Finding a mistake on credit report can be frustrating. Learn How to deal?

The world runs on the basis of information. Information is everything, what makes an individual powerful is information. Similarly, you might be having lots of information about different topics in your life. Some may have information about a new web series to be released or someone might be having information about the latest vehicle which is going on sale next Friday. What makes an individual truly powerful is when the person holds information about finances and how to deal with it. The world revolves around finance and finance is really a vast topic to discuss.

One of the topics which is gaining traction is a credit score. A credit score is nothing but a financial representation of yours in from of your lenders. A good credit score can get you a financial product like a loan or a credit card in no time at all. All you need to do is pull up your free credit report and see how you are doing and keep up the good work. Many a times while checking your report, you see unusual transactions and are in doubt if the transactions are yours? Those transactions can be mistakes done from the credit bureau’s side and you can easily report it and get it fixed.

For a lot of us, we do not have time to check this report and after checking we do not have time to raise a dispute thinking it will be time consuming and frustrating.

Today, we will sight you some simple and easy steps while considering raising a dispute,

  1. Check your credit report from time to time

A lot of us make this mistake of checking our cibil report only when you are applying for a loan or a financial product. You should stop this practice and consider checking your report at least twice a year. You can pull up your report and check it for free and also this would not be considered as a hard inquiry as the report is requested by you.

2. Check and mark up errors on your report

The next thing you do is, if you find any error on your report highlight the same and raise a dispute towards that transaction at the bureau. You will have t make a proper report justifying why you think it is an error from the bureau’s side and attach all the possible transactional details to support your claim.

3. Raise different disputes

If there are multiple errors on the cibil report, raise different disputes for different errors. This way you will have multiple people working on your mandate and can expect your work to be done in an efficient and faster way.

4. Have patience

Once you have raised a dispute, you cannot expect things to happen on a fast pace. Credit bureaus take time to investigate each dispute and it takes a lot of time to reach the conclusion as there are many factors to consider towards the dispute.

5. Don’t take no as an answer

The credit bureaus with taking a lot of time can also come up with a conclusion which will state that the dispute is been barred and the transaction status remain the same. Do not give up; raise a dispute again if you think the judgment is not in your favor.

6. See if the error is been resolved

Even if you have won the dispute, you will have to recheck and monitor if the credit score has gone up after the dispute. It should not show a low cibil score after you have won the dispute.

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

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My credit score is 550. Will bank consider me for a loan against property?

We all make mistakes in life. Due to financial negligence, might be a possibility you have made a mistake too. Imagine, you have overspent your savings and have opted for different loans. At one particular time, you have all the possible loan account running and nowhere to go. You explain this to your friend and he suggests you to go for a loan against property and asks you to consolidate all your debts and pay it off at one go. You like the idea and start the process to opt for a loan against property and get through to a lender who you are comfortable taking a loan from. You submit your application with all the necessary documents attached and wait for a positive confirmation. In the initial process you get a call from the bank and you are informed that the loan plea is been rejected and the reason for the same is that you have a low cibil score of 550. You start wondering, what can you do and start doing some research on credit score and how to enhance it. You get know that the credit score won’t appreciate overnight and it’s a lengthy process.

First of all, you need to understand what is a credit score and what are its ranges and how will it impact the decision of lender on giving you a credit line.

What is a cibil score and what is a good range of it?

A credit score is a graphical representation of how you are doing financially. A good credit score can not only help you with a quick loan, but will also help in many ways you cannot imagine. There are factors which contribute to your score and you will have to maintain a good score if you want to get a credit line in future. The score ranges from 300 to 850, 850 being the magic number where everything comes to you automatically. Anything below 600 is considered to be poor and you will have to struggle a lot for getting things sorted as far as financial product go.

So, the main question here is will you get a loan against property if you happen to have a score of 550?

The answer to this is a yes! You will get a loan for sure but you will have to go through a lot of pain and hassles, do not worry we will provide you a checklist here,

Shop around

The very first thing you do is to do a thorough research on your report and then shop around for loans. Find a Non-banking financial corporation which will fund your loan against property and get your money credited in no time. You will be paying more interest rate as compared to market standards but it will solve your need of the hour.

Make your file strong

Even if you have a bad cibil score, you can still make your file strong by showing your employer reference, adding a co-borrower and so on. Just because this is one type of a secured loan where you will be keeping your property as collateral, there are chances that you will get a loan sanctioned with ease.

