Skip to main content

How to improve your credit score ?

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

 

Poor credit history is a common problem that can destabilise your finances. It may happen during the early employment days when individuals borrow to buy vehicles or take personal loans to meet their rising credit card bills. Equally susceptible are mature families who borrow to fund the higher education of their children or any other incidental needs.

This credit data is submitted by lenders to credit reporting agencies like CIBIL (Credit Information Bureau (India) Limited) on a regular basis. An individual's credit score provides a credit institution with an indication of the probability of default. These scores play a critical role in the loan approval process.

In countries like UK, it is observed that negative entries about credit history stay on an individual's file for as long as six years.

However, it is important to set one's credit history straight and getting out of debt helps in a major way for this.

If you are faced with such a problem, start with the basics. That is, obtain a credit report. Currently, there are four CICs notified namely Credit Information Bureau (India) Ltd, Equifax Credit Information Services, Experian Credit Information Company of India and Highmark Credit Information Services . The procedure to obtain this report is very simple by payment of a nominal fee and the report is presented in easy to understand format.

On receipt of the report, it is important to highlight the areas that need to be addressed. At the same time, it should be reviewed for inaccuracies or any entries that may not belong to the individual.

The personal information and the account information provided have to be carefully scrutinised for any blatant errors in reporting. It is essential to understand the different sections of the credit report in order to determine the next step to improve the score. There are 3 main sections that should be known.

The score ranges from 300 to 900. The closer the score is to 900, the more favourably is the loan application viewed by a credit institution. The scores for an individual may vary across different CICs as each company operates independently. Individuals looking to improve upon their scores should keep in mind some important tip

Avoid late payments or defaults

Late payments or missing payments on existing loans / credit cards should be avoided as regular payments helps reduce the impact of defaults in the past. A regular payment cycle way-forward will help indicating no troubles in servicing existing obligations, which will help impact the credit score in a positive way.

Keeping credit limits low

Most credit card companies lure people to pay only the 'minimum amount due' on their cards, but this can be dangerous for credit scores. While an increased spending on credit cards do not necessarily affect credit scores, a higher increase in outstanding balance on cards indicates increased repayment burden and has the potential to negatively impact the score. So, being prudent on utilising credit limits will be helpful.

Higher number of credit cards and personal loans

It is easy to give in to the 'free for life' credit card over the phone.

But, a high number of cards or even personal loans, being unsecured, indicate high utilisation of unsecured loans which is not very helpful for a better score. At the same time, higher number of home loans or auto loans is favourable as the same are considered as secured loans.

"Credit Hungry"

Making applications for multiple loans at the same time indicates a"credit hungry" behaviour, which can impact your credit scores. This behaviour is perceived to not only indicate an increasing or likely to increase debt burden but also the incapability to honour the same and thus the new credit facilities.

Non-financial aspects

Globally, various non-financial aspects are also perceived to be pro good credit scores. For instance, retaining the same residential address for periods more than 3 years helps in improving the score. Again, continuing with the same job for more than 3 years adds credibility to the score. Even maintaining the same bank account for a long period of time is counted.

It is pertinent to record and review your credit scores over regular intervals. If any difficulty is perceived in understanding credit reports or maintaining the debt discipline, professional help should be taken for the same. For individuals with high levels of debt, a stringent review of monthly budgets may allow paying off some existing debts. Maintaining discipline with repayment dates, amounts and commitments will all help in the cause for a good score. All (or any) of the tips given above will only help in dramatic improvement of your scores over time.  

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

 

 

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Download REC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

EPFO can pay 8.5% interest in 2009-10

THE Employees’ Provident Fund Organisation can comfortably offer 8.5% interest rate to its 4.41 crore depositors during 2009-10 and still record a surplus contrary to Rs 139-crore losses suffered by it for giving the same benefit during the current fiscal. The issue of return to the depositors would be discussed at a meeting of the ‘finance and investment committee’ (FIC) on Thursday, agenda for which lists that maintaining an 8.5% interest could still give the fund a surplus of Rs 6.4 crore on the investment made by the fund. If EPFO maintains the interest rate of 8.5% on PF deposits, there will be a surplus of Rs 6.4 crore at an estimated income of Rs 12,994 crore in 2009-10. In case the interest is raised to 8.75%, the fund would suffer a loss of Rs 366.77 crore and the deficit would be still higher at Rs 739.94 crore if the rate of interest is fixed at 9%. FIC gives recommendations on financial matters to the apex EPFO body Central Board of Trustees (CBT), which takes the final ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now