Why Should I Check My Credit Score?

While dreaming big, on buying things, it all revolves around how much money do you have. Nothing is for free! Whether you are planning for a house or a bike or a vacation or gold or the property, things are expensive. On a larger picture of say 10-15 years down the line, you see yourself achieving the dreams of properties or asset you want to acquire. But what if you want them now? The answer to this now is credit. Credits are available these days on an easy base compared to how they were earlier. The credits or the loans are a nice way of living your life now compared to how you had decided a few years down the line. Its not something that is offered to you for free. But it’s the plain logic of getting the amount of money in advance where you will repay it later with the interest on the amount. But in all, it’s a help which is to be got from banks or NBFCs or Private Lenders. It’s also safe to get it from a trusted party in order to get away from any chaotic situations later if you have borrowed the money from your friends or relatives.

How can one get these credits or the loans? With the standard procedures, you go to the bank, ask for the loan and know the details. The bankers would want to know the type of loan you want, amount of loan required and the tenure for the same. Once they get this detail, your credit score is checked. According to that, the loan amount is sanctioned and rate of interest is decided. Now banks can get the credit score when an applicant comes to them for taking a loan. But, is there any requirement for you to know the score?

Yes, it is really important for one to know the credit score. There are many reasons why you should know the credit score and check it periodically. Let’s look at them turn by turn.

  1. To stay credit healthy

                 We always take care of our physical health or financial health or emotional/mental health. But what is credit health? Credit health is a much talked upon topic these days. By the word credit health, means your credit report should be good. Your credit score should be 750 or plus. It takes efforts to stay credit healthy. You need to make proper payment on time of the credits you have taken from banks via loans or credit cards. You need to think and use the credit you have received else you can get into loan defaulters list. This is not much of a task, is it?

By checking your credit score regularly, you will come to know if your score is the same, or it has gone down or it has been increased. A regular watch will be an add on to the work you are doing in maintaining the credit health.

  1. To check if everything is in place on the credit report

                 If you have applied for a credit card, and it gets rejected saying your credit score is low. How would you deal with the situation? When you had checked the score last time, it was good enough and hence after taking a lot of time to think, you applied for the credit card. But what happened? It is advisable to check your credit score every 6 months. There can be a possibility if some one has stolen your identity, i.e. its an identity theft case wherein your details are used by someone to take loan and you are completely unaware about it. Or there are some mistakes in your report and you are clueless as you have not made those payments. So, in that case, you need to raise a dispute.

In any of the case, if your score is not reflecting how you had thought it should be, you have to check the score.

  1. Keeping an eye

Either you are new to the credit score or you are trying to repair the credit score, in either the case it is important to check the credit report regularly. RBI has passed a rule of giving 1 free credit report per year to any individual to all the bureaus. Make the use of such advantage and keep an eye on the score.

In any of the cases, to stay updated is best. If you are going through a new built or repair, regular checks are important. Don’t be lazy in such things and stay credit healthy!

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Will Arranging My Debts Help Boosting My Credit Score?

A credit report provides a comprehensive picture about one’s credit position. The credit score which is an important part of the report factors in various variables when calculating the score and this rating helps in predicting an individual’s creditworthiness. In case you have a low score then there could be a variety of reasons for it and depending on the problem you can solve it using various solutions. Arranging your debt can help you in boosting your credit score. Let us consider a few ways in which arranging yore debt can give a boost to your credit score.

  • Consider Balance Transfer:

Balance transfer is an option that can help in better management of debt. This option can be useful both for home loans and in case of piled up credit card debt.

Home Loans run for long tenures and it is possible that during this time the interest rates change a couple of times. If you realize that the loan you took years back is at a higher rate than the current prevalent rate for home loans in the market then you could consider getting a home loan balance transfer after weighing the costs and benefits. A lower interest rate could help lower you over all liability and you may find it easier to pay your reduced installments in case you are struggling with the repayment. Longer loan tenure if agreed by the new lender can also help you in repayment.

