Your Credit History Really Matters !!!

Hello Friends,

Hope all well and its been very long time, and all my friends were asking me to write something important on the financial repayments, so today lets discuss about your credit history, maintaining your credit history or to correct your credit history with banks or any financial institutions. Every institutions were ready to fund every individual but they were unable to find out the genuine clients or good repayment history. So then the company called CIBIL has come into existence.

CIBIL - Credit Information Bureau (India) Limited or CIBIL is a Credit Information Company (CIC) founded in August 2000. Loan providers manage their business or help consumers secure credit faster and at better terms which in turn helps financiers and consumers for their financial history.

CIBIL scores ranges from 300 to 900 but a descent score would be in the range of 720-780.

Major Factors affecting Credit Score :

• Payment History
• High utilization of credit limit
• Higher percentage of Personal Loan and Credit card or Unsecured Loans
• Many new accounts opened but not maintained minimum balances

You want to maintain good credit history ??? then follow these simple steps

• Pay your bills on time - Be it Mobile/Telephone/Credit card/ Personal Loans/Home Loans etc...
• Avoid more spending - Utilize your card as low as you can
• Apply loans or credit cards when needed, otherwise your history or scores go low
• Ensure if you are signing any financial documents which you are becoming guarantor/ co-applicant/ joint account holder their repayment is on time or else you will have to suffer
• Review your credit history once in a year.
• Ensure sufficient balance before issuing a cheque or ECS in your account
• Ensure you say no to even known people for getting loans from your financials, because you lose your eligibility and also in case you need for any emergency you may not get loans
• Ensure you are giving documents only to a particular bank which you are applying for or you can write For Ex : ONLY FOR HDFC BANK FOR PERSONAL LOAN
• Ensure you have mixture of loans like Home Loans, Personal Loans and Credit cards

I have been listening to people who says they don't have any loans or credit cards, not to worry now  there is a talks on with all utility bills, and mobile operators to track their credit history which in turn help them to show their credit history, in fact most of the mobile operators are fixing the credit limit based on the past history and the same will be shared with CIBIL, So ensure all your utility bills are paid on time.

 Mostly sabotaging or negligence is taking ride for your credit history, so be cautious and be attentive about your finance.