Start saving

After the storm is settled, make sure to start saving and try getting the loan closed. If you make the same mistakes which you’ve made in the past, the chances are you may lose your property to the bank and this can be very depressing.

Maintaining a good credit score is never an easy task, you will go through a lot when it comes to maintaining it. The good part is that you can always start fresh and start your building journey from where you left.

How to bring up your CIBIL score to 750 this Holi?

Credit Score. A tricky thing but not rocket science that one can’t understand. let’s understand the basics! A credit score is a three-digit number, ranging between 300-900. A score that is 750 or above is a good score, a score between 600-750 is average and anything below 600 is a bad or a low score.

Why is credit score important?

Almost when we are in the completion of the second decade of the 2000s, majorly the money rollings happen on loans or credits. One applied for a loan, or the credit they want and negotiate on the terms and get the money they want with the interest. Now, when this process works in association with a bank, or an NBFC (Non-Banking Financial Institution), they keep the record of the money landed, and when and how it was repaid! These are the info that goes to credit bureaus and with the algorithms, a credit score is generated. This score gives the idea about the creditworthiness of an individual and how responsible he/she is in handling the credit. And depending on that score, when applied for new credit, it is either approved or rejected. And that is why a credit score is important.

Which are the credit bureaus?

Ever wondered who gives the score or who calculated the score? The answer is the credit bureaus. There are four credit bureaus in India. CIBIL (Credit Information Bureau India Limited) established in 2000 and serving as the pioneer, Equifax, Experian, and CRIF Highmark which came eventually in existence. Since CIBIL was the first bureau, many people address credit score as CIBIL Score. These bureaus have an algorithm based on various parameters that check and gives the credit score.

What are the Parameters of credit score?

1. Payment History: How responsible one has been in handling credits (credit card bills and loan EMIs) and replaying them on time.

2. Amount Owed: How much credit has been taken to date.

3. Length Of Credit History: How Long had one been taking and managing the credit.

4. Credit Mix: A good mix of secured and unsecured credit along with a fixed and revolving type of credit.

5. New Credit: At a regular interval if new credit is applied.

These five parameters are given various percentage weightage by the credit bureaus and by that the score is established. As mentioned earlier, a score is one thing that can make or break the dreams looked for when it comes to applying for a loan and getting is approved! Better or higher the score more are the chances of getting the credit line approved! But, what to do if the score is low?

How to improve CIBIL score?

Let’s say, we have the fastest target of two months, say Holi. Now, considering the five parameters mentioned above, start working on each of them. Payment history, check your score and credit report. See if there are any missed payments, late payments or unclosed accounts. First and foremost work on that. Take a small loan if you have a cash crunch to clear the old debts. This will help in the second parameter. Length of old credits is to be taken care for. The oldest credit card, even if not in use, don’t discontinue. Pay the annual fees and keep it on. Take a loan which is a secured one, say gold or a car loan. Also, mix it with a personal loan. A credit card is also an option and hence a good mix of secured, unsecured and revolving loan with add up to the value. Since you are applying for new credit, this anyway will add to all of this!

Make sure that the credit card utilization ration does not exceeds 40% of your total limit. Do not apply for too many credits. As that may come across credit hungry behavior and will drag the score down!

Just these few moves and you will see the change in your score that will boost up your requirements! What are you waiting for? Start working on them from today!

Healthy CIBIL report helps to improve chances to get a loan.

In 2000, First ever credit bureau was established in association with a US credit bureau Transunion for Helping individual with their credit scores and credit reports. CIBIL Transunion established it’s marked by providing the scores to individuals who had taken loans and credits. CIBIL (Credit Information Bureau India Limited) was widely chosen by the banks and NBFCs(Non-Banking Financial Institutions) and helped it get the details of borrowers in order to get a better management system for credits. And also made it easy for a financial institution for the reference check in order to know the creditworthiness of an individual and eventually even companies.

CIBIL report then became an important aspect in each individual’s and even financial institution’s life. As stated above, it became easier for anyone to know past payment history, the amount owed, credit mix, length of credit histories and new credits they have applied for. And these are exactly the five parameters which make the score. Let us now understand the basic difference between CIBIL Score and CIBIL Report. CIBIL score is a three-digit number ranging between 300-900 where 900 is is considered as highest and 300 is to be the lowest. The creditworthiness is checked by the range of the score. Any score between 300-600 is considered lowest, any score between 600-750 is average and 750+ is highest. The score is this and the credit report has the detailed information of Individual. Starting for a score, personal details like Name, Address, Email, Mobile Number, PAN card, Aadhar Card etc. With that, it has detailed information about the credits that have been taken. From the time the credit account has been open, till it’s repayments and also when it was done and ending details. If any defaults, missed or delayed payments, are also mentioned in the report. Along with this, the last segment has details of all the credit inquiries that have been made till date. Credits here consists of credit cards and the loans both!