Credit card debt is the most expensive form of credit. If you are struggling with repaying your credit card dues then balance transfer could help you. In this process you transfer your unpaid dues on one card to another card (preferably one that charges a lower interest rate), the new card company provides some interest free holiday before you need to start repaying your dues which can help the card holder. The acquiring card company may also allow repayment in EMIs which can help in boosting your score.

  • Fore-Closure Could Help in Certain Cases:

All loans and credit card dues are included in the CIBIL Report, one aspect that influences credit score calculation is the balance between secured and unsecured loan. In case your unsecured loan (personal loan, credit card dues) burden is higher than secured loan burden then it could impact your credit score negatively. In such a scenario fore-closing these (unsecured) loan could help in boosting the credit score. Though loans that run the full course are better for the credit rating in the long run but in some instances a prepayment may help.

  • Prioritize your Debt

Needless to say repaying all your dues on time and regularly is important. However if you have too much debt and are struggling with repaying them then you must consider prioritizing the repayment. Repaying one which has the highest interest burden could be a good way to start. However it is important that you list out all your debt along with their interest, overdue amount and remaining amount. If you find it tough to repay all you monthly dues then you could talk to lenders and request a loan restructuring. Here the loan tenure is increased which lowers the EMIs and makes it easier for you pay your monthly dues. You aim should be not to allow interest fee and penalties to add to your debt burden. This is definitely not one of the ways to improve credit score fast but could give you results in the long term.

Ideally one should not reach a position where their debt burden becomes so high that they find it difficult to repay their monthly dues. However in case this does happen then you should consider rearranging your debt in an attempt to better your credit rating.

How Will Identity Theft Affect My Credit Score

Sneha, a well-settled entrepreneur, at 31 is well settled in Pune. She owns a house, two cars and few properties. These are solely her properties. She stays with a small family of 3, She, her Husband and a Daughter. She has put in a lot of efforts, in building the empire of her business and the properties she owes. She is a regular checker of her credit score and has made no defaults of any loan she had taken or any loan she has today. She has never made any late payments of any of the credit cards she peruses. Her credit score and credit report, both are in place.

A free CIBIL report is given every year by the bureau as per RBI regulations and she has taken well advantage of it. Now, she is planning for a business expansion. She goes to a bank and applies for a business loan. She is very well aware that a business loan is the unsecured – installment based loan. But with the past records and the payment history she has maintained, she is confident enough that her loan will get approved. While the finalization of the process, her loan was rejected. As she is a very old client, the bank manager explained to her that there is the cibil score goof up, and it has gone tremendously down in last 3 months. With looking in details, they came to a conclusion that it was a case of identity theft.

Let’s understand in detail, that what is identity theft. In this digital ear, everything is available online. There a few people who can hack into your systems and fetch the important and very sensitive and confidential data which then they use to make the theft. So, they will use your name, number, credit cards, aadahar card number and take a credit. Or the may make many multiple online transactions using this. Not only the hackers can do that, but if by mistake you have shared your confidential information somewhere, and it was meant to be destroyd but was not destroyed by any of the reason, some very over smart individual, will steal your identity and make the use of it.

What happens in such cases? When any of this occurs, it becomes an identity theft where the credit transaction is done from your account but not by you. You come to know about it when either you check your credit report in detail by yourself or if you have applied for a credit and it got rejected due to this reason. Let us now see, how can identity theft affect the credit score.

  1. Sudden dip in score

If in the month of May you checked your free cibil score, and it was 783. now just as an example mentioned above, you applied for some loan and it got rejected. Now when you investigate, you came to know that your score is 620. There is the sudden dip of 163 points in your score. While seeing the report minutely, you come to know that there are many transactions which are not made by you and a few credits which you have not applied for! Terror number one.

  1. Rejections in loans or credit cards.

As there is a sudden dip in the score, the credits or the loans you must have applied for, which are in pipeline will get rejected.

  1. Longer run effects

The negative flags, stay on your report for much longer time. Nearly a decade. Now, since you have not made payment by yourself, why would you pay the same? Makes sense, so in those cases, you would need to raise the dispute so that it can get off your report in the meanwhile.

  1. Fear always

Since once this has happened, you will always be scared to share your confidential information even to those whom you would actually have to share in case of taking credits or any important things.

