Friday, 15 March 2019

Finding a mistake on credit report can be frustrating.

The world runs on the basis of information. Information is everything, what makes an individual powerful is information. Similarly you might be having lots of information about different topics in your life. Some may have information about a new web series to be released or someone might be having information about the latest vehicle which is going on sale next Friday. What makes an individual truly powerful is when the person holds information about finances and how to deal with it. The world revolves around finance and finance is really a vast topic to discuss.
One of the topics which is gaining traction is a credit score. A credit score is nothing but a financial representation of yours in from of your lenders. A good credit score can get you a financial product like a loan or a credit card in no time at all. All you need to do is pull up your free credit report and see how you are doing and keep up the good work. Many a times while checking your report, you see unusual transactions and are in doubt if the transactions are yours? Those transactions can be mistakes done from the credit bureau’s side and you can easily report it and get it fixed.
For a lot of us, we do not have time to check this report and after checking we do not have time to raise a dispute thinking it will be time consuming and frustrating.
Today, we will sight you some simple and easy steps while considering raising a dispute,
  1. Check your credit report from time to time
A lot of us make this mistake of checking our cibil report only when you are applying for a loan or a financial product. You should stop this practice and consider checking your report at least twice a year. You can pull up your report and check it for free and also this would not be considered as a hard inquiry as the report is requested by you.
  1. Check and mark up errors on your report
The next thing you do is, if you find any error on your report highlight the same and raise a dispute towards that transaction at the bureau. You will have t make a proper report justifying why you think it is an error from the bureau’s side and attach all the possible transactional details to support your claim.
  1. Raise different disputes
If there are multiple errors on the cibil report, raise different disputes for different errors. This way you will have multiple people working on your mandate and can expect your work to be done in an efficient and faster way.
  1. Have patience
Once you have raised a dispute, you cannot expect things to happen on a fast pace. Credit bureaus take time to investigate each dispute and it takes a lot of time to reach the conclusion as there are many factors to consider towards the dispute.
  1. Don’t take no as an answer
The credit bureaus with taking a lot of time can also come up with a conclusion which will state that the dispute is been barred and the transaction status remain the same. Do not give up; raise a dispute again if you think the judgment is not in your favor.
  1. See if the error is been resolved
Even if you have won the dispute, you will have to recheck and monitor if the credit score has gone up after the dispute. It should not show a low cibil score after you have won the dispute.

 Credit disputes can be frustrating and takes a lot of time of yours. What’s important here is that you get to raise your credit score and it can help you get a speedy loan when needed.

Thursday, 7 March 2019

It’s time you took a serious look at your credit score

Credit scores are serious business and they definitely deserve some attention! So if you have a good score you need to make sure that you keep it that way, if it is average then you need to make it better and if it is low then you definitely need to be extra serious and work on improving it. However all this cannot be done till you have a good luck at your credit report and find out what your credit score is.
Why does your credit score deserve a serious look?
So why does your credit score deserve a serious look? Here are a couple of reasons that make your credit health important. The most common use of a credit report is for securing a loan. Thus whenever one applies for a loan the prospective lender seeks the credit report of the applicant and depending upon the rating; the lender would accept or reject the loan application. A good rating will ensure that the loan application is accepted and the converse would be true if the rating is low. Apart from loans, new credit cards are also issued based on the credit history.
A good credit rating ensures that not only you get access to fresh debt but it also gets you certain other benefits. A healthy credit scores gives the applicant the bargaining power. Since he/she has a good score they are likely to get a loan without a hitch from any lender (if they fulfill other requirements) which means they can approach the lender who offers the best terms.
Good score also gives the applicant the bargaining power to negotiate a waiver for the processing fee or get some other concessions like a lower interest rate and so on. However it is important to mention here that these benefits are not guaranteed and may depend on the lender’s policy and the applicant’s bargaining power. A high rating also ensures a lower turnaround time and faster loan processing. The applicant will not lose out on an opportunity like a special home loan deal or a college admission due to loan rejection.
In recent times lots of employers are also seeking the credit reports of applicants as part of their background check process. This will ensure that they do not employ people who might be debt ridden which could spell trouble for the company in future. This also lets the employer judge the integrity and responsibility levels of the applicant. Thus a low rating could cost you not only a loan about also a job opportunity.
What should you focus on in your credit report?
Earlier if you wanted a credit report you had to pay for it but now you can get a free credit report once a year so this means there is additional motivation to check your credit report periodically. So you get your free CIBIL report, but do you know what are the aspects that you should focus on?
The first thing to look at is the personal details and loan details in your report. Ensure that you name, address, contact details etc are all correct; it is also essential that you look at all the loans and credit cards that are included in the report. Ensure that loans and credit cards included in the report are all actually yours, the outstanding loan amount for the loans, their open date, if the loans are already paid then they should not reflect as open loans and credit card dues etc should be checked carefully.
Repayment history is the most important aspect in the score calculation, so if there is any reporting of a delayed or missed payment then you need to make sure that it is due to an actual default by you and not due to misreporting. You should also check the asset classification of all loans and it should ideally be STD.
The most important aspect in the credit report is definitely the credit score. Any score above 700 is considered good and a score below 550 is definitely a cause to worry. A score below 650 seriously hampers one’s chances of getting a loan approval.

