Search Results for: CIBIL score

Seven things to avoid to save your CIBIL Score

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CIBIL Score: CREDIT SCORE determines your credit goodness and helps a loaner to decide if you qualify for a loan or a MasterCard. As per CIBIL, credit score ranges from three hundred to 900, and people with a score of a minimum of 750 points, get quicker loan approvals.

A credit score features a direct impact on your monetary life. A higher credit score suggests a lower risk of default and the other way around. Below square measure seven factors that will impact your credit score:

1. Do not miss the due dates: Missing the date of your MasterCard bill, not paying equated monthly instalments (EMIs) on time, features a negative impact on your credit history. even though you have got incomprehensible one payment or EMI, it’ll be mirrored within the report.

If your credit score is low as a result of you do not pay your bills on time, be prompt together with your payments. Once you create a habit, it’ll take a minimum of half a dozen to eight months for your credit history to enhance.

However, the smart factory is that currently, besides loans or EMIs solely MasterCard bills square measure thought-about whereas evaluating credit history and different house bills aren’t taken into thought.

2. Maintain a healthy credit use quantitative relation Credit use quantitative relations are often outlined as what proportion credit is availed from the given credit limit. it’s calculated in share terms.

3. do not increase your MasterCard limit of Although Associate in Nursing increased limit on your MasterCard offers you the flexibleness of availing additional debt, this will affect your credit score if not used judiciously.

4. confirm all of your recent loans square measure ‘closed’ and not ‘settled’. Any default recent loans are mirrored within the credit history. A default lowers your credit score and credit goodness.

5. you need to check your credit report of throughout the year to make sure that it doesn’t have any errors which will affect your credit score.

6. scan your credit report initial before applying for a loan. As mentioned on top of, a credit score determines the credit risk. So, if you have got an occasional credit score, a bank may charge you a higher rate for the loan or perhaps reject your application.

7. Not having a credit history :This may return as a surprise to several folks however not having a credit history features a negative impact on your credit score. Your credit score is decided on the premise of your loan reimbursement history, credit behavior, credit use limit alongside different factors.

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Loans Real Estate 

How does the CIBIL Score Affects Your Credibility?

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Thinking of buying a house or a car? The mere thought of applying for the loan is enough to induce stress as in spite of having all the required documents; there’s always a chance of your loan application getting rejected.

It’s true that we can’t provide any guarantee for your loan application acceptance but we can certainly offer you an insight on one of the fundamental component that defines your credibility- CBIL score.

What is a CIBIL Score?

CIBIL (Credit Bureau India Limited) score is a three digit score that plays a pivotal role in determining your credibility. Derived from CIR (Credit Information Report), your CBIL score is determined by taking your entire credit history in consideration. In simple terms, CIBIL score helps the lender to know whether you are capable enough to repay the loan.

How will the CIBIL score influence my loan application?

As the CIBIL score forms the authentic source to reflect your credibility, whenever a lender receives your loan application he refers to your credit score. A score of less than 300 can increase the chances of loan rejection whereas a score between 300-600 or above 900 can process your application to the next level.

Post your credit score check, a review of your recent credit purchases, payment history, outstanding payments, earlier loan repayment durations, etc., is undertaken. Although sanctioning of loan is subjective in nature, the component of CIBIL score certainly influences the decision of concerned money lending institutions.

How do you manage your CIBIL score?

If your CIBIL score is less than 300, here’s how you can improve your CIBIL score:

  • Avoid overuse of credit: Use your credit facility only when you actually need it, as over exploitation of credit simply creates a false impression on your lender.
  • Clear your dues: Ensure that you act responsibly and clear all your outstanding EMIs and bills on time as the timely clearance of your bill will reflect a healthy loan repaying capacity.
  • Periodic check: Through a periodic review of your CIR (Credit Information Report), you can always rectify your errors in case of any.
  • Manage your accounts: It is advisable to have only one or at the most two accounts, as the presence of multiple accounts often makes it difficult for efficient management.
  • Seek help: If you are finding it difficult to manage your CIBIL score than always seek professional help as that would simplify your credit management.

Having said that always remember that CIBIL score affects your credibility but it’s not the only factor to affect your credibility. Often there have been instances wherein in spite of having a good CIBIL score, the loan applications have been rejected by banks. Also, this does not mean you neglect your CIBIL score, especially when you are applying for a loan.

Besides, having a healthy CIBIL score can also bring in an advantage of low interest rate from your lender, so next time before you apply for a loan always check your CIBIL score to avoid any unforeseen surprises.

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Knowledge Based Articles NL Builders 

What is a Credit Score? And what damages your Credit Score?

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Credit Score: There are many numbers that are important in life, from your age to your pin number to your ban balance – but one that is often overlooked until it’s too late is your credit score. We all know we have one, but ending up with bad credit is an all too easy mistake to make which can hugely impact our lives and ability to secure loans and mortgages, as well as credit cards. Luckily however, there are plenty of things you can do to repair your credit score – even when it looks like it’s gone past the point of no return.

What is a credit score?

In basic terms, your credit core is a number which tells a lender or bank how reliable you are with repayments. Having good credit (which is shown through a high credit score) shows a lender that you are reliable and able to pay your debts on time and in full. Having a low credit score tells them that you have a history of late or incomplete debt payments, and this makes them less likely to agree to offer you a loan or mortgage; if they do offer you a loan then it is likely to have very high interest rates. Essentially your credit score tells them how big a risk you are to them if they lend you money.

What damages your credit score?

There are many ways to damage your credit score, and sadly it’s much easier than you might hope. Essentially, a credit score is reduced when you gather debts you are unable to pay off, but there are many different ways that this can happen. The most frequent problems are borrowing more than you can afford to pay off, missing more than one instalment of a regular payment, or living very close to your credit limit – i.e. living off of credit cards, or living at the bottom of your overdraft. Both signify poor money management or financial hardship, which are red flags to lenders looking for assurance that they will be repaid. 

