CIBIL Credit Score really necessary for Home Loan..!

There are various banks and nbfc's in the market who finds lower credit score of home loan applicants but still provides loan to customers. How they are doing it, as generally there is so much hype that if your score is low then you don't get any loan unless it is improved to a sufficient benchmark.

Let's discuss what this benchmark are and how they are roughly decided by the banks:

Generally for a home loan cibil score till 630 or 650 also consider to disburse a loan to customer, because home loan is a secured loan where in banks have a security and loan applicant is meeting all other eligibility criteria to get that loan. If only cibil/experian/equifax/crifhigh mark credit score is low then banks tend to ignore this factor as well.

Because in today's financial industry, if a one bank will reject application then multiple other banks are standing on a queue to provide loan to that customer. So for banks also it is always a subjective call, whether to sanction a loan to an applicant who has low credit score or has defaulted in the past and has a series of settlement or write off in his credit report.

If any individual find itself in this type of scenario, then they should not panic. They can get in touch with credit 4 loan and be rest assured that they will get best advisory at lowest service fees and with result oriented programs.

If someone has to apply for a home loan, then it is always recommend that they should check their credit score first. If they don't know about where to check or which is a genuine website to check then they should get in touch with credit 4 loan. Because Credit 4 Loan is well experienced and has a better knowledge about credit score parameters, loans with low credit score and credit cards.

Score changes in cibil will get lessor by a week..!

In a recent interview with Livemint, Harshala Chandorkar (chief operating officer), TransUnion Cibil said currently data is submitted and updated two weeks after the month end. Wherein banks and cibil, working together to send the data to the cibil credit bureau within a week of every month end, instead of a fortnight at present.

In 2015, RBI has directed all the banks and NBFCs to become a member of all Credit Institutions Company (CICs) such as CIBIL, Equifax, Experian and High Mark and share all credit data with them.

Central Bank has also asked all the banks and NBFCs to update all credit data every month or shorter interval mutually agreed by both the parties.

We have also heard where there is data, they are prone to erros. So if you find that you’ve some data missing or incorrectly updated in your credit report you can approach Credit 4 Loan, Who has assisted individuals with the required solution to ensure they become tension free again.

What else directly you can do: directly contact cibil, respective banks or NBFCs or banking ombudsmen for the required correction.

Following are important website links:

1.       CIBIL: www.cibil.com

2.       Credit 4 Loan: www.credit4loan.com

3.       RBI: www.rbi.org.in

Some banks and NBFCs website links if required:

1.       HDFC Bank: https://hdfcbank.com/

2.       ICICI Bank: https://www.icicibank.com/

3.       SBI: https://www.onlinesbi.com/

4.       BAJAJ FInserve: http://bajajfinserve.in

5.       DHFL: https://www.dhfl.com/

Above links will help you to get the required help, still if you need any suggestion do write a comment or contact Credit 4 Loan for the same.

How Mission Shakti is related to everyone in their daily life

Let’s think from a country perspective, in case of an extreme threat if we blind rival country technology then how good that will be to us. It is a technology that directly hits out a satellite in a space where in if necessary we can make our rival country go blind in a need of hour to gain an advantage over it. We should thank to our science experts like DRDO (Defence Research and Development Organisation), ISRO (Indian Space Research Organisation) for their efforts and hard work for giving India an advantage and to be in the 4^th country who has this technology like super power.

A very special thanks to our honourable Prime Minister Mr. Narendra Modi #NaMo for all his appreciation to mission shakti & its team and making India pride towards this moment.

The same way, we as a responsible citizen need to be alert in our financial planning as well, whenever we’re looking for a loan we should not directly approach a bank, we should check our cibil credit score first so we can get to know that our credit score is appropriate and we are eligible for that loan in terms of credit score.

Mission Shakti is a term, where we need to take lesson that the way India is getting stronger in its technology, even we need to become a stronger to support our families and for that being a financial healthy is a key to success. So if your credit score is low or your loan application getting rejected then also don’t panic, there are companies like Credit 4 Loan, who assist individuals to improve credit score and make you eligible for loan again.

So, let’s support India, Mission Shakti, Our honourable PM & make a successful life ahead.

Not just horoscope, your CIBIL score can also impact your marriage

Apart from taking stock of family, personality, compatibility and pay packages, families are now also concerned about the CIBIL score of a prospective groom.

Are you a bachelor living in Delhi and planning to get married anytime soon? You might be earning well and even consider yourself an eligible bachelor, but are paying your credit card bills and EMI payments on time? This affects your CIBIL score, and may also have an impact on your marriage prospects.

Apart from taking stock of family, personality, compatibility and pay packages, families are now also concerned about the CIBIL score of a prospective groom before getting their daughters married. Detectives are also being hired to get confirmed information about the CIBIL score.

And as per the trend, it is no less important than matching of horoscope, which is a custom in Indian marriages. According to experts, CIBIL score of a person shows the liability on him and also tells if he is capable enough to repay a loan.

