How to increase credit score in India?

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How to increase credit score in India?

Praveen Sharma
Monday, February 25, 2019

CREDIT SCORE

A credit score is a statistical value which is used to calculate or evaluate the creditworthy by credit history. Cibil rating plays an important role in offering loan or not. If the person has a healthy cibil score then the loan will be given with minimum interest. Otherwise, the process will not be done for our expectation.

HOW TO INCREASE CREDIT SCORE IN INDIA

One must know how can I check my cibil score and ways to improve it. Here are some points to improve credit score:

  • Avoid late payment or miss any payment
  • Check your credit balance and reports on a daily basis
  • Wrong entry may include in credit in transactions met, within 30days wrong entry should remove from the transaction entry.
  • Avoid applying for more credit card or loans at the same time.
  • Credit utilization must in between 30 percent to 40 percent. 30% and below of it will be good for a good credit score.

CREDIT EXPLORER

Credit explorer is a way to explore, increase and improve your credit score for healthy financial activities in today’s growing world. Your credit score determines your repayment abilities. So basically our credit scores depend on amount of risk that can be taken on you by the lenders. Credit is giving away things whose payment is received in future. Your credit score needs to be way too appropriate for anyone to lend you any kind of loan or payments.

CREDIT ANALYZER

Credit Analyzer is a free tool which provides individuals financial goals to be achieved on deeper analysis of credit card usages and debt maintained. The individual should understand the credit score values and understand the importance.

This tool helps to recommend their customer which financial product will satisfy their specific needs.

It also knowledge their customer by providing debt management strategies by paying a regular estimated monthly payment, affordability of getting the loan, etc.

Credit Analyzer helps customers by the basic things like Improve credit score or CIBIL Score, make the debt or credit less, buy a house and car. This tool provides recommendations based on an individual’s algorithm and their goal oriented.

There are lots of customers making mistakes, to give a solution to them and provide guidance CREDIT HELP INDIA is giving a solution to their customer to overcome from bad a credit scores.

For all credit cards, there is a limit for consumption, which is the Credit Utilization Ratio or CUR the utilization of all credit cards having a certain limit.

For example; credit card having limit up to 200000, the usage of credit value is by 150000 then the utilization of CUR is by 75%.

Making large purchases by using a credit card will lose your credit score. Using of 30% and less than 30% of a credit card for purchases and repayment on time will increase credit score.

CREDIT BOOSTER

1. Clear your credit report

2. Pay your balances regularly        

3. At least pay at once a month

4. Credit limit being increased

5. Open a fresh account

6. Negotiate the balances outstanding

7. Authorized use

CREDIT BUILDER

To build the credit score value of CIBIL Score credit builder is being useful. Credit builder is giving value up to the score value. The community banks or credit union banks is being useful to get a small amount of loan.

By getting secured credit cards or unsecured credit card is to build the credit score value. The CIBIL score ranges are from 300-900 and the good CIBIL score range is above 750, if the individual has good score then the unsecured credit card will be available. If the individual has lesser CIBIL score then the unsecured credit card will not be possible.

How to improve CREDIT BUILDER 

  1. Getting the secured credit card to improve the individuals credit but not able to pay the security deposit.
  2. Fresh Start Loans are like small personal loans for emergency, individual make monthly payment with interest rate over a period of six month to two years.
  3. It is also like normal credits, but the main difference is to make use of the credit amount, to reduce the risk of the lender, the loan amount is being deposited in savings account.
  4. By payoff the loan amount then only the credit amount which is saved in the savings account is being made helpful.
  5. To build credit by using the secured personal loan or unsecured personal loan.
  6. Secured personal loans require savings or property to give the required loan amount.
  7. Unsecured personal loan doesn’t require any savings or property. But have to pay higher rates of interest; if not then getting qualified for the credit amount will be dream only.
  8. It is hard to find a credit builder loans, by anyway the individual can try for:
    1. Community banks
    2. Credit unions
    3. Non-profit organization
  9. Firstly have a clear picture about getting the loan for the individual or simply getting the credit score only.
  10. Getting Credit building loan form National banks might not be possible, secured personal loans maybe available.
  11. For financial product the individual is trying to get the credit score value, can be in touch with local banks.
  12. After the repayment of the loan amount the individual can get the credit amount fully.
  13. If the individual made the repayment amount month by month then the individual can get help of refund of 50 percent of total interest.
  14. Banks also reports the history of payment to Credit Bureaus.

To improve credit score with the help of Credit Help India may give you full detailed advice to get higher/good credit score to get an unsecured loan/credit. The advice on how to maintain and trade your score by followings of:

o   Regular repayment before the due date

o   Maintaining the secured credit/ loan gives you high score value

Factors affectING cibil score improvement

Your payment cycles missed or late. When you keep asking for credits again and again your credit value decreases. When you remain unemployed for a good amount of period it affects your score in a huge way. Some people tend to ignore their financial responsibilities; it affects their credit score as well. When you don’t make payments of your card balances. Your last credit might or might not as well affect your credit history. Having a really profound credit history will give you exciting benefits.

Advantages of healthy credit score India

1. You get lower interest rates on your loans and credit cards.

2.  Leverage to negotiate for a lower rate of interest.

3. You can get approvals very easily on houses and property on rent especially

4. You can borrow a larger sum of money when you have a good credit score.

5. Your chance on quicker loan approvals and credit card increases

6. When you buy a car insurance your credit score gives a lot of  advantage and you get better rates

7. A good credit score is like an asset to you, it increases your value in the market and thus you could brag about it to anyone and everyone.

HOW TO IMPROVE CIBIL CREDIT SCORE? 

1. Improve your payment cycle

2. Avoid applying for credits unnecessarily and all the time

3. Keep a regular check credit score online for any inaccuracy.

4. Keep paying of the debts as and when into it. Negligence in paying them could affect your credit score in an effective way.

5. Keep your credit using less than its balance or limit. That improves your credit score.

AREAS OF CREDIT

1. Loan

2. Credit card

CREDIT CARD

A credit card is a mode of payment to the holders of this card that enables them to make payments for the given goods and services as per the terms and promises decided with the issuer or the card and the limit set for the same. There is a line of credit given which needs to be paid back with the given additional charges.

Credit cards are issued by financial institutions and banks. Credit cards are being useful to make purchases and various payments being done by credit card. Apart from credit card usages the offers and benefits of rewards, no interest for some period of time, cash-backs, etc. Increase in credit card usage in the Indian market. Credit card usage is growing rapidly, thus provides customer plenty of options to choose from.

Most popular credit cards are like a travel credit card, cash back credit card, business credit card, premium credit card, free lifetime credit card, entertainment credit card, shopping credit card, fuel credit cards, etc.

For a company, business, or for home, personal expenses, the sudden need for money is being managed or made helpful to you by loans. Your dreams are achieved by attractive loans with a low-interest rate. The biggest beliefs of people regarding loans were loaning are only for the rich.

Whether you need a loan for a home, personal, car, education, or loan against your property or gold, Credit Help India is being helpful to perfectly get a loan for your needs.

CREDIT CARD FEATURES 

(A) When there is not liquid cash, the alternative for cash is being used.

(B) For emergencies, credit card is being useful to credit expenses.

(C) For purchases which is buy now pay later being useful to make credit purchases.

(D) Build your credit scores being useful for further credit loans.

(E) Make a secure transaction by using online transactions. Using card number, expiry date,  CVV and OTP password is sent to your mobile.

(F) Using liquid cash it is difficult to keep track of your records. But with credit card monthly statement the credit card transaction is being helpful.