A Healthy report is the one which has the score 750+ as a start. All the personal information correct and verified. Major of the credit account with the status as closed and not settled of the one which is completed. The once which are open should have proper payment history i.e. no missed or delayed payments. Not too many new credit inquiries in a short span of time as that show a credit hungry behavior. Everyone should understand that nowadays all the financial institutions check the report and the score before sanctioning the loans or the credits or the credit card limits. If major of the above-mentioned criteria are fulfilled even the lenders are happily sanctioning the loan as that is like a low-risk profile for them. If suppose the score is low, or there are previous missed and delayed payments, too many of accounts settled, then that gives the impression to the lender as the borrower is not a responsible one and if the new credit or the loan is approved for him, that can straight away be a risky thing as he or she might repeat the same mistakes as done earlier and hence the credit may go on toss!

After knowing the fact of chances of getting a loan in an easier manner, know the fact that when the score is good and a report is healthy it is also added to the fact that the interest rates are lower. Suppose a person with 750+ score is planning to take a personal loan and a person with 650 score is planning to take a personal loan then there will be a minimum of 1%-2% difference in the Personal Loan Interest Rate. And sometimes even more. So be wise and always try to maintain your credit score and report healthy!

Why it is difficult to get a personal loan with no credit history?

No matter how rightly prepared you are financially, life will throw something on you which will take you to financial crises and you will be finding a lot of answers to get immediate cash to deal with the ongoing situation. The very first thing which you would do is to seek help from friends and family and ask for their help financially. If you are lucky and your friends and family are generous, you will get a quick loan from them in no time and you have the option to pay them off with ease without paying them any interest.

If you do not find any right option from them, you will have to apply for a loan as last resort and hope to get it sanctioned within a particular deadline. The best loan for such situations is personal loans. You find a lender online and think of applying for one going to their branch keeping with you all the documents needed to get the loan done. Once you have applied for the loan, you then wait for their positive revert and hope to get the money credited to your account. Unfortunately, you get a call from the lender stating your loan is been rejected because you do not have a credit history and why would that be because you are applying for a loan for the first time in life. Now you restart your research and find lenders who would provide you personal loan with no cibil score but you have no luck in it and you are finding it really hard to get a loan with the current credit status of yours.

What would you do in such a situation? Is it really that hard to get a personal loan with no credit history? Today we are here to solve that dilemma for you,

Is credit history that important?

Yes, the credit history is important if you are trying to avail a loan or a financial product. A credit score is a graphical representation of your financial decisions in front of your future lenders. The loan lender will always check how your payment patterns were just to make sure before they can provide you a loan. If you do not have a credit history it is really hard for the lender to figure out if they can sanction you a loan or not.

What are my options here?

As we all say, there always is a place where we can start. You can apply for a small secured loan which will have minimal documentation in place and it will get you a loan with ease. For example, you can apply for a consumer durable loan like buying a television or a mobile phone and you can get a loan sanctioned within minutes of applying. In this process the documentation is minimal and you have the option to go for the products interest free! This will not only help you build a credit score but will also help you get a personal loan in the future if in need. This will not only help you start the credit history, but will also help you build a positive one if the payments are done on time.

Is there a deadline?

This is a tricky one. It definitely takes time to build your credit score but at least you can start. Something is better than nothing is the principle you should stick to and again make all the payments on time to build a healthy credit score.

Starting a credit line and a credit score is always tricky and you will have to be really couscous when it comes to building it. You can do it with ease if you have financial integrity with you.

Why banks provide you a lot of benefits if you have good credit score

What does it mean to have a good credit score and does a good credit rating translate into some actual benefits for you? Credit rating is a statistical tool that gives a score ranging from 300 to 900 to an individual. A score of 700 and above is considered good; obviously the higher it is the better it is for the person whose being scored. A high score could entitle you to certain benefits and you could get some preferential treatment. Here is the reason why banks are willing to offer benefits to those who have a high score.

Why do banks offer benefits for a good credit score?

