Debt Counselling: Mohan Jayaraman

I am 29 and planning to take a vehicle loan this month. While applying, can I give my credit report to the bank beforehand? Will this hasten my loan disbursement? How many days will it take to issue me a Credit Information Report (CIR)?
It is a prudent decision to obtain one's own credit report while planning to apply for a new loan, since the CIR plays a key role in a lender's decision during the loan application process. The consumer should check the report to ensure all information contained is accurate. One should rectify any inaccuracies before applying for the new loan. This will ensure smoother processing for a new application. The credit bureau typically can issue a CIR on the same day, once the identity and address of the consumer has been verified.

I am 34 and have a credit card of a private bank. I am not happy with the credit limit my bank has given me on my card. Is this limit negotiable and what is it based on?
Limits set by banks depend on many factors. To list a few, it depends on the person's disposable income, age, years of association with the bank, his/her credit profile, bank policy, current economic environment and so on. Creditworthiness and score do play a major role in determining credit limits. A good credit profile can be used as an effective level in negotiating terms. It is recommended that you get a copy of your Credit Information Report (CIR) prior to applying for any future credit or loan. You can use your credit report in different ways:

• You can evaluate credit offerings of different banks/financial institutions and negotiate favourable terms if you have a high credit score underpinning a strong credit behaviour
• You can also analyse your report to check for discrepancies and raise it with the credit bureau or the respective bank. Discrepancy in reports could be one reason for a lower credit limit.
• Finally, you can have a longer term plan to improve your credit profile by exhibiting a regular credit repayment pattern, constantly monitor your credit reporting by pulling out your reports at regular intervals to check for discrepancies, cancelling unused cards and settling dues.

The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in

Today, Mohan Jayaraman, MD of Experian Credit Information Company, answers your queries