Common Errors On Credit Reports That One Should Be Careful About!

Credit bureaus aggregate the credit information provided by various banks and financial institutions on a monthly basis and records them in an individual’s credit report. This report has a complete history of your loan and credit card repayments, account usage and outstanding balances. It serves as a basis for the calculation of the credit score. Since banks use credit score and credit report to assess the intent and capacity of a loan applicant, it is necessary for every individual to ensure that the information in the credit report is up to date and accurate.

It is likely that the data reflecting on your credit report is not accurate or not up to date. The bank may have missed sharing all updates on your loan account with the credit bureau. Even if the bank has reported data properly, the credit information company may have missed updating or is yet to update it in your credit report. Such errors or misses on your credit reports can lower your credit score, which could hurt your ability to get new lines of credit or even make the terms of credit more expensive for you. Ultimately, these errors could be costing you money and may force you to postpone your aspirations.

You can begin reviewing your credit report by getting a copy of it yourself from the website of any of the four credit bureaus in India. Checking your own credit report or credit score doesn’t impact your score, so check it without any worry. Further good news is that you can request a free copy of your credit report once in a calendar year from any of these four RBI approved credit bureaus. And if you find errors, you can dispute the errors at no cost to you. Read more about How and When to Dispute Your Credit Information Report here https://blog.crifhighmark.com/how-when-to-dispute-your-credit-information-report/

Once you get your credit reports, review them carefully. You can use the list below to check for common errors and make sure your credit reports are accurate and up to date.

Are Closed Accounts Still Open?

A closed account means you have positively paid back all the loan or credit card dues, and the account is not going to see any future activity. While an open account is an indication that you still have some amount to be paid back or you have the credit line still available to you for use. Having old lines, those which should have been closed otherwise, on your credit report showing as open will show higher number of lines and higher credit amount available to you. This can impact your credit score and therefore your eligibility for a loan. So, if the closed accounts are being shown as open, it is time you report this error with documentary proof so that you can get it rectified at the earliest.

Are All Accounts up to Date?

Do check the last reported date on all your accounts. If the account is marked closed, the last reported date will be same or closer to date of closure. If the account is marked open, the last reported date should be within last 30-60 days. If any of the records are not updated, contact the credit bureau as well as the bank concerned. An out of date record will not present correct picture to another bank and may also impact your credit score.

Is There an Account That Does Not Belong to You?

If you notice any credit account under your name that you are unaware of, report immediately and get it removed from your credit report. This could be because of wrong reporting by the bank or an error at the credit bureau. Take it up with the credit bureau, and it will help you get it resolved.

Is There a Record of an Account Being Shown as Delinquent?

Delinquent accounts are those accounts which are way past their dates of payment. Typically, delinquency is reported as number of days past due date (DPD) which are shown for last 36 months for every credit line. For credit card accounts, delinquency is reported when the minimum amount due is not paid. Lenders might give you a leeway of a few days before reporting the delinquency. More than 3 months of missing repayments will automatically declare your account as NPA (non-performing asset or non-performing loan). Such accounts can bring a major drop in your credit score and distrust in the eyes of all the lenders. If any account is showing overdue or delinquent (if more than 30 days), review them more carefully. If you have already made the repayment, you must inform the bank to report it to all credit bureaus as well.

Is the Same Debt Being Recorded More Than Once?

Did you know that 30% of your credit score is made of the debts you have taken? The number of debts you have taken matters a lot when it comes to your credit score. More debts in your name will result in difficulty in getting further credit. If your loan account or credit card has been reported twice then you will have fewer opportunities to avail credit. It is also likely that while 2 credit lines are shown, only one is being reflected with good credit history and another one as delinquent. Make sure to check your credit report every time you take a loan from the bank so that there are no such errors on your report.

Is it About Incorrect Credit Limits?

To maintain your credit score, the credit utilization ratio should be a point of significance to you. When it goes high it shows an individual’s higher dependence on credit. Makes sure the credit limit on your credit card is accurate and not lower than the actual limit. Report to Credit Bureaus like CRIF to rectify in case if it is reported wrongly.

Incorrect Balances in your Loan Accounts?

If a higher outstanding balance than actual is shown, you may lose out an opportunity to avail credit since the bank may assume you to have higher credit available with you than actual. Make sure correct loan account balances are reported in your credit report.

Are there any Identity Errors on your report?

Identity errors may lead to many more errors on your credit report and credit score. These occur because of wrong information reported by the bank, the mismatch between PAN and your name or due to identity theft.

Wrong Information: When there is a mix-up in two customers at the bank end or at the credit bureau end, loan and credit card information pertaining to some other person may have been reported against your name. The mix up could be due to same phone numbers, or mix-up in PAN or similar names/addresses etc.

• Mismatch: This could be particularly possible if you have undergone a name change in your PAN account or use different forms of a name like only with initials for certain accounts and expanded forms in other accounts.

• Identity Fraud: Fraud on your report is the most serious concern. Fraud means that someone is using your personal information to open accounts in your name. If you suspect identity fraud on your report, you will need to alert the bank concerned and the credit information company. Once it is established as a fraud, it should also be reported to the local police.

Let’s Answer 5 Frequently Asked Questions About Credit Score!

Three digits that have the power to shape your world: your credit score. The higher the score the better are your chances of dreams becoming true. Not only you will have easy access to loans but will also be offered lower interest rate, which means taking the loan will cost you less overall and you could save a substantial amount over the course of a lifetime.

