How do you improve your credit history?

Your credit history, other than your income, is the single most important tool used by a Loan provider to evaluate your application for any loan or credit card application. Naturally, it’s important that you understand your Credit Information Report (CREDIT REPORT) and what it takes to maintain a credit history, so that is viewed favourably by Loan providers. A good credit history can be maintained by following these 7 simple rules:

• Rule 1: Always pay your bills on time. Late payments are viewed negatively by Loan providers and may affect the chances of your loan getting approved.
• Rule 2: Keep your balances low. While the balances on your loans will only reduce over time as payments are made, you must be diligent about making timely payments on your credit cards. Also, you should control your utilization. For example, if you have used Rs. 90,000 out of a credit limit of Rs. 1,00,000, this may be viewed negatively by  a Loan provider. It’s always prudent to not use too much credit. 
• Rule 3: Maintain a healthy mix of credit. Your credit history should contain a mix of a home loan, auto loan and a couple of credit cards. A high number of just credit cards may affect the chances of a loan approval. Why is it so, you may wonder. Although a credit card offers easy access to finance, it’s also by far the most expensive form of credit. More the number of credit cards with high utilization, larger are the payments resulting from its high rate of interest.
• Rule 4: Apply for new credit in moderation. If you have made many applications for loans, or have recently been sanctioned new credit facilities, a Loan provider is likely to view your application with caution. This ‘Credit Hungry’ behaviour indicates your debt burden is likely to, or has increased and you are less capable of honouring any additional debt.
• Rule 5: Think twice before closing credit card accounts. While, using credit cards may negatively impact your credit history, unused credit cards actually imply that you are financially secure. This makes Loan providers view your application more favourably.
• Rule 6: Monitor your co-signed and joint accounts monthly.  In co-signed or jointly held accounts, you are held equally liable for missed payments. This is extremely important because your joint holder’s negligence could affect your ability to access credit when you need it.
• Rule 7: Review your credit history frequently throughout the year. Unpleasant surprises in the form of rejected loan applications can be avoided by ensuring that your CREDIT REPORT accurately reflects your current financial status. So reviewing your credit history 3-4 times each year is imperative.

Though these general rules are important to keep in mind, each loan provider has its own policies to sanction a loan to an applicant.

It is important to note that your CIBIL TransUnion Score will begin to rise as you improve your credit history

What factors on my credit report are the most critical to my loan approval?

CREDIT REPORTs have been widely used by loan providers to evaluate loan applications for over 5 years.  However, only recently have people begun to realize, how crucial it is to be aware of and maintain their credit history. Understanding the CIBIL credit report helps you identify the right time in your financial life cycle to apply for a loan and increase your chances of a loan approval. Listed below are the most important attributes looked at by a Loan provider while evaluating your credit application.

•  Attribute 1: Payment History
  This appears in the Account(s) section of your CIBIL credit report. There are 2 parts to this information: the Days Past Due (DPD), and the month and year of payment that reside here. The DPD indicates how many days the payment is late that month. Anything other than “000” is considered negative by a Loan provider. Up to 36 months of this payment history (with the most recent month displayed first) are provided in this section.
• Attribute 2: Current Balances
  Also appearing in the Account(s) section of your credit report, the current balances on various loans indicate the depth of your debt. The sum of your current balances helps a Loan provider determine your strength to take on additional EMIs, in relation to your current income. Naturally, lower the current balance, the better the chance of your loan getting approved.
•  Attribute 3: New Credit Facilities
  If a loan provider observes that you have recently been sanctioned a number of new credit facilities, it would mean that your monthly outflow in terms of EMIs, are likely to have increased. Hence, it may have a negative impact on your loan application.
• Attribute 4: A number of new Enquiries
  If you have applied for a number of loans in the recent past, the chances of your loan getting approved are likely to suffer. Simply because, this credit behaviour indicates that you are “Credit Hungry” and in an urgent need of money. It is likely to make Loan providers more cautious while evaluating your credit application.

If you are planning to apply for any sort of credit facility for a purchase (home or car) in the near future, it is imperative to check your CIBIL credit report 2-3 times each year and ensure that your ‘Reputational Collateral’ is reflected accurately. This will provide you with access to credit faster and at better terms. Rest assured; that Enquiries are not added to your CIBIL credit report when you purchase one directly from a CIBIL.



          

What are the different types of Ownership indicators that can appear on your credit report?

Given that your credit history helps a Loan provider ascertain your ability to pay additional debt based on your past performance, having DPD other than “000” on your CIBIL credit report would imply that you have not met your financial obligations in the past. Hence, Loan providers may view accounts that are reported with DPD as anything other than “000” negatively and this may affect your chances of a loan approval.

It is important to note that some Loan providers report DPD as follows:

DPD	Denotes	Explanation
STD	Standard	Payments are being made within 90 days. Any account overdue by more than 90 days is classified a Non-Performing Asset (NPA) by lenders
SUB	Sub-Standard	An account which has remained an NPA for up to 12 months
DBT	Doubtful	The account has remained a Sub-Standard account for a period of 12 months
LSS	Loss	An account where loss has been identified and remains uncollectible

Any classification other than “STD” is viewed negatively by Loan providers during the loan application process.

On occasion you may see “XXX” reported for your DPD on a certain account. This means that the Loan provider has not reported that month’s DPD to CIBIL and hence, there’s no need to worry.