ADVANTAGES OF CREDIT CARD 

The main advantage of a credit card is convenience. Credit cards get much easier small short term loans compared to debit cards and cheque. There are a number of credit cards that offer benefit packages and rewards for the benefits of the customers. It is much safer to carry a credit card than cash. Your credit score shoots up when you pay the amount on time along with the given charges on time. Credit cards tend to work in any currency. It gives you an emergency line of credit and proves as a financial safety for the cardholder.

(i) Welcome benefits given by banks are to receive discounts for some period of time, bonus points, gift vouchers, etc. are given by banks for some period of time or stipulated time consumption period.

(ii) Every transaction time the rewards points are being included. Every purchase of yours makes reward point s or cash back to your credit account.

(iii) Refill the vehicle of yours the surcharge waived off provides the amount you spent.

(iv) Travel centric and premium credit cards are being useful to complimentary lounge visits in domestics and international airports.

(v) A credit card also provides insurance and cover up accidents to some amount. The accidents maybe by air coverage accident, loss of credit card cover liability, overseas hospitalization accident cover.

(vi) You can withdraw the amount from credit card directly from ATMs. For the emergency purpose, it is being useful to your urgent purpose.

TYPES OF CREDIT CARDS

1. Business credit cards: There are cards issued only for the specific business that is registered and can be used only for business purposes and not any personal uses.

2. Secured credit cards: These types of credit cards, is backed by a deposit account owned by the card holder. There should be a minimum amount of deposit to use this card.

3. Prepaid cards: This is not a true credit card since no credit is given by card issuer. The money spent is stored in the cardholders’ card via prior deposits and liable to use only that much.

4. Digital cards: It is an identification of your card in any digital equipment. It’s a virtual cloud-hosted representation of your payment card.

UNSECURED CREDIT CARD 

The unsecured credit card will be available without any security for the individuals. This is based on the credit card score with the help of CIBIL score ranges which is to be in the good ranges. The unsecured credit cards are given to the individual who has a good income value.

The credit card scores are noticed and the score ranges should not decrease for this card. If the credit card balance is settled on or before the due date then CIBIL score ranges will be in increase rate. The credit card usage should be below 30% to gain the CIBIL score and the credit card should be used effectively again and again. There is another type of credit card which is explained below.

SECURED CREDIT CARD 

Secured credit card is a next type of credit card; it is being useful to the individual who is rejected or not applicable for the lender who gives loan amount to the individual. A secured credit card is similar to the unsecured credit card. It has security to be provided for the bank or the financial institution.

Security is given to get this secured credit card. The person who is not earning and new to hold a credit is not eligible to hold an unsecured credit card. Secured credit can be easily held by new credit holders.

APPLY FOR CREDIT CARD

More in demand for credit made an easy way for customers to apply for credit card. A credit card can be applied online or offline in both ways.

What is a good cibil score for the credit card?

(i) 300-900 is what consider being the range of CIBIL Score.

(ii) Good CIBIL score is said to be the range of 750-900.

(iii) While applying of loan the rejection is being faced from the range of 650-750.

ONLINE APPLICATION OF CREDIT CARD

If you are in the eligibility criteria of minimum cibil score for credit card then you can easily get a credit card, you need not go or visit the bank for credit purpose.

(a) Fill the application form of your chosen credit bank, fill the basic details.

(b) A representative will call you and guide you.

(c) A representative will also collect the documents from your doorstep.

OFFLINE APPLICATION OF CREDIT CARD

To get more information about credit card or not comfortable with online applying of credit card can go for an offline application which is visiting the bank. The representative guides the customer what type of credit card they need, help them to fill the credit card form, you also required to submit documents like ID proof, address proof, Aadhar card, etc. And 2 passport size photos also needed.

Credit card limit

Monitor the balance of your credit card. There is a limit for the borrowers to use the card. Maximum utilization of credit card is being considered as credit hunger. There is a limit ratio to determine credit utilization.

Try to keep credit utilization under 30%. Frequent purchases on credit basis will make your credit score low. By using 30% and lesser the 30% of credit card and repayment of credit balances will gain healthier score.

Usage of your credit card for the credit limit is being considered as a credit utilization ratio.

GET THE BEST CREDIT CARD DELAS WITH CREDIT HELP INDIA

A credit card is not only just plastic money, rewards, offers, deals, benefits, discounts, etc. are given by credit card. Choosing the best alternative is being tough. Credit Help India, a cibil score improvement agency, is being helpful to you get loans easily and best alternative is given by us.

(i) Compare the offers being provided

(ii) Check the eligibility to get a credit card

(iii) Electronic approval

INACTIVE CREDIT CARDS

Charges may be applied on inactive credit cards to show the creditors that the individual is using the card. For the inactive credit cards, charges will be applied when there is no activity for the last 6 months.

CREDIT CARD BALANCE TRANSFER

Credit card balance transfer is transferring the credit balances of one or more credit cards to one credit card with a lower interest rate or zero percent interest rate on a particular period of time. This balance transfer of loan amount helps to maintain the lesser interest rate or low-interest rate.

(i) By maintaining the credit values in one credit card.

(ii) Paying interest at a lower rate of interest.

Make sure to repay the debt amount before the introductory period will get over to lower or 0% interest rate.

Not able to pay the amount of debt or credit card amount which is being transferred before the time period will cause a certain percentage of interest to add on for a monthly payment.

TRY FOR UNSECURED CREDIT CARD 

After a year or so try applying on an unsecured credit card.

If your payment is regular and the credit card utilization is about 30% - 40% the help of credithelpindia.com will make you get an unsecured credit score.

Try to make good credit history for a year or so to make your credit unsecured with the help of our advisor by credithelpindia.com

This good credit history proves that you are not a credit hunger person and you can well maintain the finances well to your performance.

SHIFTING FROM SECURED TO UNSECURED 

After a year or so with the help and care of Credit Help India the individual may surely get an unsecured credit card.

After get shifted from the unsecured credit card from the secured credit card you can free the security which you have pledged to get the secured credit card to improve or built your credit value.

DON'T JUMP FOR FULL PAYMENT 

If you have the full amount in your hands don’t try to pay off and clear the installments. Advance payment and before paying installments will not gain credit score high as monthly installment payments.

ELIMINATE HIGH CREDIT CARD BALANCES

When you are having high credit card balances to pay off then your credit score will be a lesser value. CIBIL score plays a major role in getting credit amount. When an individual having a high credit score he/she has more possibilities to get a loan when they planning to buy a new car or home etc.

AUTHORIZED CREDIT CARD USER OF SOMEONE ELSE 

Someone with good credit history made you as a co-signer which makes you equally responsible for all the debt. So that will consider history as yours. Opening a secure credit card and reports as an unsecured card with credit limit to all three bureaus.

The good value credit card user can make help of the individual by allowing to hold their credit card as an authorized credit card of someone else. The original card holder maybe the individual’s wife/ husband, family members or any other relative.

This person should be very careful with that credit if the score value decreases the original and co-signed cardholder will face the low score value.

MULTIPLE CREDIT CARD SHOULD BE AVOIDED 

Before opening a new credit card, clear the old credit card balances. If the old credit card which has been cleared with a good score, maintain that old credit card. It is being helpful to get a loan. Keeping a good account as long as you can by not closing the credit card account will be a solid proof for repayment history.

At once trying to open many credit card will look like you are credit hungry person. Try avoiding by opening multiple credit cards. Opening new and new credit cards will not make your credit value up. Maintain one or two credit cards and pay off the bills month by month.

Always maintain this point in mind to keep the balance of credit card at a lower amount. The lower amount of credit balance can be easily solved by every month. Payoff the credit balance will build your score.

A CREDIT CARD SHOULD BE USED REGULARLY

For bureaus, it is negligible to calculate and consider a new individual for an unsecured loan and improve credit score. To get the good credit score make sure to pay the payment and repayments on time. Before the due date, it is main to consider that the individual pays off the interest amount on the correct time.

