Categories
Credit Score

How to Improve Your Credit Score Before Applying for a Personal Loan?

What Is A Credit Score?

A three-digit number between 300 to 900, which gives a quick idea of your credit health to the potential lenders is called your credit score. The higher the score, the better your chances of getting a loan. Authorized credit bureaus calculate your credit score in India like CIBIL.

What Credit Score Is Suitable For A Personal Loan?

It is advisable to have a minimum credit score of 750 to be eligible for a personal loan. The lenders will look for this minimum credit score before deciding whether to go ahead with processing your application. Before applying you must have the knowledge of the cibil score required for personal loan. A score of more than 750 will enhance your chances of approval of the loan application.

Role Of Credit Score In The Loan Process

CIBIL collects and maintains your credit-related activity like credit card payments, any late or missed payments, balance outstanding, etc. from banks, credit card companies and other lenders every month. Based on this information, CIBIL can calculate your credit score. If your credit tack is right, you will have a good credit score.

How To Improve Credit Score?

A high credit rating is an indicator of your high trustworthiness; a low score is a measure of low reliability. The former makes you an attractive borrower, a low score, will decrease your chances of getting a personal loan. Hence, if your score is below 675, you must improve it. Here are some tips for doing so:

  1. Check Your Credit Report Regularly- On applying for a personal loan, the lender will look for your current income and solid credit history. Hence, check credit scores regularly. This way, you can rectify any errors that occur in consultation with the lender.
  2. Pay Your Outstanding Credit Card Bills On Time- Do not neglect the payment of your credit dues. On applying for a personal loan, the lender will check your credit dues of at least the past six months. Any lapse in the timely payment of your credit dues is as an irresponsible behaviour on your part. Hence, if you want to approve your credit score, make it a point to pay your credit card bill on time.
  3. Make Timely Repayments Of Your EMIs- A right and consistent repayment record is vital for improving your credit score. Make sure to pay your EMIs regularly as it will reflect positively on your credit report.
  4. Track Your Co-applicants Payment Records- The payment pattern of someone with whom you are a joint applicant for a loan will affect your credit score. You must keep track of your co-applicants payment history. Make sure that they clear their dues on time.
  5. Be Selective In Your Loan Application- It is a common practice to enquire about the terms and conditions of the personal loan with multiple financial institutions to get the best deal. Each time you enquire with a different lender, it gets registered against your name. It lowers your loan credit score.
  6. Make A Perfect Mix Of Secured And Unsecured Loans- Secured loans are considered as asset creation and affect credit score positively, while unsecured loans have a negative impact. Try to maintain a perfect mix of both to positively affect your credit score. A good credit score will give you competitive interest rates and also increases your eligibility amount for a personal loan.

It would help if you with a good credit score to avail instant personal loan quickly and with a competitive rate of interest. In case your credit score is not up to the mark, you can improve it by adopting various means. This will improve your eligibility for a personal loan manifold.

Categories
Credit Score Finance

Looking for the Best Credit Card in 2019? Read here

Choosing a suitable credit card today is almost as challenging as selecting a smartphone or laptop. There are several features and benefits you must look out for. Similar to the electronics sector, numerous credit card providers operate in India with each offering specific benefits to attract new users. NBFCs have also become part of this market recently in association with centralised financial institutions.

These financial companies are offering features that only a handful of cards provide. Some of the benefits are also a first in the market.

So, you must look for the following features when choosing a card in 2019:

  1. ATM cash withdrawal without any interest

Credit cards usually charge you a hefty interest instantly when you withdraw cash from ATMs with it. You also had to pay a processing fee along with that.

However, credit cards now offer the feature of zero-interest ATM cash withdrawal for a limited period. This period can stretch up to 50 days. Repaying the amount within this timeframe helps you to avoid paying additional charges. You have to only pay the processing fee.

  1. Emergency personal loan at zero interest

Another industry-first feature of this card is an emergency personal loan at no interest. You can convert the balance of your credit card limit into a personal loan and enjoy an interest-free period of up to 90 days. A minimal processing fee is what you have to pay in this case.

