Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

We have always talked about importance of having a good <a href="http://www.businessinsider.in/searchresult.cms?query=cibil+score">CIBIL score</a> and also how it can impact you. But how many of you know that a good <keyword id="2054234" type="UNKNOWN" weightage="20" keywordseo="CIBIL-Score">CIBIL score</keyword> means it should be 750 and above. 
 
Your CIBIL score is a measure of your <a href="http://www.businessinsider.in/searchresult.cms?query=credit+score">credit worthiness</a>. In other words, banks look at your CIBIL score to find out how you have handled your finances and whether you have behaved responsibly with the credit you have already availed of in the past. 
 
And if you are confused as to what makes your CIBIL score and impacts it, here are five things: 
 
Making timely payments 
One hack that can pump your CIBIL score is, make all your payments on time. This is applicable to all the credit you already have. This includes credit card outstandings and EMIs on loans. Also make sure you make other payments like insurance premiums on time. Although it does not fall under the credit bracket but even a single late payment on a home <a href="http://www.businessinsider.in/searchresult.cms?query=loans">loan</a> or an unpaid outstanding on your credit card will bring your CIBIL score tumbling down and be a blemish on your CIBIL report. 
 
Total credit availed 
Credit is something that is easily available today. You may have two or three credit cards that you are using simultaneously, along with a home or a vehicle loan. While you are particular about repaying EMIs, you think its okay to pile on the debt on your credit card, because you are far from your credit limit. If you are under any such impression, stop right there! The amount you owe to your lenders makes a large impact on your credit score. The closer you are to your credit limit, the worse its gets! Ideally you should not be using more than 30% of your total credit limit at any given time. 
 
For how long you have had credit ‘<keyword id="88181" type="UNKNOWN" weightage="20" keywordseo="credit-history">Credit history</keyword>’, as it is called in financial parlance, has a huge impact on your CIBIL score. If you have availed credit for a long time and have serviced it well, it certainly fetches you brownie points to increase your CIBIL score. A good credit history gives a prospective lender the confidence to lend to you. 
 
Too much credit in a short period of time 
If you apply for too many credit cards or loans in less time-frame, it sets the alarm bells ringing for any bank. As for your CIBIL score, it inches lower each time you apply for a new loan. Everytime you apply for a new credit card or loan, there is a ‘tough enquiry’ made on your CIBIL score and CIBIL report, bringing down the score a few notches lower each time. 
 
Good and bad debt 
Believe it or not, the kind of debt you avail, impacts your CIBIL score. While home, vehicle and student loans fall under the category of good <a href="http://www.businessinsider.in/searchresult.cms?query=debt">debt</a> because they are ‘secured’ in nature, ‘unsecured’ loans such as too many credit cards or personal loans spell trouble and bring your CIBIL score down. 
 
And you don’t have to worry about trivial issues that do not impact your CIBIL score. So, here are four things that really do not matter when it comes to CIBIL score. 
 
Age 
Your CIBIL report does carry your date of birth, but it does not play any role in the computation of your score. 
 
Address 
Once again, your address is recorded, merely as a part of your personal information, but does not have any impact on your CIBIL score. 
 
Your bank account and investments It is a good practice to keep your finances in order, but your <keyword id="25450" type="UNKNOWN" weightage="20" keywordseo="savings">savings</keyword> and investments do not feature as a part of your CIBIL score. A credit score, as the name explains, merely has to do with credit. 
 
The <keyword id="37018" type="UNKNOWN" weightage="20" keywordseo="interest-rate">interest rate</keyword> on loans 
It’s great if you have managed to get a loan at a lower rate, but even if you have availed of a loan at a higher rate of interest, you have nothing to worry, as long as you are servicing it on time. The rate of interest does not have any impact on your CIBIL score. 
 
(About the author: Rajiv Raj is the director and co-founder of<a href="http://www.creditvidya.com/">www.creditvidya.com</a>.) 
 
(Image: Thinkstock)

Here are 5 things that determine your CIBIL score

You have been told time and again that your <keyword id="2054234" type="UNKNOWN" weightage="20" keywordseo="CIBIL-Score">CIBIL score</keyword> should be above 750, if you want to access timely credit. But is all this hype about keeping CIBIL score high creating pressure on you, so much so that you are living in fear due to your CIBIL score? If yes, this is just what you need to read today. 
 You often hear that your loan application may get rejected if you fall short on your CIBIL score. As a result, you are so scared, that despite knowing that you must request for your CIBIL score at least once a year, you keep postponing it. You postpone it because you are scared to find out what you may see and what impact it may have on your plans to avail of <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">home loan</keyword> or any other credit. 
 
If you are nodding in agreement, here are few things to do to dispel your fears about your CIBIL score. 
 
Catch the bull by its horns 
 
Yes, you heard that right! You need to face your fears, by pulling out your CIBIL report. It is a fairly easy process and you will receive your report right away on your email after you have gone through the steps as mentioned on the CIBIL website and paid the fee required to access your report. Once that is done, you need to take a close look at your CIBIL score. Needless to say, if it is close to 900 mark you have little to worry about. If it is below the satisfactory level of 750, do not panic! You need to keep your head above your shoulders and find out exactly what has been pulling down your CIBIL score. 
 
Chalk out a plan 
 
If your CIBIL score is low because you have not made regular repayments on your credit card or some other loan, fix that immediately. Examine your finances and see where you can cut corners. If possible, try and liquidate some assets to repay your credit card debt first. Credit card debt is the most expensive form of debt that you are servicing and the rate of interest you are paying on it can be as high as 38-40%. Once you have repaid this debt, ensure that you do not repeat the mistake. 
 