To build a healthy credit score it takes time, within a month or two the improvement in credit score cannot be possible. It takes about six to a year to build the credit score.

Always use the credit card for once in a month. Not using credit cards may not be healthy for credit score evaluation.

REPAY WITHIN DUE DATE

Use a credit card as much as you can repay within the period of billing. Don’t use your credit card for all the purchase and purpose. Repeatedly using a credit card will be having a huge amount to be paid, it will make you lose your chance of getting high CIBIL score. If the CIBIL score is at low-level chances to get a loan when required will be low.

MISTAKE MAYBE DID WHILE DATA ENTRY

The lender may make mistake while data entry. Always check the transaction and the amount is reduced or increased in your credit card transactions. Always being communicating with the bank will help you to know the transactions being made. Paying off month by month the due amount will help you to get the transactions which are wrongly entered.

Within 30 days the errors should be rectified. If there is any false data entry is being made in the credit transactions. The data should be cleared as soon as possible. 30 days will be the given period it should be cleared.

The false transaction data entry may lose your CIBIL score. CIBIL score is the report which is checked before proceeding of loan for the individual.

COMMUNICATE WITH YOUR BANK

Always keep connecting with your bank and check your credit card balances to be paid off. Communicating with the bank and the financial institution will help you to improve credit score, by their valid point to increase CIBIL score.

PAY-OFF DUE MONTH BY MONTH

Communicating with the bank and financial institutions, they will first advise you to pay off the balances of a credit card. The monthly payoff of dues will gain you to achieve good credit score. The regular payoff of due within the correct time period. Month by month payoff all your debt amount to be paid with the help of banker and financial institution advice.

If the payment of credit card amount is regular the bank and other financial institution will offer to get a loan at discount. They will give importance to get only the regular payment individuals. The trust on the individuals will make the bank and other financial institution to provide the personal loan and other loans when the individual is already paying the loan amount of car loan or another loan.

An unsecured money lender to the individuals reports their activities to the credit bureaus. The credit bureaus prepare the individuals credit score. The evaluation of them are not revealed, but the delay in payment of credit amount, a month or more late payments is being considered in this and it may affect your score drastically. Make sure to pay the payments on time and no delay payment will score a healthy credit score for application on unsecured credit score.

The calculation of this credit score value is about being considered by the bureaus about six to a year of consideration. Then only the calculation for credit build will be helpful.

WHY IT’S IMPORTANT TO MAINTAIN 30% LESSER USAGE OF CREDIT CARD?

Using credit card for all purchases will make your credit card lose from healthy cibil score value. Using your credit card for credit purchases about 30% and less than 30% of a credit card, and regular payoff the credit card balances will get you good CIBIL score.

So as a whole, if you explore your credit and financial advantages there are a lot of things that can help you make your life easy and better financially. Improve your credit score and other things for future benefits. Credit is a very wide concept with many concepts but these are the most important and main elements of credit. Credit can be understood in the simplest way by the following topics. Credit score also has a lot of importance when anything related to credit is in the picture, credit is safe and secured only if you have the capacity of repayments and entering into the right and perfect deals for yourself.

How to Build a Good Credit Score

 As for the above statement building the credit score will take time up to six to a year or so. Maintenance of the individual’s repayment and things make the credit history value for unsecured loan.

Through savings a/c apply for loan

Apply for the loan where you have already a past history of account on. By you’re a/c history the bank may sanction your loan

Getting a secured loan

You can also apply for the secured loan. If your credit history is poor or new to getting loan can apply for secured loan will be considered good.

Applying for the secured loan check of the terms and interest rate. Term deposit interest is a bit higher than the deposit rates given by banks.

FD offers you credit card

Banks like ICICI, Axis etc. offers credit cards while the user opens the FD account. It is a good way to score a higher credit score. Here the risk of the bank is being reduced by having security with them by the form of fixed deposit.  They promote limits on using the credit card which saves on fixed deposit if any delay in pay or no payment is being made by the user. The hold money will equalize the interest to be paid.

Maintain credit history

Once the credit card is opened the calculation on your card limit and usage of your card, maintenance of your card is being evaluated by the bureaus. Calculation of bureaus is not revealed but the evaluation of them speaks about giving unsecured loan/ credit to you or not in the future is being defined

With the help of credit builder can easily maintain and get high scores of credit report by the bureaus to decide on giving or sanctioning the loan or not is being considered.

It may take a year or six months to get good credit score. How well the individual maintains his/ her credit repayment considers being the scoring of good credit history. Your help and guidelines of Credit Help India may support you to attain good credit history.

LOAN

The loan is a borrowed sum of money at a given rate of interest to be paid back along with the interest amount as well. A number of loans is available in the market these days.

Getting a loan from community unions and others

Getting a loan of secured credit from a community bank or union banks or other non-profit organization.

Getting a loan of 500000 is being fully given to the secured card holder. But the amount is being deposited in a savings account. The bank provides 400000 of money to the cardholder or the individual by holding 100000 of amount form the savings account. The individual who borrowed the amount from a bank should repay the installments clearly by monthly payments.

If the individual forgets to pay the amount are not paying the amount the holdup money of 100000 is being used to pay the installments amount on behalf of the user.

Thereby the credit scores value of the individual gains only. By the help of secured credit score holdup money, the interest and installment amount are being paid regularly.

If the individual repays or pays off the installments regularly before the due date then it will score the value of credit score and the holdup money will be returned to the individual.

TYPES OF LOAN

1. Secured loans: Loan where the borrower keeps some security with the lender as collateral is a secured loan.

2.      Unsecured loans: Loans not secured against any asset or any personal belongings of the borrower are an unsecured loan. 

3.      Demand loans: These are short term loans which do not have a very specific day of paying back the money.

4.      Subsidized loan: A loan in which there is reduced interest or a benefit of subsidy is termed as a subsidized loan.

5.      Concessional loan: The loans that include lower interest or extension of the period of repayment or both is termed as a concessional loan.

ADVANTAGES OF LOAN

You get a lower rate of interest. Tax benefits and accounting advantages are very common. There is felicity after taking loans as per the convenience of the customer. In secured loans, the ownership remains with the borrower. You are confirmed to get some cash discount.  Purchase can be done with any liquidity issues. Loans provide instant capital for financial operations. Growth is bound to happen when loans are taken as there is wider scope.

LOAN PROVIDED BY CREDIT HELP INDIA

1.      Home Loan

2.      Personal Loan

3.      Car Loan

4.      Education Loan

5.      Loan against Gold 

6.      Loan against Property 

7.      Balance Transfer

8.      Loan against Security

Home Loan

What is a GOOD CIBIL SCORE FOR HOME LOAN

1. CIBIL is one of the highest and oldest credit bureaus in India; the others are Equifax, Experian and CRIF High Mark.

2. CIBIL Score is a 3 digit number extend between specified limits from 300 to 900. The more you score to achieve 900 the greater you get credit card approval process.  A good credit score is considered to be more than 750.

3. The minimum CIBIL Score for a home loan is about 700 and above. Above 700 to 900 is the creditworthiness of the individual without Hassel.

4. Having good CIBIL Score mean easily applicable for approval of getting lower interest rate, higher amount for the loan, a longer period allocation for repayment of loan and documentation being simple.

5. 80% of the Home loan for the Property can be achieved if having good CIBIL Score around 700-900.

IMPORTANCE OF CIBIL SCORE FOR HOME LOAN

(i) Before applying for home loan, try checking your credit score and avoiding for rejection of getting a loan.

(ii) To the bank or the debt provider, they first check about your creditworthiness. For a banker, their first thing to check before providing the loan is your CIBIL Score or credit score.

