Is There A Difference Between A CIBIL Rank And A CIBIL Score?

Whenever you decide to take any kind of loan from the market, you will come across the terms "credit score" and "credit rank". An individual's and a company's credit score and credit rank both make them eligible for borrowing. It is very important for individuals as well as businesses to understand the relevant factors that help them be eligible for borrowing in the market. Credit score and credit rank are not the same things, even though they deal with the same thing. It is very important to understand the difference between the two so that you might be able to use them in the right way. Make sure you do not confuse both of them, as each one of them serves a different purpose altogether. Let's look at some of the key distinctions between online credit score and credit rank.

Representation

While your CIBIL rank is a numeric summary of your company credit report, your credit score is a 3-digit numeric summary of your CIBIL report. A CIBIL rank is counted anywhere between 1 and 10, where 1 is considered the best rank. And, the CIBIL score ranges anywhere between 300 and 900. Credit is given to an individual or company on the basis of first or second lien, depending upon their credit health. However, the credit score is between 300 and 900 on the basis of credit activities and credit profile. The representation of credit score and credit rank distinguishes one another on the basis of the way they are represented. When an individual or company attempts to obtain a line of credit or loans from the market, both credit score and credit rank are used. Learn how to get a business loan.

Usage

The second most important factor is the difference between credit score and credit rank; it's the purpose for which they are being used in the loan market. The credit report is used by the individual when they try to get any kind of loan in the market. When an individual needs a personal loan or a housing loan, you can always get help from a good credit score in order to get the loan approval. A credit score is applicable only to individuals. On the other hand, credit rank is applicable only to companies and business enterprises. If the business tries to take any kind of loan for the business, the credit rank of the business will be checked by the loan provider. The credit rank represents the business stability and financial health, which helps it in getting the right loan experience.

Get your online credit score from Clix Capital. You can also check your credit report for free and stay updated.

Read More : Get a better plan to avail the best business loan

What are the factors that are considered when calculating a credit score?

 Are you planning to buy a home next year? If so, you need to start working on your credit score. A credit score check is one of the best ways by which you can prove your creditworthiness to get a home loan approval. To make the borrowing experience easy and affordable, you need to build your credit score on the following factors:

Credit accounts need to be kept open, even when you do not use them. It is very important to let your credit accounts, like credit cards with a long credit history, be open so that you can improve your credit score. The longer your credit history, the better your chances of improving your credit score. Therefore, even if you do not use a credit account, you need to keep it open.

Payment history and a clean track record are two of the best ways by which you can improve your credit score really fast. If you want a credit score of more than 750, you need to make sure that you are making timely payments without any delays. If you were forgetful regarding making the payments, you need to automate them so that, without even your knowledge, your account gets debited with the required bill payments.  Learn how to get a business loan.

If you are applying for multiple loan applications within a very short span of time, it will be difficult for you to improve your credit score. If you need a credit score above 750, you need to make sure that you stop applying for multiple loans, even if it is necessary. The reason is that every time you apply for a loan, the loan provider will run a hard inquiry check on your credit history, which dings your credit score by 50 points. This way, you will end up with a low credit score and you will not be able to borrow at the time of need. Must Read : Loan Talks.

Keep overdue or outstanding credit card and monthly instalment bill payments to a minimum. It is very important that you avoid making a minimum payment, even if there is an option. If you are trying to improve your credit score, you need to make sure that you are paying the full bill amount without keeping any outstanding. It will actually help you to build your credit score in a faster manner.

Wrapping up

Your credit score is an important factor that helps you get a loan easily and in an affordable manner. Start your credit score check today to improve and track your credit profile.

 

Understanding the key features of your CIBIL Report

 

A credit report is a detailed summary of financial and personal information about a particular individual. It is a financial report where every small and large financial activity is reported. In a credit report, every transaction and financial detail are mentioned. When you do CIBIL score check, you will find every single detail about your loans, credit cards, and every transaction or loan application. It helps the loan provider determine the credit health and behaviour of an individual. Based on your CIBIL score, the loan provider will decide whether to approve or deny your loan application.

