Smart Investor - An investment in knowledge pays the best interest: CREDIT REPORT

Saturday, July 27, 2019

EDUCATION LOAN : STUDY IN INDIA OR ABROAD : HOW TO AVAIL

CREDIT REPORT July 27, 2019 0

Education is an important aspect for a complete and successful life. For many, it is equivalent to graduating from a top and best institution. The cost of education is, however, increasing rapidly. In fact, the cost of studying at reputed institutions is already quite high.

Keeping this in mind, parents, who want to provide their children with the best possible education, invest their money in mutual funds, fixed deposits, properties (for resale) etc for long term. According to studies, the cost of education is increasing at an average of 15% per annum.

Documents	For Study abroad loans	For Domestic loans
Proof of Identity and age	· PAN Card (For both student and parent) · Aadhar card · Any government issued identity card
Proof of Address	· Voter ID · Aadhaar card · Driving license
Income proof	· Salary statements and Form 16 of parent · IT returns of parents and guarantor, if any · 6 months bank statement
Education proof	· Marks card starting from 10th standard · Rank Card and admission confirmation · Estimation of fees from institution
Other documents	· Completed loan application form · Passport size photo of applicant · Passport, Visa copy (for studies abroad)	· Completed loan application form · Passport size photo of applicant

Monday, April 23, 2018

HOW TO CORRECT YOUR CIBIL REPORT

CREDIT SCORE April 23, 2018 0

In today's financial world, Credit Score and Credit Information Report (CIR) are important factors in the loan application process. Hence, inaccuracies on your CIR can result in reduced chances of a loan approval. It is very important for every credit-active individual to understand the types of inaccuracies that can occur and what it means for their CIR. CIBIL cannot alter any credit information in your report unless authorized by the Credit Institution (CI).

Read: Know the importance of credit report

Usually, there are 2 major issues with a CIR:

Inaccuracies may be found in your CIR

Inaccurate Current Balance or Amount Overdue:

On purchasing your CIR, you may notice that your ‘Current Balance’ or ‘Amount Overdue’ may not be updated for your most recent payment. This is usually the case if you have purchased your CIR within 45 days of making a payment. Credit institutions generally submit the data concerning last payment of dues/ EMI within 45 days, so the latest payment may not reflect on your CIR until the data is submitted by that lender. However, if the ‘Date Reported’ (the date the data was reported to us) associated with that account was over 2 months ago, you can write to us to update this information.

An inaccurate ‘Current Balance’ (especially on the high side) implies that you have more debt than you do. ‘Amount Overdue’ indicates that you are unable to service your existing loan obligations. Both are viewed negatively by lenders and may affect the chances of your loan approval.

Incorrect Personal Details:

Credit information is submitted to us by various Banks and Financial Institutions. Each lender submits your credit account along with your personal information such as name, address, date of birth, PAN, etc. We then use the personal information to collate these details into a single CIR which provides your complete credit profile.

Ensure that you have provided accurate and updated details to your CI at the time of your loan application. In addition, every time your personal details change or are updated you should inform your bank or financial institution so that they are able to make the necessary changes to their database.

Ownership of Credit:

If any personal details or one or more of the accounts on your CIR do not belong to you, you should initiate the Dispute Resolution Process as detailed below.

Overall, the best solution is to check your Credit Score and CIR before you apply for a loan so that you know your lender is evaluating your loan application based on accurate data. If you notice any inaccuracies in these documents, please follow the simple steps below to initiate and complete the Dispute Resolution Process.

Defaults on the payment caused either due to :

Genuine financial hardship
Missed payments on credit cards due to relocation internationally/ domestically
Missed payments on non-receipt of statement
Disputes with the lender on account of charges or annual fees
Disputes with the lender on account of fraud

Before we proceed to suggest a course of action, it is important to understand and go through your credit report in detail.

FOLLOW THE BELOW STEPS:

1. Get your free credit report from here (Know how to get your CIR report)

2. Follow the below step by step process to understand your report and identify areas to improve on.

Check how many open accounts there are on your report. There are 2 issues you could face:

The account has not been reported “closed” by the lending institution

There are open accounts which are not yours

This can be easily remedied by following CIBIL’s Dispute Resolution Process. Incorrectly stated open accounts overstate your credit exposure.

Check the status of the accounts

A “written off” or a “settled” account can be viewed negatively by the lender. Check if there is any account which has been tagged incorrectly. If yes, raise a dispute via CIBIL’s Dispute Resolution Process.

