Credit Information & Bureau

A few years ago, Aryan, a young professional from Mumbai, missed a few credit card payments. At that time, he thought it was not a big deal. He had just started his career, his expenses were high, and he told himself that once he cleared the dues, everything would be fine. A year later, when he applied for a home loan, the bank politely rejected his application. Confused, he checked his credit report and was shocked to see those missed…

Credit Bureau assigns a 3 digit number called as credit score which ranges from 300 to 900. It serves as a numerical representation of a borrower's creditworthiness, reflecting their financial behaviour. Lenders utilize this score to assess the risk associated with granting loans. A high credit score can lead to better loan terms, including lower interest rates and higher credit limits, while a low score might result in loan rejections or unfavourable terms. Credit Bureaus are vital in the financial…

The idea to pen this topic occurred when a recent newspaper article headlining – ‘Under DPDP Act, credit data deletion may close access to banking too”, highlighted that how under DPDP Act, an individual can delete the personal data/ credit history and its effect on accessing the banking services which is debatable.  Before we move into the if’s and but’s of the topis, let us briefly understand what is DPDP (Data Protection and Privacy Laws) Act? “It is an Act…

The pandemic has brought instability and uncertainties in the economy and therefore it has become important for us to manage our finances more systematically to face any upcoming uncertainties.  Follow these simple 6 steps and you will always have no debt stress or find yourself in a debt trap.   Step 1…Know what you OWE   To make sure that you don’t miss your payments and to maintain good credit history and a good credit score, figure out exactly how much do you owe,…

Way back in the late 1960’s, Neil Amstrong immortalised a phrase which effectively said “One small step for man is one large step for mankind”, as he became the first man to walk on the moon surface.  We have come a long way since then and the day is not far when space tourism will become a reality. It has been a journey and the world has learnt along the way.  Similarly, ways to good credit health are no…

Your credit score – this 3 digits number can make or break your financial dreams. This number is a reflection of your past payment behaviour.   A credit score has gained importance in the recent years. The lending institutions evaluate your credit worthiness based on your credit score, which helps the lending institution to estimate the likelihood of repayment of a credit facility based on your past pattern of credit usage and loan repayment behaviour.  So higher the score, higher the confidence the lending institution would have in you and hence…

Your loan application is rejected because you don’t have any credit history? How do you build your credit history ? Well yes it’s a cycle of credit and credit again! As per two recent notification by the Reserve Bank of India, all banks and other lenders need to take into account 'credit information reports (CIRs)' from one or more agencies in all lending decisions and account opening, and also a loan applications should not be rejected just because the applicant has no credit history. So let’s get…

Race, religion, gender, nationality, marital status and employment history do not impact credit scores.  It is because these factors do not help in assessing the credit worthiness of an individual. In several countries it is not legal to use these factors to calculate credit scores. Another much debated factor is “income”. Yes, income does not impact your “credit score” but it could impact your “credit worthiness”. Whilst the bank would be interested in knowing your income in your loan application form, it is not included in the credit…

Hi How have you been? So, wouldn’t it be a fair assumption that all human beings have credit history, provided she has borrowed. What about God then? Does he have a credit history too? Strangely, the answer seems to be yes! Well, that is what God Gazarov seems to be saying. God Gazarov, a Brooklyn based businessman was falsely reported for having no credit history. The fact although remains that he does have one. As a result God could not purchase his…

Hi How have you been? Election fever is here and we are going to be a part of this history. Technically, the future of India is in our hands...well at least as far as the next 5 years are concerned. But how much do we know about our candidate? Internet giant Google recently launched a new tool to facilitate citizens to access relevant information about various candidates. Credit obsessed as I am, I…