The best way to avoid having anything other than DPD of “000” or “STD” on your CIBIL CREDIT REPORT is, to always pay on time and the best way to always pay on time, is to avoid more debt than you can comfortably handle with your current income.

We providing assistance on behalf of the client to get CIBIL report.

Please note  we neither working on behalf of CIBIL nor any other government department.
We are Independent financial advisers.

Our services includes
1. Assisting for applying CIBIL reports
2. Helping for CIBIL report correction
3. Assisting getting loans from nationalised or private banks or NBFCs
4. Representing CIBIL issues and other matters to client's bank
5. Getting  NO DUE CERTIFICATE from banks on behalf of client after settling account
6. Liasioning between Bank and Client to sort out the matter of credit cards or loans
NOTE:
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We are not providing any free services but advising professionally and result oriented.

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What is the difference between “High Credit” and “Sanctioned Amount” on my credit report?

 ‘High Credit’ in the accounts section of your credit report is only displayed with credit card and overdraft accounts. It denotes the highest credit utilized in a single month over the life of that credit card. For example, 2 years ago I spent Rs. 75,000 on some emergency medical treatment on my credit card (which has a credit limit of Rs. 1,00,000). Given, that was the single highest monthly balance in the history of my credit card usage, this is what gets reflected in my credit report.

‘Sanctioned Amount’ is displayed along with credit facilities other than credit card and overdraft accounts. The Sanctioned Amount field denotes the amount disbursed to you.




   


         

What is the content of a CIBIL report?

CIBIL only reports loan and credit-card information such as repayment track, loan type, amount outstanding, loan amount disbursed, various dates, etc. The report also contains a customer's personal information like name, address, date of birth, phone number(s), passport number, voter's ID number, PAN, etc. In a commercial credit report the inputs are similar but include some additional details pertaining to the commercial entity like legal constitution, registration number, etc. The credit report does not provide any opinion or comment on whether a loan should be extended to a customer. It reports the facts that its member banks and financial institutions have reported.

Credit Information Bureaus and 'CIBIL'

A credit bureau is a repository of credit information of all customers of its members, which comprises banks and financial institutions. CIBIL (Credit Information Bureau of India Limited) is one such organization that collates credit information contributed by its members and disseminates it to lenders, helping them in their credit-decision-making and lending process. CIBIL houses only credit information i.e. information on loans and credit cards. It does not have any details of customers' savings accounts or fixed deposit accounts. Members share this credit information of their customers with CIBIL month on month so that CIBIL's database is updated. This information is then used by credit underwriters to make effective credit decisions.



Therefore, with proper financial planning and by maintaining a good track record of repayment of dues for loans / credit cards, you will be able to build a good credit history for yourself. This, in turn, may help you in getting future loans / credit cards easily or on better terms.

Housing Loan, Bank Loan rejected? Rectify CIBIL Credit Report. Credit Information Bureau (India) Ltd. Apply and Get CIBIL Credit report.

The Credit Information Bureau (India) Ltd (CIBIL) now allows individuals access to their credit information reports. Home loan seekers can access their credit information details prepared by CIBIL. In case of any mistakes,they can be rectified. Previously,a borrower used to get credit information from the bank where he applied for the home loan.A home loan application was liable to be rejected on account of negative or poor scoring by CIBIL.The lenders never provided the CIR to borrowers.

The Credit Information Bureau (India) Ltd (CIBIL) now allows individuals access to their credit information reports (CIR). Home loan seekers can access their credit information details prepared by CIBIL.

CIBIL'S CREDIT REPORT INCLUDES:

Name and address of borrower Identification and PAN numbers Passport details Date of birth Records of all the credit facilities availed by the borrower Past payment history Amounts overdue Number of inquiries made on that borrower by different mem bers Suits filed and their status The CIR does not contain Income and revenue details Amounts deposited with banks Details of assets Details of investment

Now,individuals can access their credit information as analysed by CIBIL. In case of any mistakes,they can be rectified.

Previously,a borrower used to get credit information from the bank where he applied for the home loan.A home loan application was liable to be rejected on account of negative or poor scoring by CIBIL.The lenders never provided the CIR to borrowers. Once a borrower found out that the credit information was incorrect,on his request,the lender would provide him a nine digit unique borrower control number.

With the control number,the borrower was supposed to contact CIBIL to get the exact details related to the negative or poor scoring details.Many times,due to wrong reporting by member organisations,it was found that the CIBIL report was incorrect.In order to get the mistakes rectified,the borrower had to go through a long process.

A borrower can now access his CIR directly from CIBIL.A CIR is a record of the credit payment history compiled from information received from credit institutions.The purpose is to help credit institutions make informed lending decisions - quickly and objectively - and enable faster processing of credit applications to help provide quicker access to credit at better terms.

In order to get the report,one needs to fill up a requisition form available on CIBIL's website (www.cibil.com). After filling the form,you have to provide self-attested copies of some documents to CIBIL.The documents needed with the application are identity proof and address proof.



With the new base rate system of interest rates coming into effect,it would be all the more beneficial for home loan borrowers.The interest rates will henceforth be based on the base rate plus a premium depending on the credit rating of the borrower.A good credit rating helps in getting a loan at a lower interest rate as compared to a loan based on a bad credit rating.