Payment: Payment is an important factor that is mentioned in the credit report. It constitutes more than 25% of the credit score impact. It is vital to have a clean track record of payment on all your credit accounts. If you delay or miss any payment, it will be reported on your credit report. Therefore, you will find your credit score damaged. When you check your credit report, you will find all your payment transactions. For business loan interest rate visit : business loan interest rate.

Credit enquiries: Credit enquiries are the hard enquiries that are run by the credit bureaus and financial institutions. When you apply for a loan, the financial institutions run a hard enquiry. These hard enquiries are not good for your credit profile. It damages the credit score by dipping a good number of points. Your credit score has all the records of credit inquiries that have been on your credit profile as it impacts your score.

Credit utilisation ratio: This is the ratio of the total credit limit offered to the credit limit used by the individual. If you have over utilised the credit limit, it will be on your credit report. Your credit report has every detail mentioned regarding the credit limit usage. Do not exhaust your credit limit completely if you are trying to improve your score.

Credit mix: A credit report's credit mix is an important factor.It determines whether you have a balanced credit mix or not. This means whether you have both secured and unsecured loans or not. Having only secured or unsecured loans will not be a good balance in your credit mix.

Read Here : What Is a CIBIL Score for Credit Cards and How Can It Be Improved?

New credit cards and loan accounts: The credit report includes information about all new credit cards and loan accounts. It is mentioned in your credit report. All the active, closed, and pending credit accounts will be mentioned in the credit report.

Finishing up

To maintain your CIBIL score, it is important that you check it and conduct a CIBIL score check free online regularly. It helps you monitor the changes in your credit report and detect errors.

 

What Is a CIBIL Score for Credit Cards and How Can It Be Improved?

 Credit cards are an easy-to-use financing option that can assist you in meeting a variety of small expenses. It is easy to use for offline as well as online purchases and transactions. Credit cards come with a fixed credit limit, which is completely based on the credit score of the individual. Based on the credit score, the loan providers decide the amount of credit limit to be approved. With a good credit score, you always get a high credit limit because the measure of risk in bill payment and default is less. Credit cards are unsecured forms of loans and need a good credit score to be approved. Without a good credit score, it will be difficult to get a good credit limit or credit card approval. As a result, if you intend to apply for a high-value credit card, you should begin building your credit score right away with CIBIL score check.

How can you improve your credit scores?

●        Pay your bills on time. Payment is an important factor that is taken into account when calculating a credit score. takes around 25% of the entire credit score. You need to be very careful regarding the payment and maintain a clean track record to improve your credit score. Whether it is your credit card bill or the monthly instalment of an existing loan, you need to pay your bills on time. Pay by automating or setting reminders in order to make payment on time within the due date. If you miss out, the loan becomes expensive and you end up damaging your credit score. For business loan interest rate visit : business loan interest rate.

●        Keep your credit accounts open. If you have any credit accounts with loan credit dates, they should be open even if you do not use them. The longer the credit age, the better the improvement to the senior credit score. Credit accounts like credit cards and loans should be kept open even when you do not use them. It will help you improve your score.

●        Do not keep any outstanding or overdue balances on your existing loans. If you are paying your bills or monthly EMI, you need to pay the full bill amount. You are not permitted to keep any overdue amount. Credit cards do not have a minimum bill payment, but you should not opt for it. Make sure you pay your bill in full.

Finishing up

Check CIBIL score online for free with Clix Capital. When you regularly use the CIBIL score check, it helps you monitor and improve your credit score.

