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

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...
Read more

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...
Read more

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...
Read more

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Read more

Bharat Bond ETF

Top SIP Funds Online   The government of India has paved the way for the launch of India's first corporate bond ETF called as Bharat Bond ETF. Edelweiss Mutual Fund will be managing it. The fund is mandated to invest in AAA-rated bonds of select public sector companies (see the table 'List of constituents and their proportions in the portfolio'). The government has a threefold objective behind launching this product. One, to deepen the liquidity of the Indian debt markets and provide a gateway for easy retail participation. Two, to solve investors' dilemma of picking premium bonds. Lastly, to help the underlying government-owned companies raise funding for their operations. But does it make sense for you, the investor, to invest in it? Lets find out. What is the product? As the name suggests, it is an exchange-traded fund which will be listed on a stock exchange from where its units can be bought and sold post launch. It will have two variants - one maturing in 3 ye...
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