Looking at your report you can not only assess your credit health but can also determine the cause of it being low (if at all). If it good then you need to continue the healthy credit practices.

Wednesday, 27 February 2019

Know what the constituents of your credit history are


Credit report, credit score, Loans, credit cards and now very common words we all have been listening in a day to day life. There was a time when these all were the things that were not this common and not everyone knew about! With the accessibility of credits, one must know the basic of it. Credits may look a cake walk when applied for but it comes with a lot of responsibility. Repayment also looks easy initially, but other financial responsibilities one has to take, it is tough to stay regular in repayments, but not impossible!

Let’s know the basics! Credit score and Credit report are the two terms people have to check through when it comes to credit. Credit Report comprises of 3 things. Credit Score, personal information of individual like PAN card details, address, email id, contact number etc and detailed report of credits taken and it’s repayment. Credits here comprises of loans and credit cards both. What does a credit score comprise of? There are 5 factors what makes a score, viz. Payment History, Amount Owed, Credit Mix, Length of Credit History and New Credit. Let us understand all these in detail.

1. Payment History
How constant the borrower has been in repaying the credits taken, in terms of loans or credit card makes the most of the credit score. There is a term called creditworthiness which means how responsible the borrower is in re-paying the amount borrowed shows the creditworthiness of an individual and that is always measured by Payment History. It carries 35% of the total weightage of the entire credit score.

2. Amount owed
Surprisingly, the total amount owed by any individual has 30% of weightage in credit score. And that is a second major constraint. The total amount that is taken as credit from start is considered here.

3. Credit Mix
One has to understand the different types of credits available. There are four types of credits. Secured and Unsecured type of credit. Fixed and Revolving type of credits. Secured are the once which has some guarantee in terms of asset kept under the amount borrowed. Home loan, car loan are a few of the examples. Unsecured type of credit is the one where there is no guarantee kept against the amount borrowed. Personal loan, Education loan, Credit cards are few of the examples of unsecured loan. Fixed type of credit means a credit which has a fixed amount and will be repaid by a particular time frame. Loans are usually fixed types of credit. Revolving credits are the one where the credit line is revived after the payments are done. Credit cards are one of the examples of the revolving line of credit.
A good mix of these type of credits will make a good credit History!

4. Length of Credit History
The longest credit account is also one of the factors that add up to score. One should never close the oldest credit account as that also plays an important role in the score. Longer the account better is the score.

5. New Credits
Though not a history constitutes, new credit has 10% weightage in a score. That does not mean one should keep on opening new credit accounts every now and then as that will be considered as credit hungry behavior and will get the scores down. But a new credit account each year will help in adding up to the score.

How can one determine the score? One must check the score if not more but atleast twice a year. Anyway, the RBI has passed a mandate to provide one free credit report each year to all the credit bureaus. So, check the score to know that you are on the right track!

This way one can know the constituents of their credit history and can work on them for a better score as and when required.