Must Read : EMI Calculator Myths Busted For Business Loan In India

Top Reasons for a Low CIBIL Score and How to Raise It

A low CIBIL score makes it difficult to get a loan at an affordable rate. Without a good credit score, it becomes difficult to get loan approval. Having said that, it proves how important a good credit score is for financial independence. Borrowing is a vital way to arrange instant funds for needs and emergencies. If you do not have a good online credit score, you are not able to enjoy the instant borrowing experience.

There are various financial and credit activities that damage the credit score. However, in contrast to that, there are activities that build credit too. If you are planning on a high-value loan, you need to improve your score. What are the top reasons for having a low credit score? How to improve it? How to check credit score? Let’s find out in a detailed manner.

The most common causes of a low credit score

●        Poor repayment history: Repayment history is an important factor in determining credit score.If you do not have a clean track record of repayment, you will have a low credit score. Payment is one of those factors that are considered important.

●        Higher use of credit utilisation ratio: The credit utilisation ratio is the ratio between the total credit limit offered and the credit limit utilised by the individual. It is a bad credit habit to utilise 100% of the credit limit offered by financial institutions. When you do so, it becomes difficult for you to get a good credit score.

●        Multiple hard enquiries: Hard enquiries are usually run by various loan providers when you apply for multiple loan applications. At a single moment, if you apply for multiple loans, hard enquiries damage your credit score. This is one of the most common reasons why you have a low credit score. For Business Loan visit : business loan apply online.

●        Multiple CIBIL report errors and comments: Credit report errors and incorrect entries are frequently the cause of a low credit score.It is possible to get a low credit score even with good credit habits. This is one of the probable reasons.

●        Mismanagement of credit mix: A healthy credit score is dependent on credit mix. leads to credit score damage.

Boost your credit score

●        Pay your bills on time. Maintain a healthy loan repayment history with a clean track record.

●        Even if you don't use your credit cards, keep them open. The longer your credit history, the higher your credit score.

●        Do not keep any outstanding or overdue amounts pending on your bills and monthly installments.

●        Avoid applying for multiple loans within a short span of time.

Summing up

How to check your credit score?  Check your online credit score by visiting the official website of Clix Capital. You get an accurate online credit score instantly, completely free of charge.

Must Read : Six Obvious Reasons to Check Your Credit Score Regularly

Here’s How Your Gold Ornaments Can Help You Get Access To Credit

There's a lot of popularity about a gold loan in India. There are many families that opt for a gold loan to get instant cash to meet any need or emergency. A gold loan is indeed one of the fastest ways to attain instant cash in your account. However, there are many that feel that giving away gold is not a good choice. Gold is taken as a security or an asset for Indian families. It is important to get access to instant credit at the time of an emergency or any instant need. With gold ornaments, one can attain easy funds within 24 hours. It is a safe way, and quite affordable. Find out everything about a gold loan before you choose to go for it. 

What is a gold loan?

A gold loan is a secured loan, where you keep your gold ornaments as collateral or security with banks or non-banking financial institutions and in return, you take the money of the same value. If you pledge gold ornaments of 2 Lakhs, you pay the amount back in cash. This is not selling your gold way. After you receive the money, you pay the EMI along with the interest amount. When you complete the debt repayment, you get back your same gold ornaments. The rate of interest is low as it is a secured form of a loan.

Documentation for gold loan

It is very easy to get a gold loan. You need to submit documents like an Aadhar card or Pan card. As you are already pledging your gold ornaments there is no need for approval or documentation process. It is easily done. For Business Loan visit : business loan apply online.

The interest rate for gold loan

A gold loan is a secured loan and the rate of interest is always low. However, there are various banks and non-banking financial institutions offering gold loans. Hence, it is recommended for you to have a check on the loan providers before you choose the lowest rate.

Use a gold loan to build credit

Yes, you can use a gold loan to build credit. When you make the payment for getting back the gold ornaments, these payments are reflected in your credit report and improve your credit score. You can get your free credit score check done from Clix Capital to monitor your score.

