What is the procedure to get a credit report and what is the cost?
A credit report can be requested from any of the credit bureaus - Cibil, Experian or Equifax - by downloading the application form from the websites and submitting the completed application with know-your-customer (KYC) details in an online or offline mode, as applicable. All three credit bureaus charge a nominal fee for their service.
Can individuals also approach debt restructuring cells of banks to manage excessive debt? What is the procedure?
Normally, restructuring of debt is done only for companies. Banks don't encourage restructuring of personal loans of any kind. However, they might offer to restructure the loan once it goes into default and becomes a non-performing asset, based on the loan type, additional down payment that you might make, etc. If you have excessive debt, you may approach debt advisors who can provide you a better solution by considering more than one bank and their loan products.
I am not regular with my credit card payments. I have been repaying as and when I have extra money but I clear my dues before I use the card again. Will this affect my credit score?
As long as you are paying the minimum amount due within the due date and the balance amount after some time, there will be no adverse impact on your credit score. However, any delay in paying minimum dues, even if entire dues are paid within a short time, will negatively impact your score. You must also know that delayed payments of credit card dues attract a high rate of interest from the date of the first purchase, and you lose the interest-free period otherwise available to you.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Today, Sanjay Agarwal, Executive Vice President (Head-SME & Retail Business), ARCIL, answers your questions
