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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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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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.

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!