Raise a dispute, if necessary 
 
If your CIBIL score is low even after you have maintained an impeccable repayment track record, check if there is something amiss in your CIBIL report. For instance, you may have closed a loan account from your end successfully, but the bank in question has not forwarded the relevant details to CIBIL. As a result, your CIBIL score is taking a beating for no fault of yours. In such cases, raise a dispute with CIBIL right away. CIBIL has an efficient grievance redressal mechanism that will resolve your issue after it has verified the relevant details with the lender in question. Once your dispute has been resolved, your score will be restored to normal within a short while. 
 
Relax! It’s just a number 
 
At the end of the day, your CIBIL score is a yardstick of your financial health. Of course, you must make an attempt to keep it high, but don’t revolve your life around it. Instead try and build up healthy financial habits. First things first, draw up a financial plan, save for emergencies, buy adequate insurance cover and invest your surplus. As far as credit is concerned, don’t reach for the moon right away. Start small with a credit card and make purchases that you can repay in a single billing cycle. 
 
Also inculcate other good credit habits such as keeping your utilization levels under 30%. If you follow these good financial habits, your 
CIBIL score will automatically get a boost. The moot point we are trying to make here is that your CIBIL score is a reflection of your financial habits, so work on getting them right first. 
 
(Rajiv Raj is the Director and Co-Founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>) 
 
(Image: ThinkStock)

Dispel all your fears due to CIBIL score. Here’s how

If you are planning to buy property now or in the near future, you know by now that maintaining a good <keyword id="2054234" type="UNKNOWN" weightage="20" keywordseo="CIBIL-Score">CIBIL score</keyword> is of utmost importance. With RBI having made CIBIL score assessment mandatory, most commercial banks in India are unlikely to consider people with a CIBIL score below 750 (out of 900) for a <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">home loan</keyword>. 
 
In case your CIBIL score is unsatisfactory, here are five things to do if things are not in your favor for a home loan application. 
 
Check for errors in the report 
 
Even after maintaining a good credit behavior you find that your CIBIL score is low, check your CIBIL report for errors. Sometimes discrepancies can appear on your CIBIL report for no fault of yours. There can be wrong information about an overdue loan that has been closed from your end, or a mix up of identity that may have occurred when the bank was passing on your credit information to CIBIL. If you spot such an error, you need to approach CIBIL with a request for the rectification of the same. This is called raising a “dispute request”. 
 
CIBIL will then route your request to the Dispute Resolution Department. This team will then analyze the error and resolve it with the help of the relevant bank, which has given the said information to CIBIL. Once the issue is resolved, the updated information is put up on your credit report in approximately a month’s time. After the dispute resolution process is complete, you can make your home loan application. 
 
Make an infallible repayment plan 
 
If there are no errors in your CIBIL report and your credit score is low due to bad payment history, you have no choice but to rectify it. Here’s what you can do to get your CIBIL score back in order. 
 
· Start by tackling the costliest debt. 
· If it is credit card debt which is your pain point, clear out all your dues at once. 
· If need be consider liquidating some other assets to pay off your credit card dues 
· Don’t cancel your credit card. Keep usage on hold for a while, and ensure that the utilization is under 20%. 
· Make bill payments on credit cards well before the due date. 
 
You may have to cut down on some expenses and get into strict financial discipline to achieve this goal, but unless you do it, there is no way you can improve your CIBIL score. 
 
Consider co-applying with your spouse or parent 
 
If you have to take a home loan and there is no choice, despite a poor credit score, you can consider co-applying with your spouse if she has a good credit score. You may also consider taking a loan with your father if he is still working and has an impeccable credit history. 
 
Put down a higher down payment 
 
If you have set your heart on a property and are not willing to let go of it no matter what, you can also consider putting a higher down payment of more than 20% of the purchase price. Your bank may be willing it lend if you show some credibility on that front but may still offer you a loan that may be a higher rate of interest than the prevailing rates in the markets. 
 
Approach a smaller bank 
 The largest commercial banks may not be willing to give you a home loan with a <keyword id="3255932" type="UNKNOWN" weightage="20" keywordseo="poor-CIBIL-score">poor CIBIL score</keyword>, but there are regional rural banks, co-operative banks or even family banks that may still be willing to give you a home loan with a poor CIBIL score. Of course the interest rates may be higher in such banks and the paperwork and application process may be much more elaborate, but you may just able to get a loan out of such banks, even with an unflattering CIBIL score. 
 
Stay on rent a little while longer 
 It’s great to dream about having your own home, but there are literally a million expenses you have to think about when you actually go about buying one. Taking on a <keyword id="6500467" type="ORGANIZATION" weightage="20" keywordseo="mortgage">mortgage</keyword> with a poor credit score will escalate your costs further. Considering all of this, it may make better sense for you to stay on rent for a little while longer and save up a little more for your own home. You can concentrate on improving your credit score in the meanwhile. 
 
A poor CIBIL score just before you apply for a mortgage can indeed be troublesome, but you need not lament about it because it is not something that will stick to you forever. All you have to do is get into a strict financial regimen and get your credit history back on track in order to get your CIBIL score in order before you make a fresh application for a mortgage. 
 