Actual Article Link - http://zeenews.india.com/india/not-just-horoscope-your-cibil-score-can-also-impact-your-marriage-2098532.html

For Credit Score Improvement - www.credit4loan.com

How to build your credit score & protect it

Finance is the fundamental requirement for individuals and enterprises to grow. Today we have the freedom and opportunities to access finance for our goals and economic development in the form of loans and credit cards. Banks and lending institutions are willing to provide loans to individuals to fund their education, buy a house, car or even a holiday overseas.

A vibrant lending culture is gradually bringing more and more people under the umbrella of banking and credit operations. Both the government and the private sector are working towards making credit opportunities available to one and all, so that access to finance becomes easier by the day.

While the focus on credit penetration has increased, credit institutions are diligently assessing borrowers’ credit worthiness so that the quality of credit doesn’t suffer. Thus, the need to have a clean credit history is of utmost importance for any credit aspirant, as without one, there is possibility of being denied fresh lines of credit.

A good CIBIL report and score are important for the following:

• Home loans, education loans, credit card and personal loans may not get approved if the financial institution feels your CIBIL report and score are not up to the mark

• You may have to borrow at a higher rate of interest from other financial institutions

As a borrower these are some of the cardinal duties you need to follow to maintain a sound credit health:

• Make payments on time

This is the first step in maintaining a healthy CIBIL report and score. Whatever you owe in the form of loans or credit cards, if you continue to pay on time, there is a high possibility of maintaining a good report and score. If you cannot pay the entire sum at one go, make the minimum monthly payment that the credit card bill mentions below the total outstanding in a monthly statement. If you have a payment issue on your home loan or credit card payment, contact the financial institution for a solution. It is prudent to keep your creditors informed about any payment issue you might face so that they can help you by offering easier terms and options for repayment.

• Monitor loans you have guaranteed, co-borrowed or co-applied

In case you have guaranteed a loan taken by a relative or spouse, you must monitor if the principal borrower has been repaying on time. Though the loan is not on your name, technically by being a guarantor you have signed for paying up the dues in case there is a default. So any delay or non-payment will affect your CIBIL report and score. At the same time, if you are a co-borrower, you must monitor your partner’s payment behaviour. Though you pay on time, if the other person doesn’t pay, it will still affect your credit report and score directly as you are one of the borrowers.

• Review your credit history time to time

To be able to access credit without any hindrance or delay, you must check your CIBIL report and score at regular intervals, like once in six months at least. It is better to take corrective actions in case the CIBIL report shows any deviations.
If one follows the above-mentioned as a rule of thumb, he/she in all likelihood will have a good CIBIL report and score.

Checking CIBIL report and score should be treated as a credit health management exercise, and not only as one undertaken when you need loans.

As a customer you must understand your rights too and exercise them if required-

• Raise a dispute if you find incorrect information on your CIBIL report

If you find any incorrect information or discrepancy on your CIBIL Report you must raise the same with CIBIL. You can go online and raise the issue by filling the online dispute form. It is very important that you take corrective actions before it is too late and your credit worthiness is affected.

• You deserve a clear explanation on why your loan was rejected

If a lender rejects your loan, it is well within your right to seek an explanation. This will help you understand what the core reason for rejection is and make course corrections accordingly. If the lender cites your CIBIL report and score as the reason for loan rejection then you can request them to provide a copy of your report and score. This exercise will help you prepare better for future loan approvals.

Seeking information and guidance on improving your credit score and report is your right. A healthy CIBIL Report and Score is your key to accessing finance when you most need it.


Author :- http://www.moneycontrol.com/
Reposted By :- http://www.credit4loan.com/

