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

What After Credit Score?

Many consumers look at their credit scores and are at a loss for what to do next. Since a credit score is the reduction of your entire credit history to three digits, it’s hard to really see what is happening to get your score to this point. You might see that you have a low score or a high score, but what does that mean for you and your finances? How can you go behind the credit score to get a better idea of what you can do to improve the situation?

The first thing beyond the credit score is a person’s credit report.

Your credit report and clues about your credit score.

It’s the information in your credit report that is used to determine your credit score. Credit scoring models assign numeric values to the information in your credit report and use an algorithm to figure out what your three-digit score will be. But the process isn’t even that straightforward. 

 Each of the credit reports from the different credit reporting agencies is used in the creation of credit scores, and that means that differing information between credit reports can result in different scores. Plus, individual lenders might use their own modifications of scoring models, emphasizing different aspects of your situation, depending on the loan you are getting.

As a result, your first step is to dig into your credit report to make sure the information listed is correct.  If there are any errors, you should dispute them. “potentially material” error about information often used to generate credit scores. 

Once you have your credit report, you can begin looking at information to help you see where you might be weak. Fix errors on your report, identify problem areas, and begin to move forward.

Consumer credit sites and in-depth help with your credit score.

Sometimes, even after you get a copy of your credit report, it’s hard to identify what items are causing you problems, and how each part of your report impacts your credit score. Getting beyond your credit score to see what actions you can take to improve your situation sometimes requires guidance. 

Consumer credit sites make it a point to analyze your score, breaking it down in plain terms for you. If you have a low score, a consumer credit site can tell you exactly why. The explanations of these reason codes can provide you with greater insight into how your score is figured, and help you see exactly which of your behaviors are contributing to a score that might not be quite as high as you would like.

Not only do many consumer credit sites offer you information about the “why” behind your credit score, but many also provide you with concrete steps you can take to improve your credit situation. You can receive helpful strategies for improving your credit score specifically, and improving your finances overall. With helpful insight and guidance in creating an action plan, your credit score becomes more than just a number; it becomes a way for you to confront the realities of your situation and make lasting changes to the way you manage money. This can save you money on all sorts of financial services, from loans to insurance.
                                 

Your credit score gives lenders and others in the financial services industry a way to make snap judgments about you, and the way you are likely to handle credit (and, by extension, your finances). However, this doesn’t mean that you can’t dig into your score and figure out how to improve it so that you put your best foot forward.

Remember that a credit score is dynamic. A bad one can be improved in a short amount of time. A good can be lowered in the same short amount of time.

The right resources, and an understanding of what goes on behind the scenes of your credit score, can help you stay on top of the situation and build a credit reputation that ensures you the best loan rates and other good financial deals.

Source: Secondary

Excellent Credit Means?

One of the realities of finances is that many lenders and other financial product and service providers want to know your credit score. Your credit score is essentially a summary of how you handle your money. The higher the score, the better deal you will receive, whether it’s a lower interest rate on a loan or a better quote on your car insurance.

Excellent credit can mean saving tens of lakhs of rupees over your lifetime. In some cases, especially with mortgages, you could potentially save more over the course of 30 years.

What Results in an Excellent Credit Score?

                          

Many consumers don’t think it’s fair that the credit score has become a stand-in for financial responsibility. The argument is that truly good financial habits don’t require you to borrow. For the most part, a credit score only measures how well you have handled your loan obligations. If you don’t borrow, you don’t end up with a credit score. So, unfortunately for some, the first step to building an excellent credit score is to apply for — and obtain — credit, usually in the form of loans.

Once you have loans, your next step is to make all of your payments on time and in full. You don’t need a ton of loans to build up to excellent credit, though. Usually, it’s sufficient to get an installment loan (make the same payment each month to pay off the loan within a set period of time) and a revolving loan (like a credit card). If you are careful to borrow a small amount and make regular payments, you will start building your credit history. It’s important to be careful to incorporate any credit spending into your regular financial plan so that you don’t get in over your head with debt.

There are different credit scoring models, but most have ranges between 350 and 850, or something similar. In many credit scoring models, you need a score of at least 720 to 740 to be thought to have excellent credit. When you have excellent credit, you usually qualify for all the best rates. And, as long as you have enough income to afford your payments, you shouldn’t have trouble qualifying for just about any loan.