 
(Rajiv Raj is the Director and Co-Founder of www.creditvidya.com) 
 
(Image: ThinkStock)

Six hacks to tackle low CIBIL score before making a home loan application

Your <keyword id="2054234" type="UNKNOWN" weightage="20" keywordseo="CIBIL-Score">CIBIL score</keyword> is a measure of your financial health. A good <keyword id="2405124" type="UNKNOWN" weightage="20" keywordseo="Cibil-Report">CIBIL report</keyword> and CIBIL score of 750 and above can help you get easy access to <keyword id="6354680" type="ORGANIZATION" weightage="20" keywordseo="credit">credit</keyword>. But did you ever wonder how the CIBIL score is calculated, or what are the factors that may take it downhill? Here are six things that you must know about CIBIL. 
 
How is your CIBIL score calculated? 
First, you need to know the components of the CIBIL score and the weightage they carry. 
· The pattern you follow in paying off your credit card and loan EMIs has the highest weightage of 35% and thus is the most important factor impacting your CIBIL score. 
· Next comes the “credit utilisation” that carries a weightage of 30%. Credit utilisation ratio is arrived at by calculating the balance outstanding on your existing cards as a percentage of the total credit limit on all your cards. 
· The third factor carrying a weightage of 15% is the “length of credit” or how long have you been servicing debt. 
· The number of “hard inquiries” on your CIBIL report has a 10% weightage on your CIBIL score. Every time you apply for a new loan or a credit card, it gets registered in CIBIL as a hard inquiry and shaves off a few points from your CIBIL score. 
· Lastly bearing a 10% weightage on your CIBIL score is the “mix of credit”. A healthy mix of secured and unsecured credit, will have a positive bearing on your CIBIL score. 
 
Now that you know what goes into the calculation of your CIBIL score, here a few mistakes you need to avoid to keep your CIBIL score intact. 
 
Making late payments It doesn’t matter how many <keyword id="6387037" type="UNKNOWN" weightage="20" keywordseo="credit-cards">credit cards</keyword> you own, but if you develop a habit of not paying the total outstanding amount within the billing cycle, you may be heading towards a disaster. Ensure that you spend judiciously and make all credit card repayments on time. The same holds true for loans, missing even one repayment can bring your CIBIL score down substantially. 
 
Exceeding credit utilisation above 30% 
Having a higher limit on your credit card, doesn’t mean that you have to use it completely. This ways, you’ll be inviting an overwhelming debt trap, as a higher credit utilisation means that more points being knocked off your CIBIL score. Therefore, keep a conscious check to see that your credit utilisation remains under 30% at all times. 
 
Closing old credit cards Do not commit the mistake of closing a credit card that was given to you by your parents once you are proficient enough to own a bunch of cards yourself. The reason being that if the card carries you name, it means that CIBIL has been recording your <keyword id="2490224" type="UNKNOWN" weightage="20" keywordseo="repayment-history">repayment history</keyword> (assuming that your Mom or Dad have been footing the bill for the same). You simply need to ensure that you have cleared the balances as this will help you gain brownie points for maintaining good credit history. 
 
Appearing credit hungry 
We are often credit card issuers and money lender to avail easy credit, but one should try to escape as much as possible unless you are in dire need of it. Applying for too many credit cards or loans will make you appear credit hungry and a considerable number of enquiries on your CIBIL report will bring your CIBIL score down. 
 
Not having the right credit mix If you are thinking that you are better off not availing credit at all, you are wrong. In fact, it makes a lender wary because he can’t access your credit history to asses you. On the other hand, what adds on to your CIBIL score is having a good mix of credit such as a home loan, car loan, a <keyword id="180660" type="UNKNOWN" weightage="20" keywordseo="personal-loan">personal loan</keyword>, etc. along with a maximum of two or three credit cards. Remember, the crux of maintaining a good CIBIL score is to use credit responsibly. If you are aware of your spending habits and are making timely repayments, you have little to worry about! 
 
(Image: Thinkstock) 
 

(About the author: Rajiv Raj is the director and co-founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>)

6 things about CIBIL every young adult should know

The article provides a clear distinction between the <keyword id="2054234" type="General" weightage="20" keywordseo="CIBIL-score" source="Orion">CIBIL score</keyword> and the <keyword id="2405124" type="General" weightage="20" keywordseo="CIBIL-report" source="Orion">CIBIL report</keyword>, which are important factors in assessing an individual's creditworthiness in India. Here's a summary of the key differences. CIBIL Score: <ul><li>Nature of Information: A numerical representation (ranging from 300 to 900) that reflects your creditworthiness.</li><li>Usage by Lenders: Used by lenders or lending institutions for swift credit risk evaluation.</li><li>Purpose: Serves as a quick reference point for lenders to assess an applicant's credit risk.</li><li>Impact on Lending Decisions: The CIBIL Score affects interest rates, credit limits, and the approval or decline of loan applications and credit card requests.</li></ul> CIBIL Report: <ul><li>Nature of Information: A detailed record of your credit history and overall financial behavior.</li><li>Usage by Lenders: Offers comprehensive insights for a meticulous credit assessment.</li><li>Purpose: Provides a thorough background for lenders, enabling a meticulous evaluation of an applicant's creditworthiness and financial responsibility.</li><li>Impact on Lending Decisions: The CIBIL Report paints a detailed picture, offering insights into an individual's financial behavior and credit management skills, guiding lenders to make well-informed decisions when extending credit.</li></ul> <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:bottom;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Aspect </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:bottom;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CIBIL Score </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:bottom;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CIBIL Report </td></tr><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nature of Information </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">A numerical representation (300-900) </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">A detailed record of credit history and financial behavior </td></tr><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Usage by Lenders </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Used for quick credit risk assessment </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Offers comprehensive insights for meticulous credit assessment </td></tr><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Purpose </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quick reference point for lenders </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Provides a thorough background for lenders, enabling meticulous evaluation </td></tr><tr><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Impact on Lending Decisions </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Affects interest rates, credit limits, and approval/denial of loan and credit card applications </td><td style="border-left:solid #d9d9e3 0.75pt;border-right:solid #d9d9e3 0.75pt;border-bottom:solid #d9d9e3 0.75pt;border-top:solid #d9d9e3 0.75pt;vertical-align:middle;background-color:#f7f7f8;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Provides detailed insights into financial behavior and credit management skills, guiding informed lending decisions </td></tr></tbody><tbody></tbody></table>In summary, the CIBIL score is a concise numerical representation of creditworthiness, while the CIBIL report offers a comprehensive view of an individual's credit history and financial behavior. Both are essential for maintaining a healthy financial profile and making informed decisions about credit management. Regularly checking your CIBIL report can help identify errors, monitor credit behavior, and take steps to improve your credit score, ultimately enhancing your financial well-being.