Your money: 4 top ways to boost CIBIL score

You are no stranger to the fact that, it is essential for you to maintain a high CIBIL score to have access to loans when you need them. Just like maintaining your fitness profile you must also attend to your credit profile to ensure that your CIBIL score remains satisfactory. Here’s a closer look at how it can be done.
Your financial health is just as important as your physical health these days. In the modern times that we live in, each of your financial activity is being tracked not just by your bank, but the premier credit bureau in the country CIBIL that is keeping score based on your credit behaviour. Each time you apply for a new loan or credit card, your CIBIL score becomes a barometer of how creditworthy you are. Moreover, potential employers these days are increasingly asking for the CIBIL report of potential recruits. This is to assess how responsible they are with their finances and thus how trustworthy and responsible they will be in their jobs.
There are a whole host of factors that impact your CIBIL score. The most important factor that has a 35% bearing on your CIBIL score is your payment history. The other factors that impact your CIBIL score are credit utilization or how much of your total credit you have used, how long how you been servicing debt, the amount of new credit you have taken or applied for and the mix of your credit. Today, we are here to talk about how your credit mix can improve your CIBIL score:
1. Having a good mix or secured and unsecured loans 
One thing that helps you attain a high CIBIL score is a good balance of secured and unsecured credit. A mortgage or an auto loan qualifies as a secured credit. But you cannot rest your laurels if you have only one of these and have no unsecured credit. A credit card with a  reasonably high credit limit, or a personal loan qualifies under the head of unsecured credit. Unsecured credit means that no collateral or advance payment is required to be paid by the consumer at the time of the disbursal of such credit. Having a mortgage or an auto loan and credit card that you service on time is thus a good way to diversify your credit mix and thus keep a high CIBIL score.
2. Installment credit 
Another type of credit that helps you score with CIBIL on the credit mix front, is having some exposure to installment credit. If you have do not have a mortage or a loan for a vehicle, you student loan too qualifies as installment credit. In other words, any kind of loan with a fixed amount of repayment each month under a pre-specified time frame qualifies as installment credit. So if you are in your first job and still servicing a student loan for a management degree or a vocational degree that you have recently completed, you are still scoring high with CIBIL as far as your credit mix is concerned.
3. Finding the right balance 
The trick to have a good credit mix is to have a good balance of active credit. If you do not have a student loan and are not in a position to apply for a mortgage or an auto loan just as yet, do not be under the impression that no credit will help you have an impeccable CIBIL score. While we are not asking you to be reckless and apply for loans, you may want to start out small and prove that you are creditworthy by applying for a credit card at first when you just start about in your professional life. A credit card is a a great way to build your credit profile if you are using it responsibly. Spending within your means on the credit card and making outstanding payments in full is a great example of prudent use.
4. A word of caution 
While we are reiterating the fact that you must diversify your credit mix, you should not consider it to be a green flag to go and apply for every loan on offer. In this intensely competitive financial world, telemarketers and even direct mailers are always trying to lure you with loans on “low rates of interest” or “lifetime free” credit cards, but do bear in mind that things are being sugar coated and you are not being given the full picture upfront.
So don’t bite the bait easily. Not only will you end up with a loan that you do not need, your CIBIL score may drop as a result of too many hard inquiries. A hard inquiry on your CIBIL report happens when a lender accesses your CIBIL score and report to see how creditworthy you are. Therefore your aim to diversify your credit profile may backfire against you!
Thus, as you can see diversification of your credit mix is a great way to improve your CIBIL score. It has a important bearing on your CIBIL score. But when you set out to diversify your credit profile, do so  carefully so as to avoid it boomeranging on you and so that you don’t end up with a lower score instead!

Author : http://www.financialexpress.com/
Reposted By : http://www.credit4loan.com/

Top 5 Ways to Improve Your Credit Score

If you're planning to finance a car, there’s one number you can’t be without. You guessed it. It's your credit score, and it allows lenders to gauge your level of financing risk.
The most common credit scoring method used by major lenders is the FICO score, which assigns borrowers a score of between 300 and 850. The higher the score, the better the financing terms. If your score isn’t up to par, it’s not the end of the world. Here are five top tips on how you can improve it.
Check Your Score
Some of the best credit advice comes with the score itself. When you check your FICO score through a credit bureau, such as Experian, you’ll receive a list of specific factors that have influenced the score, for example “no missed payments” or perhaps “short credit history.” These tips can be invaluable for understanding how to improve your credit situation.
Checking your score periodically can also tip you off to harmful reporting errors, and even fraud.
Establish a Good Payment History
It’s no secret. Getting a great score means paying your bills on time, every time. Delinquent payments and collection accounts have a significant negative impact on score, and these can linger on your report for up to seven years. Here’s the good news. As you continue to pay on time, older credit blemishes will affect your score less and less.
Need help? Sign up for payment reminders, if available.
Manage Credit Cards and Pay Off Debt
Using credit cards can fast-track credit score recovery, but only if you manage them responsibly. It’s best to keep card balances low and pay them off in full each month, rather than carry them over. Cardholders should also aim for a “credit utilization rate” of 30 percent or below. This means you use 30 percent or less of the credit that’s offered to you. To find this rate, divide your total balances by total credit card limits.
For this reason, closing an unused card that’s in good standing can actually hurt your score, because it reduces your credit limits without changing the amount owed.
Don’t Take On Unnecessary Credit
Credit scoring evaluates your “credit mix,” which includes accounts like credit cards, auto loans, and mortgages. Using different types of credit can improve your score, but that doesn’t mean you should open unneeded accounts just to broaden this mix. A flurry of credit applications give lenders the wrong idea and adding multiple new accounts lowers your average account age—another important scoring factor.
Instead, think quality over quantity. Manage what you have, and scoring will reward you for older, responsibly paid accounts.
Correct Errors
Mistakes happen. If you find an error on your credit report, such as an account that isn’t yours or an inaccurate missed payment, you can dispute the error with the information provider and respective credit bureau. The dispute process takes time, but when resolved it can yield a significant change in your score.

Author :- http://www.kbb.com/
Reposted By :- http://credit4loan.com/

Credit card against fixed deposit offers a slew of advantages

Credit cards are convenient to use, provide the benefit of moving around cashless and give you the opportunity to build a great CIBIL score if you use it judiciously. However, credit cards being unsecured are a risky proposition for banks and card users can land themselves in a debt trap if they get carried away with their credit card usage. In order to somewhat address these problem, and make life easier for credit card users as well as themselves, banks have in the recent past started offering credit cards against fixed deposits.

How does it work?