If you want to get good deals, from qualifying for a good apartment without paying a large security deposit, to getting the lowest mortgage rate, cultivating excellent credit is a necessity. 
Visit: www.cibilconsultants.com
Source: Secondary

Credit highly impact your mortgage

If you’re in the market for a mortgage or looking to refinance your home, you’re probably already tracking the mortgage industry and the rising interest rates we’re seeing in the housing market. Over the last year, mortgage interest rates have climbed more than a percentage point. While increasing interest rates could signal an improving economy and a rebounding housing market, it also means a more expensive home for home buyers.

Here’s what you need to know about the mortgage rules and your credit history, and some simple ways to improve your chances of landing a mortgage:

• Your outstanding debt and what you earn has a bigger impact on your mortgage. Thanks to the Ability to Repay Rule, lenders will be looking more closely at two things: your income and your outstanding debt, including credit card balances, student debt and car loans. You debt-to-income ratio – or what you owe versus what you earn each month – is going to have a bigger impact over the type of mortgage and the mortgage terms you qualify for. There are a few ways to improve your debt-to-income ratio: 1) increase your repayment amounts for any outstanding debts, 2) avoid taking on any significant, new debt during the mortgage application process, and 3) consider earning money on the side or asking your employer for a raise to help boost your income.                                                                  
• Paying off your smaller debts could boost your credit history and your mortgage application. Since lenders now have to document and verify all of your income and debts under the Ability to Repay Rule, your finances will be even more under the microscope – and you’ll likely have to wade through a longer application process. To help shepherd along your application and to increase your chances of qualifying for favorable mortgage terms, you should begin to focus on paying off your smaller debts. If you have a lingering credit card balance or you only have a few hundred left on your student loans, focus on paying off those smaller debts in the short term. The less outstanding debt you have in multiple accounts, the more favorable your mortgage application will look.
• Your overall credit still matters a lot – if not more. The Qualified Mortgages Rule means that lenders are not allowed to push consumers into a higher interest loan just to earn a commission. From the consumer protection point of view, this rule is a winner. But it also means that loan officers will be forced to make smarter loans and will therefore be looking for more qualified lenders. So while your credit history and credit score still mattered significantly in the past, it matters even more now as loan officers will want to be absolutely sure you can repay your debt.

Source: Secondary

Enhance your home loan eligibility

If you are looking for the right home loan to buy your dream house, keep in mind, loan eligibility concludes whether your loan application will be approved or not and if approved, the amount of loan that is likely to be sanctioned. It is constituted on your credit worthiness, which rely on income and debt repayment capacity. Although a good credit history and a stable income level are the primary sources of your home loan eligibility. You can boost your loan eligibility by following these simple steps:

Combining Incomes: 

As income is a primary norm, you could consider making a joint application while combining the incomes of other family members which will have a positive impact on your repayment capacity. Any other earning family member including spouse, sibling or parent can become a co-applicant for the loan. In such cases, as the clubbed income level would be higher, the loan eligibility would also be higher.

Repaying other outstanding loans:

If you have other outstanding loan liabilities, affects the loan eligibility drastically as the EMIs being paid towards those loans are deducted from the monthly repayment capacity. Lenders can easily find out your existing debt level. As per to enhance your eligibility, it is advisable to reduce your other outstanding loan before applying for a home loan.

Go for step up loan:

Step-up loan take into account the increase in incomes of individual over the period of loan repayment. This type of a home loan has lower EMI in the beginning which is increased in a step wise manner with the borrower’s income over time. In this case, the loan eligibility is calculated on the basis of the possibility of higher income that the current earnings which can increase the amount substantially.

Mutual relationship:

If you enjoy a long-standing relationship with the lender and have a good credit history, you could easily negotiate for a lower interest rate and higher loan eligibility. 

Long tenure:

The eligibility is determined based upon repayment capacity of the applicant on a monthly basis. If you increase the tenure the EMI of loan reduces and hence the applicant can now borrow much amount with the same monthly repayment capacity. However, it will increase the rate of interest levied on a longer duration.

When you attempt to improve the total amount that you are eligible for taking a home loan, it has to be based on actual repayment capacity. While you avail loans, ensure to repay your dues on time as to ignore the debt trap.