(iii) If you having a low credit score, the lender may reject your application for getting a loan.

(iv) If you having a good Credit score, the lender may check your creditworthiness of repayment of installments and ability to pay off income.

How to increase your cibil score quickly?

(i) Avoid late payment or miss any payment

(ii) Check your credit balance and reports on a daily basis

(iii) Wrong entry may include in credit in transactions met, within 30days wrong entry should remove from the transaction entry.

(iv) Avoid applying for more credit card or loans at the same time.

(v) Credit utilization must in between 30 percent to 40 percent. 30% and below of it will be good for good credit score.

(vi) Balance on secured and unsecured credit should keep.

USE OF CREDIT SCORE BY LENDERS

In earlier times, lenders questioning which may have more than one and check about their background for properties or other things for sanction of loan or credit to the individual. Now credit score is being useful for sanctioning the loan or not is being calculated. With the collected reports and database the willingness of the payee is being calculated and then the loan is given at what amount is decided.

(i) CIBIL has the data’s about the performance of the customer and their credit utilization and creditworthiness is being calculated. For the purpose of customers credit score.

(ii) Below 700 is your credit score then the chances are high on risk for the lender to provide the amount. Low credit score may cause you disapproval of loan.

(iii) If there is no CIBIL Score is fixed at the credit card, then you should say that your worthiness of credit score at least of 700 for applying of home loan.

APPLY FOR HOME LOAN

1. Before applying home loan check your eligibility.

2. Calculate the loan amount that you can pay without any delay or missing.

3. Calculate your installments for a home loan.

4. Get the best quotes of your requirement for the home loan.

5. Compare home loan interest with others and get the best for you.

6. Apply for the home loan by online or by direct application.

COMPARE AND PICK BEST HOME LOAN WITH CIBIL REPAIR AGENCY: CREDIT HELP INDIA

Credit Help India is being helpful with getting the best quotes and advice to get the best housing loans. By entering your place, the requirement of property details, at what amount the loan is being required, loan tenure and your income based loans are provided.

Based on your requirements best home loan being avail for you. We give you details about the home loan details and interest rate. You can choose as per your liking and get the best home loan for you.

Before applying for a home loan the home loan calculator is being availed, it gives the opportunity you can get to or the eligibility to get the loan.

All banks have different rules and norms. The first thing is you should select for the loan. Our Calculation of home loan eligibility criteria, repayment method, interest rate types, and helping you to get a high loan amount with low-interest rate.

HOME LOAN

A lump-sum amount is borrowed from bank or from other financial institution to buy a home or land or building a house. The interest rate is chosen among 2 types.

  1. Floating interest
  2. Fixed interest.

As per your chosen rate of interest monthly installments are calculated.

Getting home for own is the desire of all middle income and lower-income people. When your income increases, the rise in the desire of ownership of home is arising. The increasing rate of rent and expenses make people buy a house.

This makes the person get a home loan. Home loan is increasing the number in banks.

BENEFITS OF HOME LOAN

1. LOW RATE OF INTEREST: Own a home is a long-term desire, which make the individual to look for the interest rate and take home loan. How expensive your home is becomes your home loan payment longer.

2. DEDUCTION ON INTEREST PAID: There are 2 components for home loan payment EMI,

(I) Interest payment

(II) Principal repayment

Under section 24 of The Income-tax Act, 1961 the interest of EMI paid can be climbed of 200,000 about a year as deduction.

3. DEDUCTION ON REPAYMENT OF PRINCIPAL: Under section 80C of The Income Tax Act, 1961 the principal amount which is paid is allowed to be as a deduction.

4. APPRECIATION OF CAPITAL: Property rate is being increased by year after year. The capital is being appreciated and becomes the major investment reason on a property.

ADDITIONAL BENEFITS

  1. Flexible instrument
  2. Documentation without problems
  3. Online application
  4. An easy way of balance transfer
  5. Insurance on home loan

HOME LOAN INTEREST RATES 2018-2019:

Home Loan 2018-2019

Interest Rate

Processing Fee

Banks

8.70% onwards

Nil, Till Dec 2018

SBI

8.85% onwards

Up to 0.50% of the loan amount

HDFC Bank

9.00% onwards

Up to 1% of the loan amount

ICICI Bank

8.70% onwards

Up to 0.50% of the loan amount

LIC Housing Finance

9.00% onwards

Up to 0.50% of the loan amount

DHFL Housing Finance

8.80% onwards

Up to 0.50% of the loan amount

Axis Bank

8.90% onwards

Max. Rs. 10000

Kotak Bank

9.35% onwards

Up to 0.75% of the loan amount

Yes Bank

8.80% onwards

Maximum Rs. 5000

India bulls Housing Finance

9.00% onwards

Up to 1% of the loan amount

PNB Housing Finance

8.85% onwards

Up to 0.50% of the loan amount

IDBI Bank

8.80% onwards

Nil

Citi Bank

9.65% onwards

Up to 0.50% of the loan amount

Bank of Baroda

8.75% onwards

Up to 0.50% of the loan amount

Canara Bank

8.90% onwards

Max. Rs. 5000

IDFC Bank

8.60% onwards

Up to 0.50% of the loan amount

Dena Bank

8.80% onwards

Up to 0.13% of the loan amount

Syndicate Bank

8.65% onwards

Up to 0.50% of the loan amount

UCO Bank

8.70% onwards

Up to 0.25% of the loan amount

Karnataka Bank

8.70% onwards

Up to 0.40% of the loan amount

Allahabad Bank

ELIGIBILITY TO GET HOME LOAN:

From one lender to another the eligibility criteria may vary. There are few key points which are considered as basic requirements,

(a) Salaried person has 21 years - 60 years and the self-employed individual has 24 years – 64 years eligibility.

(b) Minimum age should be of 21 years at least.

(c) Income and employment history should be good and steady.

(d) Before money lending check CIBIL Score. Lenders will check whether you have eligibility to get a loan. The CIBIL Score should be good at above 750.

(e) Check your home loan eligibility of CIBIL Score.

TYPES OF HOME LOAN:

1. HOME PURCHASE LOANS: Buying a new home is applicable for this loan. You can get the best loan at the advice of Credit Help India.

2. PURCHASE OF LAND/ PLOT PURCHASE LOANS: Purchase of land loan and the home loan has a similar procedure and interest rate. Only the difference between land purchase loan and home purchase loan is, it’s just buying a vacant plot or land is being purchased.

3. CONSTRUCTION LOAN OF HOME: For the construction of a home in a vacant plot. It’s just that you should own a plot and ready for the construction.

4. IMPROVEMENT OF HOME LOAN: Renovate the home or repairing the home is what it is. It has the same interest rate of home loan and procedures.

5. CONVERSION HOME LOANS: You are already in a house and planning on buying a new one.

6. EXTENSION HOME LOAN: You feel that for the growing family you need space to live in with. Varied reason for increasing an increasing in hall space or including extra space for the already existing home.