Credit score are tools that aid the decision making process for the lender. Banks do not accept all loan applications that come to them. They want to provide loans only to those applicants who they feel can be trusted and our capable of returning what they borrow. For this they have a list of eligibility criteria that the applicant must comply to; apart from that they also consider the CIBIL score of the applicant.

The CIBIL score provides them a statistical and objective assessment of the creditworthiness of the applicant. A look at the credit report tells the bank about your credit history and how regular or irregular you have been in the past in repaying your dues. This lets them take an educated guess on the likelihood of you defaulting or not in your future borrowings. The CIBIL report also lets the lender get a fair idea about your overall debt obligation and how leveraged you are. If you already have a lot of running loans then the bank may not want to lend you more as you may find it difficult to repay the dues in a timely and regular manner. The report also contains information about any loans or credit card dues that may have been settled in the past or if there are any other remarks on your past borrowings.

The credit score also gives a risk assessment of the borrower. Looking at the rating the borrower can assess the risk profile of the applicant, since it is an objective assessment there is no room for bias or subjectivity. So a low CIBIL score means that the applicant is a high risk borrower and the converse is true for a high CIBIL score.

Lenders charge interest on the funds lent for the use of funds and as well for the risk of default by the borrower (which they undertake) when they sanction a loan. A high score means less risk which may prompt the banks to offer concessions to the borrower like lower interest rate on the loan, faster processing of loans (lesser time take in due diligence) and waiver of certain fees. Thus a good sore makes you an attractive and creditworthy customer for the lender, they reward this by offering you benefits. A high rating also gives you more choice in terms of which lender to approach, thus you can approach the one who offers the most lucrative terms and conditions for the loan.

Benefits of a Good Score:

If you do not have a high score then it does not mean that you will not get a loan or a card. Depending on the score you could get a loan but maybe at more stringent terms or you may be able to borrow at higher rates from only certain lenders. A very low score would certainly mean that you cannot get a loan sanctioned from the organized sector. Here we take a brief look at the benefits of a good score:

  • Lower interest rates: This by far could be the biggest benefit that you can get due to a good score. Lenders may offer by loan at concessional rates to those who have a good score. Even if the rate is lowered by half a percent then it could translate into huge savings especially in the case of a home loan which runs for long periods and usually run in lakhs.

  • Faster sanction of loans: Banks have to carry out various checks and verification procedures before they sanction a loan. A low score could mean additional check and a more detailed scrutiny. A good score eliminates the need to do so and the lender is willing to sanction a loan with minimal delay.

  • Fee waivers: This is something which will depend on a good score and also the negotiating power of the borrower. So if you have a good score you can negotiate the waiver of fees like the processing fee, legal fee etc.

So make sure to be a responsible borrower as a good score not only makes it possible for you to get a loan but it also entitles to various benefits.

Why you should change or lose a few habits to improve creditworthiness?

Banks are always in the urge of giving out loans to people. The more loans they give out, the more they can earn through interests. On the other side of the game, we consumers are always in need to some loan or the other. There are needs and wants of ours which can only be fulfilled through getting a loan, needs like medical emergencies and maybe wants like buying a luxury car or purchasing a house. If taking a loan is that important, what are the criteria’s which are important to avail any loan.

Your total experience, the company in currently work in, your salary, your existing lines of credit and many more are the criteria’s which you need to adhere when it comes to availing a loan. The most important of all, which determines if you can have a loan with ease, is the credit worthiness. How do you know if you are credit worthy? When you apply for a loan, the banks with other verifications conduct credit verification and check your cibil score. A credit score is a number which represents how you are doing financially.

There are lots of things which add up to your cibil score. Sometimes the credit score is perfect for a loan or a financial product to avail and sometimes you have to work hard to improve cibil score. Improving your bad credit score is a very long way to go and also you will have to look after not to fumble on your way.

Here are some tips on do’s and don’ts to get your score up,

Don’ts

Late payments

This is the most basic practice you can do when it comes to getting your credit score up. Understand your finances and adhere to due dates of your existing line of credit and loans.

Do not carry big balances

Keep your credit utilizations low, let’s take a number here. If you have a credit card with a limit of 1, 00,000 rupees, make sure you only use 40% of it. This will not only keep a cap on spends, but will also help you get your score up.

Defaulting

Do not default any loan and get it to a non-performing account. A non-performing account will not only hamper your cibil score, but will stick to your credit report for a very long time and will make it difficult to get a loan.