Always make sure while applying for credit cards or any loans, do not share each and every detail with everyone. Also, whenever you share the important documents write the propose of in on the photo copied document in order to not get it stolen. While sending these details, be cautious. If possible send it in encrypted form or try not sending it online. Stay alert and stay accurate & updated. Do not neglect thing which can affect your score!

Is Free Credit Score A Scam?

It is the season of scams so it is no surprise that we take everything with a pinch of salt especially so if the promise is to get something free. In September 2016, Reserve Bank of India made it mandatory for the credit agencies to provide a free credit report to individuals once in a calendar year.  There are four credit agencies in India so you can get four credit reports in a year which makes it one in each quarter. Each credit bureau has a different process giving you a free credit report when asked, so let us go through each agency’s process and understand if free credit score is a reality or a scam?

How to Get Free Credit Score From Various Agencies?

Checking your credit report from time to time is recommended as it lets you assess your credit health. Since there are few ways to improve credit score fast, it’s better to be prepared in case you need credit and stay credit healthy. With scores available now without you having to pay anything now it’s easier to access your credit score without having to pay anything.

Below we discuss in brief how you can get (if at all) free credit score from various credit agencies:

Experian: For those looking for a free credit report from Experian, you need to follow the link that lets you access your free credit score.  Few basic details like name, Permanent Account Number, email Id, date of birth need to be entered for you to get the report. You will be sent a voucher which is to be used when you are taken to the payment page instead of making an actual payment. This voucher is mailed to you within 48 hours of you making the request for a free score. After you answer a few questions you would be sent the report within three to five days.

Equifax:  They provide the free report only after you download a mobile application which is available for both Android and IOS phones. You need to provide basic KYC details along with you Aadhaar Number. The applicant is provided a temporary PIN that is used to authenticate themselves and then they can login after 24 hours. After answering a few questions about your credit history the report is sent to you.  If you do not have a smart phone then there is a separate process for getting the free report. Those without smart phones need to send scanned documents along with an application to the given email id , documents required for this include address. Getting the report through the application make take two days, if doing it through the email route it make take longer time.

CRIF High Mark: They have a link on their homepage for getting a free credit report. Those desirous of getting a free credit report need to fill in some information to authenticate themselves. Information required here is more derailed as compared to other agencies. Once the application form is filled and the customer information is authenticated they can download the report. The report is generally available within 48 hours.

CIBIL TransUnion: Initially CIBIL had the option of submitting only a physical paper based request but now both options of getting it online or physically are available. For getting it online you need to fill in the required information after following the link that is provided for getting a free score. Applicants need to authenticate themselves before they can download the report. If all the steps are completed successfully the report can be accessed within a couple of minutes. For those who choose to send the documents physically, it may take them seven working days to get the login details. Once these details are received the applicant can login to the site and can access their report.

So all in all getting a free score is not a scam. In some cases it may be time consuming or the applicant may find the process cumbersome but usually they can access the free score even if it takes time and some effort.

 

 

 

 

Who Owns my Credit Data?

Even if you are a little bit responsible towards your personal finance, then it’s likely you have heard that you ought to have a high score. But who calculates your score, and who owns your credit data? The answer is “credit rating agencies”.

What are credit rating agencies?

Credit rating agencies are the firms that collect the data of individuals and companies so as to create their credit report as well as their score. Basically, they monitor the financial activities of the people through their loan repayments, spending habits, etc. and use the information to assess their creditworthiness.

The top rating agencies in India include CIBIL, CRISIL, ICRA, Experian, Equifax, etc. Some of these offers credit score of companies or individuals only, while others offer the score of both.

What types of data credit rating agencies collect?

A credit rating agency such as CIBIL is mainly interested in gathering the following information:

Length of Credit History

The length of a person’s credit history plays a big role in their credit score calculation. This is because if they have a long history, it means their financial behavior can be assessed with higher accuracy. On the other hand, if a person started using credit only a year ago or so, then it’s difficult to predict whether they are responsible towards finance management or not.

