The biggest dilemma for a person with ZERO credit history is how to increase CIBIL Score? The banks and financial institutions are not willing to approve a loan to high risk borrowers including loan applicants with zero credit history. It's a classic situation faced by a fresher seeking first. Companies are not willing to hire a fresher, however, if they will not get the opportunity to work in a corporate then how they will gain experience. Similarly, if the person with zero credit history will not get a loan then how they will build and improve their credit score. The good news is that now ... Read More
Days Past Due (DPD) in CIBIL Report
CIBIL Report is X Ray of one's credit health. It is must that credit health should in good shape. A good credit health in turn is critical for your personal finance / financial health. For example if you have low CIBIL score in CIBIL report then you cannot avail Home Loan. What it implies is that you cannot own your dream home till you save enough to buy house without Home Loan. This scenario seems impossible because of high cost. As we know that any default in payment impacts your CIBIL score negatively. Sometimes through intelligent and timely intervention, we can control the damage to CIBIL ... Read More
Low CIBIL Score – Check your Credit Utilization
Low CIBIL Score is now synonyms to Loan or Credit Credit Card Rejection. There is a common perception that Low CIBIL Score is only due to default or delay in payment of credit card bill or loan EMI. It is not 100% correct. Low CIBIL Score has very strong co-relation with overall credit eligibility. "Credit Eligibility" means max credit that a person can avail and "Credit Utilization" is actual credit availed. It is important to maintain a fine balance between credit eligibility, credit requirement & credit utilization. Optimum distribution of credit is essential depending on your current ... Read More
How to avail Home Loan without CIBIL Score?
Home Loan without CIBIL score is un-imaginable. I receive multiple queries from my clients on How to avail Home Loan without CIBIL Score. In short, Home Loan lender should not check CIBIL Score of a Borrower. I have handled many cases wherein the people are victim of mistaken identity, wrong entries, identity theft, CIBIL Score of -1 i.e. insufficient credit history or no credit history. Dream of owning a house will remain dream for this section. As we know that now it is very difficult to avail Home Loan without CIBIL Score. I am writing this post for the benefit of such potential borrowers ... Read More
CIBIL Score and Credit Card Limit
Credit Card Limit is basically "Spending Limit" allowed on your credit card. Credit Card is riskiest business for any bank. The default rate is very high on credit cards as it is totally unsecured credit extended to customer. Now a days banks are extra cautious while issuing a credit card. A credit card is issued only after due diligence. Every credit card has different credit limit depending on risk profile of the customer. Credit card limit is decided based on income, current loan portfolio, expense pattern and overall risk assessment of customer by the bank. Banks pull out CIBIL report of a ... Read More
5 Tips to Improve CIBIL Score
One of my reader Mr. Anil Gupta (Name Changed) from Jaipur sent me a query on how to improve CIBIL Score. I must say that there is no scientific formulae to improve credit score. Only Brahamastra to improve CIBIL score is to follow financial discipline & maintain healthy Credit Portfolio. Lot of my readers have availed paid services of some online portals to improve CIBIL Score but trust me none of them can help you to improve CIBIL score immediately. These portals only fool customers. Only Right advice & Credit guidance can help. Lets understand from following case study of Mr. Gupta, ... Read More