Check the payment history of every account

Go through the Days Past Due section carefully. If you notice anything apart from a “000” or an “XXX” then this can be viewed negatively. If you missed some payments, then ensure you pay your bills/EMIs diligently. Your CIBIL Score will begin to improve. You need to wait at least 6-8 months before you can see a positive impact on your score (provided everything else is continues without an adverse change)

3. INITIATE ACTION

To understand the remedial action that should be taken in the afore-mentioned situations, let’s take each example and see what the best alternative solution is:

Inaccurate information reflecting on the CIR

Once you have identified the inaccurate information, initiate the dispute resolution process by clicking here. You should hear back from CIBIL in 30 days. If the respective bank or financial institution re-confirms that the information that was reflecting in your CIR is correct then we will not be in a position to make any changes. It is advisable to get in touch with the concerned Bank directly to expedite the process.

Defaults on the payment caused either due to:

Genuine financial hardship:

If for any reason you missed your payments earlier because of a loss of job or other unforeseen circumstances, then it is advisable to pay back the amount to the bank when your financial situation is better. A clean credit history will enable you to enjoy better credit terms in the future.

Missed payments on credit cards due to relocation internationally/ domestically:

When you are relocating, it is not only prudent to transfer bank accounts or close accounts where necessary, but also manage open loans and credit cards. If the EMI payment is linked to a savings account, then ensure that either that account is not closed (and is adequately funded) or the standing instruction for the EMI debit is transferred to another active account. But in the midst of all this, many a times we miss informing the credit card issuer about the relocation in advance which results in missed payments, late payment fees and other service charges which then snowballs in to a large amount. In such a case, the best solution is to repay the full amount because it is your responsibility to ensure that your dues are paid in full.

Missed payments due to non-receipt of statement:

The terms and conditions of most credit card issuers clearly states that the cardholder is obliged to pay the outstanding amount irrespective of the receipt of the statement. Non-payment due to non-receipt of statement may not be considered a valid reason for missing payments (If this has been covered in the cardholder agreement). If you have not paid the outstanding due to this then the late payment fees, service charges etc would be accumulating. The sooner the issue is resolved, the better will it be for your credit history. It is advisable to get in touch with the bank and work out an optimal solution

Disputes with the lender on account of charges or annual fees:

Before taking up any credit card or loan, one should always go through the terms and conditions thoroughly. One should always enquire about the charges (one time and recurring) such as maintenance charge, fees, issuance charge, processing charge, penalties, interest rates, transfer charges, pre-closure charges etc.

Disputes with the lender on account of fraud on your credit card

In case of fraudulent transaction, the bank will investigate the matter and depending on the findings a charge back may or may not be issued. Such disputes need to be resolved between you and the Bank so as to ensure your credit history is not/minimally impacted.

Follow the below mentioned steps to initiate disputes:

Step 1: Login to CIBIL here with your login credentials created to get your free credit report above.

Step 2: Go to Credit Reports Section and Navigate to Dispute Center & Click on Dispute an Item.

Step 3: Complete the online dispute form. Keep your control number handy.

Step 4: Select the relevant section which you want to dispute.

If disputing ownership, then select dispute type and submit your dispute.

If disputing data Inaccuracies, then Enter value for the disputed field and submit your dispute.

Once you submit your dispute, it will take around 30 days to resolve. (subject to the time taken by the Credit Institution).

Read: What affects your credit report

I hope that you lodged your dispute successfully to correct your CIBIL report.
If you have any queries, please share with me in comments below.
Please share this article, if there is a need of this to anyone.

Sunday, April 1, 2018

HOW TO IMPROVE YOUR CREDIT SCORE

CREDIT SCORE April 01, 2018 0

when did you check your credit report last time? if not, request for free credit report here.

I hope, you got your credit score now. is that enough score to get credit from any financial agencies? if your answer is yes, then you don't have to read this article further. if it is no, you can continue with your trails to boost your credit score. Really,It's important to note that repairing bad credit is a bit like losing weight. It takes time and there is no quick way to fix a credit score. Credit scores take into account years of past behavior you can find on your credit report, and not just your present actions. In fact, out of all of the ways to improve a credit score, quick-fix efforts are the most likely to backfire, so beware of any advice that claims to improve your credit score fast. The best advice for rebuilding credit is to manage it responsibly over time. If you haven't done that, then you need to repair your credit history before you see credit score improvement.

There are some steps you can take now to start on the path to get better credit score.

Be cautious in checking of Your Credit Report

Don't request any third party to check your credit report (third party websites, friends or relatives who are in financial sector). Because it reduces your credit score. So please get report on your own. (How to get free credit report in india)

Have a look on your credit report:

Once you got credit report, just have a look over it to know what affects your credit score and make Sure Your Credit Reports Are Accurate

Check these common errors:

1. Is all of your personal information accurate? (That can include your Social Security number, birth date, full name and address.)

