How Credit Cards are Accountable for CIBIL Score Improvement

For those suffering with the negativity of bad credit score (less than 750), here is the good news. With the proper and wise usage of credit cards one can generate a supportive CIBIL rating. Enhancing the creditworthy features for a borrower can be best served with it. Enactment of Credit Information Bureau India Limited, the first Credit Information Company (CIC) in August 2000, is the key factor though. Considered as the storehouse for individual credit history and thus the credit score, it is of profuse assistance for the creditors to desire upon their potential debtors. As for the rest they can avail an easier and quicker process of financial credits and that too, at the time of urgent need.

Let’s come back to the facets related with the tactical blending of CIBIL score with the aspects of functional credential of credit cards. Combination of which is actually a perfect mode to filter out the defaulters. Actually the prudent ways of re-payment gets effectively recorded under this bureau. This in turn helps the creditors to have a clear view on the financial credentials of the borrowers. On the other hand, in the process of apt credit usage, a person can be associated with a good credit score (750-900). As a result of which they gets viable for arguing the rate of interest at the time of paying back their credit amount too.

Now at this juncture, there are some essential features that need to be mentioned. Generating a good and supportive score is a must. Acquirement process of which must be done from the initial stage only. But those who are unable to fetch the same, here are some vital tips:

• Start paying back the debt amount correctively.
• Get related with cautious handling of credit cards.
• Stop applying for unnecessary cards or loans.
• Avoid unsecured loans.
• Get a regular and routine credit check.

Upgrading creditworthiness is thus related with all these above mentioned features. In this respect the responsible role of platinum, silver, gold cards, etc. is of superlative kind. As for those who wants to be diligently guided with every minute details related with CIBIL, online consultants can be of superlative assistance.

5 Factors Responsible for a Poor CIBIL Score

More than half of the hectic issues get resolved if the borrowers are enabled with a good CIBIL score. Those who are unaware about it might be wandering about what is CIBIL all about. As for those who are a bit knowledgeable about it, they must be in search of effective ways to polish such score and make it a good one. Read-on to gather knowledge in this respect.

1. History Matters

Abnormal credit history is one of the most vital issues that need to be maintained by the borrower from the initial stage. This is because elite banks and renowned creditors don’t allocate loan or credit to those, whose score is lesser than 750. In this context, re-payment of the ongoing credit amount, right on time, matters a lot.

2. Unnecessary Credits or Loans

Thinking to acquire some unnecessary monetary support from banks or creditors? Stop! Never ever think of it. Because this is one of the crucial and considerable points with which a good CIBIL score gets decided upon.

3. Unsecured loans with Higher Interest Rate

Come-on! Talented experts associated with CIBIL are well aware about when and why one would opt for such monetary support. Obviously, on obtaining such credit amount one would generate a bad CIBIL rating. As a result of which you would obviously face hassles while borrowing certain credit at the time of urgency.

4. Credit Cards Matter Too

Inability to operate individual credit cards in a potential way also leads to bad score. Proper look-through in this respect is also an essential phenomenon.

5. Irregular Checking of Credit History

Now this is one of the most crucial factors that get neglected often. Rather, this is one of the simplest stages that can assure that one gets to avail a score that stays in between 750-900.

Need a constructive but simple way to get acquainted about how to improve CIBIL score or credit history? Then the above mentioned facets can be of potential assistance. As it would definitely guide you to get rid of the gloomy aspects that decrease such rating and enables the borrower with an excellent score.

Firsthand Information on CIBIL TransUnion Score

CIBIL TransUnion Score is a highly relevant entity these days. As far as contemporary India is concerned, the landscape of loan and credit has been completely revamped since August 2000. In that year the country’s first ever credit information company (CIC) came into being. This organization is named as Credit Information Bureau (India) Limited and as such, it is more popularly referred to by the acronym CIBIL.

The organization categorically collects information related to repayment of loans and credit cards for both individual and corporate borrowers. CIBIL rating or the TransUnion score is actually a three-digit numeric expression ranging between 300 and 900. Interestingly, the numeric expression aptly represents the entire credit history of a borrower. In this context it is relevant mentioning about the CIR.

It is the shortened form of Credit Information Report. This report is based on a borrower’s credit payment history on loan types and credit institutions across a fixed time span. A CIR is exclusive of one’s savings, investments, and fixed deposits details. One can retrieve and check one’s CIBIL score for free. There are relevant online portals that provide the service. A common problem that often arises is for individuals having add-on credit cards.

Their credit records reflect the transaction details that the individuals are not liable to pay. The discrepancy arises because most people are not aware about the fact that even primary card holders are responsible for payments for charges incurred on both primary and add-on credit cards. Thus, default in payment for add-on cards reflect in an individual’s CIR.

Discrepancies are common with CIBIL reports. These issues arise mostly because the updated information is not sent to CIBIL by the respective Credit Institution (CI). Borrowers can raise their issues of concern with CIBIL. By virtue of the Credit Information Companies (Regulation) Act of 2005, CIBIL cannot modify any information in the database without confirmation from the concerned CI. As soon as the necessary confirmation arrives from the respective CI, clarification is made to the particular CIR.

Unparallel Relevance of CIBIL Score in Modern Society

CIBIL TransUnion Score is actually a 3-digit number, which represents the entire credit history of a borrower. This score is more popularly referred to as CIBIL score and it is generated from credit records found in the CIR (Credit Information Report) CIR is actually a borrower’s extensive history of credit payment on various types of loans . The facts and figures included in the CIR are provided over a period of time by the credit institutions. However, the report does not include one’s fixed deposit details or that of savings account and financial investments.

With the changing landscape of loan and credit in India, importance of a good CIBIL score cannot be denied anymore. The score ranges between 300 and 900 and a score of 750 and above is usually considered good. Interestingly, CIBIL is the acronym for Credit Information Bureau (India) Limited and it is the country’s first CIC (Credit Information Company). Since its establishment back in August 2000, the entire landscape of credit and loan in India has changed drastically.

Improving CIBIL score is highly feasible for every soul however, the process is lengthy, and one has to adhere to fixed norms and strategies for the purpose. CIBIL has an array of strategic partners, which include banks and credit institutions. These entities provide the relevant information to the accredited organization in a regular manner.

A good CIBIL rating proves helpful to secure loans and credit cards faster. It is as well helpful to get housing and car loans on fast track basis. As such, credit institutions process loan applications for individuals with higher credit score faster. Moreover, an impressive CIBIL score is effective to get loans at lucrative interest rates.

Actually, good CIBIL score proves to be mutually rewarding for both creditors and debtors. It helps creditors to run their business more efficiently and with lesser overheads.