Credit Triangle

Want A Loan? Check Your Credit Score

Posted on 30 January, 2023 by Credit Triangle

Credit Score is an integral part of our financial life. Given the limited capital available to an individual, access to loans and other credit facilities becomes increasingly important, to fulfill ever-growing needs and aspirations. Hence, approaching a bank or Non-Banking Financial Company (NBFC) or an online lender for a loan or a credit card may become unavoidable for everyone at some point in time.

When you apply for a loan, the lender pulls your credit score and report to see your past credit activities, whether you are an eligible borrower. The three-digit credit score plays an important role in getting you the credit you want at better rates. India has 4 retail Credit Bureaus: CIBIL, Equifax, Experian and Highmark, that provide the credit score. A Credit Bureau is a data repository that receives and maintains data of individuals and entities. Credit Bureau data coverage in India is increasing rapidly every year. Lending institutions dip into this database for assessing your creditworthiness.

What does a score look like and what is a good score?

A credit score is a three-digit number within the range of 300 and 900. It is a numerical measure of a person’s credit worthiness and is based on credit history. The higher the score, the easier it is to get a loan or a credit card approved. Any score of 750 and above is considered as ideal and you will qualify for various credit cards and loans, at the lowest possible interest rates.

What information does a credit report contain?

A credit report is a summary of your credit history, including the types of credit accounts you’ve had, your payment history and certain other information such as your credit limits.

Credit Reports are generated by credit bureaus. A typical credit bureau report consists of four sections: Credit Score, Personal Details, Account details and Inquiries.

Will my credit score be the same across different credit bureaus?

Every credit bureau in India uses its own scoring logic to generate credit scores. Individual credit bureau scores can vary from one bureau to another (depending upon the scoring logic). However, these have to range between 300 and 900.

What should I do if there are errors in my credit report?

A large number of credit reports have errors. An error can lead an underwriter to reject a loan application on the basis of a faulty credit report. It may result, at times, in higher interest rates getting charged. It is, therefore, important to have such errors corrected as soon as possible. If you find any inaccurate information in your credit report, you can raise a dispute with the concerned bureau and if you are not satisfied with the action you can lodge a complaint with the banking ombudsman’s grievance cell.

How often does my credit score get updated?

Broadly speaking, your credit scores are likely to change every time the credit bureau receives new information about your credit profile. This can happen once a month or every 45 days.

What makes the system foolproof for lenders?

Let us consider an example: Mr. Rajat took a home loan from ABC Bank and had been paying his EMIs in a timely manner. Simultaneously, he also took an auto loan from XYZ Bank, but defaulted on the last few payments. Mr. Rajat now applies for a personal loan from ABC Bank assuming that since he has paid his home loan EMIs with the bank in a timely manner, he would be granted a personal loan without any trouble. However, he is not aware that ABC bank obtains a credit report/ score from CIBIL, where he shows up as a defaulter with another bank. This could either result in a rejection of his personal loan request or the bank might charge him a high rate of interest.

Is there any benefit of a good score to me as a consumer?

The advantages of a good credit score are numerous, including low-interest rates on loans, greater chances of loan and credit card approval, higher limits on credit cards, and more negotiating power with banks/lending institutions.

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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Factors to consider for a car loan

Posted on 27 January, 2023 by Credit Triangle

Owning a car has become a necessity rather than a luxury. Thanks to the numerous car financing options, buying a car is no more an expensive affair, as it once was. Purchasing a car on a finance scheme gives buyers the liberty of not having to invest a large chunk of their savings in a single investment. The new-age consumers are smart and know how to take advantage of the various options for car buyers, rolled out by banks and financial agencies.

Things to look out for before applying for a car loan.

Credit Score

Your credit score plays a key role in deciding your eligibility as well rate of interest on the loan. It is, therefore important to check your credit score before applying for a loan. A higher credit score, preferably 750 or above, can help you get a car loan at an attractive rate of interest rate. Whereas a poor score results in higher interest charged or even rejection of the application. So, before applying for a car loan, you must check your credit score independently and if it is not up to the mark, you need to take corrective actions to improve your score.

Rate of interest

One of the most important factors to consider before applying for a car loan from a particular bank, is the rate of interest, as it can decide your instalment amount and the total amount you will be paying above your borrowed sum at the end of the loan tenure. Hence, before reaching any decision, first check and compare the rates offered by various banks, to find the most affordable option. The factors that decide the interest on a car loan include your credit score, income, loan tenure, car category/model, down payment, etc. Lenders provide car loans with both floating and fixed-rate interest options. If market trends point to rising interest rates, you can opt for a fixed-rate loan.

Loan Tenure:

Another major aspect of a car loan is the loan repayment period. While a longer tenure seems to be a reasonable option, remember that it comes at the cost of higher interest payment. If you are comfortable paying higher EMIs, you should opt for a shorter tenure. Longer tenure suits borrowers who find it challenging to repay higher EMIs.

Pre-closure/ Foreclosure Penalty:

An important factor to consider when opting for a car loan from any particular bank, is whether it charges a pre closure penalty. Pre-closing your loan means you have cleared your loan amount before the specified tenure. While this helps you save interest, some lenders charge a foreclosure penalty. Consider a lender/bank that doesn’t charge this penalty or has very nominal foreclosure charges.

