Safety tips for credit card frauds !

 Identity theft forms the path way to Credit card fraud. Stay safe and keep your card secure with following tips :

Cut old credit cards and shred papers where you have written your credit card information:

You may be aware of credit card fraud by dumpster divers where thieves dive into trash cans and take out information from thrown away receipts and statements. Therefore it is advisable to shred such statements and receipts into pieces rather than tossing them in the dustbins to save your credit card number from getting in the hands of the dumpster divers. Also, cut your expired/cancelled cards and put them in different bags to thwart thieves from putting it together again.

Avoid sharing your credit card information on-line or phone: 

Many thieves posing as credit card issuers and banks may call you or email you asking for your credit card number. Though they may look or sound genuine, beware of such people they are scammers. Even while paying something on-line, be careful and check if it is secured website before giving out your credit card details. Check for a lock beside the URL to see if the website is safe.

Don’t sign empty receipts:

Always verify the amount before signing the receipt. Also check for any blank spaces on the receipt, if there are- then draw through them as the cashier could write an amount there and get the money from your credit card issuer.

Keep your credit card in safe places:

Always keep your credit card in safe places, tucked away in your purses and wallets properly. Specially take care of them in crowded places and always check your credit card is with you before you leave from a shop where you have used your credit card to pay.

Report stolen/ lost cards immediately:

Report your stolen card to your bank as soon as you can, to save yourself from fraudulent charges made from your account. The faster you will report to the bank, the faster will they freeze your accounts, thus saving you from any further losses.

Review your monthly statements monthly:

Reviewing your reports regularly will make you aware if any unauthorized charge have been made from your account. Even though the charge may be small but it’ll make you aware and you can report it to the bank and avoid credit card fraud.

Credit cards even play a vital role in generation of credit score thus keep your card safe and secure .

Source: Secondary

How does early Repayment of loan affect your credit score ?

You may  pay off your loan early to save money and free up some of your debts. But if you are hurrying up, in hopes of increasing your credit score, then, you may be on the wrong path. Just paying off the loan early won’t increase your credit score. Though, it is known that paying off debts increase your credit score, you need to know that you should use credit accounts in order to maintain good credit.

Paying off an installment loan according to the term of loan can benefit your credit extent.

Shortened Credit History:
Credit History is one of the factors in calculating the credit score. The longer credit histories you have, the better it is. That is why open accounts work in favour for your credit history. When you pay off the loan early, it shortens the average length of your credit history and may work against your credit score. A history of on-time payments works greatly in favour of a good credit score.

Closed Account:
Paying off a loan early means, your account will be closed off earlier than before. Closed accounts don’t mean much to your credit score. Credit scoring models weight open, active accounts more than closed ones. If you are paying monthly payments on your loan diligently, you are maintaining a good credit score.

Mix of Credit:
Having a mix of credit is one of the factors for a  good credit score. You need to show a positive credit history and timely payments for both, installment loans as well as revolving credit accounts(Credit cards & other credit lines) Paying it off early will shorten your credit history and it won’t show up to indicate that you have a good mix of credit for your credit score.

Making timely payments each month than closing your account indicates to the lender that you know how to manage credit responsibly. That is why making timely payments and paying off the loan in its terms has more benefits than paying it off early.

Learn how and when to pay off your debts for a good credit score. 
Visit www.cibilconsultants.com

Source: Secondary

Bad credit score can harm your chances of car loan approval !

It is wrong to think that with a bad credit you won’t ever be able to buy a car, but this also doesn’t mean that you think you’ll get a car loan as per your own terms and within your monthly budget. Getting a car loan with bad credit is not impossible; it is possible but not always on your terms. You’ll have to compromise on some of the terms of the loan. It also depends on how bad your credit is, like if it borderline some lenders might still see you as a prospect and would be willing to take the risk.

Checking your credit report: 

It is not uncommon to have errors in your credit reports. So it is better to check your reports beforehand to see if there are any errors which may have reduced your score. If there are any errors, correct them before you apply for a loan. This can save you time as well as money.