Bajaj Finserv also brings you pre-approved offers that help you save time when availing these credit cards. Pre-approved offers are also available on home loans, unsecured loans like personal loans, business loans, and several other financial products. You can check your pre-approved offer by providing only your name and phone number.

  1. Reward points on various occasions

Reward points are why credit cards are more beneficial than debit credits.

Apart from transactions, all the latest credit cards help you earn reward points on various occasions like:

  • As a welcome bonus when you avail your credit card. Some cards provide up to 20,000 points as joining bonus.
  • When you reach a milestone. You earn milestone bonus when you spend a particular amount in a year. For example, the Bajaj Finserv RBL Bank World Plus SuperCard provides 20,000 reward points when you spend Rs. 3 Lakh in a year and another 20,000 points when it reaches Rs. 5 Lakh.

You can do several things with your credit card reward points. For example, redeem them to purchase or avail discounts on flight tickets, hotel bookings, retail shopping, shopping vouchers, mobile recharge, etc. Reward points for online and offline shopping are standard with all cards. Some credit cards also provide high points for specific expenses like international purchases and dining.

  1. Complimentary access to airport lounges

Access to airport lounges was a standard feature only with airline credit cards. However, you can avail up to 8 such accesses in a year with some of the premium credit cards in the market presently.

  1. Offers on movie tickets

Free movie tickets or discounts are another feature to consider when looking for a credit card in 2019. Usually, you can enjoy one movie ticket free when you purchase one or enjoy discounts on the same.

  1. Waiver on fuel surcharge

Co-branded credit cards let you avail discounts on fuel purchases from partnered fuel stations. These cards will also provide fuel surcharge wavier. The fuel surcharge waiver is limited to a particular amount in a month.

Make sure to satisfy all the credit card eligibility criteria to apply for a credit card online. A credit score of 750 is mandatory to avail feature-rich credit card.

Author Bio:

Gaurav khanna is an experienced financial advisor, digital marketer and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.

Categories
Credit Score Finance

How to Pay your Credit Card Bill Online?

A credit card is probably one of the greatest conveniences of modern times. It allows you to access to funds that you don’t have at the moment. So whether it is an emergency or you simply forgot your wallet at home, you can still make purchases if you have your credit card with you. In addition to this, you can also take advantage of its amazing benefits such as cash-back offers, discounts, complimentary benefits and bonus air-miles.

To maximise its benefits, it is an excellent habit to pay your credit card bills on time every month. This way, you don’t have to pay unnecessary penalties for late payments. These days, most banks offer a variety of online payment modes for customers to pay their bills.

Here are some ways you can pay your credit card bill online.

Online banking

  1. Visit the official website of your credit card provider
  2. Log in to your online banking account
  3. View your credit card statements
  4. Click on: ‘Pay credit card bill now’
  5. Select a bank account to transfer the funds
  6. Enter the amount you wish to pay
  7. Make the payment

NEFT payment

You can also clear your credit card debt by using the National Electronic Funds Transfer (NEFT) payment. NEFT payments are accepted all over India and are one of the easiest ways to pay your credit card bill. For example, with a Bajaj Finserv RBL Bank SuperCard you can make your monthly payments through NEFT.

To complete this payment using your bank account with any other bank, enter the following details:

  1. Payee name
  2. Payee account number
  3. Bank name
  4. IFSC code
  5. Branch location

NEFT payments can take up to one working day for the transaction to process.

Debit card

Debit card

Many banks allow you to pay your credit card bill through a debit card. All you need to do is enter your debit card details and verify your payment through a payment gateway. The transaction gets processed and updated in your account immediately.

Mobile apps

Banks have developed individual mobile banking applications (apps) that allow you to make payments on your credit card bill right from your smartphone. This is a convenient way to manage your account and make payments to your credit card instantly. Whether you are using an Apple, Android or Microsoft device, you can directly go to the play store and download the app onto your phone.

Log into the app, select your credit card and make the payment. It is that simple.

Conclusion

Making your credit card payment online is not only quick and easy; it is also safe and secure. Banks have taken significant measures to ensure the safety of your details. Another important feature of online payments is that you can keep track of all your payments in one place. This makes it very easy to process your records when it comes to paying taxes or organising your monthly budgets.