Repayment History

The repayment history is another main factor that affects the score of a person or a business. For instance, if you have taken a few home loans in the past but repaid them all on time, which means that with the majority of the EMIs paid on the due dates, then you can get a high score. However, if you have often missed your credit card bills or EMIs in the past, then the rating agency will look at it as a negative aspect and deduct points from your score accordingly.

Credit Card Utilization

Your credit card usage data is also something that the majority of credit rating agencies are interested in. This is because it alone can tell a great deal about your personality and your spending habits.

If you use more than 35% of your credit card limit almost every single month, then it shows that you are “hungry” for credit. The same happens when you apply for new cards frequently. These things work against your credit report and thus must be avoided.

Is my CIBIL score also a part of the credit data?

Not only your CIBIL score a part of the credit data stored with the credit rating agencies, it’s the most vital one. This is because it sums up your entire credit data.

Your CIBIL score is calculated on the basis of a variety of important factors/data that are shared above. So, if you apply for home loans, personal loans, etc.  then the lenders may not even need to look at your cibil report. They can just look at your score to see whether you have high or low creditworthiness.

What’s a good CIBIL score?

A CIBIL score ranges between 300 and 900. Thus, 300 is the lowest score that you can theoretically get, while 900 is the highest. That said, the floor and ceiling are rarely found in a credit report. Most lenders instead categorize the CIBIL score in four categories:

  • Poor- 350 to 550
  • Fair- 550 to 650
  • Good- 650 to 750
  • Excellent- 750 to 900

If you want to enjoy a safe and secure life finance-wise, then it’s important that you take measures to keep your CIBIL above 550. However, ideally, you should strive for achieving a score of 650 or above.

The Bottom Line

So, now you know who owns your data. It may make you feel uncomfortable, but it really shouldn’t. This is because even though the credit rating agencies collect your data and provide your score, it’s you who controls your credit report. If you instil good financial habits in yourself, then you can achieve a good score. Similarly, if you are not careful enough, then you can also ruin your score yourself. Thus, be wise, and make yourself aware of the right credit-building measures.

Credit Score Check: Why is it Necessary?

If you have never applied for a loan or a credit card in your life, then it’s possible that you never needed to check your credit score. However, this doesn’t mean that you should check your score only when you need a loan, credit card, etc.

Even though people are learning about CIBIL and its significance, most still avoid CIBIL score check unless they really need to. This is a wrong attitude to have towards your creditworthiness.

There are many good reasons to check your credit score, some of which are:

  1. Disputes and Discrepancies

Discrepancies and mistakes in credit reports are more common than you think. This is because banks and credit rating agencies manage the records of hundreds of thousands of customers, and millions of transactions. Thus, it’s possible for a discrepancy to occur in your repayment history or personal details. That said, if it’s left unchecked, it can ruin your credit report badly which can make it difficult to get an ICICI home loan, personal loan, etc. in the future.

Only by checking your credit score and credit report you can identify mistakes if there are any, and have them corrected.

  1. Identity Thefts

Credit rating firm Experian says that identity theft is the largest contributor to fraud in India. In other words, you are always at a risk of someone trying to impersonate you in the financial sphere and rob you of money. However, you can prevent yourself from becoming a victim by simply conducting a CIBIL score check every once in a while.

If you notice a sudden drop in your credit score or an unusual activity in your report, then it can be a sign of an identity theft. So, you can immediately contact your bank and get it checked.

  1. Score Improvement

You can’t predict the future. Even if you are financially strong today, you never know when you may need a personal loan down the road. However, in such a situation you must have a high credit score to get one without having a hard time. This is again where the importance of checking your score comes in.

If you want financial security, then you must monitor your score. Most importantly, you should never delay taking the initiative.

  1. To avoid further damage when about to apply for loans

Whenever you apply for an ICICI home loan, car loan, or rather any type of loan, the bank checks your credit score. If it’s high enough, they approve your loan. However, in case it’s not, then they can reject your application. However, that’s not the only way how it affects you. In addition to a lost opportunity, you also risk damaging your score too. The reason behind this is credit report inquiries.