LIST NEED FOR DOCUMENTATION FOR A HOME LOAN:

1. Loan Application Form should be completed.

2. Proof needed for identification,

  1. Driving license
  2. Ration card
  3. Passport
  4. PAN card
  5. Voter’s ID card
  6. Employee ID
  7. Bank passbook

3. Age Proof ID cards,

        i.            PAN card

      ii.            Aadhar card

    iii.            Birth certificate

     iv.            10th or 12th class mark sheet

       v.            Bank passbook

     vi.            Passport

   vii.            Driving license

4. Residential proof

  1. Bank passbook (or) Bank account statement
  2. Voter’s ID
  3. Aadhar card
  4. Ration card
  5. Passport
  6. Utility bill (telephone, electricity, water, gas) – less than 2 months old
  7. LIC policy/ receipt
  8. Letter from a recognized public authority verifying the customer’s residence address

5. Income Statement (Salaried and self-employment individual)

For salaried

  1. Form 16
  2. A certified letter from Employer
  3. Payslip (Last 2 months)
  4. Increment or Promotion letter
  5. IT returns (for 3 years)

Other than income proof, the individual has to enclose the investment proofs also

For Self-employment individual

  1. CA attested last 3 years income tax returns.
  2. CA attested balance sheet for 2yrs.
  3. Company introduction in short.
  4. Passport size photo.
  5. Registration certificate of the company.
  6. Certificate of deduction of the provision of tax, photograph.
  7. Investment proof
  8. Certificate of practice
  9. Tax payments in advance receipts.
  10. Property Documents

EDUCATION LOAN

Bright and successful future is upon education for a child. For higher education and the rising cost of fees and payment to Schools College and other educational institutions is a big deal for medium and low-level income person.

Now a day almost all banks and self-financed institution such as Indian banks and NBFC offers educational loans to the students in India to pursuing the interesting course like undergraduate, postgraduate, professional courses and medical courses or degrees.

Payable school or college fees other expenses which are covered by education loans are:

·         Books, uniform, equipment and instruments amount

·         If needed purchase for course completion likes computers or laptops

·         Exam fees, library, hostel, laboratory fees

·         A refundable deposit, caution deposit, building fund which is refundable and supported by receipts

·         Travel expenses like IV and Tours, project, thesis work, etc.

·         Studies abroad are being included.

BENEFITS OF EDUCATION LOAN

1.      Long-term investment on education loan is for secure future of your child.

2.      Study in abroad for graduation, post-graduation, professional courses, and medical courses or degrees.

3.      Co-signer is assigned to get a student loan.

4.      The female applicant of education loan gets a lower rate of interest or get some discount.

5.      The annual income of the family and the persuasion, of course, is the basic loan amount determinants.

6.      Below 4 Lakhs of educational loan doesn’t need security.

7.      The maximum amount of education loan is obtained by 10 lakhs to 15 lakhs for studying in India, for studying in abroad 20 lakhs is being achieved.

8.      Normal repayment period is 5 years to 7 years.  For a longer period of time, it is about 10 years to 15 years of payment.

COURSES COVERED IN EDUCATION LOAN

·         Professional courses like Engineering and Medicine

·         Full time or part time Management courses

·         ICWA, CS, CA, CFA, etc.

·         Courses conducted by XLRI. NIFT, NID, IIMs, IITs, IISc etc.

·         B.A/B.Com/M.A/M.Com/MCA/MCM etc.

·         SAP, ERP, GNIIT, Air Hostess Training programs etc.

·         Hotel management, hospitality management

·         Architecture, Agricultural studies, Fine arts, and design

·         Online certification

·         Distance learning

·         Diploma or Degree courses

·         Aircraft maintenance engineering

·         Nursing and Paramedical courses

EDUCATION LOAN ELIGIBILITY CRITERIA

·         Should be an Indian citizen

·         Age requirement to the application of banks

·         Should have confirmed admission

·         Recognized college/ Institution

·         Should have a good academic record and good credit history

·         Some banks have a national level entrance exam

For education loan up to 4 lakhs

Acceptance of parents is required.

For education loan above Rs.4 lakh and up to Rs7.5 lakh

Acceptance of parents together with third party guarantee is required.

For Education loan above Rs.7.5 lakh

Tangible collateral security of suitable value with Acceptance of parents.

DOCUMENTS REQUIRED FOR EDUCATION LOAN

·         Confirmation letter of admission received from the required college or institution

·         A receipt stating tuition fees and other charges provided by college or institution

·         From 10th to last qualifying exam mark sheet photocopies

·         Declaration about no other loan has got for other courses.

·         Identify proof:

1)      Loan Application Form should be completed.

2)      Proof needed for identification,

a.      Driving license

b.      Ration card

c.       Passport

d.      PAN card

e.      Voter’s ID card

f.        Employee ID

g.      Bank passbook

3)      Age Proof ID cards,

a.      PAN card

b.      Aadhar card

c.       Birth certificate

d.      10th or 12th class mark sheet

e.      Bank passbook

f.        Passport

g.      Driving license

4)      Residential proof

a.      Bank passbook (or) Bank account statement

b.      Voter’s ID

c.       Aadhar card

d.      Ration card

e.      Passport

f.        Utility bill (telephone, electricity, water, gas) – less than 2 months old

g.      LIC policy/ receipt

h.      A letter from the recognized public authority that verifies the residence address of the customer

5)      Income Statement (Salaried and self-employment individual)

For salaried

a.      Form 16

b.      A certified letter from Employer

c.       Payslip (Last 2 months)

d.      Increment or Promotion letter

e.      IT returns (for 3 years)

Other than income proof, the individual has to enclose the investment proofs also.

For Self-employment individual

a.      CA attested last 3yrs income tax returns.

b.      CA attested balance sheet for 2yrs.

c.       Company introduction in short.

d.      Passport size photo.

e.      Company’s Registration certificate.

f.        Certificate of deduction of the provision of tax, photograph.

g.      Investment proof

h.      Certificate of practice

i.        Tax payments in advance receipts.

6)      Property Documents

INTEREST RATE ON EDUCATION LOAN

The interest rate on education loan is varying from one bank to another bank. The amount of money borrowed, loan tenure is being important for the calculation of interest rate.

For women, 0.5 percent is less than the male interest rate.

The low rate of interest 11.25 percent will be applicable, usually, loan amount starts from 12 percent to 16 percent.

Repayable at a maximum of 15 years of the interest amount

BANKS PROVIDES EDUCATION LOAN AND RATE OF INTEREST

SBI Interest Rate:

SBI Bank Education Loan

Loan Amount/ Interest Rates

Up to Rs.4 lakhs

13.35% p.a.

Rs.4 lakhs - Rs.7.5 lakhs

13.60% p.a.

Above Rs.7.5 lakhs

11.60% p.a.

Max. Amount offered for Education loan

studies in India is up to Rs.10 lakhs

studies in Abroad is up to Rs.30 lakhs

Repayment Tenure of loan

5 to 7 years

 

Bank/NBFC

Loan Amount

Rate of Interest

Axis Bank

Below Rs. 4 Lakhs

15.20%

Loans between Rs. 4 Lakhs to Rs. 7.5 Lakhs

14.70%

Loans above Rs. 7.5 Lakhs

13.70%

Bank of Baroda

          On every types of and amounts

8.50% onwards

Canara Bank

For Vidhya Turant Loan Scheme

6.60%

Up to Rs. 4 Lakhs 

10.40%

Rs. 4 Lakhs to Rs. 7.50 Lakhs

10.40%

Loans above Rs. 7.50 lakhs

10.20%

IBA´s Loan for Vocational Education & Training

9.90%

HDFC Bank

Minimum APR

9.00%

Maximum APR

13.86%

Average APR

11.57%

Kotak Mahindra Bank

On all types of loans and amounts

11.5% to 24%

Punjab National Bank

PNB Kaushal

8.55% onwards

PNB Saraswati/Udaan

10.30% onwards

PNB Pratibha (on admission to IITs, IIMs, and XLRI Jamshedpur)

8.45% onwards

PNB Pratibha (on admission to other colleges)

8.55% onwards

PNB Honhaar

10.45%

State Bank of India

Up to Rs. 7.5 Lakhs

10.25%

Above Rs. 7.5 Lakhs

10.50%

Avanse

On all types of loans and amounts

10% to 16.50%

Credilla

On all types of loans and amounts

11.85% onwards

 

AXIS BANK

Axis Bank Education Loan

Loan Amount/ Interest Rates

Up to Rs.4 lakhs

16.95% p.a.