 

Do’s

Check your credit file frequently

If you are one individual who has multiple loans and credit lines on your name, you must check your credit score frequently. Sometimes, the credit bureaus make mistakes on your report and you are the one who tends to pay the price for their mistakes.

Create a healthy relationship with your bank

Your banks are the one who send reports to the bureaus on a frequent basis which adds up to your credit score. if you happen to skip a payment or two, you can explain your situation to the banks and they can on their discretion give you time to make the payment to avoid the loan defaulter list. Not only credit wise they can also help you with speedy loan process, if you are in need to one.

Use variety of credit lines

If there are multiple credit lines towards your account, here are high chances to get your credit score up in no time. More the credit lines and loans, more you will be looked as credit worthy and the one who takes their financial seriously. Just do not default any payments as this can work vice versa.

Just by improving basic financial habits, you can help your credit score grow in a positive way. Simple financial integrity can help you in many ways you can imagine.

My Credit Score is 500. Things You Should Do Now

Well first things first, a credit score of 500 is not good news. However having said that, do keep in mind that it is also not the end of the world! As you may be aware credit scoring is done on a scale of 300 to 900 and higher the score is, the better it is for you. Any score below 700 could spell trouble if you are looking at getting a loan sanctioned or even getting a new card or a job. So if you are reading this, it means you are looking at working on your score and trying to make it better.

  • Get Your Credit Report:

Even though you know that your score is low, not much can be done till you get a thorough look at your credit report. The credit report gives a detailed and comprehensive view of your overall debt position and also lets you analyze your credit history. Going through your credit report will help you identify the cause/s for your score being low. You may sometimes be aware of the problem but it is always better to get the report and identify the reason/s for the low score. A score of 500 will not be caused due to a few missed payments or excessive use of credit card in a month or two, the cause is likely to be more serious.

  • Clean Up Your Act:

Going through your report will let you identify the problem areas that are the cause of the low score. Once you have that information you need to start working on these aspects. So if you have an open loan that you have paid fully, then get the NOC so that it is closed in the credit report too. Pay old dues but make sure the accounts are reported as closed and not settled; a settled account will raise red flags in the minds of all future lenders. If you have been irregular in paying your dues, going forward you need to start paying on time as this is the most important component of CIBIL score calculation. Also keep a look out for any erroneous reporting that may be causing the score to dip.

  • Have a Disciplined Approach:

Once you have zeroed in on the cause of the low score and how to deal with it you need to have a disciplined approach if you want your score to improve. If the cause is high credit utilization ratio then you need to exercise restraint when using your credit card. You need to fix a limit to your credit card usage and then you need to stick to it. The same applies to paying your dues on time, as we said above this aspect influences the credit score to the maximum extent. Make sure you pay all your EMIs and card dues on or before time, always!

  • Be Patient:

Another aspect to bear in mind is that credit scores do not improve or go down overnight. The score is a reflection of your credit history which starts from your first card or loan. So if you have been an irresponsible borrower in the past and are looking at improving your score, bear in mind it will take time especially if your score is 500. Being disciplined and patient are keystones of improving your CIBIL score, so be responsible in the future and don’t hope for miracles. Though loan for low CIBIL score is an option offered by few lenders yet it is not advisable to do so as it can cause further damage to your already strained credit health. Wait for the score to improve before you go out looking to borrow further.

  • Seek Professional Help

You can definitely try to improve your score on your own but if you feel that things are too complicated or you are unable to identify the cause of the low score then you can seek professional help in trying to improve your score. Here it is important to remember that no one can remove any negative item from your report, professionals can only help you identify the problem and offer you a solution. Being disciplined rests on you, they cannot offer you quick fixes but they are better equipped to deal with such situations. .

As we said earlier, though the score of 500 is low and is definitely a cause of worry, however there is no reason to despair as you can work on improving it.

This is why you should track credit report to maintain a healthy record

Are you a health freak? Are you one of those who wake up at 5.30 in the morning and goes to work out on a daily basis? Have healthy food throughout the day and is rigorous about maintaining the perfect health? If yes, have you ever thought of your financial health? Isn’t that important as well? A healthy financial health will lead you to money miracles and if failed to adhere it can cause you a lots of problems.

What is the main essence of a good financial health you ask? It’s nothing but a good credit score. A credit score is a representation of your personality in eyes of a lender on how you are doing financially. There are ranges of credit score which will determine if you are credit worthy or not. You will pray to be on a higher of the score as it opens lots of doors to financial products to avail.