Visit www.cibilconsultants.com
Source-secondary

Credit history versus credit score

Consumer’s past credit actions comprises credit history. Potential creditors, such as mortgage lenders and credit card companies, use the information in a consumer’s credit history to decide whether to extend credit to that consumer. Detailed on a credit report, it is a consumer’s record of incurring and repaying debts. A credit score is a numerical expression of a consumer’s creditworthiness, which is derived from elements in a consumer’s credit history. Many creditors, lenders, and other businesses use your credit score to make a quick decision about approving your application or giving you a competitive interest rate. Your credit score is calculated based on the information in your credit report. The more negative information in your credit report, the lower your credit score will be. The worst credit report entries include charge-offs, debt collections, bankruptcy, foreclosure, tax liens, and judgements.

In most cases, information that is over seven years old is removed from your credit report. If you made a late payment, had a bill go to a collection agency or declared bankruptcy, those negative marks are removed from your credit report after seven years.

To create a detailed credit history of a consumer, CIBIL collects information from creditors on amount of money borrowed, type of loan, date account opened, late or timely payments and recent credit inquiries. In addition to creditors, courts, collection agencies, landlords and utility companies may also send information to the credit reporting agencies, and as a result, consumers may have information about bankruptcies, liens, judgements or collections accounts on their credit reports.

To determine the creditworthiness of an individual, a lender may read his or her credit history or credit reports. However, a credit score gives lenders a snapshot to easily and quickly assess a borrower’s credit history and thus his or her future creditworthiness, without having to read every element of the credit report.

The score ranges between 300 to 900, the higher your score, the better your chances of securing the loan. A good CIBIL score allows you to avail a wide spectrum of credit from various lenders. It also means that you will be easily secure a new credit card or get a loan at more favorable terms because of the choice of the lenders. If you do not have a good CIBIL score on the other hand, you will have to make do with either no borrowing or borrowing at a very high cost.

Source: Secondary

Borrower Data Under One Roof- Equifax

Equifax India, a credit information solutions and analytics company, has introduced a software product called BureauOne to simplify the money lending process.

Custom-created for India, BureauOne collates various credit bureau responses and serves as an intelligent router that connects the lender's loan processing systems directly with all the major credit bureaus operating in the country.

Using this tool, lenders can easily submit one inquiry to BureauOne, and the product will send back a result of reports from all of the bureaux connected to it, giving customers the ability to improve the credit appraisal process more efficiently.

Simply put, this means lenders need not seek data of borrowers from multiple agencies.
                 

Shahid Charania, managing director of emerging markets, Equifax, said, "This multi-bureau solution will reduce operational costs for our customers. The solution was built for India and is customisable through all phases of development and deployment to ensure that it is exactly the kind of product that meets our customer requirements."

The solution empowers lenders and businesses to make better underwriting decisions in the most cost effective and timely manner while also eliminating duplicate efforts to input and retrieve consumer information, it said. The solution also comes with a rules engine that can be configured to send the same enquiry to multiple bureaus based on responses received from the first bureau, leaving little room for human error.

At present, BureauOne is being used by some of the leading players belonging to the public and private sectors and the NBFC segment.

"The BureauOne solution is helping us in implementing our multi-bureau strategy," said Rajiv Sabharwal, executive director, ICICI Bank. "With the advent of multiple bureaux in the country, it is imperative for us to develop capability to use the data being provided by them. BureauOne allows us to do that without creating any operational strain on our resources."
Visit- www.cibilconsultants.com
Source: Secondary

Credit score check! Must for loan!

Earlier, lenders had to rely on their own internal assessment of a customer before sanctioning loans or even credit cards. However, gradually the situation has changed with the availability of individual credit information through CIBIL (Credit Information Bureau India Ltd), which has enabled lenders to determine creditworthiness by dipping into this database to assess the applicant.

So the question of whether you will be sanctioned that home loan and at what interest rate would be determined by your credit score. That’s why, it is important that you monitor your credit scores and purchase your credit report from CIBIL.

Elsewhere in the world if you have been rejected a loan on account of a low credit score then you have the option of approaching select lenders who specialise in lending to borrowers who have recently come out of a bad credit situation. But in India, this is not widely prevalent though there are a crop of banks that do provide loans for such individuals at very high interest rates and a lenient credit profile appraisal.