CIBIL Score vs CIBIL Report - check out the differences

You know Valentine’s Day is approaching when all your “in-relationship” <keyword id="343" type="ENTERTAINMENT" weightage="40" keywordseo="Friends">friends</keyword> – friends with boyfriends, girlfriends, husbands, wives, secret girlfriends/boyfriends –have started making plans. Expensive plans! On the other hand, your single friends are complaining on how “single” they are. 
 
I am almost 30, and if I had a secret sauce that could tell you on how to get a valentine, I would have had a valentine this year. In fact, I would have had a date last year or a year before last. So, this post isn’t about how to get you a valentine; getting the opposite gender fall head over heels for you isn’t my area of expertise. However, my sincere attempt in this article is to convince you that staying on top of your finances does add an attractive dimension to your personality. 
 
Generally speaking, men place more importance on beauty, while women value social status and access to financial resources. When a girl is telling you that she values “personality” over the “looks”, what she really means is that she wants a guy with a fat bank account and a BMW in his garage. Yes, I know I am exaggerating a bit. Intelligence, sense of humor, and the ability to hold a good conversation are all very valuable traits to attract the fairer sex. But, one cannot rule out the importance of “financial security”. No one would want to marry a man who is not financially stable and cannot provide for his family. She dreams to raise a perfect family in that dream house of hers. 
 The course to financial security is not as complex as one thinks. The basic foundations are very simple – don’t spend more than you earn, always save a bit from your income, diversify your assets, take adequate <keyword id="35450" type="COMPANY" weightage="40" keywordseo="insurance">insurance</keyword> coverage, maintain good credit score etc. We understand some of these basics fairly clearly, but often overlook the importance of credit scores as credit scoring is a fairly recent phenomenon in India. The western world has been using credit scores to judge the financial credibility of an individual for last couple of decades - employers, landlords, banks, insurance companies, banks and financial institutions all use your credit scores to gauge your reliability. 
 So, what is a credit score? In India, Credit Scores are generally referred to as a <keyword id="2054234" type="UNKNOWN" weightage="100" keywordseo="CIBIL-Score">Cibil Score</keyword>. Cibil Score basically is a three digit number that predicts the likelihood of you defaulting on your loan obligations in the next 12-24 months. Higher the score, the more reliable you are! Banks and financial institution use your Cibil score before extending a loan to you. Even the employers are now asking for a 750+ Cibil score before extending employment. We are catching up with the western world and soon Cibil score will play an important role in determining your overall financial health. Thus, it is imperative to have and maintain a high Cibil score if you wish to provide the financial luxuries to your loved ones. 
 
The next obvious question is where do I get my Cibil score and what can I do to ensure that I am on top of my game? Getting your Cibil Score is fairly straightforward. You can read our article here on how to get your Cibil Score. To stay on top of your Cibil game, just follow three basic principles – 
· Get your Cibil Report and ensure your reports are absolutely error free 
· Never miss a payment on any of your loan or credit card obligations · Do not abuse your credit cards. Use a maximum of two credit cards and always pay before due date. Credit Cards come with the highest <keyword id="37018" type="UNKNOWN" weightage="40" keywordseo="interest-rate">interest rate</keyword> and when you carry balances on your cards, you not only pay high interests but also carry high utilization, which hurt your Cibil score. 
 
Remember it’s all about signaling when it comes to attracting the opposite sex. Make sure you are in a 800+ club yourself before you ask an 8 or a 9 out. As far as I am concerned, I am rocking my 820 tag and going to an anti-valentine party this year. 
 
Abhishek Agarwal is the Co-Founder and Director of <a href="http://www.creditvidya.com" onclick="window.open(this.href, '', 'resizable=no,status=no,location=no,toolbar=no,menubar=no,fullscreen=no,scrollbars=no,dependent=no'); return false;">www.creditvidya.com</a>

Men! Is Love On Your Mind? Fix Your Cibil Score
First

There is much more to your <keyword id="2405124" type="UNKNOWN" weightage="20" keywordseo="Cibil-Report">CIBIL report</keyword> apart from the score that it reflects. We might focus only on the <a href="http://www.businessinsider.in/searchresult.cms?query=cibil+score">CIBIL score</a> and know about its importance but a <a href="http://www.businessinsider.in/searchresult.cms?query=cibil+report">CIBIL report</a> has much more information. 
 