2. Are all of your credit accounts being reported?

3. Are there any late or missed payments listed that you remember making on time?

4. Are there any accounts or applications for credit you don’t recognize?

5. Are there any items from decades ago still appearing on your report?

Keep in mind that a credit report from one bureau may have an error, while another may not. That’s why it’s so important to check your credit reports from two or three different credit bureaus for inaccuracies. You may find none, a few or perhaps many errors on your reports. That’s where the next step to improving your credit comes in.

If you find an error on all three credit reports, you’ll have to dispute it separately with each credit bureau, as they’re run separately from one another. You’ll also have to file a separate dispute for each error you find.

So, Now start our repair work to resolve disputes in credit report.

If you have missed payments, get current and stay current.

Delinquent payments, even if only a few days late, and collections can have a major negative impact on score. The longer you pay your bills on time after being late, the more your credit Scores should increase. The impact of past credit problems on your Scores fades as time passes and as recent good payment patterns show up on your credit report. And good Scores weigh any credit problems against the positive information that says you're managing your credit well.

Set Reminders & Use your calendar:

Making your credit payments on time is one of the biggest contributing factors to your credit scores. most of the banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. with these, you can set remainder yourself on your calendar to avoid irregular payments. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management. you can use your calendar app on your smart phone.

Reduce the existing debts you owe:

This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.

Maintain low balances on credit cards and other "revolving credit":

The most effective way to improve your credit scores in this area is by paying down your revolving (credit cards) debt. In fact, owing the same amount but having fewer open accounts may lower your scores.

The reason this strategy can boost your score. One of the items your score considers is just how many of your cards have balances. That’s why charging 10000/- on one card and 50000/- on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.

The solution to improve your credit score is to gather up all those credit cards with small balances and pay them off. but Don't close unused credit cards as a short-term strategy to raise your scores. Then select one or two go-to cards that you can use for everything and try to keep balances low.

Don't open a number of new credit cards that you don't need, just to increase your available credit. Refrain from applying for credit needlessly

Build a Strong Credit History:

Re-establish your credit history if you have had problems. If you have a short credit history, there’s not much you can do quickly here to improve your credit. You could try to piggyback on a friend or family member’s credit card if they have a long history of on-time payments. Have them add you as an authorized user, however you may struggle to find someone willing to do so since they would be responsible for any charges you make. Your other option: Wait it out and don’t close any accounts.

Apply a new Credit Card:

If you’ve never had a credit card before, your scores may be suffering because of that account mix factor we talked about earlier. Just make sure you make on-time payments — a new credit card account with a bad payment history will hurt you, not help you improve your credit scores. If you have a fair, good or excellent credit score, there are many credit card options out there for you

Don’t Repeat Old Mistakes Unfairly Haunt You:

If you’ve filed for bankruptcy, gone into foreclosure or suffered through a short sale, you may be wondering when the credit score misery ends. How long will it really take to get out of the credit score hole you’re in? For all of these mistakes, your credit score takes the biggest hit when it first hits your credit report, but its impact will lessen over time and eventually that account will disappear from your credit report due to federal laws that limit the amount of time it can impact you.

Reduce No of Applications:

Don't open accounts just to have a better credit mix – it probably won't raise your credit score. This approach could backfire and actually lower your credit scores. A hard inquiry will impact your credit score for a full year, though your score will start improving almost immediately after you apply. The hit is small (normally around 3 to 5 points) but if you’re on the edge of two credit score tiers or applying for lots of credit offers in a short time span, you can do a lot of damage.

Repair Your Credit Utilization Ratio:

If your credit card balances every month are more than 30% of your limits, your score is suffering, even if you’re paying off your balances in full every month by the payment due date. That’s because your statement balance is most likely what’s being reported to the credit bureaus. So, keep an eye on those balances, and consider pre-paying some of the balance if you know you’ll be above that 30% mark this month.

Like we said earlier, improving a poor credit score takes time, but it’ll be completely worth it. Constantly worrying about being approved for loans, mortgages and new credit cards is not something you want to be doing for the rest of your life.

Following these tips will not only save you money, but also teach you the valuable skills necessary to maintain a good credit score in your future. If you have bad credit, don’t give up on credit entirely. Instead, be responsible and stay educated about your accounts and scores so you can successfully handle your own finances.

There are no shortcuts when it comes to getting out of problem. So, Be Cautious and Maintain Score.

Please post your comments and share, if you feel it is worthy article.

Monday, March 26, 2018

HOW TO GET FREE CREDIT REPORT IN INDIA?

CREDIT SCORE March 26, 2018 0

In my recent articles, we came across by knowing the importance of credit report and things that effect our credit score.

if you are not aware, just have a look here.