Author Bio:

Gaurav

Gaurav khanna is an experienced financial advisor, digital marketer and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.

Categories
Credit Score Finance

Manage Your Credit Cards and Monitor Your Credit Score with Apps

Have you ever wondered if there’s a better way to manage your money and make sure your credit doesn’t suffer? I know I have. Sometimes it feels like all I do is worry about my finance. But it is possible to take control of your finances, though it does take a bit of work. Finding some great apps to help me manage my money has been a lifesaver.

After digging a bit deeper into the apps I found, I decided to do something a bit different than just reviewing the apps. I thought I would just break it down in a way that is super easy to understand. So what you will find here are some apps that are great for credit card management and apps that great for monitoring credit score. Both important to the health of my bank account and hopefully yours.

Since I have 2 credit cards, Capital One and Bank of America, I am highlighting these 2 apps for credit card management.

Manage Your Credit Cards Online

First, let’s look at Capital One. At one time I had bad credit, and Capital One was where I went to get a credit card. One of the reasons I did this is because I found out it has solid app ratings for customer support, it also comes with the ability to look at balances from my credit card, anytime I want. It was fairly easy to apply for my card, and though I started out with a small credit limit (about $300.00) I was able to increase that limit by paying down the amount due every month.  

I’d like to address that you won’t be able to start using the app right away. What’s likely security reasons, you will have to go through some steps before logging in every time. But, you will usually just have to answer some challenge questions which you will have picked ahead of time. Honestly, this did make me sigh from time to time, but on the other hand, you will have peace of mind knowing everything is safe.

Bank of America is my second credit card and their banking app is simple. Similar to the previous one, you can do just about anything you need to do with your credit card online. Unlike with the previous one, you can even log in with fingerprint ID, although I skipped that one. Any fingerprint lock doesn’t feel secure enough to me, but that’s up to you. But the thing I like about this app is you can set up travel alerts to notify the bank of your next trip, all at the touch of a button. What I found out is this is great to make the planned trip actually happen as it’s easier to organize the financial aspect.

You should know that BofA provides a virtual assistant named Erica, accessible through a floating button on the app. Because of the design, sometimes the floating button can get in your way. However, they did make an update of the app that allows you to move and even remove the Erica button if you don’t want to use it.

Stay on Top of Your Credit Score – Anytime

Here, I’m acknowledging I’ll be a bit biased. I love Credit Karma, I’ve just been using it for quite some time so let me share my experience. The number one feature I like is the simple notifications when anything changes in my credit score and I get recommendations on how to save money and improve. The suggestions can be helpful, but I like the most how they aren’t intrusive. I feel like I’m actually getting some helpful advice. Also, notifications serve as a second line of security because if the app detects unusual actions, it notifies you right away.

One thing you should know about Credit Karma, is you will not get data on your credit score from Equifax, which is a bummer, at least for me. Equifax is a credit reporting agency that provides credit scores based on their own data. However, I would also like to note that Credit Karma provides accurate scores with additional information that is helpful similar to finance tips.

Credit Sesame is another app that is great for monitoring credit I’d like to provide as an alternative. It has a simple and easy to use interface and you can search for business credit cards and best cash back credit cards according to your credit score. It’s a decent app if you’re on the lookout for a new card, but there are some quirks I don’t like.

For example, you will find ads on Credit Sesame, but if nothing else, I noticed most of them are about credit cards. Plus, the site gives lots of helpful data and easily combines accounts so you get an overview of your credit situation. Overall, not bad for a free app.

Conclusion

These are my top credit card apps and I hope you’ll find one for you as well. Just in case you don’t like any of them, here’s a list I found and used to find some of the tested apps. I like how they offer a nice list to make it easy to pick the right app for you, so check it out.

Top 10 Apps for Credit Card Managing

It is really helpful to have apps to help me with not only monitoring my credit but easily accessing all of my current credit card information with an app. I don’t really have to worry about identity theft or finding out there is a big decrease in my credit score…weeks later as the information is updated always in real-time. So good luck and I hope your financial life will improve if you decide using some of the apps. Good luck!