Improve your credit score:

Some people are on the borderline of good credit and bad credit. In such situations it is better to wait and improve your score before applying for a loan.

Have realistic expectations:

You have to realize that though you’ll be able to get a loan, you are likely to pay more due to higher interest rates than a person with a higher credit rating. Accept your situation and aim for cars which are not out of your financial situation. Also, accept that since you have a bad credit, you are obviously going to miss on some attractive loan offers so it is advisable to go for less expensive cars which are in your budget and wouldn't lessen your chances of getting a loan.

Payments paid off:

Having unpaid payments is always a bad idea before applying for a loan. Even though the lender is willing to give you a loan despite your bad credit, the unpaid payments won’t go well with him. So, pay off almost all in the months preceding your loan application. Your payments records should be clean at least for 6 months before you apply for a loan.

Check your options:

Since, you are not so well with your credit, you are obviously going to get loans with higher rates but accepting and settling with the dealer financing your loan without looking at options may prove to be harmful. Yes, the dealer does want to sell his car but he may also be looking for profit in the financing you are likely to get a higher rate with the dealer. Check out with financial institutions, credit unions, your bank and the loans they offer. Compare their interest rates and other terms and choose which would suit you the best. It is better to secure your finance in advance, before you go to the showroom for car.

Get a CAR (Cibil Analysis Report) from www.cibilconsultants.com and then own a car !

Source: Secondary

What is credit counselling ?

When you are in debt, lots of advices are thrown your way to improve your credit score. So, how do you know what advice to follow and which advice would work.  People are always in a dilemma to follow what advice and what to do in such situations. This is where credit counselling comes in- to guide on the right path to become credit healthy.

 Credit counsellors are basically professionals i.e. certified credit counsellors showing you the right paths to clear your debts and get a good credit score. Credit counsellors analyse your total financial situation including your credit obligations, to carve out a plan to successfully pay off your debts.

Credit counselling can be a positive experience, only if you are completely committed to the process and determined to pay off all your debts and work towards a good credit score. The counsellor will only be able to help you if you are willing to get help. The first and most important of all is to do is find a trustworthy credit counsellor with whom you can share your financial situation comfortably. You need to be forthcoming about your financial situation, clearing stating what you owe and the paying off period for the debt you are given. You also need to be up front about your present incomes and expenses so that the counsellor knows how much money you can have available for the payments.

Credit counselling is not an action, only an advice. Credit counsellors won’t pay off your debts for you. They’ll only analyse your credit reports to chalk out a plan for you and advise you on how to pay off the debts. In the end, it will all come down to how well you follow that advice and plan and how determined you are to improve your credit score.

For credit counselling and related services visit www.cibilconsultants.com

Source: Secondary

How does defaulting affect your CIBIL Score?

A loan default is basically not making the required payments on your loan to the lender. A loan default is associated with a lot of financial problems. Even if you met all the conditions of the default, your credit score will drop and you will find it hard to get another loan in the future.

There can be many reasons why an individual may have done his payments, but when a certain time passes without you making the payment, it becomes a part of your credit history and would be included in determining your credit score. When this default is added to your credit history, it stays there for 7 years thereby affecting your credit score for a long time. Therefore, it is important that your avoid turning your late payments into defaults, to not hurt your credit score.

Default can occur with all types of loan. Default in loans like home loans, auto loans can have the lender take repossession of your home or vehicle. 

Default is not the same as deferment, in deferment the payment is postponed mutually after an agreement with the lender while in default there is no agreement that you will get your payments even in the future. Default indicates to the lender that there is far more and deeper problem in the individual’s finances.

If you cannot avoid a default, you can at least reduce the impact of it. The best way to reduce a default is to contact the creditor as soon as you can. If you are late with only a few payments, you can work out some way with your lender for a payment plan. You can also consider various options for refinancing. If you can before declaring on your default, you could sell your car or house on your own or repay the lender than going to a agent. This saves the lender time and money as it is more cost-effective way.