Know the importance of credit report

What affects your credit score?

but how to get creadit report and that too with no charge.

In india & other major countries, there are four major credit bureaus.

1. Experian

2. Transunion

3. Equifax

4. Highmark

In India, Maximum financial agencies prefer credit report from Transunion CIBIL (Part of Transunion). Because this is the first company launched credit bureau services in India in 2000 and it maintains credit files on 600 million individuals and 32 million businesses. Almost all financial agencies upload their customer credit status to Transunion CIBIL Ltd on fortnightly basis. So this increases the accuration in credit score of the customer. it scores range from 300 to 900.

Experian India was established in india in 2006 but licensed in 2010. After Transunion CIBIL, Agencies depend on Experian credit report to extend its credit facilities to its borrowers and mainly it is cost effective for financial agencies. it scores range from 300 to 900.

CRIF Highmark was established in 2007 and licensed in 2010 for its operations in india. CRIF Highmark scores range from 300 to 850. Most of the financing agencies are using credit report form this bureau for business profile people.

Equifax india was established & licensed in 2010 and it scores range from 1 to 999. The advanced technologies are developed to calculate the credit score of an individual as well as companies.

So, Now we have to get into the main subject of the article.

who is providing free credit report out of these all four credit bureaus?

Now, All four credit bureau are providing credit report with no charge. But out of four, Equifax is providing credit report through email basis (No online login) only.

To get the report from Transunion CIBIL Ltd:

Please visit the Transunion CIBIL Ltd website Here

There you can find an option like

Get yours now --> fill the required fields ---> submit

After submitting the all the details, they will provide credit report on realtime basis and wil send to your email id also.

To get the report from CRIF Highmark:

Please visit the CRIF Highmark website Here

There you can find an option like

Get your score now ---> give your email id to get your report ---> fill all the mandatory fields and submit.

After submitting the all the details, they will provide credit report on realtime basis and wil send to your email id also.

To get the report from Experian India:

Please visit the Experian India website Here

There you can find an option like "Get your credit report and score". click on that and there you have to fill your details and signup your self. After verification of email id and mobile number, you can place the request for credit report.

To get report from Equifax India:

Please download the credit report request from here

https://www.equifax.com/international/india/pdfs/CreditReportRequestForm.pdf

please send the filled form by enclosing ID proof, address proof from your email id to ecissupport@equifaxindia.com.

After verification of your documents and authentication of your mail id, they will send password protected credit report to your email id.

Can we get credit report from third party online websites for free:

No, they will provide you with free credit report but your key details like email id, mobile number, PAN number will be stored on their servers and they will verify your score at any frequent levels to alert you to your credit status. but it will effect your score as the third party checking with credit bureaus will lower your score

Note: Checking your own credit will NOT lower your Score.

So please check your credit report and get your score on your own.

If you feel, it will helpful for your friends, please share it with your friends.

provide your feedback and queries in comments below.

Saturday, March 24, 2018

WHAT DO AFFECT YOUR CREDIT SCORE?

CREDIT SCORE March 24, 2018 0

In my recent article, we know about the importance of credit report and credit score? if you still didn't read my article, Just have a look here.

The importance of credit score: A credit score is a number that lenders use to determine the risk of loaning money to a given borrower. Banks , Credit card companies, auto dealers and mortgage bankers are four common examples of types of lenders that will check your credit score before deciding how much they are willing to lend you and at what interest rate. Insurance companies, landlords and employers may also look at your credit score to see how financially responsible you are before issuing an insurance policy, renting out an apartment or giving you a job.

In this article, we'll explore the most important things that affect your score: what they are; how they affect your credit; and what it all means when you apply for a loan.

What Counts Towards Your Score

Your credit score shows whether you have a history of financial stability and responsible credit management. It can range from 300 to 900, but the higher the score, the better. Based on the information in your credit file, credit agencies compile these scores, also known as credit scores for the system the four major bureaus (Experian, Equifax, TransUnion and CRIF Highmark) use. Each agency will report a slightly different score, but they should all paint a similar picture of your credit history. Here are the elements that make up your score and how much weight each aspect carries.

Saturday, July 27, 2019

EDUCATION LOAN : STUDY IN INDIA OR ABROAD : HOW TO AVAIL

Monday, April 23, 2018

HOW TO CORRECT YOUR CIBIL REPORT

Sunday, April 1, 2018

HOW TO IMPROVE YOUR CREDIT SCORE

Monday, March 26, 2018

HOW TO GET FREE CREDIT REPORT IN INDIA?

Saturday, March 24, 2018

WHAT DO AFFECT YOUR CREDIT SCORE?

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