WHY DOES HIGH CIBIL SCORE NOT GUARANTEE LOAN OR CREDIT CARD? - PowerPoint PPT Presentation

View by Category
About This Presentation
Title:

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

Description:

One of the biggest myths associated with High CIBIL Score is – Approval of loans or credit cards instantly. But, for sometimes even though you’re having a high credit score, it won’t 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. Our credit score repair agency help to fix your credit report. We at Kenstone Capital have helped people take control of their financial lives from across the country. Our track record speaks for itself. Website: For further information Call Us: 9538977129 – PowerPoint PPT presentation

Number of Views:13

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

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


1
Kenstone Capital
Debt Consulting
  • Cibil/Credit Score Repair Agency

2
(No Transcript)
3
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.

4
  • 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.

5
  • 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.

6
  • 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.

7
  • 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.

8
  • 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.

9
  • 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.

10
  • 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.

11
  • 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
About PowerShow.com