Credit Triangle

Ensure that Your Credit Report Is Free Of Errors

Posted on 19 November, 2022 by Credit Triangle

Reviewing your credit report regularly helps avoid any set back to your
financial goals. To understand this better, let us consider a case:
Rajiv Khanna had been saving for five years to buy an apartment. He was overjoyed
when he found his dream home. However, Rajiv was in for a shock when he
approached a housing finance company for a home loan. His loan application had
been declined because as per his credit report he had an outstanding of Rs 23,000
with a credit card company, overdue for 2 years.

Rajiv was taken by surprise as he had been paying his credit card dues on time, ever
since he had taken the card, 10 years ago. Clearly, there was some mistake in his
credit report.

Rajiv immediately applied for a copy of his credit report from the Credit Bureau.
Reviewing his credit report helped him identify the problem. He had applied for a
credit card three years ago. Though the salesman had assured him that it was a
lifetime-free card, an annual fee had been charged in the first statement itself.
On contacting the bank, he was told that the fee could not be waived. He informed
the bank that he was not interested in the credit card, and personally delivered the
cancellation letter along with the credit card (cut into two pieces) to the bank. Since
he did not receive any further statement from the bank, he assumed that the matter
was over.

However, his credit report showed that the original fee (on the credit card) of around
Rs 1,000 had grown to Rs 23,000. The credit card that he had forgotten about was
coming in the way of purchasing his dream home.

Does this scenario seem familiar? What should be done in a situation like this?

First and foremost get a copy of your credit report and review it. On identifying any
error, the same needs to be reported to the Credit Bureau. It is advisable to also call
up the concerned lending institution and send a mail to the grievance redressal

officer. As per the Credit Information Act, you should get a response within 30 days
of your communication to the grievance redressal officer. On receiving the response,
the same should be sent across to the credit bureau for rectification. In the event of
not receiving a response or not receiving a satisfactory resolution from the lending
institution, the issue may be escalated to the Banking Ombudsman (BO), appointed
by the Reserve Bank of India. If the resolution provided by the Banking Ombudsman
is not satisfactory, you can appeal to the Deputy Governor of the RBI. A borrower
has the right to move the matter to a consumer court in case he is not satisfied even
after the intervention of the RBI.

So what finally happened in Rajiv’s case? He sent a strong complaint letter to the
bank, and after some follow-ups managed to get the error rectified in the credit
bureau’s report. With his credit history clear, he finally managed to get his loan
approved.

To avoid getting into such a situation, review your credit report regularly. This helps
in not just maintaining good credit health, but also in identifying any errors at an early
stage and taking corrective action.

Credit Triangle is a one-stop solution for all your credit and finance needs. We help
you with credit health management, repair, and improvement.

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Can I Use a Personal Loan for Making a Home Loan Down Payment?

Posted on 10 March, 2022 by Credit Triangle

There is a lot of work involved when it comes to buying a house. First, you need to shortlist the property, hunt for loans, and stand long to the procedure of the home buying process. One thing that bothers me the most when it comes to buying a house is the down payment. Down payment is the most important part, while you are making a buying decision for your house.

When you start house hunting, start the day by checking your credit score. Checking credit score will get you going and you will come across many offers made by the developer and the banks like 5% down payment only, pay only 1% and get 99% loan on the property, etc. SBI home loans provide maximum eligibility for your home loans. What they do not mention in their advertisement is that the loan approvals are subject to your bank statement and your financial capability. Sometimes the offers mentioned above are on the property value not on the total value of the flat or property which includes government charges, stamp duty, and registration.

Can I Use Personal Loan for Making a Home Loan Down Payment

Now imagine, you are in the process of buying a house and come across an advertisement that mentions 99% funding on the total value of the property. You visit the site and like the property location and so and book the property by paying 1% of the price. The developer seeks the documents required and starts the loan procedure. After a couple of days, you receive a call from the bank saying we cannot process your loan because of your low salary and you cannot opt for a 99% loan. The maximum eligibility is 80% of the total value of the property. Now you are in a fix on what to do and start finding options to fill the 20% gap on your house price.

You speak to the developer for more time and the developer gives you a suggestion to take a personal loan towards your account and make the 20% down payment. Is taking a personal loan the right decision considering a home loan is on the horizon.