Monday, 18 February 2019

Why you should not Share Your Credit Score with Anyone

Are you one of those, who like to share everything with your loved ones, friends and family? You cannot keep a secret and certainly cannot sleep with ease if happen to contain some information and you need to vent it out? Then this article is just for you!
We happen to have a circle to trust to whom we are comfortable sharing everything which goes in our life. Have you ever come across a person, a friend, a relative who is sharing his or her credit score? Forget them; did you ever share your credit information with any of your friend?
There is a reason behind this psychology, one can share his loan information on how many loans have they opted for survival but they will never tell you the score. A credit score is a representation of you on how you are with financial integrity and this is something people like to keep it as a secret.
Now you must be thinking, it’s not a big deal, a lot of people have access to my report and some can just opt for a free cibil report and check the score. This is wrong, what many people don’t understand is that your report not only contains that magical number, but also has a lot of vital information which can be misused in the future. This can hamper your financial life and all these could happen because of no fault of yours.
How many times have you seen an email or an advertisement stating, get your cibil information for free? Many of these mail sending companies are fake and will try to dupe you by getting all your information by asking you to sign up before they can provide you the information. After you signup and they getting all the information, the website just might crash or a new pop up shows that you will get your report on email and the email is never there.
After getting your information, the data is sold to various Non-banking corporations and fintech companies who will then add you on their potential client list and start making harassment calls to buy various personal loans and financial products. Not only this, there will be times where information can be sold to fraud companies and they might use your information for data theft and draw financial products on your name hampering your credit score if payment not made on time.
What things can you do to keep your information safe online?
Contact the credit bureaus directly
If you want to opt for a credit report, do it directly with the bureaus instead of going through various third party websites who may sell your information to various banks. You may get the report for free or else just pay a nominal amount for the same and you will have the information in the mail within no time. Different credit bureaus have different norms and what is suggested here is that get all information directly from the bureau.
Update passwords regularly
We hear a lot of news these days which says cyber crime is at large and you should be alert about it. For this particular reason, you should update your password at regular intervals and keep that information with you.
Do not use public network to monitor your accounts
This is the biggest mistake people do when it comes to monitoring their finances. Once you understand there is free network available around you, you just start using the same network for everything. You should use a private network to get through to your banking information.

 There are many information, which you should keep it as a secret and credit score is definitely one of them.

Saturday, 16 February 2019

My CIBIL score is 800; still my loan doesn't get approved. Why?

You must be great at dong a lot of things perfectly in life. Like managing your incomes, expenses, family and many more things related to you. Now, let’s assume that you are good at managing your finances and so far you have done a great job at it. You have made all your payments on time and maintained a healthy record when it comes to cibil score. You are confident that if you are applying for a loan, you will get it with ease and faster approval.
You encounter a situation, where you are in need to money and it’s quite urgent. You seek help from your family and friends and see if they can help. You do not get a positive answer from them and you are quite optimistic about it as you know at the back of your mind that you already have a good credit score through which you can bank on a loan any time. You apply for a loan and are confident that you will get it sanctioned within no time. You get a call from the bank, stating that your loan is been rejected and you are in a confused state on how did this happen.
You pull up your free cibil score and see that you happen to have a decent score to get the loan approved.
Even though your credit score is high, there are still many other factors which influence the decision of lenders t provide you a loan or a financial product.
Today, we will site you some examples on why your loan can be rejected even though you have a good cibil score,
  1. Different credit bureaus
As we all know, our credit scores are recorded at different credit bureaus and each bureau has their own criteria’s to book credit transactions and score them. There are high chances that the score which is high at one bureau can be less on the other as they all have their own norms and terms to calculate them. It all depends on the lender you applied for the loan that where the lender is pulling your credit report from and if that credit bureau has a good score towards your account.
  1. Job and income
You might be having a great credit score because you have made all your payments on time. When you are applying for a loan, you will have to provide a lot of insights about you, your residence proofs, incomes and gains, etc. All these factors are considered when you apply for a loan and if you do not have a stable income to show the lender, they will reject your application as they want you to pay all your EMIs on time and with no stable income there is no guarantee that you will make all payments on time.


  1. Existing debts
When applied for a loan, he bank gets information about you which includes your existing line of debts and loans and if you happen to have a huge line of credit before hand, the bank can reject your loan plea. It really does not matter if you have a good cibil score with few loans like home loans and personal loans but the repayment ratio should not be higher than your salary or gains.
  1. Filed bankruptcy in the past
If you have filed bankruptcy in the past, there are high possibilities of your loan not getting sanctioned. Bankruptcy sticks to your report for a very long time and haunts you whenever you apply for a credit.
When it comes to availing a loan, there are lot many factors apart from a cibil score which influences your chance to get a credit. Make sure you have your entire checklist ticked before getting a surprise before applying for a loan.



Wednesday, 6 February 2019

Your credit score can have a big impact on your auto loan. Read How?


It is important in today’s era for everyone to understand what is important when it comes to doing in in financial terms. Credit score, it’s impacts, it’s importance and much more is interrelated when it comes to taking a loan or any credit. Just for the basic knowledge, what is credit score and what are types of credits let’s take a quick overview. A credit score is a three-digit number ranging from 300-900 where 300 is considered the lowest score and so 900 as highest. It is determined by 5 parameters viz. Payment History, Amount Owed, Credit Mix, Length of Credit History and New credits. Depending on these five parameters and the weightage given to them, the credit score is established. Now, what is credit? Any type of credit taken from the financial institutions in the form of either loan or credit card wherein the help of finances is done by either a bank or an NBFC, wherein the borrower enjoys the enjoys the comfort of using the money before actually having it and then repays is considered under credits. All of these credits cumulatively are categorized and analyzed over the five parameters mentioned above and are then given a score. One should also be aware of who gives the credit scores? There are credit bureaus that are established in India who gives the credit scores either to the individual or even the organizations at times.

