Credit control is an essential part of the lending process, used by all financial institutions to mitigate the risk of extending credit. Under this strategy, financial institutions lend funds only to applicants with good credit behaviour and scores. Doing this helps them manage cash flow and the risk of default. To implement this strategy, lenders …
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A credit bureau plays the critical role of collecting and analysing the financial data needed to generate your credit report and score. This is the simplest answer to the question, “What is a credit bureau?”, and four bureaus are operating under the RBI’s guidelines. These credit bureaus have different methods to calculate your score, and …
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If you know how to find a CIBIL report and read it, you can easily assess your financial standing. When you download and read a credit report, it helps you understand your credit health and take the right steps to boost your creditworthiness. A CIBIL report is a detailed file of the account holders’ financial …
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Before you search for loan companies who use Experian, make sure you understand what this score is and why it matters. Financial institutions rely on the Experian credit score to check if you are eligible for credit based on your past credit behaviour. Thus this score can impact the approval of your loan as well …
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Are you wondering if using BNPL impact your credit score? It’s pretty important to know, especially with all these point-of-sale (POS) instalment loans getting popular in India. BNPL or Buy Now Pay Later, is when you buy something with credit and then pay it off in chunks later, without any extra interest. In this sense, …
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Understanding the importance of credit rating is the first step towards being smart in your credit journey. For any type of credit, financial institutions will check your credit score to evaluate your application. This is because it gives them accurate information about your credit behaviour and ability to handle different types of credit. This, in …
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Your CIBIL score update time relies on many factors, including your latest credit activities and the time lenders take to report your transactions to credit bureaus. Before applying for any type of credit, consider these crucial pointers: Read on for a brief overview of why you need a good CIBIL score, when credit score is …
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The CIBIL defaulter list is a misinterpreted term, as CIBIL or any other credit bureau does not maintain such a list for defaulters. Nevertheless, maintaining a healthy credit score is crucial when opting for credit. Here’s a quick tabulated overview of what is the ideal credit score range: Credit Score Meaning 800 – 900 Excellent …
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There are different types of credit ratings and scores assigned by credit bureaus. As a borrower, your history with credit and current loans is summarised into a three-digit credit score. Credit ratings are usually assigned to organisations or companies who take on debt, but the two and often used interchangeably. Credit information companies assign scores …
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Knowing how to remove the ‘written-off’ status from the CIBIL report is crucial to increasing your probability of securing a loan. This is because loan default may lead to rejection of your loan applications. A written-off status in a CIBIL report means the following: You have not paid your EMIs against the borrowed amount You …
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