Here are some tips on tracking your credit report and maintain a healthy record,

Know your credit score

Many people make this mistake and never check their credit score on the first place. They only happen to know this term when they are applying for a loan or a financial product. Get your free cibil report and check what your score looks like. Is it bad, good, worse how much do you need to work on the same?

Keep a track

Your financial transactions are recorded frequently by your lenders to the credit bureaus. These transactions are like a summary of your financial well being and how your future lender will see you. It’s important to keep track to understand if the actions are helping you improve your cibil score.

Fix your details

Credit bureaus tend to make lots of mistake while entering your transactions towards your account. You need to check and report any errors you see when it comes to the transactions on your report. Not only transactions, but every details like your name, surname is to be rectified as this can lead to major problems like identity theft.

Only borrow what you need

When it comes to availing a loan or a credit card, always check your requirement. Do not avail more than you need as this will cause you a lot of damage financially. Just because people have pre-approved loans and open credit, they misuse their finances and then face lots of issues financially. If you think you happen to have a lot of open credit accounts than you need, try closing them with ease and try buiding a secured financial future.

Be smart when applying for a credit

When you are applying for a loan, it’s tempting to apply towards a few credit providers just to see how the market can favor you while applying for a loan. This practice can not only deny you a loan, but can also take a toll your credit score. When you apply for different loans or credit cards every enquiry is counted as hard enquiry and is recorded on your credit report. These enquiries stay on your report for a very long time and are visible to your future lenders that you made multiple applications to avail a loan in the past.

Do not miss on any payments

Life is tuff, we understand that and due to unconditional situations, you may miss on payments. Do not do that! It’s really important to make all your payments on time and maintain that financial integrity so that your credit score is maintained and you also don’t encounter any late fees and penalties.

Maintaining a healthy record sounds like a lot of work, but it can be a savior when it comes to availing a financial product. Few simple steps towards maintaining a good finance can help you in many ways you cannot imagine.

Can unused credit cards impact your credit profile?

Credit cards have become an important part of our lives. With various options and lucrative offers available, it becomes so difficult to choose what fits best for our needs. From various offers on dining to broadways, air miles, reward points, shopping experiences and what not is offered in various types of credit cards. But, technically, when we opt for too many credit cards with an individual offer, it can be a possibility that we may forget some.

Let’s understand this with an example. Priya was a very passionate young achiever at a good position in an MNC. She has achieved a lot in that young age. Obviously, with that age and that position, she was on cloud nine! With that age, she was also attracted to those offers of the credit cards which the banks had offered her. Some credit card with air miles offer, some had dining offers, some gave her amazing reward points and what not! Now when she had more than five cards, at times it becomes difficult for her to manage. So, eventually, she picked two best of cards which could give her maximum benefit and rest she kept aside.

Now, she did not close those credit card accounts and thought that would work as she wasn’t using them. After a year or two, she wanted to buy a house and planned to apply for a loan. To her surprise, her loans were getting rejected as her CIBIL score was not up to the mark. The question may arise is, what is CIBIL score? And what is it’s an effect on loan sanction? A CIBIL score is a 3 digit number that ranged from 300-900 where 900 is highest and 300 is lowest. It is determined by five factors. Payment history, an amount owed, length of credit history, type of credits and new credits. Any loan or credit applied for is the major reason why and how the score is what it is. Higher the score, more are the chances of loan application getting approved. How is this score diversified? 750+ score is always considered a good score. Anything between 600-750 is average score and anything below that is not considered a good score or we can say a bad score.

Priya, when wasn’t using her cards, she forgot the fact that each credit card has yearly charges. When not paid, they can keep on getting added to your account, in turn, adding more amount to it as delayed payments and added interest charges. What she couldn’t figure out, and because of delayed payments of that or we can say missed payments this amount kept on increasing which decreased her score and getting the loan application rejected!

What did we get from this example? At times, when we decide to not use the credit card anymore, we must either close the account or if for length of the credit history if we want to keep that open, every six months, we must check are CIBIL score, and the report in order to get an idea if we are not missing on anything which is making outscore low! We should always remember that the score can take no time to go low, but will require more time to get it on track. You must be paying all the credit bills on time, you must not be missing on any EMIs that are scheduled, but an unused credit card’s yearly surcharges may just drag the score down.

Always remember, an open credit account will have its repercussions, so either one would close the account they aren’t using, or if it is kept open, the yearly fees or are other charges should be taken care of and paid. Especially the once of unused credit cards!