This opens up a whole new world of opportunity to people who would not otherwise be eligible for a credit card such as an individual with an annual income of Rs 2-5 lakh, a homemaker, a new employee in an organisation and the likes. If any of these individuals have a fixed deposit in any of the leading banks of the nation they are now eligible for a credit card against such fixed deposits. The deposit amount can be anything between Rs 25,000 to Rs 25 lakh and should be fixed for a minimum of 180 days. The credit card that is issued against such deposits bear a card limit of 80-85% of the deposit amount. This way banks ensure that there is a margin of safety even while offering you an attractive deal.

Even when you opt for a credit card against your fixed deposit you continue to earn interest on it, just like you would normally. However, if you happen to default on the repayment of your credit card, the amount you to owe your lender will be adjusted against your fixed deposit.

Benefits of a card against fixed deposit:

No minimum requirement of an income- Anybody and everybody who has a fixed deposit in his or her name can avail of this facility. Therefore, those who wish to have a card but do not have regular income, such as homemakers, students or the elderly can avail of this facility, so long as they maintain a fixed deposit with the lender. Earning members of the family can gift such cards to their children or parents if they wish to. Such cards provide easy liquidity and are useful to cardholders in case of an emergency.

Easy documentation and no income statement or credit history check required- The documentation unlike a regular credit card is minimal, if at all, in such cards because the customer already has a fixed deposit running with a bank. Besides, a person with no credit history or an income such as a student or a person who has just started working, or a home maker who does not have any credit lines open yet can also easily apply for such a credit card as a credit card against a fixed deposit does not require an individual to furnish an income statement. Also the banks need not run a credit check.

A longer grace period- As compared to regular credit cards that offer a grace period of 21 days to repay one’s outstanding amount free of interest, a credit card against a fixed deposit offers a significantly higher grace period of 48-55 days to repay the borrowed credit interest free.

No harassment to the card user in case of non-payment of dues- Usually banks are very strict with unsecured credit usage such as credit cards. Therefore, when a person fails to repay his dues on time, the bank might give repeated reminders to the card user or even hire the services of a recovery agent if the card user remains unreachable. In case of a credit card against a fixed deposit, there are no chances of such things happening, as the bank will simply adjust the outstanding dues against the fixed deposit. However, the card user must bear in mind that a situation like this must be avoided at all costs.

A word of caution

While credit cards against fixed deposits seem to be a win-win proposition for both the lender and the card user, those opt for such cards must still exercise caution with the usage of such cards. The thumb rule of credit card usage is spending in small amounts and repaying the outstanding amount in full in each billing cycle. There is no exception to this in the case of cards issued against fixed deposit. If you go overboard with your spending and are unable to repay your debt on time, your fixed deposit account will be impacted, thus having a direct bearing on your savings. Therefore, do remember to use your card judiciously and enjoy the benefits on offer!


Author :- http://www.moneycontrol.com/

Reposted By :- http://credit4loan.com/

Don't sweat it. Easy hacks to get a healthy CIBIL score

There are no quick fixes to become credit healthy overnight and there is no magic wand that will make all your credit score woes go away. However we do have a few suggestions that can help you in being credit healthy without break into a sweat or racking your brains. You could use one or more of these suggestions simultaneously to work towards getting a good CIBIL Score.

Check the credit limit: Your credit card limit is Rs. 100,000 and you run a bill of average Rs. 70,000 per month but you manage to pay it all on time so there is no problem; right? Wrong!

Credit utilization ratio is a ratio between the total available credit limit available to a person and what he/she utilizes per month. A high credit card ratio even if you are able to pay it on time is not good for the CIBIL score as it is an indicator of credit hungry behavior. There are two ways of dealing with this; the first obviously is to lower the credit card spending and the second could be to get a bigger credit limit. One can get in touch with the existing card issuer and get the credit card limit enhanced; this is possible if the card holder is eligible for a bigger credit limit. If this is not possible then one could explore the option of getting another card issued, this will increase the overall credit limit available and the user can spread his/her expenditure across both cards.

Remove the irritants from the CIR: Sometimes there are some old issues that we seem to have forgotten but unfortunately (for us) Credit Information Report (CIR) continues to remember it and carries it forward. These could be an issue like an old credit card due which was not paid and has since then grown bigger due to fines and charges being levied over and over again. Also there could be an open loan which has been paid in full but an NOC has not been taken. Sorting out any such issue may take time and requires patience but removal of any such irritant is bound to have an immediate positive impact on the CIBIL score.

Check for mistakes: There are times when the cause of a low CIBIL score may not be your own mistake but a mistake by some other agency. This can be detected only if one scrutinizes their credit report carefully. Just point out the mistake to the credit bureau and they will do the needful and get in touch with the required agency to remove the error from the CIR. There is simple mechanism available both online and offline for removal of any mistakes from a person’s CIR.

Avoid making unnecessary loan enquiries: This is not something that you should do but something that you should not do! Do not make any loan enquiries till you are sure that you require a loan and till you are fairly certain that you meet the required terms and eligibility criteria laid down by the lender. When any loan application is made, the prospective lender seeks the applicant’s CIBIL Report; this is known as a hard enquiry and impacts the CIBIL score negatively. A loan rejection means that one has to apply for a loan again which will generate another hard enquiry. Finding out about a bank’s policies for loan sanction is not difficult, if you really need a loan then apply to a bank where you are likely to get the loan sanctioned. Not being credit hungry is good for credit health!

