. Don’t let your debts increase: 

The first and foremost thing you could do is to, don’t let your debts increase. Pay off the installments on time; don’t skip any installments as that could affect your credit score negatively. As the debts would increase, it would become that much harder to retain your credit score.

2. Try to reduce the interest rates:

Secondly : Don’t let the interests on your debts pile up –that would affect your credit score much more. If you are not able to pay off your debts, talk to the banks to give you reduction in the interest rates. You may not be aware of this but some banks do give recessions like these.

You can also apply with the same banks for a balance transfer or debt consolidations. In Balance Transfer cards, banks let you shift off your balance to a zero or low interest cards so that you can pay off your debts faster without the worry of the interest piling on. While in debt consolidation, you can consolidate your multiple debts by taking one debt to pay it all off. This saves you time, money and also the efforts to maintain those multiple debts.

These are some of the ways you could pay off your debts faster and save your credit score from dropping drastically.

www.cibilconsultants.com is the right place to seek for such problems.

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

Rare ways to improve credit score

When it comes to your credit score, you are known to the common routine to raise and maintain your good credit score; paying your bills on time, not closing old accounts, keeping the credit utilization ratio low etc. But other than these common rules about your credit score, most people are not known to some other uncommon ways which may increase or decrease your credit score.

Payments before due date:
The banks report your balances to CIBIL or other credit reporting agencies on the statement date, not necessarily on the due date. The balances can be reported before the due date too so you paying the balances on the due date may not make it to your credit report. This may increase your credit utilization ratio thereby affecting your credit score. Try to make all the payments before your due date and by the date of the statement, as that is most necessarily the date till when banks send reports to bureaus. You can also make multiple payments to periodically pay off your balances before the due date.

Collection agencies:
Sometimes our debts go for collections when we are not able to pay them off. Debts going into collections can affect your credit score negatively to a very great extent. You can talk to these collections agencies and many of these agencies will agree to remove the debt from your credit report if you pay it off your debt. But get it in writing before paying off such collection debts.

Deletion by ‘good-will’:
If you are a person who regularly serves his debt and is credit responsible but have 1-2 small things which are hampering your credit score, then  you can get these things sorted by the bank. If it is one of the rare instances when you have made a late payment, talk to your bank ; they might cut you some slack and you can get your credit score improved.

Source-secondary

Source: Secondary

Lengthy process: Clearing Credit Report

Credit repair is a process which helps in eliminating problematic factors from your credit report. This will help your credit report to be error free. This will hence make you creditworthy.

A person’s credit report is generally known as his credit file. The credit file contains the overall history of the credits taken by him in his entire life span. It provides information regarding number of accounts, late payments, overdue accounts, and also accounts that have been written off.

It is generally said that “Making mistakes is easy but correcting the same is a difficult task.” The same applies in case of your credit file. Mistakes such as making late payments, having overdue accounts etc. will make a negative mark on your credit report, but to remove the same mistakes from your credit report and making the report clean is a difficult task and will take time.

There can be instances that some accounts can be reported in your name which you have never applied for. These types of errors can have a negative impact on your credit report and will lead your credit score to sink.

Once you identify the errors in your report and you remove those errors from your report you will notice that your score has not increased. If you have an active trade line, then your score will increase, if not your score will remain the same.

So it is important that you have an active trade line to increase your score. Only removing errors and cleaning your credit report will not improve your score. There are also other factors that will improve your score for example having different types of credit, paying dues on time, and many more factors.

Checking your credit report frequently will help you identify errors in your report and will help you to identify factors that will improve your score.

Check your credit score and obtain report at www.cibilconsultants.com

Source: Secondary

It is necessary to keep track on your CIBIL report !

Do you know that more than 50% of consumers have errors or mistakes in their credit report?  It will directly affect your credit score because the bureaus use information from your credit files to calculate your credit score. But if you keep checking your credit report then you can easily correct it on time. Here are few steps on how you can keep track on your CIBIL report?

 Get Your Credit Report:
 Get a copy of your credit report and review it regularly, identify changes and any incorrect  accounts information.

Check Your Credit Report for Errors:
Check your credit report very cautiously for any errors —like accounts that are not yours, missed out accounts, loan amounts are incorrect, account balances which are incorrect, showing late payments, etc.

 Report your Errors to the Credit Agency:
If you detect any error in your report, immediately report it to your credit counsellor. Be specific and explain exactly why an item is inaccurate in your report. Remember that  credit agencies receive information from your creditors and then prepare your credit score.

Contact the Creditor:
Call the creditor which is responsible for an error in your report and then let them know that why you are disputing an item which is mention in your CIBIL report.

Wait for a Resolution:
A credit agency can take maximum 45 days to resolve and investigate your dispute against the error in your report with your creditors.

Get Your Dispute Results:
you will get notification from the agency about the investigation results. The error will get removed from your credit report if it is confirmed by the agency.

 Add a Statement of Dispute:
 If an error was not removed and you disagree with the decision, you can add a statement of dispute of up to 100 words to your credit report. That allows you tell your side of the story and future creditors and merchants may take your statement into consideration when evaluating you.

Get your credit report ,renew, revamp and retain your score along with dispute resolution by opting for service packages available at www.cibilconsultants.com

Source: Secondary