When a bank requests a credit rating agency to provide your credit report, it’s called an inquiry. So, if one bank rejects your loan, then you may apply at another bank, and then once again, and again multiple times. This means a lot of inquiries are made to the credit rating agency. This is bad for your score as it shows a credit-hungry behavior.

The problem can be avoided by checking your score before submitting your loan application. This is because if your score is low, then you can wait until you have made it better.

With a high score, your chances of getting a loan approved are high. This means there are few inquiries, and thus low to no damage to your score.

  1. Better Interest Rate

Checking your score also allows you to enjoy great interest rates. This is because when you know you have a high score, you can use this information to get leverage when discussing loan details with your bank.

Banks know that a person with a high CIBIL score is likely to repay their loan on time. So, they don’t mind offering a lower interest rate than the standard for you.

Your credit score plays a big role in your financial matters. So, be sure to check it every once in a while. Besides, it’s free. So, why not?

Is My Income Part Of My Credit Report?

There are a lot of people who do not know what a credit score is and how it is calculated. Many of us only come to know about a credit score after a loan or a financial product gets rejected. After getting such news you try to get your credit report to understand where you went wrong and start making attempts to build up your credit score. While building a score from scratch, you will try finding easy ways to get the score up in no time to avail a financial product. You make all your payments on time, use less limit on your credit card but you do not find a significant impact on your report. Suddenly something clicks in your mind, can my salary be a part of my credit report?

The answer to this question is a NO! Your salary or any type of monetary gains can never be a part of your cibil report. Other than income, factors like, color, race, religion, marital status, gender, occupation, where you live, etc. do not contribute to your credit score.

There are a lot of factors which contribute to your cibil score but salary is not one of them. Factors like your payment history contributes 35% to your score, the amount owed will be 30%; length of credit history contributes 15%, 10% of new credit and 10% on types of credits used.

A credit report is designed to analyze your financial behaviors and if you can default a new line of credit. It makes the lender’s job easy to understand if you are credit worthy and if they can provide you a loan or a financial product. The lender will definitely check your incomes and gains to understand your repayment capability but it will also check your credit report for any past defaults.

One of the reasons why your salary is not listed on the report is because the credit bureaus seek information from lenders, creditors and collection agencies; they do not take any self-provided data from consumers as they may have fake information. The employers also are not comfortable sharing the packages to bureaus as this kind of information is confidential. There can be instances, the competitor company can pull any employee’s records of how much package are you offering and can headhunt your candidate, as credit report information is easily available these days.

How can you bank on your income?   

You can use your income to do a lot of things financially. You can invest in insurances, which is termed to be good investment. The payments you make for your insurance policies are reflected on your report which than helps you improve cibil score.

There are instances, when you need urgent funds and you cannot rely on your family members. You can show your stable income proofs to the bank or any lender for a quick loan which can help you with quick funds. When lenders make decision on giving you a line of credit, your salary is always a key factor while considering your credit worthiness.

Once you have availed a loan, make sure to make timely payments to the bank, so that your credit score up rises from time to time and when the time comes, you avail a bigger loan like a home loan or a luxury car loan with ease.

The other ways to bank on your salary in financial market is to apply for credit cards. Credit cards play an important role in everyone’s life if used properly. A credit card can be a boon at emergency times and can be a source to quick funds. If you have a good income structure, you can apply for a credit card with good upper limit. Card lenders consider your salary and gains when they accept application to determine if you are a car worthy individual and also what would be your credit limit. Owning a credit card can help you many ways including improving your credit score.

If you are on the way to build a good credit score, don’t feel bad if your salary is not considered as a component to calculate your cibil score. You can use other ways to build a good score, where your salary can play an indirect role. Just utilize your salary wisely and make all your payments on time, you will see a great hike on your cibil score in no time.

How to Make a Good Credit Score Even Better?

We live in a time where having a good score is crucial for financial security and a comfortable life. However, the question is- what exactly is a good score?

Generally speaking, if your CIBIL score is below 600 then it’s considered a low CIBIL score, and if it’s above 750, then it’s considered a good score. But here is the thing- you should never be happy with your score.