Nothing beats paying on time: This is the simplest yet the best and almost the most important aspect to be credit healthy. This cannot be a onetime effort but it has to be a habit; being disciplined in payments goes a long way in keeping the score in the green. A delay is generally due to being forgetful or lacking discipline so set up reminders, put in auto debit mandate, use post its or whatever it takes but do not delay payments.

So hopefully this Labor Day you can get a good credit score or you can at least strive towards one by following one of the above simple yet effective ways.

Author :- http://www.moneycontrol.com/
Reposted By :- http://credit4loan.com/

Directors of over 1,000 listed companies have links to wilful defaulters

Mumbai:
At least 1,219 directors on the boards of listed companies have links with companies that are so-called wilful defaulters.
Why is this number significant?
Last month, capital markets regulator Securities and Exchange Board of India (Sebi) said that it was looking to place capital-raising restrictions on companies with links to wilful defaulters. “No issuer shall make a public issue (of securities) if the issuer company or its promoter or its director is in the list of the wilful defaulters,” said the market regulator’s press note released on 12 March.
A wilful defaulter is a company or individual that does not plan to repay a loan, diverts funds to a purpose different than the one for which it was borrowed , or sells the asset acquired with the borrowed capital without the lender’s knowledge.
As of June 2015, the latest period for which data has been collated by Prime Database, at least 1,219 directors who served on the boards of companies which were declared wilful defaulters also serve on the boards of other listed companies.
That number is likely to have increased.
The number of wilful defaulters rose to 7,129 as of December 2015, from 6,458 in June that year, according to information available with Credit Information Bureau of India Ltd (Cibil). Prime Database’s numbers include only those firms tracked by Cibil. Three other repositories also hold defaulter information: Experian Credit Information Co. of India Pvt. Ltd, Equifax Credit Information Services Pvt. Ltd and High Mark Credit Information Services Pvt. Ltd. There are 1,000 entities in the other three, including overlaps.
There is a debate if all directors should be painted with the same brush.
A January 2015 Sebi discussion paper said that “even though independent directors/nominee directors are distinguished from other promoter directors of companies that are wilful defaulters, such directors are brought within the purview of the Master Circular for the purpose of declaring them as wilful defaulters”.
The same paper, however, also noted the Gujarat high court’s observation that extending this to all directors is not appropriate. Experts point out that lenders and private equity investors also have board representatives in the form of nominee directors. If these entities have advanced capital to a company, they may have taken a board seat. But they would have had limited control if the company decided to default.
Final Sebi regulations are awaited in this regard.
In case companies want to completely dissociate themselves from anyone who has been a director on the board of a company that is a wilful defaulter company, over 1,000 listed firms will need new directors.
As it is, there is a shortage of directors after recently introduced rules limited the number of multiple directorships a person can hold. Individuals can serve on the boards of only seven listed companies at the same time. These tighter rules were announced in February 2014. Whole-time directors cannot be on the boards of more than three listed companies. And independent directors can only serve two consecutive five-year terms.
“There is a demand for good directors, irrespective of the impact these guidelines have on demand,” said Amit Tandon, founder and managing director of proxy advisory firm Institutional Investor Advisory Services India Ltd (IiAS).
It’s not just directors who will be affected if Sebi decides to crack down.
The regulator has also said that no fresh registration will be granted to intermediaries who are in the list of wilful defaulters. Tejesh Chitlangi, partner at IC Legal, said that Sebi will have to be cautious in implementing the restrictions since an absolute prohibition on registering any entity having a promoter or key person tagged as a wilful defaulter may inadvertently impact those that have limited control over the company’s actions.
“This can substantially impact their future operations and hence should be dealt by Sebi on a case-to-case basis rather than creating absolute prohibition,” said Chitlangi.
The jury may be out on whether everybody deserves the same treatment, but a hard look at company boards may be overdue.

Author :- http://www.livemint.com/
Reposted By :- http://credit4loan.com/

Vijay Mallya effect? Directors at over 1k listed cos linked to wilful defaulters

Mumbai: A month after capital markets regulator Securities and Exchange Board of India (SEBI) hinted at imposing capital-raising restrictions on companies declared wilful defaulters, fresh set of data collated by Prime Database has revealed that at least 1,219 Directors who serve on boards of listed companies also serve in the same capacity at companies which have been declared as such.
The number of Directors cited by Prime Database corresponds to the information available with Credit Information Bureau of India Ltd (CIBIL).

“No issuer shall make a public issue (of securities) if the issuer company or its promoter or its director is in the list of the wilful defaulters,” SEBI said in a press note dated March 12.