Today we will explain to you if taking a personal loan for making a down payment for your house is the right choice.

Mostly taking a loan for making the down payment is never a great option. If you are short on funds, try seeking help from your family and friends before considering a personal loan as an option. A personal loan is also debt and is one type of unsecured loan which can be hard to handle sometimes. If you are taking loans for a down payment understand that you will repay this loan as well. This means you will have two EMIs to pay. You may have pre-approved loan offers towards your account which may give a personal loan without cibil check.

Before thinking of taking a home loan, it is always suggested to clear your existing debts and make room for more salary to be credited to your account. This practice can help you get maximum home loan eligibility. For example, if you take a personal loan worth 5 lakh rupees the EMI will be around 15,000 rupees with a tenure of 5 years to pay back. On the other hand towards 15,000 rupees you are eligible for 15 Lakh rupees home loan with a tenure of 15 years. This way you can maximize your chances of eligibility during availing of a home loan.

Other options

There are other options in the market apart from taking a personal loan but a regular credit score check keeps you aware of the other options available as well. There are various mortgage loans, piggy bank loans, retirement funds loans on your parents, etc. The best option in this situation is to opt for a down payment assistance program, this is usually given by the developer considering your financial statement and post-dated cheques.

Buying a house comes with lots of challenges and if you are ready to dive into this unknown pool, you better have a life jacket handy to get out safely without damaging your financial reputation. So get your with us now.

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3 unusual reasons your credit score is bad

Posted on 8 March, 2022 by Credit Triangle

Believe it or not, a credit score plays a vital role in our financial life. Whether getting a personal loan when urgently needed or getting a car loan, a good cibil score boosts your loan application for speedy approval. To get amazing loan deals, your score should be at least 750 and up. You can still get good deals if you are near about 700. As easy as it sounds, maintaining a good credit score is not an easy job. There is a lot of dedication involved when it comes to getting a good credit score and maintaining it. You will have to make all your payments on time maintain a good non-debt account. Sometimes, you will also have to play with your finances, like getting multiple loans to give that extra push to your score.

If you are one of those people, who likes to make all the payments on time, has minimum loans on their account, and is confident that you won’t have a bad cibil score. Unfortunately, you are wrong! Check cibil score on a regular basis to know about the factors that might affect your credit score. There are lots of factors involved when your credit score is calculated. Do not be under the perception that only making timely payments will keep you at the bay from the credit tornado.

Today we will sight you three unusual reasons your credit score may be bad,

Unknown errors on your report

Despite you being at your best to have financially adhered, your cibil score can still see a dip due to no fault of yours. As we know, every financial transaction you make is recorded and stored with the credit bureaus and the credit bureaus sometimes tend to make mistakes and post wrong entries towards your account. This may be the reason why your credit score is not going up from time to time. To investigate such a case, you will have to get your cibil report and check for any errors, if you find any errors on the report, you can raise a dispute towards the transaction with necessary documents to prove if that is an error. This may take a very long time, but you will have to hang around just to rectify their mistake and get your cibil score up in no time.

Set your priorities straight

There are instances when you run into unexpected problems and miss on making payments to the lenders. Some people take a hard hit mentally when they have skipped a payment, and they always think of making the payment of the skipped account first keeping the active accounts on hold.

For example, if you have 3 active loan accounts say a personal loan account, a credit card, and a consumer durable. For some personal reasons, you default on making the payment for a personal loan and you start getting harassment calls from the collection agencies. Just to dodge this crisis, you plan on skipping your credit card due and making the payment for personal loan EMI with the penalties associated with it. What you do not realize is that the damage is been done on your credit report, and the damage will be healed with time, even if you are making the personal loan payment, the credit report will still show your default.

So do not fall for this and set your priorities when making payments.

credit score

Credit Utilization

If you are holding any credit cards, make sure to use a minimum of them. Using a high credit limit also can hit your cibil score but a regular cibil score check makes it better for you to keep an eye on the regular activities. The ideal utilization should not be more than 20% of your credit limit. If your limit is 1 Lakh and you are using 50k out of it, then you may see a dip in your credit score.