It should be one of your continuing goals to improve credit score even if it’s good enough. This is because if you stop caring, your score can drop over time and become a “poor score” one day without you even knowing. In addition to that, working towards the best possible score ensures that when you need a loan or a credit card, then you are able to obtain them without any problem and at attractive terms and interest rates.

How do you make a good score better?

There are many things that you can do to take your score from “good” to “great”, such as:

Don’t Break the Streak

Since you don’t have a low CIBIL score, it means that you have been paying all your loan EMIs, insurance premiums, and credit card bills on time. So, if you want to increase your score, even more, it’s important that you never break this habit. In fact, you should do whatever it takes to never miss a single payment.

Your repayment history is one of the biggest factors to affect the credit score. In some credit rating agencies, it can make for as much as 30% to 40% of your entire score! Thus, the only way to improve credit score on a constant basis is to be punctual with your payments at all times.

Create a Healthy Credit Mix

Did you know that by simply increasing the variety of credit in your report you can easily increase your credit score by 10% to 20% or even more?

A lot of people are able to push their score only to a limit because their credit report is based on just one type of loan or credit card only. So, if this is the case with you as well, then you can add new credit profiles to your portfolio and see the magic happen! For instance, if your experience with credit in life is only on the basis a personal loan, then you can apply for a credit card or a car loan. You are sure to notice a major improvement in a short period!

Develop a Habit of Frequent Report Checking

If you can’t remember when the last time you checked your credit report was, then it’s something to worry about.

Monitoring your credit report is extremely important when you want to increase your CIBIL or credit score as much as possible. This is because it helps you track your progress and alerts you when or if your score starts to drop.

Checking your CIBIL report frequently also helps you prevent identity thefts and other frauds that can rob you of your savings and even greatly harm your credit profile as well.

Put an End to Your Credit Card Debt

If you love to use credit cards but make minimum payments more often than not, then it’s possible that you have a huge debt on your card(s) which is really bad for your score.

Although technically you are allowed to make minimum payments to avoid penalties and other kinds of charges on your credit card bills, from your credit score’s point of view, it’s bad. In fact, if you apply for a new loan then it’s quite possible that the lender will reject your loan application even if your score is high because of your high debt.

When it comes to credit score, it’s important to remember that you must not rest on your laurels once you have secured a good position. You must always pay attention to your finances to ensure that your score not only stays high but also makes an improvement over time as well.

Till How Much Time Will Negative Information Be On My Credit Report

Credit Reports are all about your credit history and information related to your loans and cards. There are details about when the loan was taken, how much is the loan, when you missed a payment, when you pre-paid a loan and so on. A common question that comes to mind is, till what time does each information stay on your report. A few questions that may arise in mind are:

  • If I missed a payment a year back will it be there on my report?
  • I applied for a loan about 6 months back, a hard inquiry for it was made by the bank, will it still be there in my report?
  • If I settled a loan about three years back will it be there on my report?

All of you might have similar questions about your credit report, so let’s find out that till what time does any negative information stay on your report, well we are not so bothered about the positive information.

How Long Does Negative Information Stay on the Credit Report?

Credit reports have the different type of information that relates to your debt. Each type of information is treated differently when it comes to score calculation and the duration for which it stays on the report also varies. Below we discuss the duration for which different information stays on your CIR:

  • Missed and Delayed Payments:

Accounts information section of your credit report contains information about the repayment history of your debt including various loans and credit cards. Repayment history is the most important aspect when it comes to credit score calculation; this section contains payment details of all loans and credit card dues for last 36 months apart from all the other details about loans and cards. So if you missed a personal loan or a home loan EMI it will continue to reflect in the report for 3 years and every time your report is pulled in the meantime it will be reflected in it. Of course, recent defaults impact the score calculation more than older defaults but the older defaults (up to 36 months) do stay in the CIR.

