Tuesday, 18 June 2013

Because jobs,loans,insurance and many other facets of your life depend on your Credit Health

A man was trying to apply for a loan for his son’s education.It so happened that somebody had fraudulently taken a loan in his name and hadn’t repaid, due to which the bank wasn’t willing to sanction the loan. After multiple futile visits to the bank and credit bureau he signed up with Credit Sudhaar. His accounts were cleared, and he was able to send his son abroad for higher education.
Most people in India don’t fully understand credit health and its implications on our lives.World over, being credit healthy is a concept that is cherished. It has relevance in almost every facet of life from loans and the rate of interest you are charged, telecom connections, jobs, rental markets through to insurance premia.
Arun Ramamurthy and Gaurav Wadhwani were finance professionals with a background in retail credit and credit analytics and had worked in companies like Standard Chartered Bank, Citibank and Deutsche Bank. It was in organizations like these that they were made painfully aware of the perils of lending in a non-bureau environment. In 2010, they started Credit Sudhaar, with an intent of improving credit health in India.
“On a financial front there was a chasm between where people were and where they wanted to be. Credit Sudhaar intends to be the “go to” place for anybody who wants to manage their credit professionally,” says Arun.
They focus on  everything related to your credit health, starting from credit restoration, to credit enhancement and finally credit protection. They have three packages – titanium, platinum and gold that deal with various combinations of these.
Credit restoration is where they help you undo the negative credit record that you might have developed in the past. This includes everything ranging from checking Cibil, Eqiufax, and Experian  credit reports and notifying them if any error exists, to giving you small repayable loans to aid in improving your credit worthiness. This is often followed by enhancement, where the focus is on improving your credit score, so as to get you lower interest rates, and more easily available loans. They also help you with your income expense balance and other such nitty gritties. The final module of protection deals with safeguarding your clean credit record.
There are 15 crore people on any of the Credit Bureaus in India, thereby giving their organization a large untapped market to explore. Opportunities for scaling look promising, but are hindered mainly by the lack of awareness. When asked whether they target only defaulters, Arun gives a pretty apt metaphor of a gym, where people could come to lose weight, but the healthy ones can come to maintain a certain level of fitness too.
They are currently self funded and the annual advisory fee they  charge for their service is their main source of revenue.

Thursday, 13 June 2013

Home loans: Get the benefits of a good credit score

It is after months of savings and years of aspiration that you finally decide to purchase your dream house. And if you are living in any of the metros or tier I cities in India, taking a house loan is unavoidable if you belong to the mid-income group. 

This again entails a thousand odd processes and acute planning down to the finest detail. In the entire procedure, buying the house at the earliest remains your top priority. 

But what will you do if your loan is rejected even after providing all the credentials and documents? It is only natural to get disappointed.


However, if you try to find out the actual reason of rejection of the loan, you might be surprise to know that it is due to your low credit score. To begin with, a credit score is basically a number that indicates the credit worthiness of any individual based on a thorough assessment of the individual’s credit history so far.

This credit score is collected and collated by credit bureaus – mainly Cibil and Equifax – and they in turn get hold of the information from data furnishers that might include creditors, lenders and utilities, debt collection agencies that a person has had a relationship or experience with.
Now that you are aware of what a credit score is, you should also know how it is intricately related to your day to day life and why it is important to maintain a healthy credit report card. Firstly, whenever you go to a bank or any other financial institution to apply for a loan or a credit card, they will first check with Cibil for your credit score.

If the Cibil credit report if satisfactory i.e. you have commendable credit points, only then will the bank approve your loan. Not only in the case of loans, but also while applying for a telephone connection, applying for jobs, insurance premia, rentals and a lot more.
Essentially, if you can boost of a healthy credit score – ranging in and around 700 to 900 points - chances are very good that  you might end up saving thousands or even lakhs of rupees in the form of interest. This is mainly because banks provide succor by offering credit facilities at lower rates of interest.

The Cibil score also enables the bank to find out who actually qualifies for a loan and at what credit limits. In other words, by referring to the Cibil report, they can easily analysis which customers will prove instrumental in bringing in more revenue for the bank. 
In line with being a credit conscious person, you should also keep in mind that your name does not feature in the defaulters lists.
If it does, then it is considered as a discouraging sign which will take dedicated effort to increase your points and bring your score to normal. Also, it is not necessary that timely repayment of loan is the only criteria to avoid being featured on the defaulters list; there are other issue too that come to play. 
You can also get the online Cibil report by creating a cibil consumer login. They will ask you to pay a minimal amount of Rs. 470 which you can pay online through credit or debit card. And the good news is that there are credit health improvement companies that help you in growing your credit points to maximum.

Credit Sudhaar is a reliable institution that helps you remain credit healthy. They have credit specialists and certified counselors whose expertise lies in interpreting your credit report, identifying the issues with the report, comprehensive analysis and then organizing a step by step plan to improve your credit health.