So it becomes all the more critical for you to monitor your score to ensure that your loan does not get rejected on the grounds of a poor credit score. Otherwise, you will struggle to obtain a loan when you badly need one and might end up signing for an exorbitantly expensive loan, which might be difficult to repay!

Credit Score: The basics

What does a credit score look like, and what counts as a good score?

A credit score is generally a three digit number within the range of 300 and 900. Higher the number, better is the score. This score will reflect information from several lenders and across various loans.

What information does a credit report contain?

The report contains basic information about the consumer (name, date of birth, passport number etc.), location, details of loan accounts (auto loans, home loans, personal loans and credit card), overdue accounts, highest amount of credit sanctioned in case of credit card, number of times credit report requested by the creditor along with enquiry purpose.

What should I do if the score is incorrect?

Sandeep applied for a home loan from ABC bank. The bank rejected his loan application on the grounds that his credit report mentioned that he has a long overdue outstanding amount on a credit card.

This took Sandeep by surprise and the issue was amicably settled with the bank, after which he stopped using the credit card. He got the bank to acknowledge the fact that he had cleared his outstandings and he subsequently informed CIBIL, presenting the acknowledgement from the bank as proof for his claim. CIBIL then verified and incorporated the updated, correct info in his credit report and he was granted a loan.

So we see from this example that errors are bound to happen due to incorrect reporting by lenders or due to human errors.

If you find an error, you would need to report it to CIBIL with valid proof and if you are not satisfied with the action you can lodge a complaint with the Banking Ombudsman's grievance cell, who will take up the issue and evaluate it from a neutral stand.
            

How often does my credit score get updated?

Updating the credit report will be an ongoing process — lenders send updated data regarding an account to the agencies. It depends on how may credit accounts the individual has and if there is a change in the credit data. The moment there is a change in the credit data, it will reflect in the credit score.

What makes this system fool proof for lenders?

Rajat has taken a home loan from ABC bank and has been paying his EMIs in a timely manner.

Simultaneously, he has taken an auto loan from XYZ bank and has defaulted on the last few payments.

Rajat now applies for a personal loan from ABC bank assuming that since he has paid his home loan EMIs with the bank in a timely manner, he will be granted a personal loan without any trouble. However, what he was not aware is that ABC bank obtains a credit score from CIBIL where he shows up as a defaulter with another bank.

This could either result in a rejection of his personal loan request or the bank might charge him a high rate of interest. The emergence of CIBIL as a repository of information on individual lenders makes it impossible to hide anything from your creditor.

Is there any benefit of a good score to me as a consumer?

The most significant advantage of a good credit score is that you can use it to negotiate with the bank for a more favourable interest rate, citing your impeccable repayment track record.
 Source: Secondary

No regular income? Then how to build a credit?

Credit is one of those things that we feel that we need to develop if we expect to succeed financially over any period of time. However, building credit can be difficult when your income is irregular. Whether you have a part-time job without a set schedule, or whether you are self-employed and you never know exactly when your next payday will be, getting credit can be difficult when your income varies.

“One of the biggest challenges of building credit on an irregular income is that your income fluctuates, making payments difficult".

Not only that, but your irregular income might make it difficult to qualify for certain loans, especially if documentation is wanted from lenders regarding your situation.

You don’t have to resign yourself to a thin credit file, however. It is possible to build credit even when you have an irregular income. Here are some of the things you can do: 

Get a credit card

Even for those with irregular incomes, one of the best ways to build credit is to start with a credit card.Keep things small. Get a small card and keep your balance and utilization low.

You might be able to qualify for a credit card with a low limit. As long as you use that card responsibly, you should be able to begin building credit. Make small purchases with the card, and pay them off. All of your purchases should be part of your regular budget so that you know you have the money to pay off the balance. As you regularly make payments on time and in full, your credit situation will improve. 

If you can’t get an unsecured card — even one with a low credit rating — you can consider a secured credit card. You will have to provide a security deposit as collateral for your secured credit card, but it will give you something you can start with. As with the unsecured card, it’s important to make small purchases and pay them off on time if you want to begin building your credit.

