Banking regulator insisting on fair and transparent loan practices

Q: Can anybody tell me is having loan good for my credit score? What can i do to get a good credit history?

Ravindra Singh,

19th November 2014

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Replies (7)

Definitely having a loan is good to build up your credit history. Make sure you that all the repayments are done on timely basis and there shouldnt be a single default. You can also build your credit history by applying for a credit card as it's considered as a revolving credit. You can use the credit limit upto 30% and make payments on a regular basis. To know how you can built your credit fast visit http://www.yourcreditscorebook.com/blog/build-your-credit-score-fast/

Ishika M,

8th January 2016

Comment

@Aveek,
The only debt factor that usually gets people into difficulty with their debt is the factor of optional debt or credit cards. There is no contradict that they are cozy, but if we do not use it properly it can land us in a soup. Our credit score is crashed negatively if we do not make timely repayments in full on our card or are unsafely close to the utilization of credit limit.

Aveek Paul,

19th November 2014

Comment

Your welcome Aveek,
As long as we make regular and timely repayments on these loans, we have no reason to worry and can be confident of maintaining a good credit score. At the same time if we able to stop the expensive loans, such as student loans, personal loans if we have a bit of extra cash in hand, our score will move up.

Supratim,

19th November 2014

Comment

Thanks for the information Supratim,
But at the same time it is also considerable that one who thinks that having no debt or a single kind of debt does not bring them a higher credit score. We can maintain a good Cibil score if we have a good mix of trouble free loans such as a home loan or a car loan and personal loan that is unsecured.

Aveek Paul,

19th November 2014

Comment

@Aveek,
To maintain a good credit score we first check our credit report, setup payment reminders, reduce the amount of debt we owe, pay our bills on time, if we missed any payment, get current and stay current etc. Debt is not a bad thing. Even in this day and age, where almost everything is available on credit, some people think that having any kind of loan may indicate financial loss for them.

Supratim,

19th November 2014

Comment

You are right Supra,
A good credit score is our doorway to loans at cheaper rates of interest, poor credit scores on the other hand may mean rejection or loans at expensive rates. To maintain a good credit score, we first need to find out which are the major area towards building a good credit score.

Aveek Paul,

19th November 2014

Comment

Hi,
It is becoming compulsory for every creditor to look at your credit score before it can decide whether you are eligible for a loan and at what interest rates should the loan be given to you. Because the creditors access your CIBIL report and score to access your credit eligibility.

Supratim,

19th November 2014

Comment