Other charges

Bank loans come with other charges like processing fees and late payment fees. These charges, can impact the overall cost of your car loan. It is advisable to choose lenders who levy minimum charges along with a lower interest rate.

Keep these aspects in mind before zeroing in on a finance scheme. Also, a long-standing relationship with a bank can go a long way in helping you get a finance scheme that suits your needs and requires minimum documentation.

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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Keeping kids safe in the online world

Posted on 23 January, 2023 by Credit Triangle

The internet has become an integral part of not just our lives but that of our children as well. It is a wonderful tool to gain knowledge and get creative. Though increased online presence may be the need of the hour, lurking under all that information, are many dangers that your child could be exposed to.

An increasing number of children have become tech-savvy and use the medium to gather information, and for socializing and recreation. However, majority of them are oblivious to the hidden dangers of the internet and may easily fall prey to cybercrime.

Children and youth are a vulnerable target for cyber criminals. Besides being exposed to malware, phishing, online scams, inappropriate content, including pornography, innocent children are also threatened by online predators who indulge in cyber bullying and identity theft.

Teenagers are quite active on social media. They may post personal information on online platforms or may be lured to reveal their personal details and credit card information, leading to siphoning off money from accounts. As children are generally unaware of the repercussions of inadequately protecting their identity online, the onus lies on parents to ensure that they do not face a difficult situation.

The most effective way of ensuring that your children remain safe in the digital world, is to have an open discussion with them about online dangers and how to avoid them. Educate them about cyber security and safe online habits. Apprise them of the dangers of giving out sensitive personal information online. Teach your children to be wary of online offers that promise too much.

Install security software and apps on devices to monitor your child’s online activities and ensure that they stay safe from online threats. Check your child’s browser history frequently. Parental Controls could be used to monitor content across several platforms, manage screen time, and filter inappropriate websites.

As a part of safe online habits, kids must be taught to avoid clicking on emails or texts from unknown sources and avoid suspicious web sites. It is also important to monitor your child’s gaming habits and educate them about online game purchases. Be aware of the signs and effects of cyberbullying and advise your kids on how to deal with cyber bullies. Encourage your kids to come to you if they encounter a problem.

Increased awareness, open communication and being actively involved in your child’s digital and day to day life would ensure that your children experience the joys and opportunities of the online world, and avoid its hazards.

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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Home Loan: Picking The Right Bank

Posted on 19 January, 2023 by Credit Triangle

Vineeta, a Pune based engineer, decided to apply for a home loan, to fulfil her long-cherished dream of owning a house. Tired of knocking the doors of several financiers, she chose a lender having convincing salespersons, without really conducting any prior research. Consequently, she had to deal with several ordeals while repaying her debt, including scores of hidden charges, inflexible loan options and heavy penalties.

Consumers search for the most reputable home loan providers and often end up getting trapped by smooth talking salespersons. It is, therefore important to do your homework and take into consideration every factor before opting for a particular lender.

Factors to Consider

Credibility of the lender:

A reliable lender would offer the needed flexibility when it comes to terms and conditions of the loan. Apart from that, a reliable bank would provide superior customer service and would be willing to go down that extra mile for keeping their customers satisfied.

Those who are contemplating a property purchase with the help of a housing loan, must check the reputation of a lender and then make a decision, to ensure that they get a good deal throughout the loan tenure.

Rate of interest:

Although you should consider different interest rates and settle for the best, however the lowest possible rate may not always be the best option. Study all the terms and conditions along with reputation of lender. Banks tend to levy various other charges on home loans, in the form of processing fee, technical assessment and documentation fee.

One needs to rightly choose between the type of interest rates – Floating or Fixed. Choice of type of interest rate should be taken basis market conditions i.e. if the rates are expected to go up or down and loan amount being opted for.

Tenure Flexibility:

One must also consider tenure flexibility and go for a loan having an agreeable repayment tenure. Be sure to consider the tenure range a bank offers, and whether that fits your needs.

Loan Amount and Eligibility:

Internal lending criteria vary from one bank to another and it is on the basis of these that a particular amount of home loan is approved for the borrower. The criteria might cover the borrower’s age, job profile, employment stability, credit history, among other aspects.

Processing and disbursal speed:

Always choose a bank that takes less time to process and disburse a home loan.

Repayment terms:

There are certain terms and conditions pertaining to repayment of the home loan imposed by banks on customers. Potential borrowers must clarify the terms related to settlement/foreclosing the outstanding amount, transferring the balance to another lender’s account, prepaying a part or full amount of the home loan, and other things, before finalizing a lender.

Hidden charges:

Hidden charges is something that tends to prick the pocket of borrowers the most. Thus, while narrowing down the options, it is advisable to compare the processing fee, down payment, valuation fees, prepayment costs and other charges levied by different lenders.

It is advisable that borrowers research and compare several competitive features of home loans offered by different lenders. It is better to have the policies, facts, terms and conditions clarified well in advance before locking in a seemingly ideal home loan with any lender.

