Skip to main content

Good CIBIL Score Benefits

 

These days, having a good CIBIL score is something that all financial planners stress upon, and with good reason. Your CIBIL score is a numerical indication of your overall financial health and behavior, especially when it comes to your diligence in paying off your debts.

What is a good CIBIL score?

Anyone can check their CIBIL score by logging into their Credit Information Report or CIR. The CIBIL score is a number between 300 and 900. A good CIBIL score range is generally considered to be 700-900, with most lenders preferring individuals with a score of 750 or higher. Your current CIBIL score can go up or down depending upon your financial behavior, such as paying off your loan EMIs and credit card payments. It is important for everyone to keep reviewing their CIBIL score to ensure that a good score is maintained.

How can a good CIBIL score be maintained?        

With all the focus on having a good CIBIL score, it can end up becoming a source of stress. But maintaining a good CIBIL score isn't as hard as it sounds. The most important thing to do is to pay all your dues in time as late payments are not good for your score. Maintain only a few credit cards and take loans for essentials rather than for all trivial expenses. These steps are also applicable for those looking to improve CIBIL score to avail of its benefits.

credit score

 

5 benefits of having a good CIBIL Score

  1. Get a more suitable credit card

Having a good CIBIL score puts you in the bank's good books, which means you can shop around for a credit card that is better suited to your expenses, such as airplane travel, fuel consumption or shopping. You can also find one that offers you a lower interest rate, and if you already have a high interest credit card, you can transfer the balance to the new one.

  1. Take out a home loan

If you have a good CIBIL score above 750 and are thinking of buying a house, now's the perfect time. A good score gives you negotiating power with banks, who will offer you a much lower interest rate on your loan which can end up saving you a lot of money in the long term. Besides, your loan approval process will be a lot smoother and faster than someone with a lower CIBIL score.

  1. Shop around for Insurance

While earlier a CIBIL score applied only to credit cards and loans, more organizations are now looking into a person's CIBIL score to decide whether to do business with him or not. The Credit Information Companies Regulation Act (CICRA) allows various organizations like telecom and insurance companies to access credit information databases. So this opens up the possibility in the future that you could be offered a lower insurance premium for a higher CIBIL score, following a trend that has already been in play in other countries.

On applying for any new kind of credit, like a credit card or a loan, a temporary lowering of the CIBIL score can be seen. This is an issue that is caused by a hard inquiry done by the lenders, and is soon resolved as the inquiry is over. However, it is still important to keep checking your CIR and ensuring that your CIBIL score is within the healthy range, so that you can enjoy even more benefits in the future.

Best Tax Saver Mutual Funds for 2016 or Top ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

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

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

REC Tax Free Bond Issue

Tax Saving Mutual Funds Online Current open Infra Bond Application form   Download REC Tax Free Bond Application Forms REC (Rural Electrification Corporation) is going to issue tax free bonds and the issue will open on March 6 2012 and will close on the 12th of March 2012 When you buy 80CCF infrastructure bonds, the amount you invest in those bonds get reduced from your taxable income but in these bonds that's not going to be the case. The interest on these bonds will be tax free and they are similar to the other tax free bonds like the HUDCO, NHAI and PFC issues. For the two of you interested in knowing this – these bonds are tax free under Section 10(15)(iv)(h) of the Income Tax Act. Now on to the issue itself and let's start with the high credit rating that the issue has got. The REC tax free bond issue has been given the highest rating by all issuers since the government owns the majority stake (66.8%) in REC, it has been consistently profit making,  this is a se...
Read more

Myths about Exchange Traded Funds (ETFs)

1) ETFs Are Similar to Individual Stocks: Like MFs, ETF consist of an underlying portfolio of securities that's designed to follow a specific index or investment strategy. Hence, they are as diversified as various mutual funds. 2) ETFs Only Invest in Equity: Since they are listed on the exchange, the general belief is that ETF only consists of equity asset class. Globally, ETFs are available across asset classes – equity, debt, commodities, real estate and so on. In fact, over the past couple of years, India has also seen the emergence of Gold ETFs. 3) All ETFs Are Index Funds: ETF started as a fund which used to track indices and hence they were branded as index funds that are listed. However, ETFs have progressed rapidly and are no longer associated only with passive index funds. Globally, we have seen the launch of actively-managed ETFs. In India, also we recently saw the emer gence of fundamentally-weighted ETFs on Nifty, which busts the myth that ETFs are index funds and can...
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