Another option, is to have someone add you as an “authorized user” to a card. If you have a spouse or a parent with a steady job, you can begin building some credit as an authorized user. However, being added as an authorized user isn’t the same thing as having the card. Some points are always good points, but it’s not the same amount of points as when you have your own card.you have to watch out if the credit card account owner maxes out the card, since it can impact your situation.

Small personal loan

As you show that you can handle small revolving credit card accounts, and begin building your credit file, you can see if you can get a small personal loan. These installment loans can help you establish that you can handle different types of credit. If you have been using a specific bank for a long period of time, and have a good relationship with the bank, you might be able to get a small personal loan. These loans can be useful because they are usually paid in installments, with set terms. Get a small loan that you can pay off over a few months to add another layer to your credit file.

Alternative credit scoring

Another consideration is that alternative credit scoring can help you prove your ability. The  alternative programs can help you get your foot in the door. Other payments made by you like rent, utilities, insurance, and even gym membership are considered as well. This information is verified, and you are assigned a credit rating.

There are mortgage companies, auto loan providers, and others willing to work with companies like this to provide loans to those with thin credit files. If you have an irregular income, but can show that you are reliable in your ability to pay, these programs can help you get your first loan. Then, after you have begun with this first “traditional” credit account, it’s easier to build your credit file going forward.

Don’t get in over your head

The biggest pitfall of handling your credit when you have an irregular income is getting in over your head. It’s easy to think that you will be able to pay something back during a month when your income is higher. But what happens next month, when your income is lower?

When building credit on an irregular income, it’s especially important that you choose your loans carefully, and ensure that you really can repay them. You need to make sure that making your payments is a priority. Build up an emergency fund during the higher-income months so that you have a cash cushion to draw on during the lean months. Ensuring that you can meet your obligations is the best way to keep up a good credit score once you have established your credit.

Source:  Secondary

Your loan future is decided by your credit history.

What is your credit history? A question often posed to most borrowers may as well be the driving focus over the next couple of years in determining the future course of the borrowing market. The current scenario in which borrowers seek loans on the same rate regardless of their payment record and financial history is unfair for those who are diligent with their payments. In fact, it will be increasingly more and more difficult for consumers to borrow unless they have a sound credit history across a range of products.

 

Capturing of relevant and timely information by credit bureaus and its effective sharing with financial institutions will have important ramifications in driving the efficacy of the whole lending industry. Last year, the RBI made concrete moves in widening the field for credit bureaus by issuing licenses to three new credit bureaus.

 

From then on, these credit bureaus have been steadily building their presence in India amid the burgeoning number of Indians who use financial products. The presence of multiple bureaus augurs well in improving lending decision making. It makes for the availability of a wide range of data, and value-added products that help interpret the value of that data, thereby improving decision making quality.

 

Most credit rating bureaus operate as joint ventures between banks. In many ways, this is a mutually beneficial relationship—facilitating data sharing between banks and bureaus, and the subsequent access to reports. We are also seeing many banks following the test-compare-adopt model with credit bureaus. Thus in a competitive market the multi-bureau system is well appreciated.

 

Active portfolio management of accounts will be the next important step that lenders will undertake. Typically, banks do not actively track customer activities after the sanctioning of loans, unless the customer defaults or delays a payment. Customer profiles are fast changing with a new penchant for multiple credit cards and loans.

 

A once-diligent customer is likely to go overboard and over-leverage after taking the first loan, and may even turn delinquent. Active portfolio management will help track customers constant efforts at leveraging themselves. Credit bureaus will play a key role in the implementation of active portfolio management. Thanks to modeling and monitoring tools like these, lenders can actively manage their loan portfolios to ensure an efficient risk/reward ratio and sufficient diversification of loans—much as they would in an investment portfolio.

 

The scope of offerings by credit bureaus in the Indian market is likely to get more sophisticated.

 

Personal credit reports will play a key role in empowering borrowers to begin negotiating interest rates based on their credit history. This assumes special significance in an environment marked by both high interest rates and spiraling cost of living. The time is not far off when consumers with good credit history will be in the driver's seat while going to their banks of choice and negotiating better rates for themselves. A multi bureau set up implies this will be done sooner than later, making it a win-win for both consumers and lenders.

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