The numbers cited by Prime Database are based on data as of June 2015.
According to CIBIL, the number of wilful defaulters in India has risen from 6,458 in June 2015 to 7,129 as of December 2015. Among these, Maharashtra has the maximum number of defaulting entities at 1,366 (Rs 25,689 crore), followed by Delhi at 627 (Rs 8,654 crore), West Bengal at 1,059 (Rs 6,426 crore) and Tamil Nadu at 447 (Rs 5,213 crore).              
Data with CIBIL further show that a total of 1,027 firms have directors with links to defaulting companies on their boards. The finance sector leads the pack of 1,027 firms which have such directors on board with 158 companies, followed by textile (81), trading (65), IT (58) and steel (56) among the top five.
The actual number of Directors at listed companies also serving on Boards of companies listed as wilful defaulters may be higher than what has been cited above, said a report in Mint. This is because it does not track It does not factor in the information available with three other repositories that also hold defaulter information. These include Experian Credit Information Co. of India Pvt. Ltd, Equifax Credit Information Services Pvt. Ltd and High Mark Credit Information Services Pvt. Ltd., it said.
The information comes at a time when banks have been hit hard by an increasing number of bad loans weighing heavy on their balance sheets. The case of industrialist Vijay Mallya, who is in thick soup over loans of Rs 7,600 crore it owes to a consortium of banks, has been the latest in the series of recoveries gone woefully bad.
A wilful defaulter is a company or individual that does not plan to repay a loan, diverts funds to a purpose different than the one for which it was borrowed , or sells the asset acquired with the borrowed capital without the lender’s knowledge.
While action against erring companies has been well-received, there is a debate if all Directors should be painted with the same brush.
“Even though independent directors/nominee directors are distinguished from other promoter directors of companies that are wilful defaulters, such directors are brought within the purview of the Master Circular for the purpose of declaring them as wilful defaulters,” said a January 2015 discussion paper  floated by SEBI. The same discussion paper also noted the observations of the Gujarat High Court that found extending this to all directors as not appropriate.
In the current situation, if companies choose to completely distance themselves from anyone who has been a director on the board of a company declared a wilful defaulter, over 1,000 listed firms will need new directors.


Author :-http://www.indiatvnews.com/
Reposted By :- http://credit4loan.com/

Here’s how you can get a good CIBIL score at young age

A good CIBIL score is not an option in the day and age that we live in today. If you have just started working or paying your own bills, soon you would think of buying a house, car and taking credit for the same. A good CIBIL score of 750 and above will open up doors for you and you will be able to receive a loan at competitive rates of interest.

However, anecdotal evidence suggests people in their 20s are most likely to fumble on credit, because they do not have adequate information about what impacts their CIBIL score. Thus, as soon as they lay their hands on credit, the damage is already been done.

In case you do not falter with your CIBIL score, here are some pointers that will help you build a good credit profile, which will help you get a good CIBIL score right from the start.

Understand what impacts your CIBIL score
You need to understand how CIBIL score works and what impacts your CIBIL score. There are a lot of factors that impact your CIBIL score in various measures. From payment history, credit utilization, age of credit, debt mix to number of inquiries, a mix of all these factors affect your CIBIL score.

READ ALSO: 6 things about CIBIL every young adult should know

Choose your first credit card wisely
Now that you have understood what impacts your CIBIL score, you must be eager to build a good CIBIL score yourself. Unlike popular perception, credit cards are not evil and can prove to be an important tool for credit building, only if used well.

You should check not just the rate of interest that the card is charging you, you should also look out for factors such as fee, reward points and the likes and get a card that is best suited to your profile.

For instance, if you intend to use your credit card for purchasing fuel, get a card that has the highest fuel surcharge. Also, do not fall for teaser offers such as waiver of annual fees in the first year that card issuers try to entice you with. There are cards that have no annual fee at all, but come with a lower credit limit. When you are starting out, such a card may be ideal for you. Once you take your credit card, it is important to use it well, so make it a habit to spend small amounts on your card and pay your outstanding amounts in full each time before the end of your billing cycle.

Clear your education loan
The cardinal mistake most young people make is that they immediately switch over to a life of luxury as soon as they get their first job and become slack about the repayment of their student loans. If you have a student loan, make it a priority to clear your outstanding loan as soon as you can. Live the frugal life that you did as a student and try and prepay the education loan that you had availed of. Not only will you have the pleasure of being debt free, it will be a great way to build your credit profile as well.

Inculcate good financial habits
This is a no brainer, but the crux of building good credit and maintaining a good CIBIL score. Just like you have to eat healthy and exercise in order to build your physical health, similarly, you must maintain good financial habits with regards to your credit such as timely repayments of all your credit, especially your credit card, keeping your credit utilization low and maintaining a good mix of credit.

Finally, and most importantly, keep a strict vigil on your CIBIL score and CIBIL report and make it a habit to check your CIBIL score periodically.

Just inculcating good financial habits will ensure that your CIBIL score remains high not just as you begin your life independently, but through the rest of your life.

Author:-http://www.businessinsider.in/
Reposted By:- http://credit4loan.com/

Don't let CIBIL score stand between you and your dream job

Next time you appear for a job interview, be prepared to answer questions not only related to your area of expertise but also your credit history. Does this sound surprising to you? For some it may come as a surprise, while some may get the feeling of 'been there done that'.

Either ways it is important to understand that the CIBIL score (or rating by any other agency) is increasingly being used to screen prospective employees.

Why Do Employers Want to Check CIBIL Score

When companies hire new employees, they want somebody who has integrity so that the person can be trusted; they want a person who is well organized and a person who is focused on the job.

