How a simple check civil score could help you establish a business?

Are you one of those fretting over losing the job during the Novel Coronavirus crisis? Then how about having your own set-up wherein no one can terminate your services and at the same time you can hand you’re your children with a legacy of sorts. 

Yes, we are talking about starting your very own business. We assure you that this is the right time to do something you have always dreamt about, but never gave it a serious thought. And the first step towards it is to check civil score to see where you stand financially, how much money would you need to start the dream project and to assess your chances of negotiating the Equated Monthly Installment (EMI) tenures and their interest rates.

There is a long list of things that matter to the credit history, but if certain major factors are taken care of, you will have an upper hand with the lenders. Let’s check them out.

1. Preferably skip moratorium: In these difficult times, it could be difficult to pay the bills. The Reserve Bank of India (RBI) has extended the facility of moratorium as a relief to the borrowers. But if you are trying to set-up businesses, it is always advisable not to opt for the facility. This is because the lenders prefer an updated credit history and opting for a moratorium would indicate an unstable payment capacity apart and even the credit report would not be updated till the time the moratorium period is complete.
2. Try paying twice a month: The pandemic has hit us all so hard that it has become very difficult to keep paying the bills. But instead of paying it all in one go, splitting the bills and paying twice a month is a good idea. This strategy will help you maintain the balance to a minimal. It will also save you from paying a high interest rate on the balance and ensure the credit utilisation limit is never exceeded. This limit impacts up to 30% of your credit score.
3. Avoid hard enquiries: Whenever a person applies for a new credit, a hard enquiry is initiated and this is the last thing you would like to have on your report when you are looking to steady your feet in business. This impacts the credit scores by 10% and, hence, if you are serious about taking a loan to establish a business in the future, then ensure that no hard enquiries take place and never forget to check civil score.
4. Pay off unsecured credit first: Those seeking credit to start a business must realise the importance of secured and unsecured loans in their portfolio. This is important for even those who need more credit to run their business because borrowers with more secured loans are preferred by lenders. 

So, what are you waiting for, check cibil score now.

Control your credit utilization limit for better scores

Credit utilization limit is the percentage of the total available credit that a borrower consumes. The credit bureaus refer to this component while determining the borrower’s credit scores. If the utilization limit is high, it indicates that the borrower could be overspending, and exceeding this limit could impact the credit scores adversely. In fact, the mantra is ‘lower the credit utilization limit, the better it is for the credit score’.

If the borrower has maintained a good credit limit over the years and never exceeded the 35% limit, then the overall credit profile would generally be in a good condition. Under these circumstances if in any month the borrower exceeds the utilization limit in a particular month, then it is unlikely that the credit scores will dip drastically. Also, the borrower must make sure that the limit is again kept to a minimal the following month.  

Tips to improve credit utilization limit

• -          Keep a tab on spending habits: This is the simplest way to avoid losing credit score points. If the borrower is approaching the 35% limit on one card, he must immediately switch to another card to make purchases.
• -          Seek higher credit limits: If the borrower has been good with spend habits, then there are high chances that the lending company could raise the credit utilization limit.
• -          Become an authorised user on an established account: It is a wonderful option if someone with an established account, good payment history, and excellent credit scores agrees to add the borrower as an authorised user. The higher overall credit limit could keep the borrower’s credit utilization limit lower than before. Secondly, this is completely safe from the established account holder’s point of view since there is no need to share the account number or other essential details.
• -          Get technically sound: Technology is meant to aid human beings and there is no point in remembering payment due dates when the task can be easily done by alerts. Setting up payment reminder alerts or putting bills on auto payment mode helps the borrower to pay the dues on time. This way the individual never misses his payment dates and the credit scores keep brimming.
• -      Get to know when issuers report to bureaus: Generally, credit card issuers report a customer’s balance every 30 days to the bureaus which may not necessarily coincide with the bill due date. And if the issuer reports to the bureaus before the bill due date it may consistently look like the customer is carrying a high balance. Hence, it is important to find out when the credit card issuers report to the credit bureaus and pay before the due date.

So try following these tips to keep the credit utilization limit to a minimal.

The whys and hows of checking civil score by PAN card

Credit score is any loan applicant’s first financial impression before his lender. It is a proof of how he manages his finances. If he is careless and often misses his dues, his credit scores will see a dip and if he is responsible with them, it will also get reflected in the form of high credit scores. There are several ways people can access their respective credit reports like passport number, voter’s number and even the Permanent Account Number (PAN).

Today, we will concentrate on various aspects of checking scores using the ten-character long alpha-numeric unique identifier to check cibil score by PAN card. But before we move ahead, let us briefly discuss what credit scores are in the first place. Credit scores are three-digit numbers, ranging between 300 and 900 points, depending upon our financial habits. Scores above 750 are considered ideal and safe for lenders who need to assess the borrower’s financial credibility and get an assurance whether they would get back their invested or lent out amount.