Calculation of a credit score is tricky and the score can go down for any odd reasons. Your credit score check makes it easy for you to be prepared and it is good to be prepared for what may come your way and get your cibil score up.

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5 Things You Should Know About Credit Monitoring

Posted on 2 March, 2022 by Credit Triangle

Consider how much effort you put in to keep your perfect credit cibil score. You make all your payments on time, there are no defaults, and you are not in the bad books of credit. You find yourself in an emergency and decide to apply for a personal loan. When you apply for the same, you are confident that your loan will be approved quickly. However, you receive bad news informing you that your loan has been rejected! You are now perplexed as to how this occurred and how it was possible in the first place, given that you used to make all your payments on time.

Following a brief investigation, you discover that you are a victim of identity theft and that your information is being used to make various financial purchases. Your banker recognizes this and recommends that you sign up for a credit monitoring service. But what exactly is a credit monitoring program? Is that necessary for me? What benefit will it have for me? If you have been the victim of identity theft, the answers to these questions are provided below.

Credit Monitoring

To begin with, let us define credit monitoring. Various third-party companies provide credit monitoring services, which can keep track of your credit-related transactions and maintain your credit score for future transactions. Customers typically use this service to protect themselves from identity theft as well as to improve credit card on cibil score. A credit monitoring service monitors your credit activity and notifies you of any credit transactions that occur on your account. Transactions can include any hard inquiry, the purchase of a new loan, and so on. Some monitoring services will also provide you with an in-depth analysis of your cibil score in free.

Credit monitoring services have advantages and disadvantages. Before you sign up for this service, consider whether you really need it.

It will not remain free forever!

If you decide to use this service, there will be many companies offering you free service for a few months; do not fall for this! We have a habit of signing up for a service and then forgetting about it; the service provider can charge you until you cancel your subscription.

No service is completely perfect.

You may agree that the service provider will provide you with the best service possible; however, you may be mistaken. Some service providers may not be able to handle your inquiries well or at all. Before you consider a service provider, read some online reviews about them to see if they are worth subscribing to.

Protection of privacy is important

This service may require you to share your data with third-party companies from time to time in order to resolve any issues with your account. Your personal data may be sold by service providers at times. Before signing the service contract, make sure to read it thoroughly.

Good things are available for free.

You are aware that you can obtain a credit score checking free . once a year in order to evaluate your credit report. Take full advantage of this and check your credit report yourself, because credit monitoring can be costly.

Always be on a safer side

Select challenging passwords for your account. Maintain regular access to your accounts. Look for any fraudulent activity on your account and immediately report it to the authorities if you find it.

Credit monitoring can be beneficial if you have suffered a financial setback as a result of identity theft. As the saying goes, “It’s better to be safe than sorry.” Check your accounts on a regular basis, or you risk jeopardizing not only your finances but also your mental health.

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Advantage of Having a Cosigner for a Auto Loan in Credittriangle

Posted on 28 February, 2022 by Credit Triangle

Buying a car is still a pipe dream for many of us. There could be many reasons why you need a car and why you haven’t been able to fulfill this dream yet, especially since there are numerous car options and financing options available. A bad credit score is one of the primary reasons why many of us do not own a car. Because of your poor credit history, you are concerned that you will be denied auto loan and that a hard inquiry will be made on your account, lowering your credit score even further.

The main issue for some young car buyers is that they do not have a credit history. Obtaining any loan in the financial market without a credit history can be a losing battle. There are numerous such instances in which you may be denied a loan. So, how do you deal with this? Do you abandon your plans to purchase a car?

Certainly not! There are many options on the market that can help you get a car loan quickly; one of these is to introduce a co-signer for your car loan.

A co-signer for a car loan can help you supplement your car purchase. Individuals with no credit history, as well as those with poor credit, can benefit from having another person become a co-applicant for the loan. Any family member or friend who can assist you with the loan can serve as a co-signer. When you apply for a loan and learn that you are ineligible, the lenders are the ones who will make this recommendation because they are the ones who want to sell you the loan.

What are the advantages of having a co-signer on a car loan?