Maintaining a healthy credit regime can only land you on a safer side besides earning you more money in your bank account. You can also up your credit score by avoiding too much loans and credit cards because mongering for them will give an impression that you are a credit hungry person for whom ‘more is less’.
Once you have recorded a satisfactory credit score, you are placed at a comfortable position to start making plans for purchasing your dream home. Make the most of this healthy state of finances and start looking forward to living in a new home and spread the word for a sound credit health.

Tuesday, 11 June 2013

Do not let erroneous credit reports hamper your financial future

‘To err is human’ – we have been hearing this old saying in our moral science classes during our school days. Now that we have come of age, let us include this in the credit scenario also. In other words, errors in credit reports are a common occurrence but it can have a devastating impact on your credit life if these errors remain unnoticed or are not corrected at the right time. Some of the common credit report errors include outdated personal information, mistaken or fraudulent accounts, and incorrect account details. These mistakes are usually committed by credit data furnishers who are responsible for collecting your credit related information which are further collated by credit bureaus like Cibil.

Your credit report contain your credit score which is an amalgamation of information related to whether you pay your bills timely, if you’ve been sued or arrested, or have filed for bankruptcy. This credit report comes to play when you decide to take house loans, car loans, credit cards, insurance, mortgage, etc. it is also required at the time of applying for telecom connection, employment opportunities and much more. Before giving you the approval, the financial institutions will first cross check your credit report with the bureaus. Only after they are satisfied that your report is okay will they approve your requests.

Since your credit report is furnished during such important times, it goes without saying that a simple error might spell doom to your aspirations. But how will you know if there is any error at all in your report or not? A simple solution to it is by applying for your credit report online. It is easy and fast. All you have to do is search for www.cibil.com, create a user login, fill in the form, make an online payment of Rs. 470 and you have the Cibil credit report in your given email address.  

Once you have a copy of your report, you can check it for errors, if any. In case you find it, embrace yourself to dispute it. However, before you start, make sure it is not a trivial issue but a grave one so that it is worth taking up the cause. To start with, be ready with proper documentation to support you claim. For more clarity, underline or circle the error on the report and send it to the bureau along with your dispute letter. Remember to keep copies of it for your own records.

After your letter reaches the credit bureau, they will start investigating the error by forwarding your supporting documents to the data furnishers. Once they receive the complaint, they must act promptly on it by investigating, reviewing and coming up with the correction. They should also revert to the credit bureaus once they finish correcting it and should also update the changes in your credit report. After that is done, the credit bureau will give you a copy of your report and mention the changes properly in writing. If an investigation doesn’t resolve your dispute with the credit reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the credit reporting company to provide your statement to anyone who received a copy of your report in the recent past. 

So, you can see for yourself how harmful an erroneous report can be for your future prospects. Hence it is only right to nip it in the bud and remain vigilant in the future. It is not uncommon for your report to contain errors. But to contest the point, you also should have all the paperwork ready so that you can furnish it if required. To help you out during such moments of crisis, there are credithealth improvement companies like Credit Sudhaar who can help you get out of such troubles in the most efficient and professional way. The company has over the years earned recognition of providing notable services to over 3, 500 clients and have never once failed in delivering positive results.  


They offer customized services depending on the kind of problem you are facing. But one thing is for sure – that they will always come up with solution that will only secure your financial future. Credit Sudhaar has a very competent team of professionals who are specialized in everything related to credit. So you can easily bank on them if you are facing any problem that might hamper your credit score. 

Wednesday, 5 June 2013

Fruits of being credit healthy are always sweet!

It is a common practice these days to go for a complete health check up quarterly or half yearly. But have you ever considered checking up your credit health? Being physically and mentally sound is no wonder a prerequisite for a happy life. But, at the same time, it will be only foolish to overlook you credit health especially at a time when credit plays a very important role while taking major decisions like buying a house or a car. You have to be equally vigilant – in fact do your best to maintain a satisfactory health of your credit life just like you would do for your own health.

The need for a well planned credit health strategy might not seem very significant at first glance. However, its importance will surface when you have to avail loans, credit cards, account opening and all other kinds of credit facilities. But firstly, you have to know that a credit score speaks volumes about your character and your capacity. That is why it is implicitly agreed that these two attributions are the two most important C’s of credit health. If you are responsible in handling your finances, it automatically reflects on your credit report and vice versa.

You credit score is collated by credit bureaus like Cibil and Equifax and they gather your credit data using both qualitative and quantitative measures. Quantitatively, it is basically the data furnishers like the banks, credit card companies with whom you have had a history of financial transaction. And qualitatively, it is the subjective factors mainly – Character, Capacity, Capital, Collateral and Conditions. Through these two assessment techniques, credit bureaus can collect all your information that they need to prepare your credit report. Hence, you can see that a lot depends on your history of loan repayments and defaults, credit card bills, etc.  

Another thing to keep in mind is that bankers and lenders always check with credit bureaus about your Cibil credit report whenever you apply for car loans, house loans, credit cards, telephone communication. If you score well in your credit report with anything between 700 to 900 points, your demand will be easily processed and approved. Moreover, banks generally ask for lower rates of interest for those who have a healthy credit score. Therefore you can see that a good credit report is equally linked to saving more money and duly increasing your bank balance.