Rs.4 lakhs- Rs.7.5 lakhs

17.95% p.a.

Above Rs.7.5 lakhs

15.95% p.a.

Max. Amount offered

Studies in India up to Rs.10 lakhs

Studies in Abroad up to Rs.20 lakhs

Repayment Tenure

up to 7 years

 

HDFC BANK

HDFC Bank Education Loan

Loan Amount/ Interest Rates

Up to Rs.4 lakhs

12.00% p.a.

Rs.4 lakhs- Rs.7.5 lakhs

13.00% p.a.

Above Rs.7.5 lakhs

12.50% p.a.

Max. Amount to be offered

Up to Rs.10 lakhs for studies in India

 

Repayment Tenure

Up to 15 years

 

PNB BANK

PNB Bank Education Loan

Loan Amount/ Interest Rates

4 to 10 lakhs

Interests calculated on an individual basis

Max. Amount offered

Studies in India up to Rs.10 lakhs

Repayment Tenure

Up to 15 years

 

AVANSE BANK

Avanse Education Loan

Loan Amount/ Interest Rates

Based on course being pursued and the accompanying cost calculated individually

Max. Amount offered

Minimum- Rs.50,000 to the Maximum requirement

Repayment Tenure

1 to 10 years

Getting an education loan:

Bright and successful future is upon education for a child. For higher education and the rising cost of fees and payment to Schools College and other educational institutions is a big deal for medium and low-level income person. Now a day almost all banks and self-financed institution such as Indian banks and NBFC offers educational loans to the students in India to pursuing the interesting course like undergraduate, postgraduate, professional courses and medical courses or degrees.

 Payable school or college fees other expenses which are covered by education loans are:

·         Books, uniform, equipment and instruments amount

·         If needed purchase for course completion likes computers or laptops

·         Exam fees, library, hostel, laboratory fees

·         A refundable deposit, caution deposit, building fund which is refundable and supported by receipts

·         Travel expenses like IV and Tours, project, thesis work, etc.

·         Studies abroad are being included.

·         Long-term investment on education loan is for secure future of your child.

·         Study in abroad for graduation, post-graduation, professional courses, and medical courses or degrees.

·         Co-signer is assigned to get a student loan.

·         The female applicant of education loan gets a lower rate of interest or get some discount.

·         The annual income of the family and the persuasion, of course, is the basic loan amount determinants.

·         Below 4 Lakhs of educational loan doesn’t need security.

·         The maximum amount of education loan is obtained by 10 lakhs to 15 lakhs for studying in India, for studying in abroad 20 lakhs is being achieved.

·         For women, 0.5 percent is less than the male interest rate.

·         The low rate of interest 11.25 percent will be applicable, usually, loan amount starts from 12 percent to 16 percent.

·         Normal repayment period is 5 years to 7 years.  For a longer period of time, it is about 10 years to 15 years of payment.

With cibil score repair agency like Credit Help India can help you to get education loan easily with good interest rate and a number of years to be paid off the loans monthly instalment.

Car Loan

A loan is a kind of advance which is made against or without security. It is generally given for a fixed period at an agreed rate of interest. The individual has to pay interest on the total amount advanced. There are various types of loans which are granted for different types of needs and for different periods such as short term loans, medium and long term loans, bridge loans, composite loans, and consumer loans.

In India, banks have become stringent while advancing any loan to an individual. The loan must be granted to a borrower in whom banks may have every confidence as an ability to use the loan profitably alone will not be sufficient to ensure repayment, if the borrower is not having the quality of honesty and integrity. An individual stay, past profits, prudent utilization of the previous borrowing is the aspect which is necessary to be examined by banks.

Car loans are generally designed for an individual who wishes to buy a car but due to lack in finance are not able to buy it. It can also be known as Vehicle loan. Car loans fall under the category of personal loans that is if an individual has taken any personal loan he can utilize that loan in purchasing a car. The rate of interest on car loans varies from bank to bank. Being a long term loan, the repayment of such loans varies between 36 to 60 months.

Factors to be kept in mind while taking a car loan

While applying for a loan an individual has to keep in mind the following factors such as:

1. Amount of loan: While applying for a loan the individual should first determine the amount of loan needed to buy a car.

2. Documentation: While applying for a car loan an individual has to furnish various documents such as PAN card, passport, address proof, Voter ID, income tax return etc.

3. Interest rate: Interest on a car loan is generally fixed. An individual has to repay the principal amount and EMI’s regularly without defaulting or delaying it. The rate of interest on a new car is more as compared to the rate of interest in the old car.

4. Assess all cost: Before applying for a loan, the individual must consider the various fees which are being charged by the lender. The lender charges various charges like processing fees at the time of application processing, foreclosure charges on the outstanding loan amount.

5. Hypothecation: When a loan is advanced to a borrower the car is being hypothecated with the lender. If a borrower is unable to pay the EMI’s, Hypothecation gives the right to a lender to seize the asset. It forms a part of a registration paper. When an individual has paid all EMI’s then he must make sure that he has changed the owner’s name in the documents.

6. Repayment: The lenders offer a repayment period generally between 1 and 7 years. The borrower can repay the outstanding amount according to their own convenience.

Thus with the rapid transformation in the lifestyle of individuals in India, the demand for car loans has risen and applied for a car loan has become easier as it requires less documentation as compared to other loans.

BALANCE TRANSFER       

Balance transfer means the transfer of overdue balance or debt either in the form of credit or money from one account to another account. Balance transfer helps an individual to take advantage of low-interest rate which is being offered. This facility is generally provided by the banks giving time to an individual so that he can pay off his debt on time and also make sure that he is not held down by the high-interest rates and high penalties in case of any delay in payments. The balance transfer is prevalent in India market in order to encourage more borrowers in practicing this facility.

BENEFITS OF BALANCE TRANSFER:

Balance transfer helps an individual to avail various benefits which are being provided by bank such as:

1. Helps to consolidate payment: An individual can combine multiple credit cards into an integrated balance transfer card. When he consolidates his debt onto one card then he can focus on his single payment without having much hassle.

2. Low-interest rates: The interest rate on a new credit card is effectively less as compared to the old card. It facilitates the savings on the surplus interest that he has to pay to the bank for accrued debts. It helps to save high interest rates. The major benefit of doing a balance transfer is the potential to save money on interest.

3. No financial burden: Transferring balance from one credit card to another, an individual gets sufficient time span to pay interest-free debt. He can clear all his outstanding debt according to his own convenience without having much financial burden on him.

LIMITATIONS OF THE BALANCE TRANSFER

Besides various benefits provided by transfer balance policy there are some limitations with it:

1. Credit score: Maintaining a healthy credit score is very important. If an individual does not have a good credit score he can not avail the advantage of balance transfer at a low-interest rate. Most of the financial institution has mandated the requirement of a higher credit score ranging from 750 to 900 in order to get low-interest rates.

2. Excessive charges: Balance transfer involves excessive charges which are totally unavoidable. The credit service provider can exercise charges at the time of transfer balance like annual maintenance charges, transfer expenses at the time of shifting the balance from existing card to a new one.

3. Negative impact on credit ratings: Sometimes balance transfer on credit cards has a negative impact on credit rating. If an individual has the negative credit ratings in his credit report then in future it can disrupt the chances of opening a new credit card account or avail quick approval of loans.

4. Add debt: When an individual combines his multiple credit cards into an integrated balance transfer card then it adds to an increase in debt where sometimes an individual face difficulty in repaying the outstanding amount on it.

Therefore, the balance transfer can be an effective tool which can help an individual to pay off his debt according to his own convenience and also at a low-interest rate without having much financial burden.