If a person has scores closer to 300, not many lenders are willing to pay him the required amount and those who do, have an upper hand. In such cases, it is the lender who decides the terms and conditions of contract like the rate of interest (which is usually quite high compared to a borrower with high or above 750 credit scores), tenure, etc. 

Now coming back to check cibil score by PAN Card, we tell you that it is a very simple task and requires no specific details other than the ten alphanumericals printed on the card.  Carefully go through the process on availing credit scores using your plastic card.

• Log on to the official website
• Click on the extreme right top corner ‘Your Cibil Score’
• Fill in the details like name, gender, etc
• Provide your PAN 
• Click on the ‘Go’ button.

Moving ahead, we would also like to tell you here that this plastic card is issued by the Indian Income Tax Department under the Indian Income Tax Act, 1961 to any Indian taxpayer. Secondly, no two persons can have the same PAN number and so the chances of any goof-up while carrying out a check cibil score by PAN Card are ruled out.

Other than this, if your PAN gets misplaced or is lost there is nothing much to worry as you can always get a duplicate one issued by informing the department. This second card will bear the same number as that mentioned in the earlier card. This is because the new card is a duplicate one and not a fresh card.

So, next time you need to check your credit scores, try doing it using your plastic card. 

Factors influencing civil score calculation

For credit holders, there is nothing more fearful than the monthly trial of cibil score calculation. We all dread it for it assesses our creditworthiness every month and accordingly, the bureaus award us credit scores that range from 300-900. A slight shift in our payment method or a lapse while dealing with finances could be painful for most of us as it could last for years. Our creditworthiness is an important factor that allows investors to judge and decide whether they could lend us their money.

In simplified terms, credit scores not only determine whether or not a borrower qualifies for a loan, but it also has an impact on the terms and conditions on which a loan can be availed. It is important to remember here that each credit information bureau has its proprietary algorithm that calculates and awards individuals with a credit score. The three-digit number reflects a borrower’s creditworthiness, which is based on several factors like timely repayment history, credit utilisation ratio, credit mix, hard inquiries and more. So, better your chances of availing the loan faster and on favourable terms. 

Below given are the factors that help in cibil score calculation to evaluate your scores.

1. Repayment history: Make it a practice to pay bills on time else it could lead to serious payment issues. Even a single miss could hurt you and if you have been a consistent defaulter with it, you could be weighed down with charge-offs, collections, bankruptcy, foreclosure, etc., that could ruin your credit scores. The impact of a late payment on scores depends on how much you owe.
2. Delinquencies: Your credit score could drop as miserable if the credit report is delinquent. Multiple or longer period of delinquencies affect credit scores negatively dropping them by 125 points. These could stay on your credit reports up to seven years signalling potential irresponsibility to future creditors.
3. Credit mix: A balanced mix between secured loans and unsecured loans is likely to have a positive impact. Secured loans include auto and home loans that have collateral while personal loans and credit card loans are unsecured loans as they don’t back any security. Secured loans have a positive impact on credit scores if the instalments are repaid on time.  
4. Get a co-signer: This is one of the best ways to get a loan on depleting scores and while you continue to work on them. This is because not all are fortunate to convince someone with high scores to be a guarantor for you. A very ideal option could be to get a partner to become a co-signer as it would save you from a lot of social embarrassment.

Remember that while these are some of the prime factors that contribute largely to cibil score calculation; several other aspects affect it.

After celebrations, it is time to check civil scores by PAN

Phew. Christmas and New Year celebrations are over and it is time to get back to reality. You need to take stock of the unexpected expenses or expenses you were not prepared to meet. Isn’t it? Great. If you have been good with managing your finances well, then you have nothing much to worry, but if you have been missing out on your repayments earlier, then you have all the reason to worry and check your cibil scores by PAN card.

 So, if now you are wondering why one needs to check credit scores using a Permanent Account Number (PAN)card, here is the answer. PAN makes it easier for the credit bureaus to locate your details efficiently. PAN is also associated with all financial and bank accounts of most individuals as it is associated with all financial transactions. And when you apply for cibil scores by PAN card, you need no other document to get it from the bureaus.

Before we proceed further, here, we would like to tell you in brief that your PAN is a 12-digit sequence that is issued by the Income Tax Department of India. In case, this plastic card is lost or stolen, then a new one can be requested and this new card won't impact your credit score in any way as the number will remain the same.  

Now, coming to credit scores, these are three-digit figures ranging from range from 300 to 900 and depending upon your financial transactions. It is an important factor that the banks look into while reviewing loan applications.  Hence, when the scores are higher, (750 and closer to 900) banks consider such persons as someone responsible with finances. Such persons tend to falter less while making repayments during the entire loan tenure. Lenders consider such credit score holders as low-risk borrowers and process their loan applications without much hassle. In short, your credit score is a snapshot of your credit at one point in time.