Here are some simple tips that can help you to get a better understanding of CIBIL report. 
 
CIBIL TransUnion Score: 
 
This is the first section of the report. An individual’s score ranges from 300-900 and lenders use this score to decide whether to offer a <a href="http://www.businessinsider.in/searchresult.cms?query=loans">loan</a> to the concerned person on not. Obviously, higher the score, higher are the chances of lenders accepting your application. This section also indicates the percentage of applicants that are sanctioned loans (in the last one year) based on the particular band that they fall under. 
 
Sometimes the score may not be between 300 and 900; do you what it can mean? 
 
NA or NH means that either you have no <keyword id="88181" type="UNKNOWN" weightage="20" keywordseo="credit-history">credit history</keyword> or are new to credit system. It also implies that you haven’t had any credit activity in the last few years or you have no credit exposure. This is not a bad indication. 
 
TIP: The information in this section indicates not only your <keyword id="2054234" type="UNKNOWN" weightage="20" keywordseo="CIBIL-Score">CIBIL score</keyword> but also the likelihood of your application being accepted. 
 
Personal / Contact/ Employment Information: 
 
This information is given under three separate heads. This is fairly simple; the personal information section contains information as provide by the lenders to CIBIL. Here the name, date of birth, PAN number, passport details, voter ID and driver license details are mentioned. Letter “e” mentioned against any detail indicates that the information has been provided by the lender. 
 
Contact information lists up to four addresses (permanent/temporary/office), email ID and phone numbers of the person as provided by the lenders. Employment information section has details about your employment and income at the time of applying for credit. So in case of two different loans this can be different. 
 
TIP: In this section, there is not much to understand except to make sure that the information mentioned is accurate. 
 
Account Information: 
 
This is by far the most important part of your Credit report. This contains information about all the open loans and credit cards that you have. Details about the lender, type of credit (home loan, auto loan, credit card etc), date when the account was opened, date of last payment, whether the account is held by an individual or jointly, amount of loan, amount of overdue (if any), total outstanding and a monthly payment record for last 36 months. A red band against the information indicates that the particular information is disputed. After a letter is received from the lender (clarifying about the situation), the information may or may not be removed depending on what the lender has to say. 
 
TIP: This section gives a brief summary of your open debt; go through it carefully to find out about any lapses that may have occurred on your or the lender’s part. Try and resolve the dispute ASAP. This section is useful for you also to get an accurate picture of your debt situation. 
 
Enquiries Information: 
 
Enquiry made by any financial institution into your credit score is listed under this head. Details such as name of financial institution, date, loan size and type of loan are mentioned here. This also impacts your final CIBIL Score. 
 
TIP: Only hard enquiries (those made by financial institutions) are mentioned here; enquiries made by the individual for his own score (soft enquiry) are not mentioned here. 
 
Meanwhile, below are few terms that can help you in understanding your credit report better. 
 
DPD: Days Past Due is an indicator of by how many days the payment is late in that month. More Than Standard (STD) or zero “000” is viewed negatively. 
 
CN: This is the Control Number mentioned at the top of the report and is useful if one wants to raise a dispute. 
 
Settlement Amount: If a loan or a credit card payment is disputed, the borrower and the lender may agree at an amount that will be paid by the borrower; the rest is written off by the lender. 
 
Written off Amount: When a loan amount is written off that means the lender has no hopes of recovering this amount from the borrower. Principal or total (principal plus interest) may be written off by the lender. 
 
(About the author: Rajiv Raj is the Director and Co-Founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>.) 
 
(Image: Thinkstock)

Here’s how you can read your CIBIL report like a pro

Many husbands often joke on how handing over a joint credit card to their wife is a recipe for disaster. But ditch this old school thought as many modern financial wizards will tell you that sharing your credit card with your spouse has it perks. 
 Yes it’s true! Applying for a joint credit card is beneficial as the credit activity will reflect on both your CIBIL reports and if you both have good financial habits, it will help your improve your <keyword id="2054234" type="UNKNOWN" weightage="20" keywordseo="CIBIL-Score">CIBIL score</keyword>. 
 
So, here are five ways in which you can gain with a joint credit card with your better half. 
 
Give your CIBIL score a boost As mentioned above, the activity on a joint credit card reflects on the <keyword id="2405124" type="UNKNOWN" weightage="20" keywordseo="Cibil-Report">CIBIL report</keyword> of both, you and your spouse. This can be both a good and a bad thing. If you are financial conscious and pay off your outstanding balances in full each month and also keep a hawk on the utilization rate of the total credit and keep it under 30%, your credit card can be used as great ammunition to garner a higher CIBIL score. But do bear in mind that it works the other way as well. If any of you proves to be a reckless spender and piles up credit card debt, it will end up wrecking both your CIBIL score as well as your marriage! 
 
Be more accountable 
It is obvious that reckless spending on your credit card can have grave effects on your CIBIL score. However if both you are using a joint credit card, it helps you keep a tab on your usage. If one of you has the tendency to go overboard, the other can assume responsibility of acting as a stopper. Don’t let money matters escalate into a fight, but help each other to become more financially responsible. 
 
