Before handing out a loan, banks invariably check the applicant’s credit score. So, it goes without saying that a good credit score is indispensable for anyone to procure a loan. However, there are a slew of misconceptions about CIBIL score. Here are six key misconceptions: Checking your score hurts it: This is a widespread misconception. … Read more
CIBIL score is an important factor that banks consider when evaluating applications for business loans. While there is not a fixed threshold of CIBIL score requirement which is applicable universally to all banks, a higher CIBIL score usually raises the likelihood of loan approval and favourable terms. Here are the general rules: Excellent credit score (750 and … Read more
When a borrower co-signs a loan, it can have both positive and negative effects. This can have both positive and negative effects on your credit score, based on how the borrower manages the loan. For instance, 51-year Ajay Aggarwal decided to co-sign a loan for his son who wants to take a student loan. This may also … Read more
Have you wondered what would you do if you face difficulties in raising your credit score? Apart from the standard tricks of paying bills on time and clearing your outstanding credit card payments, there are some specific strategies that you can follow on the advice of the credit score repair services. These credit repair companies, usually … Read more
Getting mistakes on your credit report rectified is important to maintain your financial health. For example, outstanding bill of one credit card may be reflected in your credit report, while the credit card was not issued in your name. So, you must request the correction to be made by submitting the necessary documents. Getting a … Read more
Paying off debt is vital to maintain a good credit score. However, it is a responsible financial management that leads to a good CIBIL score. Therefore, a borrower must take some steps to ensure that credit score stays healthy and sound. These steps include monitoring your credit report from time to time, timely bill payments, … Read more
Foreclosure may have an adverse and lasting impact on your credit score. But first of all, let us understand what a foreclosure is. It refers to a legal process in which a lender attempts to recover the unpaid loan from a borrower by forcing the sale of asset that was given as the collateral. This … Read more
Credit mix refers to the variety of credit accounts you have on your credit report. These include car loans, credit cards, student loans, personal loans, among others. Having a diverse mix of credit accounts shows to lenders that you can handle different types of credit in a responsible fashion. Impact on credit score Credit mix … Read more
CIBIL score, which ranges from 300 to 900, signifies borrowers’ creditworthiness. Banks and other financial institutions use these scores as one of the factors to determine their eligibility for loans. It is, therefore, considered important to check the score which can help you monitor your financial health. One can check their CIBIL score on the … Read more