Skip to main content

Credit Score

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

Past performance is no guarantee for future returns is a disclaimer commonly used by various companies offering mutual funds and insurance. However, in case of your personal finances your past definitely holds the key to a better future. Today your past financial history is an important benchmark and yardstick for financial institutions while deciding to lend out money.

 

Traditionally, when it came to spending - our fathers and forefathers, the concept of credit did not exist. However, today credit purchases are becoming the norm with enterprising and confident youngsters opting for immediate purchases on credit rather than waiting. So, while our fathers would have probably waited till the age of 50 to buy a house, today, the average age to purchase a house is around 30. As a result, credit penetration is gradually gaining momentum. Hence it is both imperative and worthwhile to understand credit scoring which will play pivotal role going forward for any form of credit. So if you are thinking of buying a house or your next car it would make sense to review your credit score and know about the accompanied benefits or drawbacks.

 

Know about CIBIL


Credit Information Bureau India Limited (CIBIL) is India's first credit information bureau. It's a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its members in the form of credit information reports.

 

The 3-digit credit score is the numeric summary of your credit health, based on credit report information typically sourced from credit bureaus. If you have a good credit score, your application will undergo an eligibility check based on your CIR (which details your credit history).

 

The following illustration shows the impact of CIBIL Report and its benefits for you.

Importance of a credit score

Banks and credit card companies, use credit scores to evaluate credit worthiness. They use it to determine who qualifies for loan, at what interest rate and what credit limits. While banks are primary users of the credit score, it is not limited to banks only. Other organizations, such as mobile phone companies, insurance companies, prospective employers and government departments may employ the same techniques.

 

A three-digit number -- your credit score -- can determine whether you can do these things and even how much it will cost you. According to CIBIL, a score of 700-720 on a scale from 300 to 900 is an ideal credit score.

 

Maintaining a good score
Now that you know how important your credit score is - how does one ensure a good score or improve an existing one it requires basic financial discipline and few simple practices. A sound credit history can be your most precious financial asset.

 

If your credit health shows that you were prudent and disciplined in paying off your debts, you will qualify for credit whenever you need it and you can also borrow money at a lower interest rate.

 

To start working towards a better credit score, you can begin with the following simple steps:

 

• Make sure you pay your EMIs on time for any loan taken or credit purchase. Being punctual with your payments will improve your score and future loan eligibility.

 

• Put a limit on your credit card use and using it selectively and judiciously. Your credit score can be on the higher side by making less use of credit cards (relative to credit limit you have) and avoiding using many credit cards. With MyUniverse, you can set up auto-pay facility, a unique feature that automatically pays your bills based on the pre-set limit that you have for every biller.

 

Quick tips for to ensure good credit scoring:

 

  • Pay your bills on time Be alert with your bills and make sure you pay them off on time.
  • Assign your credit card an upper limit Putting a ceiling on your credit limit is wise and will ensure prudent credit card usage.
  • Pay your EMIs on time If you exercise punctuality with regards your current loan payments, your credit score is likely to inch its way up the scale.
  • Maintain a healthy credit mix Make sure your credit report is balanced and not lop-sided.
  • Apply for credit in moderation Apply for credit only when absolutely necessary to avoid coming across as credit hungry, a big minus on your report.

 

Benefits of a good score:

 

A healthy credit score should be part of our personal finance hygiene. As it has the potential to brighten or hamper our purchasing dreams. If you act with a plan, and follow a financial schedule, you can avail the following benefits as a result of a good credit score.

 

  • Loans availability is easier and interest rate payable could be lower with a good credit score.
  • You may get more and better repayment options (interest rate wise and otherwise). With a good credit score, you can actually negotiate with financial institutions and get a good deal.
  • In some cases, it can also help you get better job offers.
  • Home and auto insurers could decide on the coverage and premium being offered.

Knowing your credit score


You can also know your score from official website of CIBIL just log onto www.cibil.com , and for a nominal fee you can request for your credit score report. There might be instances when you may find an error in the report in such cases you can write to the credit information companies to rectify it. The law states that banks are given a 30-day timeframe to correct their records.


But the primary aim behind letting individuals view their reports is to help them understand their own financial history and work towards improving it.

 

It's never too late you can enhance your credit score and improve your report by following the advices mentioned above right away. And the results will be visible in the form of a better score soon

 

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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

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. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

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

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

What are the factors affect the changes in Interest Rate of Fixed Deposits?

  What are the factors affect the changes in rate of Fixed Deposits? Fixed Deposits are now considered to be a very old fashioned method of saving, but still attract many investors since they have guaranteed returns at the end of the tenure of the investment at a decent interest rate. There are various factors that affect the rates of interest for a Fixed Deposit. Policies of the Reserve Bank of India   - The several norms and restrictions posed by the Reserve Bank of India , in order to gain optimum control over credit and inflow and outflow of fund throughout the country. The repo rate changes, cash reserve ration tends to change and these changes affect the banking products like Fixed Deposits, loans etc. Recession   - When unemployment in a country crosses the benchmark set Recession hits, and slowly the country faces an economic slow movement, affecting the purchasing power of the people in the country, forcing the Reserve Bank of India to release more funds in the financial marke...
Read more

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...
Read more

Capital Protection Oriented Funds

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   Capital Protection Oriented Funds   Erosion of capital is one of the key concerns for investors wanting to invest in equity mutual funds. To address this concern, asset management companies have launched Capital Protection Oriented Funds (CPOFs). What are CPOFs? CPOFs are generally three to five-year, closed-ended funds where 70-80% of the portfolio is invested in fixed income securities, which mature on or before the scheme's tenure. The investment in fixed income securities grows to 100% at the end of the tenure, providing the investor with capital protection. The remaining portion (20-30%) is used to take exposure to equity, which provides the upside. Exposure to equities is either by directly buying equity stocks (plain vanilla CPOFs) or by b...
Read more

Good Loan

Why Is It A Good Loan?: Loans against gold are cheaper and better than personal loans as the former are available at lower interest rates. In contrast, the interest rates on personal loans are not standardised and can vary from bank to bank. Also, a personal loan depends on a host of factors including, the borrower's salary, profession and the purpose for which the loan is being taken.      For instance, the interest rate on a personal loan of 5 lakh falls in a wide range of 15-30%. But loans against gold are available for as low as 11%. Secured borrowing such as a loan against gold, investments or property is cheaper because it is backed by some assets, which command a good value at any point of time. If the borrower defaults on the loan, the banks can liquidate the assets to settle the loan account.    Being a secured loan, the risk of default and credit losses is significantly lower in this loan compared to other forms of loan for personal use. Given the lower risk, gold loa...
Read more

Mutual Fund Review: ING Dividend Yield

  ING Dividend Yield's small assets enable the fund manager to churn in impressive returns… Strategy The aim of the fund is to invest in stocks which offer a high dividend yield. This fund deploys a value based strategy which aims to gain from investing in fundamentally strong and free cash flow generating businesses. The scheme focuses not only on growth but also on the cash generated by the business, which mostly leads to stable returns even in volatile markets. This fund has a low volatility because of its investment in high yielding stocks. The scheme tries to include stocks that yield dividend above the dividend yield of the Nifty and stocks with liquidity, which throws up a universe of 150 stocks.   Our View Launched in October 2005, this fund invests at least 65 per cent of its assets in high dividend yield stocks. The fund has consistently maintained a mix of stocks across varying market capitalisation, with a higher tilt to mid caps compared to small caps. Howev...
Read more
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