Faster loan processing at lower rates 
A higher CIBIL score gives you greater power to negotiate with the bank and arrive at a better rate of interest. You may also get other perks such as the processing fee being waived off or better terms for servicing the loan. Most of all, your loan application may be processed really fast, as the due diligence for the bank is cut down drastically, as a high CIBIL score is a measure of your financial health and credit habits and gives the bank the immediate confidence to lend. 
 
Better money management 
If you are a financially conscientious couple and split all your expenses from groceries to entertainment, using your credit card is a great way to manage your expenses. When the credit card statement arrives, you will have a full record who has spent what and you can simply use your credit card to pay off your share. 
 
Earn more reward points 
In a bid to attract customers, credit card issuers have many attractive reward programs on offer. When both of you are using the same credit account through a joint card, you have a chance to garner reward points faster and reap the benefits of freebies. If you choose a good card you can either get a chance to earn cashbacks on almost every purchase or you can accumulate your reward points and redeem them for cheaper airline tickets or hotel stays, when you and your spouse are planning a vacation. 
 
Thus as you can see, a joint credit card can help you in a number of ways. Judicious use of your joint credit card wisely, will help you keep your CIBIL scores high and will open up doors easily, when you are in the need to access credit. 
 
Rajiv Raj is the Director and Co-Founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a> 
Image Courtesy: ThinkStock

Five reasons to apply for a joint credit card with your spouse

Whenever we see our house in a mess, we immediately take up activities like dusting and scrubbing until everything is spotless clean. But, unfortunately we don’t follow the same practice when it comes to our finances. 
 A situation which is financially messy, generally doesn’t grip us unless we are already neck deep in the mess! Now that’s one thing we must all steer clear of. Financial cleaning is one thing that has to be done proactively. Check out these six tips to clean up your finance-related mess and become a pro at managing <keyword id="6354840" type="PERSON" weightage="80" keywordseo="money">money</keyword>! 
 
1. Get a financial planner 
 Yes. Get an exclusive planner to organise your finances. <keyword id="25456" type="ORGANIZATION" weightage="80" keywordseo="financial-planning">Financial planning</keyword> definitely cannot share space with grocery lists and birthday reminders in your day-to-day planner. Your hard earned money deserves special attention. Use this planner specifically for chalking out the details of your finances. Premium payments, outgoing bills, EMI dates, FD records, etc can be tracked by jotting it down. Organise well and set up a process to track dates and documents. Free your mind space by writing everything in the planner. 
 
2. That important number! 
 Obviously, we are referring to the <keyword id="2054234" type="UNKNOWN" weightage="80" keywordseo="CIBIL-Score">CIBIL score</keyword>! Regularly checking this score should top your list. However, this activity easily gets ignored unless we need to submit the score for evaluation. At that time it’s too late to take any corrective action, if the score is not up to the mark. Checking your CIBIL score regularly gives you a fair idea about how institutions are going to perceive your financial health. In case, you have to apply for a loan in near future, problems which may arise due to the CIBIL score can be resolved in advance. An action plan to improve the score can be drawn and implemented if we track the score regularly. 
 
3. Clear your debts 
 
List all the debts and then calculate the interest you are currently paying on each one. Also, evaluate for how long you may have to continue to do so. This can be an eye opening activity! You would see that few debts are turning out far too expensive. Figure it out if you can clear any of them in near future and draw an action plan. Re-organising your debt can be a game changer! Pay off those debts and dodge the money black-hole called ‘interest payment’. 
 
4. The magical tool- Budget 
 
If you don’t have a budget yet, stop everything and do it now! Budgeting helps in limiting expenses. It’s a good idea to have monthly budgets and a review session every quarter. During reviews, check if the budget is helping you in saving and is in-sync with your short and long term financial plans. Riding on a good budget is essential to reach your financial goals. 
 
5. Is you retirement plan on autopilot? 
 
If you answer is ‘yes’ , congratulations! Because at least you have a retirement plan in place! In case you haven’t planned it yet, this is your red flag. Retirement planning is crucial because that’s when you will be reaping the benefits of all the years of hard work. Putting your retirement plan on autopilot is a good way of believing that you are on the right track. Well, hold on! Investments which are a part of the retirement plan need to be re-visited and re-evaluated periodically. How else will you know if the funds are going to be sufficient for a comfortable life? This is a long term plan and definitely calls for smart planning. 
 
6. Investing time can double your money! 
 
To invest smart and invest better, one should to be aware of various available options. Invest your time in educating yourself. Speak to experts, subscribe to good financial magazines, follow blogs and sign up for updates on finance websites. Knowledge about financial products can help you choose a better product while being aware of the risk involved. That way you will also feel more confident about your finances. As we know, knowledge is the key. Investing time in gaining knowledge will definitely fetch rich dividends. We understand it’s easy to get into a rut in vicious circle of life. But, do not let this block your thought process for coming up with new and creative ways to make more money. See what you are passionate about and find ways to monetise it. It is also important to have a Plan B ready. So have an open mind and develop new revenue streams. 
 
Financial management is all about smart planning and organising. 
 
(Rajiv Raj is the Director and Co-Founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>) 
 
(Image: Thinkstock)

How to do financial clean-up in 6 ways

There is nothing in the world that comes close to the joy of becoming parents for the very first time, and if you have been in the baby planning mode, it’s an even more joyous affair! But along with the joy you must be grounded enough to take care of the financial needs that will be on the rise even before the baby arrives. 
 
If you find yourself breaking into cold sweat after having gotten over the first bout of euphoria, thinking about how you are going to manage the finances once the baby arrives, here are some tips to help you get started on how be prepared financially before your bundle of joy sees the light of the earth. 
 