As the title suggests, let us now discuss on the impact of credit score on your auto loan. With that, one should be aware that many mistake credit score with CIBIL Score. There is no fundamental difference. But, there are four bureaus who gives credit scores and CIBIL (Credit Information Bureau India Limited) is one of the credit bureaus that was established initially and hence credit score is also at times spoken as CIBIL score. An auto loan is taken for purchasing a vehicle. In usual cases, wither a two-wheeler or a four-wheeler. Remember, any loan when applied for, the banks or the NBFCs will definitely check your credit score. The reason behind checking the score is: A score is a representation of how responsible an individual is when it comes to credit. The creditworthiness of an individual is determined by the score and hence the lender can take the decision if to sanction the loan or not.

A score between 300-600 is considered low or a bad score. Between 600-750 is average and any score above 750 is a good one. When applying for any loan and specifically the car loans as we are talking about, the score of the individual is checked. If the score is above 750, there will hardly be chances of the loan application to be rejected. When it comes to any score below 750, there are various checks that these financial institutions would do in order to obviously make sure that the money that they are lending is in worth hands. In those cases, they check the prior reports and why the defaults that have been made in order to make sure that the borrower is not a defaulter. And the intentions behind the late payments or the prior defaults are genuine. But that does not mean that the loan will be definitely approved. It still would be checked with those banks or lenders about the credits. Also, when the score is low, the percentage of interest that is being charged on the loan amount increases. So technically it is an inversely proportional ratio. Higher the score, the lesser the interest rate and lower the score more is the interest rate.

So, when planning to apply for an Auto loan or a car loan, the first thing that is advisable is to look at the score. Check the score and then you can know if you are great to go ahead apply for it or it’s better to work on the cibil score first and then apply for a loan.


Tuesday, 29 January 2019

There are many reason not to share credit score.


Why you should not Share Your Credit Score with Anyone
Are you one of those, who like to share everything with your loved ones, friends and family? You cannot keep a secret and certainly cannot sleep with ease if happen to contain some information and you need to vent it out? Then this article is just for you!
We happen to have a circle to trust to whom we are comfortable sharing everything which goes in our life. Have you ever come across a person, a friend, a relative who is sharing his or her credit score? Forget them; did you ever share your credit information with any of your friend?
There is a reason behind this psychology, one can share his loan information on how many loans have they opted for survival but they will never tell you the score. A credit score is a representation of you on how you are with financial integrity and this is something people like to keep it as a secret.
Now you must be thinking, it’s not a big deal, a lot of people have access to my report and some can just opt for a free cibil report and check the score. This is wrong, what many people don’t understand is that your report not only contains that magical number, but also has a lot of vital information which can be misused in the future. This can hamper your financial life and all these could happen because of no fault of yours.
How many times have you seen an email or an advertisement stating, get your cibil information for free? Many of these mail sending companies are fake and will try to dupe you by getting all your information by asking you to sign up before they can provide you the information. After you signup and they getting all the information, the website just might crash or a new pop up shows that you will get your report on email and the email is never there.
After getting your information, the data is sold to various Non-banking corporations and fintech companies who will then add you on their potential client list and start making harassment calls to buy various personal loans and financial products. Not only this, there will be times where information can be sold to fraud companies and they might use your information for data theft and draw financial products on your name hampering your credit score if payment not made on time.
What things can you do to keep your information safe online?
Contact the credit bureaus directly
If you want to opt for a credit report, do it directly with the bureaus instead of going through various third party websites who may sell your information to various banks. You may get the report for free or else just pay a nominal amount for the same and you will have the information in the mail within no time. Different credit bureaus have different norms and what is suggested here is that get all information directly from the bureau.
Update passwords regularly
We hear a lot of news these days which says cyber crime is at large and you should be alert about it. For this particular reason, you should update your password at regular intervals and keep that information with you.
Do not use public network to monitor your accounts
This is the biggest mistake people do when it comes to monitoring their finances. Once you understand there is free network available around you, you just start using the same network for everything. You should use a private network to get through to your banking information.
There are many information, which you should keep it as a secret and credit score is definitely one of them.