Any organization will obviously try to avoid employing somebody who has a criminal background, is debt ridden or simply isn't trustworthy.

One common practice by organizations is to get feedback from old employers about a candidate's performance; this helps them in assessing and screening a candidate by getting the opinion from peers or seniors with whom he has worked in the past. A credit report is a summary of a person's credit history; it also offers valuable insight into the financial health and also to an extent gives a peep into some personality traits of a candidate.

A prospective employee who is debt ridden or is defaulting on his payments spells trouble. This not only means that he could prove to be potential liability to the company in case of litigation but also indicates that he might not be able to focus on his work due to impeding or ongoing financial crisis. The company may have to cut a sorry face in front of its clients and vendors in case the knowledge of his/her default are made public.

A company may find it hard to trust such a person as his/her integrity is doubtful. Non-payment of dues or settling with debtors can be an indication of just bad intention and unwillingness to pay what is owed by him/her. An organization will shy from hiring such a person especially in positions of higher management, financial/banking sector or where the employee has to deal with customer funds or sensitive data. Such positions require people who demonstrate unquestionable honesty as they are dealing with sensitive information and other people's funds.

A low CIBIL score also indicates that a person is sloppy with his finances, is disorganized and lacks planning and organization skills. Why would somebody want to hire somebody who cannot manage their own finances?

What Should You Do Before an Interview?

Maintaining a CIBIL score is a long term process and there is no quick fix. CIBIL score can be accessed by the individual or lenders, companies cannot access it. Thus an organization will have to ask the interviewee to submit his/her credit score.

So before appearing for the interview have a look at your credit report and if possible a few weeks in advance of appearing for the interview. Make sure that all your current dues are paid and at least for the current month there are no delays. In case there is some error by an agency, get it rectified. Though getting an error removed is not difficult but it may take some time, so if you check your CIBIL score well ahead of the D day you will have sufficient time to get the mistake removed.

In case there is no time to do so, you can explain to the interviewer about the mistake and if you have a reasonable explain they will be willing to accept what you have to say. Again if in the past you defaulted on a payment or there is some other reason that has pulled the score down and you have logical explanation (job loss, illness, error, fraud) those interviewing will not hold it against you. The key here is to be prepared and have a plausible but honest explanation.

So here is another reason to be credit healthy; getting the job you deserve and desire. Like stated above there might not be sufficient time to improve your score, so it is better to prepared at all times. Check your CIBIL report from time to time and take action as and when required. It would be sad if were to lose an opportunity despite having the right qualifications just because you were not careful about your CIBIL score.



Author :- http://www.businessinsider.in/
Reposted By :- http://credit4loan.com/

You Can Stop Your CIBIL Score From Declining

Your CIBIL score may just be a three-digit number but in today's date has immense significance in your life. If you maintain a high CIBIL score of 750 and above out of 900 at all times, you can be assured that you will get access to timely credit at competitive rates. But as much as the need to keep up a good CIBIL score is being widely advocated, not everyone can understand its impact.

Most people are confused about why does one's CIBIL score drop and don't have a clue as to how to arrest its fall. A few credit fumbles here and there and you may land up with a poor CIBIL score is all that they vaguely know. However, there is no reason to be intimidated as improving or increasing one's CIBIL score is no rocket science. In fact, it lies in your own hands and you can easily stop your CIBIL score from declining by following financial discipline in these few steps.

Avail credit only when necessary 

Credit cards issuers are mostly chasing the young and the upwardly mobile with n-number of credit card offers. Most representatives make the offers sound so good that youngsters end up taking many more credit cards than they need. With simultaneous spending on all such cards, spending patterns go out of hand sooner than they know it and they are left with a mountain of debt. The rule of thumb therefore advocates that you should not be using more than two credit cards at a time and keep a strict vigil on its use.

Don't buy anything you cannot afford to with cash on your credit card

While credit cards are supremely convenient they may wreak a havoc in your financial life. Financial prudence therefore states that you should not buy anything that you can't afford to pay for in cash with your credit card. A credit card gives you the time to use plastic money in lieu of instant cash, but this is for a limited period of 28-30 days, after which you are expected to pay back your outstanding amount in full. It is therefore a cardinal financial sin to buy anything on your credit card that you otherwise cannot afford or will make a serious dent in your monthly expenses.

 Pay your outstanding amount in full every month 

This is a must do if you are using a credit card. All outstanding bills must be paid off within the stipulated time frame. If you follow this essential rule of credit use, there are slim chances of things going wrong with your CIBIL score. The moment you let go of this discipline, it is very easy to lose control and sooner than later you are likely to find yourself in a situation where you are paying off only the minimum amount each month on your credit card and have gotten yourself into a credit trap fair and square!

The outstanding payment rule also holds true to all the other types of credit that you are using. If you have availed of any other loans, make sure you keep your accounts furbished for the timely deduction of your EMI from your savings account. Missing a single payment once or twice may not make a difference but if its becomes habitual it will have a negative impact on your CIBIL score. In fact, you should have an emergency fund as a standby at all times that you can dip into anytime that allows you to pay your loan EMIs on time even if anything else goes wrong.