<keyword id="78369" type="UNKNOWN" weightage="100" keywordseo="maternity-leave">Maternity leave</keyword> 
First, check with the human resources department of your office about the maternity leave policy. Each employer has own terms and conditions and you should not be naïve enough to assume that you are eligible for a maternity leave with full pay for a stipulated period. Once you discover your pregnancy, it’s wise to go up and discuss it with your boss and the HR head and see the best situation that can be worked out for you. For instance, after a fully paid maternity leave of three to six months, you can consider working from home or opt for flexi timings as the situation permits. 
 
Calculate your expenses 
Once the baby comes you will have to think about the expenses of the baby such as cost of diapers, baby food, baby gear, clothes, toys and other paraphernalia. Talk to your friends who have become parents recently and try and gauge the monthly expenses of a baby. Now add it to your current monthly outgo and see how much you are stretching yourself by. Don’t be intimidated if the figure you arrive at seems too high, read on to find out more about how you can control your expenses. 
 
Lose the extras 
If you carefully scrutinise your monthly budget, you are likely to find that you have a lot of expenses that you can actually do without. For instance, you may have an expensive gym membership that you are not able to use too often or have subscribed to a lot of premium channels from your DTH provider. With your priorities changing in life, you can easily do without some of these luxuries and once you do indeed decide to cut back, you will be surprised to know how much you are richer by! Suddenly that amount of money that you calculated in the previous step does not seem impossible does it? 
 
Repay high cost debts Do you carry a large debt on a credit card or a paying a high rate of interest on a personal loan? If yes, now is the time to make a prepayment with the money you may have saved elsewhere. You may consider paying off your debt in full as it will help you save substantially on interest rates. You will also be able to strengthen your <keyword id="2054234" type="UNKNOWN" weightage="100" keywordseo="CIBIL-Score">Cibil score</keyword> in the process. However, do this after you have ensured that you have enough money saved to take care of your delivery costs. 
 
Consider making a little extra income 
Once the baby arrives, you are probably going to be taking a pay cut post the completion of your maternity leave. In order to make up for the downgrade, consider making a little extra income in the early days of your pregnancy from a talent that you may have. For instance, if you are great at fabric painting or make fancy jewellery pieces as a hobby, use the social media platform to find out if you can milk your hobby to make some extra cash. For instance, boutique owners are designers are always on the look for creative minds and you can always sell your stuff to them! What’s more the sense of achievement you will have will be great for you as well as your baby for you are bound to feel happy after your efforts pay off. 
 
If you follow these steps, you are likely to have a good grip over your finances before the baby arrives and can welcome him or her into the world with a heart full of joy and mind shorn off worries because you are confident that you will be able to take on the responsibilities of being a parent with elan! 
 
About the author: Rajiv Raj is the director and co-founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a> 
 
Image: Thinkstock

Five Tips To Be Financially Prepared Before The Arrival
Of Your First Born

It does feel good when you can swipe a card and buy almost anything you want. That is the power of <keyword id="6376566" type="UNKNOWN" weightage="100" keywordseo="Plastic-money">plastic money</keyword>. But if you are using your <keyword id="6368202" type="ORGANIZATION" weightage="100" keywordseo="Credit-card">credit card</keyword> for the same, you may soon find yourself in deep trouble because of an unmanageable debt pile. 
 
Credit cards are good only for short-term borrowing, but people often tend to forget that and land themselves in the soup. Here are three dangerous things about a credit card and you should know how you can save yourself from the pitfalls. 
 
1. They make spending money seem so easy 
Spend now, pay later – you think that’s the concept behind a credit card. But before you know it, your bill arrives and you see that the outstanding balance on your card is way more than what you can afford. But then, there is always the facility of paying the minimum amount due, you would argue. But do you know that is exactly how you are being invited to fall into a debt trap? The minimum amount is only 5% of the outstanding balance and may seem really convenient to pay. But in reality, all you are doing is servicing the interest while the outstanding principal amount remains the same. In fact, it keeps increasing if you continue to use your card for purchase. So in effect, your credit card bills are skyrocketing even if you are paying the minimum amount each month. Besides, the grace period of 25 days is nullified if you have an outstanding balance on your card. The only thing is that you are not charged any late fee if you pay the minimum amount due. 
 
How to protect yourself: In order to keep yourself from overspending on your card, use your debit card or cash to make all your regular purchases. Leave your credit card at home when you go out shopping or for a meal with your friends. In fact, you should keep the credit card for travel expenses or any large purchase only. 
 
2. Peer pressure can lead to financial disaster 
There are 19 million credit card holders in India today and this number is increasing every day as young Indians join the fast-growing workforce of the nation. And thanks to the growing disposable income, it has almost become a trend to use a credit card. But just because everyone else is using a credit card, it doesn’t mean you will have to do so. However, it is imperative to chalk out your financial goals and spend accordingly after you have saved enough. Have a credit card by all means, but make sure your credit limit is not too high and your credit utilisation does not exceed 30% of your credit limit. 
 
How to protect yourself: Do some experiments on your own and take note whether you are swiping your credit card more often under the influence of friends. If that is true, you need to break this habit. If you are a spender by nature, a high credit limit and peer pressure would be a recipe for financial disaster. 
 