Auto Loan Interest Rates

One of the best benefits of having a co-signer for your loan is that you can get very reasonable rates for car loan interest rate. This can help the loan borrower save money on the monthly interest rate that they would have had to pay if they had borrowed the money on their own. With the introduction of the co-signer, banks have the double assurance that the loan will be paid by either party, so they determine the best interest rate suitable for the borrower.

They can build their own credit rating : This is an excellent opportunity for a first-time loan borrower. This procedure assists individuals in establishing their credit score with the assistance of a co-borrower. If the primary borrower makes all of their payments on time, they will have established a very good credit score, which will allow them to obtain a loan on their own in the future.

A cosigner can be a credit coach : It goes without saying that the cosigner should have a good credit score as well; only then will you be able to get a loan. The primary borrower can be inspired by the cosigner’s excellent credit score maintenance model and consider building credit with the same module. The cosigner, on the other hand, can serve as a motivator for the borrower to make all payments on time and provide advice on how to build and maintain a good credit score.

Cosigner benefits: A person who cosigns a loan has a lot on the line. If the borrower fails to make the payment on time, the cosigner’s cibil score calculation may suffer as well. Being a cosigner, on the other hand, has its advantages; you have a good reputation in the market for cosigning a loan. You have provided an opportunity to someone who wishes to establish their credit history, which is a sense of accomplishment.

A cosigner can help you get a loan quickly, but you must ensure that your financial indiscretion does not cost the cosigner. This may result in strained relationships in the future.

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What Credit Score required to take a loan? Credittriangle

Posted on 26 February, 2022 by Credit Triangle

Planning to take out a loan for that favorite car you’ve ever thought of buying, or that house you’ve always imagined, or that business you’ve wanted to expand, it would take you on a trip to the banks’ guide, make inquiries, consider the best quote and interest rate that is being offered to you, and ultimately decide which option is best for you in terms of term, interest rate, processing fees, and prepayment fees. Now the point is, how does a bank or non-bank financial institution set the rate of interest? or other fees? What are the criteria?

Suppose you go to a bank with your friend. They both earn almost the same amount, they are the same age and their family background is similar. And they both apply for the same loan from the same bank. However, an interest rate of 11.5% was offered, while your friend was offered an interest rate of 10.25% with small minor processing fees and advance fees.

You’d never done a CIBIL Score Check before. Which is one of the major factors of the interest rates being processed? Lowering the Free cibil score check more is the interest rate and vice-versa. The credit score ranges from 300-to 900. Where 300 is the lowest and 900 is the highest. Any score beyond 750 is considered a good score. People below this score are considered red zoned, and the ones above 750 are greed zoned. It’s not that, if you have a score below 750 you will not get a loan, but the % of interest will be higher. Now let us take into consideration why the score is low or high? Essentially, what are the factors that influence the score? There are 5 factors whose combination results in the score.

Payment History (35%)

Payment history is the most important factor in determining your free cibil score. It is beneficial to have a diverse range of credit. How organized you are when making payments on the loans you take out shows how responsible you are. Banks can take note of your past payments and decide whether or not it is an asset to them. If you have made mistakes with your payments in the past or failed to pay regularly, your score will drop significantly and it will become more difficult for you to get a loan. If the score is not good and you find it difficult to get a loan; In this case, you can try to get loans for bad credit. But ultimately the loss will be yours alone.

Amount owed (30%)

The total amount you borrow in any form of credit i.e. credit card or loan also has a second important thing that is determined in the score. The amount of revolving credit and fixed credit is the amount owed.

Length of credit history (15%)

Your credit score is also determined by how long your credit account has been active and how old it is. Some people make the mistake of closing older accounts because they believe they are no longer useful, but this causes a drop in the score. As a result, keep the accounts active.

Types of Credits (10%)

There are 2 types of credit. Fixed or installment credit and revolving credit with a combination of secured and unsecured credit. The type of credit you have will also contribute to the score. It’s healthy if you have a good mix of all types of credit.

New Credit (10%)

The new credits you take are also a determining factor in your score. New credit indicates that you are becoming more responsible in terms of repaying your debts. However, do not overdo it, as this will also lower your score.

Always manage the credits you take responsibly. If you check your score and believe there is an error, request a detailed report and double-check. Work with it diligently and patiently to get your score in the green!