Keep credit utilization low

Even if you have been granted a high credit limit, make sure that you keep your credit utilization between 30-40 per cent at all times. Credit utilization is also one of the important factors that impact your CIBIL score and it is important to keep this under control in order to maintain a good CIBIL score. A higher credit utilization is not only an indication that your expenses need to be controlled, it can also bring down your CIBIL score.

Keep a close watch on your CIBIL score

This is another important aspect that most people overlook. Even those who are aware of CIBIL do not bother to check their CIBIL scores because they assume that things are automatically right. But this may not always be the case. Because of the large volumes of data that banks handle, mistakes creep in the dissemination of information about your credit usage that may seriously hamper your CIBIL score. If you do not carry out periodic checks of your CIBIL score and CIBIL report, such discrepancies will only crop up at the time you make a loan application and thus for no fault of yours your loan application may be rejected. It is therefore financially prudent to check your CIBIL score and CIBIL report at least once or twice a year.

Thus, as you can see, if you just maintain financial discipline and good credit behaviour you can indeed stop your CIBIL score from a decline. Just as maintaining a good diet and exercise is necessary for your physical health, so is financial discipline for your credit health that in turn leads to a high CIBIL score.


Author :-http://profit.ndtv.com
Reposted By :- www.credit4loan.com

You may be five steps away from a perfect CIBIL score

Maintaining a high credit score is not at all difficult. You just have to ensure prudent use of credit.
Have you ever wondered why there is such a clamor of late to maintain a high CIBIL score? Is all the information you are absorbing about CIBIL score and CIBIL report confusing to you and you have no idea how to get the perfect CIBIL score? What is the formula for success when it comes to achieving the perfect CIBIL score! Well, you may be happy to know that it is not difficult at all, and you may just be a few steps away from the perfect CIBIL score. Read on to find out how you can get there soon.

The importance of your CIBIL score

Your CIBIL score plays a very important role in your life today. Unless you have a perfect CIBIL score of 750 and above, it is unlikely that you will get access to credit when you need it. The Reserve Bank of India has made it mandatory for all lenders to look at the CIBIL score of any individual as a part of their credit assessment process. This means every time you apply for a new loan or a credit card, the lender looks at your CIBIL score to assess whether or not you are credit worthy.

In fact, your CIBIL score is not just relevant to your possibility of getting credit but may also impact your employment prospects. Corporations these days are increasingly asking for probable candidates to submit their CIBIL report along with other documents to assess whether or not they are responsible with their own credit and thus may prove to be an asset to the company by way of trustworthiness and responsibility.

Thus, there is no doubt about the fact that maintaining a high CIBIL score is of paramount importance. A perfect CIBIL score of 750 and above will open up doors of credit when you need it the most. But what must one do to achieve it? Well here are five steps that will take you closer to your goal.

No late payments

This is numero uno among rules when it comes to using credit. Whenever you have availed of a loan or a credit card, make sure that you are making timely payments or keeping your accounts furnished for an EMI to be deducted. Even a single late payment of 30 days and above will impact your CIBIL score negatively. In fact, with CIBIL considering mobile and other utility payments as a part of credit score assessment you must remember to pay all your bills on time too, to have the perfect CIBIL score.

Credit utilization

This is another important factor when it comes to your CIBIL score. Financial prudence says that your total credit utilization or the amount of credit you are using as against the total amount of credit been made available to you should not exceed 30%. This is a discipline you must maintain when you are using your credit cards. If used judiciously, your credit cards can build your CIBIL score, but if you tend to go overboard and end up overspending on it, you not only run the risk of lowering your CIBIL score, you may end up in a debt trap that may be difficult to get out of in a hurry.

Mix of credit

You must keep in mind that when it comes to your CIBIL score the type of credit that you are using also matters. Having too many unsecured loans such as too many credit cards or personal loans will impact your CIBIL score negatively. On the other hand, if you have a good mix of credit say a home loan and couple of credit cards or a vehicle loan and a personal loan, i.e a mix of secured and unsecured debt, your CIBIL score will remain high.

Too many hard inquiries

If you are in the habit of applying for every new credit card that come your way or checking out a loan for its prospects by making an application for the same, you need to stop doing so immediately. Each new application for credit results in a hard inquiry in your CIBIL report as the lender you have applied to checks out your CIBIL report. Too many hard inquiries on your CIBIL report does not augur well for you as it portrays you as “credit hungry” and makes lenders wary of lending to you.

An error free CIBIL report

CIBIL has to handle a large amount of data that comes in daily from the lenders who send information about their loan and credit card accounts to CIBIL. There is no way for CIBIL to apply a filter and see that all the information that is coming in from the lenders is correct. The onus is therefore on you to check whether the information that is relevant to you is correct. Thus it becomes very important for you to keep a strict vigil on your CIBIL report by checking it out at least once or twice annually. This is to ensure that your CIBIL report remains error free and your financial health is up to the mark

Thus as you can see, attaining the perfect CIBIL score is not at all difficult. By just maintaining financial discipline and consistency in good usage of credit you can ensure that your CIBIL score remains perfect at all times.

Author:- www.moneycontrol.com
Reposted:- www.credit4loan.com