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

Equity investors should track market developments

The stock markets have been volatile over the last few days. They are in a sideways movement and trying to find the bottom after a fall of 20 percent a week ago. The market sentiments are not very positive at the moment and the recent developments are expected to dampen them further. Globally, governments and central banks are trying to cut rates and announce packages to improve business sentiments. These are some of the major developments in the markets last few month: A) Global On the global front, another large US bank went into a financial crisis. The US government took quick measures to avoid the spread negative sentiments in the markets. The US government announced a bail-out package and agreed to shoulder the losses on the bank's risky assets. China announced a large cut in interest rates and reserve ratio to boost the investor sentiments in the markets. Recently, the World Bank announced China's growth rate next year will come down to 7.5 percent. The European ...
Read more

Tax Planning: Income tax and Section 80C

In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:   Provident Fund (PF) & Voluntary Provident Fund (VPF) Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution. While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free. Public Provident Fund (PPF) An account can be opened wi...
Read more

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...
Read more

Gold: It is safe & secure

RETURNS ON GOLD & ITS ETF’s RISE WHILE most of the popular asset classes are going through bad times, the yellow metal shines on. In fact, in the last one year, gold has given a return of more than 25% and currently trades at Rs 14,695 per 10 gm. Even gold exchange traded funds ( ETFs ) have appreciated substantially. Gold Gold Benchmark Exchange Traded Scheme ( BeES ) and Kotak Gold ETF have given more than 25% returns each in the last three months. Even as the equity markets have taken a hit with the Sensex losing around 46% in the last one year and real estate prices also witness a correction, investors’ preference has shifted to safe havens such as gold. On an average, most of the diversified equity mutual funds have fallen and real estate developers are offering discounts. Thus gold remains the safest bet. The appreciation in the gold prices is mainly due to its safe haven status. The key reason for gold to go up is lack of other investment opportunity. There is also a risk in...
Read more

Alpha - The relative performance

Alpha, the net performance of a component against the benchmark is an overlooked tool   Absolutely speaking, any bounce back now on markets should be the last for the year. We offcourse can be wrong and prefer to be judged on alpha (relative performance) as relative accountability is fine with us. According to Alpha India, the top outperformers in the weeks ahead should be Reliance Communications, Reliance Infrastructure, SBI, HDFC, ONGC, Larsen, Jaiprakash Associates, Maruti, Bharti and DLF. On the short side (reduce side), we have Ranbaxy, ACC, Sail, Tata Steel, Wipro, Tata Motors, Sun Pharma, TCS, M&M and Infosys.   Performance like everything follows the 80-20 rule, 80 per cent of your gains are going to come from 20 per cent of your portfolio. So why not give it a thought? The importance of alpha If alpha was so important, then why don ' t newspapers and websites publish it? Why alpha gets featured annually but not as intraday or daily event? Why don ' t we c...
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