Certain banks offer you a lower rate of interest on loans if your CIBIL (Credit) score is good. The definition of ‘good’ is subjective but anything above 750 or 800 is a good credit score. Why would a bank offer a lower rate of interest with borrowers with a good credit score? Habits don’t die… Continue Reading
10%? 30%? 40%? I don’t think there is a crisp answer to this. Clearly, lower the better. Let’s first understand what is credit utilisation ratio and how it is calculated. Then, we get down to what is a healthy credit utilisation ratio and the different ways to improve the ratio. What Is Credit Utilisation Ratio?… Continue Reading
Here’s another case of identity theft. The victim was a finfluencer and he narrated his ordeal lucidly in a Twitter thread. You can go through the Twitter thread for a detailed account — https://x.com/b50/status/1796784315990491526 Here is the TLDR version: He started getting calls from recovery agents. Checked CIBIL report which showed a digital loan. Had… Continue Reading
Credit scores are becoming more and more important. Your credit score reflects your credit worthiness. A good credit score can not only improve the odds of approval of your loan application but can also lower your loan interest rate. Not just that, but a good credit score can be helpful in other aspects of life… Continue Reading
While trying to figure out a good home loan product for a client, I stumbled upon these revised interest rates on SBI home loan website. You can read the SBI campaign offer document here. There are a few points that stand out in this interest rate chart. #1 SBI Has Reduced Home Loan Interest Rate… Continue Reading
Have you been reading reports about fake loans (loans taken using forged documents)? You may ask, how can this happen? An impostor uses your PAN in the application and gets a loan, the loan shows up against your name (and not the actual borrower). Again, such fraudulent intent should have been caught during KYC stage,… Continue Reading
Recently, I came across an interesting article in Mint about accessing your CIBIL score on WhatsApp. Your credit score is a measure of your credit worthiness. Higher your score, greater your credit worthiness. TransUnion CIBIL is one of the credit bureaus and the credit score CIBIL provides is known as CIBIL score. We have seen… Continue Reading
Your credit score plays an important role not just in determining whether your loan gets sanctioned but also in the interest rate you pay on your loan. One of the major inputs during calculation of your credit score is your credit utilization ratio. What is credit card utilization ratio and why should it affect your credit score?… Continue Reading
When you take a loan, you take a responsibility to repay it too. And it may happen that you may struggle to repay the loan. The reason for non-repayment could be many, ranging from loss of job and improper financial planning to poor health, disability or even demise of the borrower. In extreme cases, you could end… Continue Reading
Your credit score plays an important role in getting your loan/credit card application approved. Not just that, your credit score has also started being a determinant in the interest rate you pay for the loan. Therefore, if you plan to apply for a loan in the near future or foresee the need for a loan in… Continue Reading