You can also damage your credit score by making other mistakes such as frequently opening new bank accounts and repeatedly applying for credit, as each failed application negatively impacts your credit score.

The other tricky thing that can negatively impact your credit score is having no credit history. This can seem unfair, as you may think it would be a good thing to have never lived off a credit card or accrued any debt you must pay off – but in fact, this just means that there is no proof you are able to pay debts reliably and this can negatively impact your number.

Why is good credit important?

Having a good credit score is very important for many reasons. It allows you to be approved for loans including mortgages and business loans, and additionally if you are a renter many landlords look for a good credit score in order to lease their properties to reliable tenants. In addition, you will be able to get access to the best credit cards and interest rates if you have a good credit score.

Improving your credit score

So, if your credit score is looking a little less than healthy, what can you do to reverse the trend, repair your credit, and get things back on track? We’ve put together five tips for you to do just that.

Get a credit card 

This may seem counter intuitive, but as mentioned above one of the ways you can damage your credit core is by having no credit history to speak of. You can remedy this by getting a credit card and using it to make small purchases you can easily pay off, meaning you show you can consistently and reliably pay off debt. That said, make sure you know you are eligible before applying for a card as multiple applications can have a negative impact.

Pay off your overdraft

If you are regularly overdrawn or living out of your overdraft, make every effort you can to break this cycle. Go over your budget and ensure you’re using your money wisely; there’s no need to make yourself miserable but cutting back on unnecessary expenditures in order to improve your credit score will be well worth it.Lower your credit utilisation

Lower your credit utilisation

If you are regularly overdrawn or living out of your overdraft, make every effort you can to break this cycle. Go over your budget and ensure you’re using your money wisely; there’s no need to make yourself miserable but cutting back on unnecessary expenditures in order to improve your credit score will be well worth it.Lower your credit utilisation

Although having a credit card is a good thing for your credit score as long as you pay it off consistently, having your credit card hovering close to its credit limit is not a good idea. Make sure to keep any spending below 25% of the credit limit on a given card, as living close to the limit is a red flag for financial hardship for lenders.

Fix errors in your credit report

Access the information on your credit usage over the past 5-10 years and thoroughly check it. Although not frequent, errors are not uncommon and if you can find any to be fixed then this will help you to improve your credit score.

Pay any outstanding debts down

You don’t have to be able to pay your debts off completely in order to improve your credit score – you just have to show that you are able to make consistent contributions towards paying off those debts. You should start by focusing on high interest debts which are growing more quickly, and in this way prevent your debts from getting out of hand at the same time as improving your credit score.

So there we have it. Having a good credit score is very important; whether you’re starting tot hink bout buying your first house in a few years time or you simply want to find a nice place to rent with a good landlord, having a great credit score is a step on that road. It’s very easy to damage your credit score, from overapplying to credit cards and opening lots of accounts to missing payments on bills – but luckily with a bit of intelligent planning and dedication you will be able to improve your credit score and get things back on track.

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NL Builders Real Estate 

Plans for a home loan? Here is the checklist

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Home loans are recently in demand. While the rates of real estates are touching the sky a lot are moving towards home loans. Taking home loans requires a destined procedure to follow. But, even if the market is loaded with home loan deals here is what you need to consider before applying.

  1. Know your ability to avail loan 
    Each individual has a restriction on the loan amount that depends upon various factors. The loan amount that is sanctioned depends upon the individual’s salary as well as its ability to repay. So before jumping into availing the loan, it is best to self-asses your own salary and willing check your capacity to repay.
  2. Read documents carefully
    It is best to spare some time and carefully go through the documents. There are many hidden costs involved that are usually mentioned in the documents. Hence, be completely meticulous about the documents.
  3. Loan tenure
    The tenure of your loan also plays a significant role. Your amount of EMI is inversely proportionate with the tenure. This implies that longer the tenure smaller would be the amount of EMI and vice versa. Depending upon your income and other factors you can choose the tenure. You should Calculate the available surplus under various situations and evaluate the available monthly surplus for each situation.
  4. Choose your lender
    There are ample of banks available in the market to provide you loans. However, it is of your best interest to research well. Do not opt XYZ bank merely because your cousin told you so. Use the internet and do extensive research on it. After all, it is all about your home and finance.
  5. Check the CIBIL scores
    CIBIL scores are counted based on your pending bills, any check bounces, existing loans, uninsured existing loans, loan repayments, maintained your bank accounts, how many times you have applied for a loan or a credit card, and credit taken. If your CIBIL scores are average or above average, chances of availing the loan surely increases. However, if your scorecard is below average you need to first work upon the CIBIL scores and enhance it.
  6. Extra charges – Get yourself well versed with the extra charges you would be asked to pay. Usually, these charges are involved in your home loan amount. These charges could be the processing fee, service, and administrative fees, etc. Asking and clearing doubt about these charges are necessary.
  7. Rate of Interest  
    The rate of interest plays a crucial role while opting for the home loan. Whether you opt for a fixed interest rate or variable one – it would hugely impact your EMIs. Fixed interest rates stay fixed irrespective of the volatility of the market, on the other hand, variable interest rates keep fluctuating depending upon the market.
    When it comes to buying a home loan please ensure that you also check the credibility of the builders. NL Builders for that matter are best in the arena. Their credibility has no level to match up. Availing a home loan becomes easier when you have builders like NL Builders for your home.  Home loans definitely make houses affordable to us. However, considering these things before choosing a home loan is a sign of wisdom.
Knowledge Based Articles Real Estate