Now that we know enough about this valuable plastic card and credit scores, let us quickly go through the steps that will enable you as a first-time borrower to check your cibil scores by PAN card.

• Log on to the link https://civilscores.com/check-civil-score-by-pan to directly and easily log in.
• Choose a subscription method
• Provide basic personal details that are mandatory
• Enter your PAN card details
• Enter the captcha code 
• Agree to the terms and conditions
• Click on ‘proceed’ button.

Remember, if you have been using the PAN card to check cibil scores regularly, the website may store your mandatory personal details and you may not be required to fill in every time you run a credit score check.

Learn how civil check helps lower insurance premiums

Since your credit report is the gateway better loans, credit cards and insurance dealings, get a cibil check immediately if you are looking for an auto loan or a home loan. Keep in mind that your insurance scores predictably impact your insurance rates. A person with a mediocre credit rating (something between 500 and 699) will pay more for an auto-insurance than someone with above 750. 

Insurance companies use credit-based insurance score and only a certain element of your credit report taken into consideration. The idea behind it is to gauge how risky you are to them. Today, more than 84% of insurers consider their credit scores while calculating car insurance premiums. 

Factors that influence insurance premiums

• Age and driving experience
• Claims or accident history
• Geographic location 
• Your credit history
• Make and model of the vehicle.

What insurance companies look for?

If you maintain a good credit score, you remain open to possibilities to save in all types of insurance including auto insurance. The company takes stock of your credit history and driving record before deciding your insurance premiums by running a cibil check on your scores.

Most insurance companies use an applicant’s credit history to predict if he would file insurance claims. They go by the basic rule that applicants with good credit histories are likely to have fewer losses. They look for any missed payments, frequency of loans applied for, ongoing debts, tax liens, and recent inquiries that help them in understanding customer’s financial standing. So, if you are thinking about what your utility bill payments, tax liens or existing loans have to do with your auto insurance, we assure you that it has a lot to do with it.

Tips to low car insurance rates

1. Check credit scores frequently: Avail the benefit of free cibil check from your bureau to rule out any miscalculations, unwarranted entries or possibilities of identity theft.
2. Respect your pocket: If you are already low on finances as well as credit scores, it would be wise to postpone the idea of purchasing that plush car and rather go in for a vehicle that suits your budget.
3. Make timely bill payments: A delay in payment could cost you dearly. Clearing off your loans in time could help you get a good history for a longer period and eventually boost your scores.  
4. Avoid fresh loan to pay off older one: This could harm you in more ways than one. It would rather be a good idea to evaluate your expenses and curb them to pay off your debts.

Enjoy the benefits of a good credit score and stay with us for more on https://civilscores.com/improve-credit-score. 

What lenders scan in credit report and check cibil score by pan card

We have always recommended tracking your scores every few months and why not when you can check cibil score by PAN card very easily. PAN stands for Permanent Account Number. It is a unique 10-digit alphanumeric character issued by the Income Tax (IT) Department under the supervision of the Central Board of Direct Taxes.

Credit reports are issued by credit bureaus that prepare your scores based on the data provided by Reserve Bank of India backed credit bureaus. And when people apply for a loan or a credit card, they authorise lenders to make a hard pull and scan their report. Before we move ahead with what our prospective lenders look for in our reports, let us get a sketchy impression of what inquiries section contains.

Credit reports contain a list of all those who have accessed it within the last two years. It has a mention when hard inquiries were made based on your loan requests and soft inquiries when lenders ordered your report to lure you with the pre-approved credit offer. It also holds a credit history of the past 10 years for any type of loan, mortgage, credit card, etc. These pre-approved offers could be sent to you via email. Secondly, while hard inquiries are visible to all, soft inquiries are visible only to you and do not have any effect on your scores. 

Lenders look at multiple aspects, but the whole idea is to ensure that all is well with the borrower and he will pay back the borrowed amount without missing out instalments or filing for bankruptcies. Well, let us quickly browse over how to check cibil score by PAN card, but first take a detailed look at the aspects lenders take into account while assessing the credentials of a candidate

• Payment history
• Credit utilisation
• Total debt
• New accounts
• Number of inquiries 
• Reason for loans
• Bankruptcies 
• Types, age and number of credit  

If you have started to feel that the credit-scoring world is quite a complex one and so would be the process to check cibil score by PAN card, we tell you it is not so at all. Check out the steps given below.

• Log on to the credit information bureau website
• Look for ‘Your Credit Score’ and click on it or
• Directly visit  https://civilscores.com/check-civil-score-by-pan 
• Select a subscription method 
• Enter your PAN 
• Enter other details 
• Enter the captcha code
• Tick on the terms and condition
• Click on submit button

After the processing is done check your mailbox the following or within 24 hours to receive your credit report.