Besides loans and credit cards, another very important factor of life that is at times, if not always, influenced by your credit health is your career. This might come as an interesting revelation for you because not many can comprehend the link between credit score and job prospects. Well, it may not affect much if you are applying for an entry level position. But if you are going to going to be posted where you need to handle cash and overlook the financial aspect of the company, you will surely have to give your potential employers the right to go through your credit report because, if you don’t then it obviously gives a wrong impression.

So by now you must have got a very clear knowledge about the necessity to score high on your credit report. And if you are of poor credit health, you are going to miss out dozens of opportunities in the future. But all is not lost yet! To cater to people like you who are in need of proper guidance, a lot of credit health improvement companies have come up in the country. This has turned out to be of much relief for the common man who are not too much aware of the bombastic financial terminologies and thus trail behind in the high scoring league.

One such credit repair agency is Credit Sudhaar who has carved a niche of their own in the credit improvement market. They are focused on providing assistance to individuals with low credit points through their specialized services and technical approach. They have a devoted group of professionals who are expert in the field of credit enhancement and thus render valuable services to its esteemed group of customers.


Credit Sudhaar has the distinction of offering a four stage customized plan that will monitor every move you make. Its trained professionals will not leave your side until you boast of a decent credit health. Right from interpreting your credit report, identifying the issues with the report, comprehensive analysis and then organizing a step by step plan to improve your credit health – this is the most apt company you should approach if you want to be a credit healthy person. 

Saturday, 1 June 2013

The two inevitable C’s of credit – Character and Capacity. Do you have it in you?

Being credit healthy is the state of being in the pink of health – not your physical or mental health but your credit health. While measuring your credit score is a complex process as a lot of qualitative and quantitative factors come into play, there are also a lot of C’s that also plays an important role while presenting your credit report card. These five crucial C’s are – Character, Capital, Capacity, Collateral and Conditions. Of these, the first two are of high significance.  Credit bureaus are bang on when it comes to collating your credit scores depending on these C’s alone.

Let us turn our focus to the two main qualitative prospects – Character and Capacity:

Character:
Character specifically refers to the reputation of the individual in accordance to his previous records while dealing with financial institutions. The credit history will divulge enough information that will indicate whether the individual is responsible is dealing with his finances or not. Instances of regular repayment of loans, credit cards and other bills indicate that the person is responsible with his money and understands the importance of timely repayment. Hence, he can come out as an honest and reliable person to repay a debt.
On the other hand, if he lapses on paying his EMIs or is sporadic on paying his bills or is on the verge of bankruptcy, he is definitely tagged as irresponsible in his credit report. Such a person has a very high chance of missing out on the benefits of a good credit score like lower interest rates on loans, easier and faster approval on loans and credit cards, telephone connection, job prospects, insurance premia, rentals and a lot more. Therefore, you can see that the credit score is surely influenced by debt collection, bankruptcies, a high debt-to-income ratio, foreclosures and tax liens.

Capacity:
The second important factor is capacity of the individual. Capacity measures a borrower's ability to repay a loan by comparing income against recurring debts. In simple terms, the lender will want to know if you have valuable assets such as real estate, personal property, investments, or savings with which to repay the debt if income is becoming inadequate. This is because a large contribution by the borrower will reduce the chance of defaulting. Lenders look at the potential options that can be seized or taken away in case the borrower is not able to repay the loan. However, collecting of these assets is the last resort taken up by the lender.  

Now that you are aware of the two main criteria, let us quickly run through the other three - Capacity, Collateral and Conditions. Capacity refers to the individual’s ability to repay the debt and the lender will examine his/ hers current salary, living expenses, current debts and any dependents that the person might have. Collateral, on the other hand, is the asset that the borrower uses as a security for his the loan that he is applying for like property or a house. In case the borrower is unable to repay the loan, the lender can liquidate the collateral to pay off the remaining balance. Condition broadly means the present economic situation and how it is going to affect the borrower’s source of income.

As you have become aware of the qualitative aspect of the way your credit is calculated, you can find out how this impacts on the quantitative side of it. Credit score is a numerical expression based on points system ranging from 300 to 900 points. If you manage to score between 700 to 900 points then it is a high scoring credit report. But how to get hold of your report card so that you know where you stand? Simple. Just browse the net for www.cibil.com. Cibil is one of the leading credit bureaus in India. Create a Cibil consumer login, after that fill in the details, make an online payment for Rs. 470 and you have your Cibil report online in your email address. This Cibil score will help you know about all you need to know regarding your credit health.


And if you find that you are lacking somehow and your Cibil score is not up to the mark, just avail the services of a reliable credit improvement company. Credit Sudhaar is one such company that will never disappoint you with their valuable guidance. If you follow their simple yet astute approach, you will see that within no time your credit score has crossed the coveted 700 points mark. Isn't that a wonderful feeling – to be a credit healthy person?