Wrapping up

It is important to track and monitor your free credit score. Gold loan is usually taken by those that do not have a good credit score to take a personal loan. Start your free credit score check today and keep yourself updated about your credit eligibility.

Must Read : The Benefits Of Joint Home Loans

Reasons Why Your Home Loan Application Getting Rejected

 

Getting a home loan application rejected means a significant part of your happiness goes away. The joy of having own home is undoubtedly the best thing for an individual. It is not just happiness, but financial stability and you get to secure your future with a home. A home is a property and probably the biggest investment or possession. However, a home loan is a high-value loan and probably this is why the number of rejections is high. Since the amount even exceeds crores, the eligibility screening is really strict. Any issue or matter of instability in finance, your home loan application is straightaway rejected. Find the probable causes why a home loan application can be rejected:

●     Forged documents: For a home loan, the documents are the most important aspect. The property and NOC papers from the property dealer or owner are strictly checked. If you forge any document or you are not able to provide any piece of document, your loan application gets rejected.

●     A low credit score: A low credit score, which is probably below 600 or 650 will not provide you with a home loan. Since it is a high-value loan the need for financial stability and good health is important. One needs to maintain a good credit score in order to get a home loan. This is one of the common reasons for home loan rejection.

●     Low income: It takes years for individuals to buy a home. Why so? This is because a home loan takes away a huge chunk of income because the EMI is always high. You need to have a good income in order to accommodate a home loan from your income. Therefore, if your income is not stable and good enough, the reason for the rejection of a home loan is simply this.

●     Property issues: If you are trying to buy a property that is not good, has a lot of legal matters, and negative influence, the banks will not offer you a loan as there will be a risk. A bank or an NBFC is always going to sponsor a property that has a reputed builder, a good location and everything else looks safe and sound.

●     Income stability: The source of income, be it employment or business should be stable. With an unstable source of income, getting a home loan will not be possible.

Wrapping up

Do you know the best way to get a home loan? One needs to maintain a good credit score and have a stable income. This makes it very easy for you to get a house repair loan or home loan from Clix Capital at the best rate of interest.

 

Must Read : Everything You Need to Know About Credit Scores

Have You Checked CIBIL Score for Personal Loan?

When you meet a crisis or any sort of financial void, you need a personal loan. A personal loan is one of the most flexible forms of solution that helps you to meet all kinds of expenses and emergencies. However, when you decide to take a personal loan you need to make sure that you keep your credit score on the right track. The credit score will help you get easy approval and disbursement with a low rate of interest. This means you can find the right loan to keep your needs fulfilled. A personal loan gets easier with a good credit score. You must do a free credit score check online from time to time.

How can you check your credit score?

A free credit score check option is now available on all digital financial platforms. This will help you get an instant and free credit score check. When you visit Clix Capital you will get the option on the website to find the credit score option. You need to input all the information and details like Pan Card and Aadhar card to start checking your credit score. Within a few seconds, you will get the credit score free of cost.

Why check my credit score?

A credit score check will help you stay updated on your credit score so that you can borrow. It is an eligibility criterion that is Checked by the loan provider in priority to make sure that the right borrowers are getting the loan. A good credit score will help you with various perks like instant approval, a low rate of interest, and a good amount of loan. When you check your credit score, you can also find out the errors to work on them.

What are the perks of getting a good credit score for a personal loan?

If you need a personal loan, you can enjoy it with a good credit score. When you have a credit score of more than 750 you will be able to enjoy various perks and benefits. Things like a low rate of interest and instant approval can help you with a smooth borrowing experience. You need to make sure that it helps you with the right borrowing needs. You can enjoy an online and instant personal loan when you have a good credit score. So, when you need an affordable loan you need to have a score that is more than 750.

Finishing up 

A free credit score is very important when you are taking a personal loan. With a free credit score check online, you can instantly get your credit score to improve or detect errors in the time to make improvements in the credit score.

Must Read : Everything You Need to Know About Credit Scores