If your debt problems are much deeper than you thought, contact our credit repairing agency at www.cibilconsultants.com , which can help you restructure your payment plans.

Source: Secondary

How to maintain good BUSINESS credit score ?

You don’t only have a personal credit score-If you own a business, there is something known as a business credit score too. It is on the basis of your business credit report that lenders determine whether to give credit to your businesses.

Managing credit for your businesses is very challenging for small business owners. Lack of knowledge makes them commit various mistakes like using personal credit cards for business transactions, missing out on small business credit opportunities etc. thereby affecting the credit worthiness of their business.

Don’t close your old accounts: 
Unlike, how it is said in personal credit to close unused accounts, in business credit it is recommended to not close unused accounts. In business credit score, the more accounts (even if they are unused) the better. The more accounts you have, the more credit you can borrow in future. Closing unused accounts reduces the amount of credit you have available therefore reducing credit utilization ratio and also your credit borrowing limits later in future.

Keep your financial accounts updated:
Though this factor doesn't directly affect your business credit score but if you have applied for any credit, lenders may seek your balance sheets and check whether there are any differences in the actual revenue and the revenue you claimed in your application. This can have an effect on your credit limits and in some cases even the loan amounts.

Evaluating your company’s structure: 
Though sole proprietors firms and partnership firms are the easiest firms to create but they have the most financial constraints. You have to keep evaluating the structure of the company as it may affect your credit score.  

Don’t apply for multiple credit obligations:
Your business credit score can be negatively affected if you apply for multiple credit cards or loans in greed of discounts and increasing your credit history. Too many applications will give you the ‘credit hungry’ tag by the lenders and more credit checks i.e. ‘hard inquiries’ will be done against you, thus hurting your credit score.

Balance transfers:
As said, the more accounts you have the better. But managing multiple accounts become a little hard and sometimes balances remain on some cards. Try to pay off all your balances and if you can’t there are some banks which offer transfer balances at 0% for a certain period of time to pay off the balances.

Source: Secondary

Can you get house on rent if you have bad credit score ?

Nowadays, many people face the problem of bad credit. And with bad credit comes several problems from getting a job to financial transactions, to renting a home rather than buying a house. Credit score is not just looked at when you go for buying a loan but also when you go out to rent a house. But unlike when you go for buying a house, renting a house with bad credit is still manageable, if you know what you are up against.

For getting qualified to rent a house, you need to prove to the owner that your bad credit in no way would disqualify you as a bad tenant. So make sure that you prepare your credit before applying for renting a house.

Be prepared beforehand:
Try to clear up your credit as much as you can. Try to give the lender as much documentation you can to show you are now trying to improve your credit score. Try to establish a record of regular bill payments.

In the market for a long time:
Try to search for a house which has been in the market for a long time. These properties are usually in low demand for them being not in good localities or they are in need of renovation. Such low demand properties have less strict terms for renting and you can lend them easily.

Be honest about your bad credit status:
Naturally, we think that our bad credit won’t let us get accepted for the tenancy but there is no point in hiding your financial past for this, it would only backfire. If, later, the owner finds out about your bad credit, he may look at you like you are a risk since you are hiding stuff. Be honest to the owner that you have a bad credit but try to make him believe that you are now changing and striving to improve your credit score.

Large Deposit:
Always save beforehand for a large deposit. Since you have a bad credit, the lender might see you as a lender’s risk and ask for a hefty deposit. If not, you can use the same amount to make him take the decision in your favour. You can also use this deposit as a few months advance rent.

Research & Reference:
Search for an owner who doesn't run a credit score check. You’ll usually find such landlords in local classifieds as they are private and not big management companies. Get references from your previous landowners who could write good feedback about you and then you credit score won’t matter much. If the present owner sees good feedback about the duration of you stay, your payment record, then it would add value to your rent application despite the bad credit.

Source: Secondary