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How to get credit or loan from Banks and Financial Corporations?
In present day’s, people are knocking the doors of banks and finance institutions regularly. Due to the problem of increasing debts banks are following new regulations while sanctioning credit loans. Credit history and score both are mandatory at the time of credit sanction. In this article I would like to share the complete information about credit history and score.
If you are going to visit banks for credit, have you checked your credit score, have you scored at-least 750 in CIBIL, because Banks are offering credits to public who have the CIBIL score of 750 otherwise banks are not offering credits. Here below I would like to discuss about CIBIL and credit score, the link between these scores and credit, credit score and ways to improve the credit score.
Rich countries issues credits or credit cards after observing the credit history of an individual. Presently Financial Corporations and Banks in India are following the same procedure. In the year 2000 itself in association with world famous credit and information management company Trans-union, CIBIL has been initiated. More than 500 companies have taken membership in CIBIL. These 500 companies can exchange data, at present CIBIL holds the credit history of 17 crore people and the details of 65 lakhs companies. If any individual approaches any bank or company for credit, he bank first verifies the credit history of that individual or company in the database. The individual or company that cleared the credit in time and had good score will easily get the credit and even they get discount in interest-rate.
What is CIBIL?
Credit Information Bureau India Limited in short CIBIL has been initiated by Banks and Finance corporations for analyzing whether the individual has the economic capacity of repaying the amount in order to avoid the credit dues. Banks are sanctioning credits based on the reports of CIBIL. If once we observe the credit sanctions of banks public or companies have more than 750 score in CIBIL only got credits. Hence we can understand that how much crucial is the CIBIL credit score in the sanction of credits.
How much score is needed in CIBIL for the sanction of credit?
During the preparation of credit score of an individual, CIBIL has considering many points like Age, Income, Expenditure, Paying all bills in-time or not, maintenance of the bank balance and ways of investments. Credit history record will be prepared by following above mentioned points. Based on this information credit score will be given. CIBIL score ranges from minimum of 300 to maximum of 900.
If an individual or company's credit score comes less than 600 then it is very difficult to avail credit or credit card.
If an individual or company's credit score ranges 600-700 then banks sanctions credit after conducting deeper inquiry and collecting complete details.
If an individual or company's credit score ranges 701-750, then it shows that they have a satisfying credit history. Hence credit will be sanctioned to them.
If an individual or company's credit score ranges 701-850 then it shows that their credit history is good. They can easily get credit sanctioned from banks.
If an individual or company's credit score crosses 801 marks, then it shows that their credit history is best and apart from credit they even gets discount in interest rates.
How to increase the Credit score?
Credit score can be increased by paying all bills at time. Late payments shows negative effect on the credit score. An individual have to avoid the over usage of credit cards. Credit score mostly affected by credit cards usages and payments. For example an individual has the credit limit of one lakh on his/her credit card, consuming up to 90000 rupees CIBIL treats that person as careless. Hence by completely paying the due amount that availed through credit cards, an individual can increase his/her credit score. One has to be cautious about bounce of Cheques and ECS; it also affects the credit score. And one has to avoid the regular meetings of bank officials as CIBIL, Credit Information Bureau India Limited observes it keenly. One has to avoid the defaults in the credit card payments. Credit card settlement mode may decrease the credit score. Hence an individual have to avoid facing such situations.
How to know the credit score?
CIBIL supplies the facility of knowing an individual's credit history and score. At present CIBIL sharing two types of information, one is Credit Information Report(CIR), it provides details of credit history of that person, and for availing this service we have to pay 142 rupees. If an individual along with credit score wishes to know the complete information then he/she has to pay 450 rupees. It takes 12 to 15 days time will for receiving the credit report through postal mode. One can receive within 2 to 3 days of time through online mode. A company's credit report will be known by paying an amount of 2500 rupees.
Through Online mode:
For receiving credit report through online mode an individual have to visit CIBIL website and have to click on Know Your Score option. He/she have to fill the complete information in the online form in the very next page. Then in the second stage he/she have to pay the fee of 450 rupees through credit card, debit card or net-banking. After the completion of the two stages he/she reaches the crucial third stage. CIBIL asks five security questions in order to avoid the misuse of his/her personal details. He/she have to correctly answer at-least 3 questions then only credit report will be comes through e-mail mode. Otherwise he/she have to post the identification certificates for getting the credit report. Five questions that have been asked in online will be related to his/her credits, bank accounts and credit cards.
Through Postal mode:
An individual who wishes to receive the credit report through papers have to send request by e-mail, post, telephone and fax. Report will be reaches to the address of the individual. But along with request, an individual have to send the Xerox copy of signed in identity proof card (PAN, Passport or Election Identity Card) and the Xerox copy of signed in residence certificate.
Address: P.O.BOX 17, Millennium Business Park
Navi Mumbai 400710
Telephone number: 02261404300
Fax Number: 02240789007
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