How to Avoid Getting Yourself Featured in the CIBIL Defaulter List?

50Pertaining to your credit health, there are credit bureaus that are responsible for collating your credit information by virtue of your previous records. In India, it is Credit Information Bureau (India) Limited or CIBIL in short, that plays an important role in drafting your goodwill report and allotting your goodwill score ranging from 300 to 900 points. It is based on this CIBIL score only that your credit worthiness is established.

So whenever you go to apply for a loan or a credit card, your lenders will definitely cross check with CIBIL to find out how regular you have been in repaying your loans and other bills. Your record will also show how many loans you have applied for, current and previous loan records and any other form of credit that you have taken from a financial institution. In other words, the bureau influences the way in which the credit life cycle is managed by both borrowers and lenders.

One factor, however, which you should always keep in mind is to avoid your name being featured in the CIBIL defaulter list. There could be a number of reasons for this – it may be due to human error, erroneous reporting of data or might be serious issues like loan default, goodwill card default, lapses in EMI, late payment, etc.

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Eight Steps To Rid Your Credit Report of Old Debt

49You may have been laid off, endured a tough divorce or simply fell behind on paying your bills. Those lapses in payment to your creditors may have happened a decade ago, a year ago or in the past couple of months. You get back on your feet but those old delinquencies still haunt you. Can you get your past mistakes erased from your credit report?

Yes, you can, but it may take some time. Delinquent debts can stay on your credit report for up to seven years. A Chapter 7 bankruptcy can stay on your credit report up to ten years. You can better your credit report and increase your chances to get loans for the things you need using these eight steps.

  1. Get your credit reports from the three credit reporting agencies–Equifax, Experian and TransUnion. By law you can request a free report from each of the agencies every 12 months.
  2. Determine if the information is correct. The date you became delinquent and continued to be delinquent is the date that the seven year clock begins. The ten year anniversary of your Chapter 7 bankruptcy is the day it is filed.
  3. Let the credit bureaus know about the errors. Do not call, email or use the online capabilities that the bureaus afford you. Write them a letter sending it return receipt requested, keeping a copy for your file.
  4. Write a letter to the debtor or collection agency. Since delinquent accounts are often sold to different collectors, you may have to do some detective work to find out who has the loan.
  5. What if the mistake is not corrected? Keep contacting the creditor and or collection agencies. Be persistent. Write the president of the company if necessary.
  6. Get the government involved. The Federal Trade Commission enforces the Fair Debt Collection Practices Act. You can also call your state attorney general.
  7. Talk to a credit professional. He or she can act on your behalf and help you get the negative information corrected or removed from your credit report.
  8. In some cases, you may have to get an attorney. Make sure you keep a file of all of the paperwork and documentation related to this debt.

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Improve Your Credit Card Score From The Reliable and Effective Services

48Companies providing the credit repairing and related services used to resolve the problem of the people in earlier days. This is now has been changed their functioning by providing many more services with the increase in demand of the people. In case, any transaction made is having any type of doubt then the service must be availed very quickly. These services will set up the investigation which will help in determining the fault. These services will also help in giving the decision which will be in the favor of the customer, which is very good.

People who are availing the services of such credit related issues must be aware of the Credit Repair Organizations Act. This type of law is specially designed in such a way which will defend the customer against Repair Scams. Those who have suffered any kind of credit issue can take the help of the service easily through the internet which is easily accessible. It allows the customer to search various options and getting the best deal after comparing all the similar services at a time. This will save lots of time also.

The role of the services that provides repairing is that they help the customers to get a solution against their bad score. It is very important to get the credit score better because it plays a very crucial role in other financial issues like business financing. The functioning of various credit repair companies could be quite time-consuming which can also be complex. Thus, it is important to find the service that is reliable and efficient.

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Why it is Important For You to Hire The Credit Repair Services For Your Company?

Frustrated businesswoman looking at laptop

You should not confuse the credit repair services with the counseling services for your credit reports. To be honest, the counseling service can hurt the cr score of your business as well. Credit repair is to help you get better with the cr score. It is very important that you don’t get confused between the two of these techniques.

Credit restoration services are new to our financial world and as there are so many scam services out in the market, people actually hesitate to seek out their options to get better with the financials. The newer laws are proving hard for the businesses not following the law and disturbing the credit score for such businesses. If you are aware of the working of the techniques to improve the score, you can do great things for the financials of your company.

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Tips to Improve Your Credit Score

46If you want to get a loan then you need to have a good credit score. Having a good approval score is an indication that you have the capacity to repay the debt on time. The approval score comes from credit bureaus that collect all the information pertaining to your credit history which include all of the loans that you have taken in the past and all of your outstanding loans. The information is recorded on your credit report and creditors refer to this report to decide whether to lend you money or not or how much interest to put on your loan. If your approval score falls between 660 to 759 then you are in a good position. Having a score below 660 though means that you need to do something to improve your standing.

If you want to improve your approval score you should follow the tips below.

Pay your bills on time

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