WHY DOES HIGH CIBIL SCORE NOT GUARANTEE LOAN OR CREDIT CARD?

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Kenstone Capital
Debt Consulting

• Cibil/Credit Score Repair Agency

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(No Transcript)
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WHY DOES HIGH CIBIL SCORE NOT GUARANTEE LOAN OR
CREDIT CARD?

• One of the biggest myths associated with High
  CIBIL Score is Approval of loans or credit
  cards instantly. But, for sometimes even though
  youre having a high credit score, it wont
  guarantee a loan or a credit card. All this is
  because of your credit behavior. Credit refusal
  relies not only on your CIBIL score solely, but
  also because of your entire credit history.
  Therefore, it is important to understand about
  your credit behavior as a potential borrower.

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• SIGNIFICANCE OF CREDIT BEHAVIOR
• A credit score is a very complex topic to
  understand as it is a derivative of various
  factors that reflects the Credit Behavior of the
  borrower. Credit behavior is all about how you
  handle the borrowed money. If you pay off all
  your debts and EMIs on time then banks mark you
  as a potential customer deserving a good credit.
  Unlike, if you are keep on delaying your loan and
  credit card payment then banks and financial
  institutions mark this as bad credit behavior. A
  high CIBIL score turns as a good score until and
  unless you maintain consistency in paying debts
  on time.

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• CREDIT UTILIZATION AND CREDIT BEHAVIOR
• Credit utilization implies the amount of credit
  you have utilized as expenses in accordance with
  your credit card balance or limit. It
  additionally considers the current credit limit
  that is being utilized. For instance, on the off
  chance that your balance is ?300 and your credit
  limit is ?1,000, at that point your credit usage
  for that credit card is 30. It is prudent to
  keep your credit use proportion under 30. The
  credit score can be drastically affected if you
  have the tendency of using more than 30 per cent
  of your credit limit.

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• Let us assume that your CIBIL score was 800 six
  months ago but because of your propensity of
  excessive credit use, it has dropped to 750. We
  are all aware that banks and financial
  institutions require a minimum score of 750 to
  offer an extended credit line. For the bank,
  excessive use of credit is lucrative, as more and
  more money goes out faster than inside the
  system. This is viewed as one of the parameters
  of bad credit behavior and consequently, your
  loan application is probably going to be
  rejected.
• NON-PERFORMING ASSETS (NPAS)
• A Non-Performing Asset (NPA) refers to a loan or
  advance for which the repayment was not made
  after the due date of 90 days. It is actually
  considered to be a bad debt in terms of regularly
  scheduled payments.

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• For example, if a company with a loan of
  approximately 10 million with interest-only
  payments of 50,000 per month fails to make a
  payment for three consecutive months, then the
  bank will identify that companys loan as
  nonperforming in accordance with its guidelines.
  A loan may also be known as non-performing if a
  company makes all interest payments but is unable
  to repay the principal on maturity.
• In recent researches, it came into spotlight that
  NPAs across India stand at ?100 Millions. This is
  exceptionally perilous for the monetary strength
  of our nation and has consumed a piece of Indias
  GDP. Hence, banks are under a great deal of
  pressure from the RBI to control the rising NPAs.
  So, banks are bound to dismiss a loan or credit
  card application if the borrower has a bad credit
  behavior. Therefore, banks are concentrating more
  on credit behavior and credit score before
  approving loans or credit cards of an individuals
  or companies.

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• WHAT IF YOUR LOAN GETS REJECTED DESPITE HIGH
  CIBIL SCORE?
• If you have a good CIBIL score but your loan
  application is denied, you should raise the issue
  with the concerned bank immediately, and then the
  bank will tell you the exact reason for denying
  your loan. Raising a concern may help you in
  finding out whats wrong with your credit
  behavior and also you may get a chance to fix it.
  So, it is always recommended to maintain a good
  credit behavior for approval of loans of credit
  cards irrespective of your credit score.

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• WHAT ARE THE WAYS TO IMPROVE YOUR CREDIT
  BEHAVIOR?
• Although there are many ways to enhance your
  credit score, likewise there are many steps to
  follow for the improvement of your credit
  behavior.
• 1. ALWAYS MONITOR YOUR ACCOUNT HISTORY
• Once youve got your credit report, look for
  payment accounts due. Make sure you pay the full
  amount outstanding on or before the due date on
  each of your accounts.

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• 2. MAINTAIN OPTIMAL CREDIT UTILIZATION
• Keep the credit usage level at 30. For instance,
  if you have a credit card or a store account with
  a limit of 1 000, try to keep the balance amount
  below 350
• 3. IDENTIFY ERRORS AND RESOLVE THEM INSTANTLY
• Look for any errors and false information in your
  credit report and take active steps to pay all of
  your outstanding debts so that you can remove
  this information from your credit report. Its
  better to contact CIBIL repair agency for
  resolving these types of misleading errors.

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• 4. FOCUS ON A CREDIT MIX
• Maintain a healthy mix of both secured and
  unsecured loans. That will set up a strong
  financial history.
• Ultimately, banks can recognize that youre
  willing to repay the loans irrespective of loan
  types.
• Do you want to increase your cibil score?
• contact us 9538977129 and Visit our website
  https//www.kenstonecapital.in/
• Email info_at_kenstonecapital.in