Considering every possible, decision-affecting factor, planning out everything and following it systematically is the key to a smooth, hassle-free journey to owning your dream abode.

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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Rebuilding Your Credit History

Posted on 16 January, 2023 by Credit Triangle

Rajan Shah, a 30-year-old professional, lost his job last year and also went through a divorce, which put tremendous pressure on his finances.

Although he understood the value of a good credit standing, circumstances forced him to start defaulting on his car loan and credit cards. He managed to get a new job and wanted to make a fresh start. But his defaults were beginning to affect his life. He was aware that he had to repair his credit score, but did not know how to go about it.

This is a common problem faced by a lot of people who, either, because of circumstances (like Rajan) or due to a lack of financial discipline, default on their financial obligations, and are looking to make amends.

Let us first understand what happens when you default on your financial obligations.

Every lender is required to share data about the repayment history of their borrowers with the credit bureau. The credit bureaus collect repayment information of all loans and credit cards of an individual or a business on a periodic basis from all types of lending institutions across India, so as to create an accurate representation of one’s credit history. Credit Bureaus provide the best objective assessment of a person’s Credit Character. Credit reports, which are a comprehensive chronicle of an individual’s credit history, are generated by credit bureaus.

If you have defaulted on your payments for any reason, your credit information report will immediately disclose this status to any prospective lender. With a bad credit report, it is difficult to get any loan or credit card from any bank.

But all is not lost. You can re-build your credit history.

To start re-building your credit history, begin by paying off the re-structured debts. But remember, it is a slow process. Once you regularly start paying your debts, with the passage of time, your credit history will improve. Remember to always pay all your bills on time. Paying bills on time creates a good repayment history which is important for your credit score.

You can also start adopting measures which enable you to rebuild credit history, like taking secured credit cards, which are given against the security of your fixed deposits. This can help build positive credit history and can be a valuable tool if you’re having trouble getting approved for more traditional loans or credit cards.

You can also opt for secured personal loans where an asset is required as collateral. Stick to your budget plan. Check your expenses and do not increase your credit exposure to immediately repay the present loan to salvage the situation.

If you are considering obtaining a loan in future with low interest rates, you must have a healthy credit score. You could also get help from specialized credit counselling or credit repair agencies. These agencies assist you in negotiating with your existing lenders and re-structuring your debt, which can be both curative and preventive.

Rebuilding your credit doesn’t happen overnight. It takes time to re-establish a good payment history, pay down the debts you may have and let negative information cycle off your credit report. Whether you choose to repair your credit yourself or with the help of a professional, understand that it is a slow and continuous process.  

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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Smart Ways To Improve Your Credit Score

Posted on 12 January, 2023 by Credit Triangle

A credit score is an indicator of a person’s creditworthiness. It is a 3-digit number that ranges from 300 to 900 and is a numeric summery of your credit health. The better your score, the easier it would be for you to get approval for new loans or new lines of credit. A higher credit score can also open the doors to lower interest rates when you borrow. A score of 750 and above is considered to be a good score.

Such a score is derived by credit bureaus by analyzing your credit history, which contains information such as your payments history, number of loans or credit cards used by you, etc. A person's credit history, is a record of how he/she has used and managed credit in the past.

Credit scores have an impact on several facets of our lives such as approval for loan or credit applications, interest rate charged on a credit facility, loan amount against value of collateral, employment opportunities, insurance coverage/premium etc. It is, therefore important to be aware of not just your credit score, but also ways to improve it.

Some tips to improve your credit score:

Check your credit report:

Credit score repair begins with your credit report. Thus, the first thing to do is to request a free copy of your credit report and check it for errors. "In particular, check to make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. Resolve the errors, if any, immediately with the credit bureau and reporting agency," says Gaurav Wadhawani,, founder, Credit Triangle. Reviewing credit reports regularly is the first step towards credit awareness.

Regular payment of bills:

Something as simple as paying bills – even phone bills — on time can play a very important role in improving your credit score. Your payment history has a significant bearing on your credit score.

Pay off a debt:

Another easy method to improve the credit score is by paying off older loans or debts. Even if the debt amount is small, it is essential to get rid of it by making the payment on time. Minimization of outstanding debt helps to improve the credit score.

Do not over expose yourself to credit:

Although having a credit card can actually help you in being an eligible applicant for loans, however, owning numerous credit cards and making huge purchases with them can reverse the situation.

No credit card default:

Another important measure to improve the credit score is to pay down the credit cards and avoid credit card default. Try to stay within your credit limit.

Timely payment of EMIs

Pending loans and debts put an impact on credit health. Therefore, it is important to pay them back on time. If you are responsible and punctual in your current loan payments, it will surely improve your credit score.

Do not close your active accounts:https://credittriangle.com/

Closing your active accounts can be detrimental to your credit health. The length of a credit account impacts the credit score. Hence, in case there is a credit facility that you have been using for a few years, do not close it. Instead, use it wisely.

Seek professional help:

If you have tried your hand at fixing your credit report, but have failed to attain desired results, you can also take the help of a professional or credit repair agencies to improve your credit score.

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