Today, Mohan Jayaraman, managing director of Experian Credit Information Company of India & country manager of Experian India, answers your questions
How can one improve one's credit score?
A credit score is a numeric summary of a borrower's profile, type and quantum of debt and his or her track record in servicing that debt. Credit can be rebuilt over time. Late or missed payments stay on your 'credit information report' as payment history. Make sure you make timely payments for your EMIs (equated monthly instalments), credit card bills, etc. Also, if you spot any errors on your credit report, get them corrected by contacting your banks.
What are the negatives of having a poor credit score? How does one get to know one's credit score?
In business as well as personal finance, credit line availability plays a critical role in sustained growth, stability and complying with personal or professional needs.
Over the past few years, the credit information company ecosystem to support retail lending initiatives has developed significantly. Today, institutions consider both borrowers' income profile and his repayment behaviour across earlier debt in deciding his creditworthiness. Any event of the nature of delayed payment towards loans/credit cards or dishonoured cheques is an indication of the inability or unwillingness on the part of the borrower to fulfil his or her financial obligations. This reduces future creditworthiness and loan-taking capacity as assessed by a bank or financial institution.
Most bureaus provide consumers a copy of their credit report, which will have all the credit availed by them in the past as well as their repayment track record. It also contains the details of loan enquiries. Regularly tracking your credit report is essential to keep track of your financial obligations and to ensure that there are no fraudulent credit enquiries occurring. When you apply for credit, banks and financial institutions can also, at their discretion, provide a copy of the individual's credit report with score.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
How can one improve one's credit score?
A credit score is a numeric summary of a borrower's profile, type and quantum of debt and his or her track record in servicing that debt. Credit can be rebuilt over time. Late or missed payments stay on your 'credit information report' as payment history. Make sure you make timely payments for your EMIs (equated monthly instalments), credit card bills, etc. Also, if you spot any errors on your credit report, get them corrected by contacting your banks.
What are the negatives of having a poor credit score? How does one get to know one's credit score?
In business as well as personal finance, credit line availability plays a critical role in sustained growth, stability and complying with personal or professional needs.
Over the past few years, the credit information company ecosystem to support retail lending initiatives has developed significantly. Today, institutions consider both borrowers' income profile and his repayment behaviour across earlier debt in deciding his creditworthiness. Any event of the nature of delayed payment towards loans/credit cards or dishonoured cheques is an indication of the inability or unwillingness on the part of the borrower to fulfil his or her financial obligations. This reduces future creditworthiness and loan-taking capacity as assessed by a bank or financial institution.
Most bureaus provide consumers a copy of their credit report, which will have all the credit availed by them in the past as well as their repayment track record. It also contains the details of loan enquiries. Regularly tracking your credit report is essential to keep track of your financial obligations and to ensure that there are no fraudulent credit enquiries occurring. When you apply for credit, banks and financial institutions can also, at their discretion, provide a copy of the individual's credit report with score.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
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