3. A credit card can hurt your <keyword id="2054234" type="UNKNOWN" weightage="100" keywordseo="CIBIL-Score">CIBIL score</keyword> 
Making minimum payment on your card may seem like a convenient solution but over a few months, this very practice will wreak havoc as far as your CIBIL score is concerned. Approximately 25% of the credit score is determined by the amount of debt you carry. If your revolving credit (unpaid dues on credit card) is too high, it reduces your CIBIL score, thus hampering your chances of getting credit when you are in dire need of it. 
 
How to protect yourself: Do not indulge in unnecessary buying and keep the expenses on your credit card under check. Also, make it a habit to pay credit card bills in full each month. 
 
A credit card is immensely convenient, but only when you use it for the right reason – short-term borrowing. As a consumer, you need to align your financial priorities and limit the use of your credit card. If credit cards are a part of your monthly spending routine, it is time you revisit your financial goals right away. 
 
About the author: Rajiv Raj is the director and co-founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>.

Three Dangerous Aspects Of Credit Card And How You Can Protect Yourself

Are you feeling dejected because your <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">home loan</keyword> has been rejected? Well, in that case, fretting is not going to help you. When a <keyword id="1867271" type="UNKNOWN" weightage="20" keywordseo="home-loan-application">home loan application</keyword> says “no”, read it as “try again”. Let there be no place for dejection because your dream home is only an approval away. And how can that be obtained after being rejected? Read on to find out how can you obtain your dream home after your <keyword id="3018457" type="UNKNOWN" weightage="20" keywordseo="loan-lender">loan lender</keyword> says no. 
	 
	1) Dive deep into the details

	The letter issued by the lender conveying loan denial would most probably be a generic one. After reading that letter, don’t let the cloud of disappointment blur your thinking. Instead, try to understand the reason of rejection. If the letter does not specify the same, speak to the concerned officials to understand the exact reason for not granting the loan. This will help you when you reapply for loan. 
	 
	2) Reduce the <keyword id="857141" type="UNKNOWN" weightage="20" keywordseo="loan-amount">loan amount</keyword> After assessment, if the lender has found that the monthly income is not sufficient to support the loan amount, then the application may get rejected. In such cases, rework on the amount to be borrowed. By reducing the loan amount, the <keyword id="3018456" type="UNKNOWN" weightage="20" keywordseo="debt-servicing-ratio">debt servicing ratio</keyword> can be easily corrected and that will make the lender confident about your repayment ability. 

	3) Pay off existing debts

	If you have already availed multiple loans, the chances of your existing monthly payment obligations getting in the way of the home loan approval are high. This basically leads to a high debt income ratio. Which means that, the debt obligations and repayment commitments at that time are more in comparison to the income. Any more debt obligations will put the lender at risk. Paying off a couple of existing debts is the best alternative to rectify this situation. 
 

	4) Work on your <keyword id="2054234" type="UNKNOWN" weightage="20" keywordseo="CIBIL-Score">CIBIL score</keyword> 
	Lenders rely on the CIBIL score and CIBIL report to understand your credit history and credit behavior. Delay in repayments and defaults have a negative impact on the CIBIL score. A poor score is reason enough for rejection. In that case, obtain a copy of your CIBIL report, seek expert advice and work towards improving the CIBIL score. Ensure timely repayment of existing debts and close open issues, if any. It may take a while for the revised scores to reflect. So begin damage control now and approach the lender again with a favorable score.
 

	5) Valuation of security 
	The valuation amount may not be sufficient security for the loan amount in question, and that may lead to rejection. However, you must understand that valuation amount sometimes differs from one lender to another, depending on lender policies and the third party evaluating it. In case, you are certain that the security provided is being undervalued consider checking with another lender. That way either you shall have the loan approved from the other lender or you would know that additional security needs to be arranged.
 

	6) Adjust and make it work The main factors at play when it comes to home loan numbers are the loan amount, the rate of interest and the tenure. <keyword id="6357050" type="COMPANY" weightage="20" keywordseo="EMI">EMI</keyword>’s are calculated on the basis these factors. Now for the EMI to workout according to your income, either the tenure can be increased or the loan amount can be decreased. Keep your mind open to alternatives. Look out for a new property which can be more affordable and also check with other lenders for better home loans rates. 

	The key lies in understanding the lenders requirements and working towards plugging the gaps, if any, at your end. With a bit of patience, determination and financial discipline, be assured that getting your home loan sanctioned will be a smooth process. 
	(Image: Thinkstock)

(About the author: Rajiv Raj is the Director and Co-Founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>.)

You Searched For "CIBIL Score" and got 12 results

Here are 5 things that determine your CIBIL score

Rajiv Raj

Dispel all your fears due to CIBIL score. Here’s how

Rajiv Raj

Six hacks to tackle low CIBIL score before making a home loan application

Rajiv Raj

6 things about CIBIL every young adult should know

Rajiv Raj

CIBIL Score vs CIBIL Report - check out the differences

BI India Bureau

Men! Is Love On Your Mind? Fix Your Cibil Score First

Abhishek Agarwal

Here’s how you can read your CIBIL report like a pro

Rajiv Raj

Five reasons to apply for a joint credit card with your spouse

Rajiv Raj

How to do financial clean-up in 6 ways

Rajiv Raj

Five Tips To Be Financially Prepared Before The Arrival Of Your First Born

Rajiv Raj

Three Dangerous Aspects Of Credit Card And How You Can Protect Yourself

Rajiv Raj

What to do when your home loan gets rejected!

Rajiv Raj

Popular Keywords

Buying Guides