Loan against Gold

A sum of money borrowed, which is needed to be paid back with due interest is termed as a loan. Various kinds of loans are provided these days. Most common ones are a loan against gold, property, for education or any given thing which has a good value for money. Loans are normally given after a lot of analysis of a person’s capabilities, his dedication towards paying the sum back, his documents, credit score etc. It’s a very general concept nowadays.

Loan against gold is a very crucial aspect these days as there is an increasing demand for gold and the hike in its prices as well. It means that you are ready to pledge or keep your gold articles, ornaments, coins etc. with a person or an institution and he or she provides you cash for the given articles for a given rate of interest which is decided before handed by the lender. The gold is held as a default. The credit score of a person is closely analysed before granting them any kinds of loan. Generally, loan against gold has a lower rate of interest as compared to loans. Gold loans are secured loans. In such kind of loans, gold is kept as collateral security and loan is given against them. If the customer fails to pay the sum of money the lender has the rights to sell the security-based gold in order to settle the loan.

Gold loans can be acquired from the public as well as private banks or non-banking institutions well that provide these facilities. You need certain certified documents, id proof and your gold articles to be deposited in order to get this loan. They assess your credit score which should be a minimum of 750 for the best rate of interest and granting speed. Gold loan lenders generally do not check your cibil scores as they have your gold as a security. But with the help of your gold loans you can increase your credit security score if you succeed in paying back the amount in the given time with the due amount of interest as well.

Gold loans are easier to acquire being secured loans and some security kept with the lender. There are fewer chances of frauds and forgery and more chances of cibil score increase or improve credit score for future granting and receiving of loans.

Loan against security

A cibil score is basically the analysis of an individual’s financial commitments. If the credit card value is outstanding it is considered that payment patterns are analysed. This also helps the bank to know and find out if there has been a default on the payments ever. High creditworthiness is obtained from a high credit score. If your credit score is high, banks feel comfortable to trust you with high loans, they render loans at a low-interest rate as there is a risk of default with a low credit score.

If you are scoring 750 and above as a credit score bank consider you to be a credit healthy candidate. A good credit score ranges from 750-900. If the score is below 750 the bank stay in a situation of risk to provide you any loan or credit card. Customers having a score of 750 and above is approved for giving loans by banks. You can also check credit score online. For your credit health and to understand online analysis, there are few reputed cibil score improvement agencies like Credit Help India.

There are many benefits of credit rating. Banks provide you with a lot of benefits if you are having a good credit score that is 750 and more than that. In such cases you are helped with low-interest rate, higher loan amount, your application of loans are approved faster than others and you are also offered with higher repayment periods of that loans.

Eradicate the balances: Initially eliminated credit card balance can spend as much as you can repay within billing date. The meaning of the balance refers to those unpaid dues on loan. Unpaid dues on credit card can impact on your credit score or we can say that unpaid dues can lower your credit score. So for maintaining healthy cibil score you can go to the bank and can negotiate to close your loan account by paying off all your pending dues. It’s better to have max to max 2 credit cards which make it easier to keep a track of repayment.

Dispute inaccuracies: Dispute errors should be reviewed immediately after your report or for your any type of disagreement in any particular transaction. Since vendor mistakes can happen, but do you know that the lenders can also make errors at the time of data entry. It is recommended for all financial institutions to act on disputes within the 30 days. And then once it is resolved it will show improvement in your score, and moreover, you should never apply any type of new credit without resolving old issues.

Keep the oldest credit card account: Credit cards that are not of use anymore should be closed as you do not know the impact it has on your CIBIL reports and scores. A good credit card account is managed by a person it acts as a boon. Maintain a good account by not closing, it when you are having a solid repayment history.

Pay EMIs on time: Before planning to make any type of big purchase like a car or home, you have to ensure that you will be able to repay your credit card bills, not EMIs. Instead pay one CIBIL on time, to look into the gauging of your credit rate. Even, huge savings your poor credit score can demolish your dream. If you are paying your payments on time then that will keep your creditworthiness intact.

Keep checking your credit utilization ratio: You don’t have to need to use your credit time for all the time. It would be better to keep your credit card ratio up to 30% or less than that. As because due to this there will be a positive impact for CIBIL score keeping the monthly balance low, which will in-turn result into the low score.

Increase your credit limit: If your bank raises your credit limit that does not mean that you can spend all your credit limit beyond means. These hike numbers act as a plus point if manage your credit wisely. If you are having a lot of credit available then this will have a positive impact on your credit score. Thus you should ensure that you should not spend beyond the repayment capacity.

Get a secured card: Getting a secured credit card helps you, as it offers you a fixed deposit of nominal amount. When you are repaying your balance on time you get the score shot in the arm.

3 smart step to CIBIL score increase-

(a) High CIBIL indicates disciplined spending

(b) Which also promotes repaying habits

(c) Gives you a higher credit limit with better terms and conditions

Ensure all your Credit Reports Are Accurate

There are many credit reports available under the Fair Credit Reporting Act. Such as,

a)      Excellent Credit: 750+

b)      Good Credit: 700-749

c)      Fair Credit: 650-699

d)      Poor credit: 600-649

e)      Bad credit: below 600

HOW TO INCREASE CIBIL SCORE FAST

Create a Plan on how to improve your cibil scoreYou should aim to keep card balance lower along with any other type of revolving credit. You may first go for paying down all your debts instead of moving it around and you don’t have to need to close any unused credit cards. It is very important to note that you do not open any new credit account as new credit or new loan agreements.

Fix Your Late PaymentsChoose an account which will not make your late payment disappear.  You can go for due date alerts for credit cards and loans, so you can able to manage the proper organization of your due payments. Be sure to check due dates to the pay check schedule. You should consult with the lenders if the late submission can be managed. It can be due to various reasons that you are short with your credits, it may be that you are out for vacations or anything else. Credit Card Company is forgiving if you are having good time payments and moreover, credit bureaus will not consider late payment until it is least 30 days past the intended due date.

Make a habit to clear up Collection Accounts if any: Instead of repeatedly transferring to new accounts go for the pay off debt. Reporting about the debt to the major credit exchanges to full payment.

Get a Credit CardNo card score must be hanging due to account mix factor. You need to be sure to make your payments on time. Any new credit card account with a bad payment history will affect the score if there is a good score for payment there will be a greater chance of having another credit card.

Open a Secured Credit Card: A secured credit card helps you to identify the security of the account through which you are making deposits. With the help of a secured card even with bad credit helps in adding up a new account, which in-turn will help to show creditors on a solid background.

Limit Credit Applications: A heavy and hard inquiry can leave an impact on the credit score for a full year. Although credit score will start increasing instantly after applying the hit of 3 to 5 rounds. A heavy inquiry can help a person to ensure that the lender who made this inquiry to see what it was pertaining to. If the inquiry is not accurate then it should be treated as fraud or identity theft. A certain amount of cibil score is required for issuing or getting a credit card. Credits cards cannot be treated as a source of convenient luxury, as nowadays the use of getting them is diversified. As they have been one important deciding factors of a healthy cibil scoreMinimum CIBIL Score for Credit Card is that the CIBIL score should be in the range of 300-900. Good cibil may fall in the range of 700 upward banks accept those who have CIBIL score range of 700-750.

