How Poor CIBIL Score Can Destroy Your Financial Goals?

You may not realize how poor CIBIL score can affect your life, but if you take a closer look you can see how it has the power to set itself as a major obstacle in several areas.

Here are a few ways how bad credit score can destroy your financial goals:

  1. Lack of Access to Money

Finding a loan for low credit score is harder than you think. Thus, if your life threw a curve-ball in the future and you need money on an urgent basis, things can become bleak easily. Most credit lending institutions perform a through credit check for every single loan application, and if you have a poor score it is highly unlikely that yours will get approved.

  1. High Interest Rates

Obtaining a loan for low CIBIL score is not impossible, but it comes with a catch- high interest rates. When the applicant has a history of CIBIL dispute  or lacks satisfactory CIBIL score then the lenders deem them as ” a high risk candidate”. To balance the risk they charge hefty interest rates for the personal loan, or any other kind of loan that they seek. This money paid in extra interest can be a lot, and thus make it difficult to manage the EMIs along with the monthly expenses.

  1. Job Risks

The importance of CIBIL score is increasing by the day in India. This is evident from the fact that more and more companies have started making it mandatory for the job seekers to have no history as a loan defaulter if they want to apply for jobs. SBI was one of the first to demonstrate this, when it mentioned clearly in the job advertisement that those candidates who had ever defaulted on a loan were ineligible for the posted jobs.

If you have a poor credit score then finding a good job can become difficult for you in the future. Even your existing job can be at risk if you default on a loan, as your company may look at it as a sign of bad money management and lack of responsibility.

  1. Increased Stress

Bad credit can rob you of joy in many ways. You start worrying constantly about your finances, and if you have a family to support then things can only become worse. Every time your phone rings you wonder if it is your debt collector. Paying with your credit card also starts making you nervous, as you pray that it doesn’t get declined when a seller swipes it in the machine. All this stress eventually forces you to seek professional help from a therapist of a doctor, which again costs you a lot of money, and you get caught in a vicious circle.

  1. Financial Limitations

Your finances can come under rigid constraints when your CIBIL score falls abysmally low. You have to limit your expenses in every possible way to get rid of the accumulating debt. Thus, unless something is really important, it has to wait until the debt is cleared. Home needs renovation? It has to wait. Car is broken? Need to use public transport for a while.

Needless to say, your quality of life takes a blow when your credit is not looking good. You can’t even apply for a new credit card, which could make things slightly easier for you, as for that too you need to have a good credit score.

Once you have understood the points mentioned above you can easily see why CIBIL score is important in your life. Even if you feel your score is good enough, you should never stop being careful with your debt payments. Missing one single EMI can have an impact on your credit report.  Plus, you can always improve credit score, if you know the basics of the same. If your score is already plummeting then it is best to get an expert to help you out. CreditSudhaar, for instance can provide you some of the best credit experts who can help improve your score in the smallest time possible.

 

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How to Manage Credit Card E-Statements Effectively

We do a lot of things electronically today, let it be shopping or booking a room in a hotel. Banking is no different. Online banking is trending, and banks too are encouraging the same. If you are a credit card user then it is likely that your bank has pushed you to switch to electronic statements (or e-statements)  rather than paper versions at one point or the other. However, should you go for it? Keep reading to find out.

Importance of Statements

Bank statements hold a lot of importance- they serve as a record of payments, charges and fees, and even errors, if they have occurred so. They are also almost essential when it comes to making tax returns, applying for mortgage, etc.

E-Statements Vs Paper Statements

There is a reason why banks tend to promote e-statements- they are convenient, and make less clutter. Also, as digitization is on the rise, more people are willing to opt for e-statements rather than paper statements. Some banks also charge a small fee for paper payments, which is another reason why people like to get e-payments instead.

Although e-statements are easier to manage and organize, paper statements have their advantages. They are permanent, and can be accesses and used easily. Many people don’t give e-statements due importance, and often ignore them, which is another reason why paper statements can be useful.

Managing Credit Card E-Statements

If you are sticking with paper statements then it is a different story, but if you have decided to go for e-statements, then you can use the following tips to manage them better:

  1. Opening and Saving Your Statement Every Month- Whenever you get the notification for your monthly e-statement through your e-mail or sms, make it a point to log in your account and download in ASAP. Don’t just take a look at it and forget about it, but keep it in a separate folder along with other e-statements. This way whenever you need to check the records you know where to go.
  2. Keeping Contact Information up to Date- If you decide to change your primary email address or phone number, make sure you inform you bank about it. This way they can deliver messages about your e-statements on your new phone number or email address. It is also important that you check your credit report e-statement frequently, so that if there is any discrepancy you can get it corrected by contacting your bank.
  3. Computer Security- Just like security is important with paper statements, it is important for e-statements too. Thus, make sure your computer is secure and protected for malware and other forms of cyber attacks. Install a good anti-virus program and keep it updated. Also, never share your e-statements online through email or any other medium.
  4. Keeping a Record- While collecting and storing your e-statements can be handy, it is important that you keep a separate record too. Make a spreadsheet with all your accounts in one column, and the months on the top. Enter the amount you pay each month in the columns under the months. This spreadsheet can be really useful when you want to track your payments.
  5. Don’t Just Rely on E-Statements- Monitoring your credit card account can prevent potential theft or other kind of frauds. Thus, you must never just rely on your e-statements for keeping an eye on your account. Instead, log in your account on a regular basis, and do a brief check. Also check your credit score from time to time, to ensure that you are not losing points. For this you should be obtaining your CIBIL report at a regular interval. Poor CIBIL score can make obtaining a loan a nightmare.

Unless you have some concrete reason to opt for paper statements, there is no harm in choosing e-statements. In a world that is increasingly becoming paperless, e-statements will soon become a norm, and it is a possibility that paper will be out of the picture altogether. Thus, the sooner you make the switch, the better. Make sure you follow the tips given above on managing e-statements, and you won’t have to worry about a thing.