  • Settled Loans

Settled status for a loan is one of the worst things to have in your credit report and what’s more is that it stays on your report for seven years. When you pay all your loan dues diligently than the loan status is shown as “closed”. However, when you do not pay the whole amount that you owe to the lender but pay an amount less than what is owed to the lender then the loan status is shown as “settled”. A settled loan always raises red flags for future lenders as they are not sure if you can be trusted to repay your dues in full. A settled loan will show in your report for seven years which is a pretty long time; getting fresh credit with a settled account status could be difficult so think carefully before you decide to settle a loan. Of course, a loan that is settled more recently than a loan that was settled years back is viewed more negatively but the impact of a settled loan may be influenced by other factors on your credit report too.

  • Credit Enquiries

When you apply for a loan, the first thing the prospective lender does is seek the applicant’s credit report; this is known as a hard inquiry and is reported in the CIR. Each hard inquiry impacts the credit rating and lowers it. However, if you decide to check your own score then it has no impact on the credit score. It is recommended that you get a free CIBIL Report or a credit report from other bureaus once in a while to assess your credit health. Hard inquiries stay on the report for a period of 24 months but only enquiries made in the last 12 months impact the score calculation, after that even though they will feature in the report they will not impact the rating.

So now there is more reason for you to be careful with your debt. Irresponsible treatment of debt could remain in your report for the duration ranging from 2 years to 7 years as discussed above and could impact your chances of getting fresh debt.

 

The Laziest Way to Improve Your Score

There are a lot of things in life which you want to do. There are many of us who try to find the easiest or let’s put it this way find the laziest way to do things.

There are a lot of people who spend a lot of their energy in maintaining a good credit health and find ways sitting online finding solutions on how they can improve their score. Most of us know why we should maintain a good credit score and how that can help us the long run.

But is there a laziest way to improve your credit score? Well we have good news for you today, yes! There is a lazy way to build your credit score positively.

Usually a credit score is a number which ranges from 300 to 900. If your score is anywhere ranging between 750 and 900, it is considered to be a great cibil score. This score range can help you get any type of loan in no time. With such score you can opt for maximum amount of loan sanction and also can negotiate further with the lender on interest rates and processing charges.

A good credit report will add good value to your financial lifestyle if adhered properly. An individual with good credit report enjoys a lot of privileges offered by financial institutions and lenders which helps the individual in long run.

Here are easy ways to improve your credit score,

  • Older the account, better

The age of your credit roughly contributes 15% of your overall cibil score. The credit bureaus always give priority to applicants who have longer credit reports. Would you lend money to an individual who just started or someone who has a credit history of 10 years?

A bonus tip would be to never close a credit card account if you have one. Just try making small transactions every month and make the payment on time, this will help you to improve the score and also will make the account old. This will help you get your cibil score up.

  • Let the bank make your payments

There are a lot of promotions going on in today’s market which endorses auto payments. If you have different loans on your account, you will have to make all your payments on time. What better way to opt for auto payments. In such scenarios the bank will take care of your payments, you just have to maintain sufficient balance. This service is absolutely free of cost and you do not have to worry about EMI dates, the banks will take care of it.

Making payments on time contributes a whopping 35% of you credit score.

 

  • Stop credit hunting

Do not fall for the tele calling companies who call you explain great offers on loans and credit cards. We always fall for such gimmicks and end up making a hard inquiry on our credit report which then hampers the cibil score.  These hard inquiries made by different lenders remains on your report for two years and when in future you genuinely apply for a loan, these may cause you problems. Credit inquiries accounts for 10% of your cibil score.

You can get your credit score a boost without even making inquiry. Only inquire when in need, do not fall for mouthwatering offers by lenders.

  • Piggyback

This is the easiest way of all. You can improve your cibil score by becoming an authorized user on someone else’s credit account, this is called piggy backing. If a family member like father, spouse has a good credit history, you can tag along with them becoming an authorized user for their account and this will boost your credit score. This is like an ultimate trick used by people to get their credit score up in no time without any efforts.

Just make sure the lead account holder makes all their payments on time and maintains a good credit health, or else this practice can also turn out to be dangerous as the lead with hampering their own can hamper your cibil score as well.

If managed correctly a credit score can do a lot of financial miracles in your life. Mantling a good cibil score is no rocket science, all it needs is good financial integrity which will help you in long financial runs.