When you are not a defaulter and still name on defaulter list which makes the credit score low get the CIBIL report correct. To know, how to clear cibil score to continue reading:

  • Errors on CIBIL report need to be corrected: Bankers update CIBIL report every month chance of making an error during this process like wrong status wrong ownership type
  • Errors for personal & basic Information: Error occurs during recording the personal basic information just like Name, Address, and PIN etc.
  • Error that not belongs to you: Something which not belongs to you should be removed take seriously as it may have a problem while in the greater future.
  • Correct Error of Cibil Report:
  1. Fill an online submission form for getting a dispute Id.
  2. Authorization from the lender for having Error on the CIBIL update
  3. The process takes 30 days of processing
  • Deleting a name from CIBIL defaulter list:

(i) Contact CIBIL submit dispute resolve form then get report correctly

(ii) Consult the concerned bank CIBIL ask the required information if something wrong fixes CIBIL report.

(iii) Submit the settlement letter to CIBIL the case get settled

Cibil loan or credit card loan is needed when a credit card is used to borrow

  • Unsecured Credit Card Loan: The borrower need not use any type of property as a security against the loan bad credit score do not get this type of loans.
  • A Credit Card Loan is Expensive: Where grace period is over interest rates on credit card debts are the highest on market loans.

A cibil score is a number that represents one’s creditworthiness, the number plays a major role when banks other financial institutions about financial behaviors. There is an eligibility criterion for loan approval in terms of cibil score.

1. Parameters to make loans are approved

2. Watch credit card score make payments on a monthly basis don’t let it spill over

3. Eliminate nuisance balance clear off the credit card with small balance dues

4. Have diligently paid off a debt leave the record in your credit report which makes you ideal customers

5. Pay bills on time

6. Never risk in missing Payment and paying less than normally do.

7. Spend smartly on your credit card clear all the outstanding bills.

8. Don’t be a loan guarantor borrower fails to make the payment and defaults. 

LOAN AGAINST PROPERTY

A loan is a debt where credit is given by a lender to a borrower for a definite purpose and for a predetermined period. A borrower has to repay the amount of loan which is advanced by the lender on time in order to how to clear cibil score. It is very essential to repay the loan amount without delaying or defaulting it as regular and timely repayment behaviour contributes to the good credit score. If an individual does not have the healthy cibil score then banks feel risky to lend the money. Before advancing a loan bank examine all the aspects of an individual like his stay in the market, his past five year profits, and how an individual makes the optimum utilization of the previous borrowing. Until and unless banks have confidence in the character of a borrower in terms of his honesty and integrity then only loans will be granted.

Loan against property is a loan which is given against a property that an individual owns and offer such property as a security to the lender. It gives a right to a lender to seize the asset if a borrower is not able to pay the EMI’s. These types of loans are provided to meet one’s personal or financial requirements. Under this, the lender first assesses the market value of the property and according to it, the loan is given at a certain percentage on the calculated market current value of the property. This loan is generally provided for a period ranging between 5 to 15 years. While applying for a loan against property an individual has to file some documents such as KYC documents and their past income statements.

BENEFITS OF LOAN AGAINST PROPERTY

Loans against property provide numerous benefits to an individual such as:

Low interest rates: Being a secured loan, these loans carry low-interest rates as compared to unsecured loans. If a borrower is having a favorable credit score then banks can easily provide loan against the property at low interest rate.

Flexible repayment period: Loan against property has a flexible repayment period ranging between 10 to 15 years. With this, an individual has a flexible period to repay the loans amount easily and without having a financial burden on them.

Quick approval process: Loan against property has a quick approval process. There is less documentation required and also the risk factor is less as compared to unsecured loans where the risk factor is more due to the absence of collateral.

Continuous ownership: Under loan against property, the ownership of an individual is retained. If an individual is unable to repay EMI’s due to any reason then he has an option to sell the property and settle the loan amount.

No restriction on end use: Loan against property can be used for various purposes like for expansion and diversification of business, consolidating debt, meeting medical expenses etc.

Therefore loan against property is the best way to raise the funds by keeping the collateral with the lender due to which the risk factor is reduced as compared to unsecured loans.

CIBIL SCORE

CIBIL score is a three digit numeric value which determines the approval of the loan. The ranges for CIBIL score is from 300-900. If the score is nearer to 900 then approval for the loan is easy and it is called a good CIBIL score. If the score value is lesser than 750, then approval for the loan is difficult to process or it will cause to reject the loan process.

BAD CREDIT SCORE

A bad credit score is calculated according to the process done by the delay in payments, length of the history, too many accounts opened

HOW TO INCREASE CIBIL SCORE FROM 600 TO 750

(i) Someone with good credit history made you as a co-signer which makes you equally responsible for all the debt.

(ii) Opening a secure credit card and reports as an unsecured card with a credit limit.

(iii) Instead of all unsecured card with card limit, open a secure credit card and reports.

NO CREDIT PLEASE DON'T ASK

(i) Getting the secured credit card to improve the individual's credit but not able to pay the security deposit.

(ii) Fresh Start Loans are like small personal loans for emergency, individual make monthly payment with interest rate over a period of six month to two years.

(iii) It is also like normal credits, but the main difference is to make use of the credit amount, to reduce the risk of the lender, the loan amount is being deposited in a savings account.

(iv) By payoff, the loan amount then only the credit amount which is saved in the savings account is being made helpful.

(v) To build credit by using the secured personal loan or unsecured personal loan.

(vi) Secured personal loans require savings or property to give the required loan amount.

(vii) An unsecured personal loan doesn’t require any savings or property. But have to pay higher rates of interest; if not then getting qualified for the credit amount will be a dream only.

(viii) It is hard to find a credit builder loans, by anyway the individual can try for

o   Community banks

o   Credit unions

o   Non-profit organization

(ix) Firstly have a clear picture about getting the loan for the individual or simply getting the credit score only.

(x) Getting Credit building loan from National banks might not be possible, secured personal loans may be available.

(xi) For financial product the individual is trying to get the credit score value, can be in touch with local banks.

(xii) After the repayment of the loan amount, the individual can get the credit amount fully.

(xiii) If the individual made the repayment amount month by month then the individual can get the help of refund of 50 percent of total interest.

HOW MUCH TIME IT TAKES TO UPDATE CIBIL REPORT? 

The creditworthiness of an individual is represented by CIBIL score. A credit score is a three-digit representation of the data in the credit report typically ranging between 300 and 900. A healthy credit score in India to avail loan is between 750 and 900.  The main motive of CIBIL score is to assist banks to make an informed decision that is the person worthy to access a loan. The credit score of an individual is taken into account by all the banks to evaluate potential hazard exposed by disposal money. The credit score system is originally designed to provide all financial institutions with financial profiles of individuals who wished to borrow money.

To reduce the chances of rectification, it is crucial to check your credit report after every six months. This will help you to acquire the default or delayed reporting by banks that might drag down your cibil score. It has become very important to have a credit score updated and accurate because of the importance of data that it carries today. A credit score can be lowered if there is any negative repayment behavior like an individual making late payments or some outstanding balance. If the incorrect credit report is sent to the credit bureau it can pull down the credit score of an individual drastically which may cause damage in the long run. An individual should make sure that there are no discrepancies in the credit report. Each lender has their own reporting schedule so different accounts are maintained at different times. Usually, a lender provides information to the credit bureau after every 30 days but small lenders provide information on a quarterly basis. Like if an individual has raised a dispute which has been resolved in his favor then, in that case, it takes up 90 days for the revised data to reflect in his credit report. Hence it is necessary that an individual should check his report after 45 days so that his CIBIL scores are not lowered. In case the information in the credit report remained incorrect or the credit bureau does not upgrade the information then the individual should contact the lender to check whether it has furnished the bureau with the relevant information.

Therefore maintaining a high score is not only of immense significance but an individual should also ensure error-free data flow of credit report. The CIBIL score of an individual change according to the regularity of his repayments and the efficiency of the lender in transmitting that information to the credit bureaus. The Cibil report has become significant to one’s financial success. To help lenders to get loan and make them understand the creditworthiness of an individual are the benefits of credit rating.


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