And when something impacts your life that much, don’t you think you should be familiar with it? The sad story is that tens of millions of Indians are taking a blind approach to their money. Everyone wants their finances to be in good shape, but only a few tend to work towards maintaining a good credit history.

Here we list down 5 important and basic questions about credit score to get you started:

1. What is on a credit report?
The short answer to that question is: A lot! A typical credit report will include personal identifying information: a list of credit accounts (including credit limit), type of account (credit card, home loan, auto loan, etc.), and your payment history on those accounts. Each of the four major credit reporting bureaus compiles data from sources such as banks, NBFCs etc that extend you credit. Based on all this data, companies may calculate a credit score to reflect your creditworthiness. Since each of the credit reporting bureaus provides a score, you may have at least four scores. Bits and pieces of your credit history may vary slightly among the four companies because not all businesses supply information to all three agencies. However, the broad picture of your credit history should be relatively consistent.

2. What Types of Information Can Impact Your Credit Scores?
The two most crucial factors that affect your credit score is your repayment of the loan and how timely you pay your EMIs and card dues. If you are a month late in paying your dues, then your credit score might drop by 80 points. Next up is, credit inquiries. They can affect your credit score in a major way. There are two types of credit inquiries, soft and hard. Soft Inquiries are harmless to your credit score but the hard inquiries that are often done by lenders before lending money to you can bring a change in your credit score even if you do not get the loan in the end.

Opening new credit accounts can or taking new loans also affect but it can be fixed with regular and timely repayments. Lenders evaluate the credibility of the borrower at their own discretion. They may use whichever scores they’d like and measure those scores on a scale that is unique to them. It’s also possible that they may not even consider credit scores at all but just the contents of the credit report.

3. Your Score Is Less Than 700. Now What?
Check your credit score yearly, at least to avoid surprises! With CRIF you are entitled to one free credit report every year. And no, your credit won’t take a blow if you do this – it’s considered a “soft” inquiry. If your credit score is lower than 700 then you should dig deep in your credit report and find out the reasons for bad credit score. Look at your credit card balances and credit utilization ratio. The closer you are to hitting your maximum limit, the more it may lower your score, so pay down those balances if you can. Check out for errors/information listed in the credit report not undertaken by you, in that case, you should immediately report to the credit bureau or the banks to update your information.

Abruptly closing your credit cards with a long credit history can affect your credit score in a negative way. How long you’ve been borrowing affects your score. The longer the better.

4. How long does a bad credit rating last?

Debts have a finite duration, and so does negative information that appears on your credit report. All negative information on the credit information after 7 years often start to value less for the credit score. Make sure all your payments and your credit activities are timely and regular to show stability in your credit behaviour and eventually pushing your credit score towards the good side.

5. Who Can See Your Credit Report?
Your credit report information is not available to the public and can be accessed only you’re your permission. When you apply for a loan and credit card then your permission is required as the lenders and banks need to investigate the information to determine your creditworthiness and your potential and ability to pay back the borrowed amount.

Now that we have explained the basics of Credit Score, wait no longer, follow these steps and start building a good credit history now!

How to Find Your CRIF Credit Score?

A credit report is a testimonial of how well (or unwell) you manage your money. These reports contain a history of balances, payments, accounts, inquiries and other pieces of personal information that are referred by lenders to decide whether to lend you money. Credit scores are calculated from the data contained in your credit report. In India, scores range between 300 and 900. The higher the number, the better the score.

There are four credit bureaus in India from where you can download your credit report and find out your credit score. By law, you are entitled to a free credit report from all the four credit information companies at least once a year. Alternatively, you can also check your credit score either free of cost from online websites which have tied up with one or more of these credit bureaus.

Let’s find out how you can get your CRIF score in the following 3 easy steps from CRIF High Mark’s website:

1. Fill in your Details, Identification Proofs, and Address: You will be asked to provide your email ID first; Post which you will be presented with a form requiring the rest of the details such as Full Name, Mobile Number, Date of Birth, Residence Address & Gender. You will also have to submit your identification details such as PAN number, Voter’s ID, Passport Number, Driving License, or any other ID.

2. Review your Report type:
Here you are presented with two options of downloading credit report; you can either BUY an instant credit report or you can opt for a FREE credit report. An instant credit report can be ready to download within 5 minutes but will cost you around Rs. 400 where as a FREE credit report can take up to 3 working days to get ready for your viewing.

3. Authenticate your inquiry: Once you fill in all the details and select your report type, you will be asked to answer a multiple-choice question to confirm your identity. You will get a set of three questions based on your past loans or credit cards. Upon a successful answer to one of these three questions, you will be presented with your report on your registered email ID.

How Often Should You Check Your Credit Score

You can check your credit score as often as you want to. The common misconception that checking frequently negatively impacts your score is just a myth. A Credit score can affect aspects of your financial life such as the ability to buy a home or car or even get a credit card. Here are a few more reasons you should know your credit score:

• Knowing your financial value: Credit score is an indicator of your financial health. By knowing your credit score, you know financial standing in the market. If you have a low score, you can take corrective measures to improve it. If you have a high score, you can take pride, rejoice and try to maintain it.

• Get better interest rates: A good credit score not just helps you secure a loan, but also reduces your interest rates. A bad score may render you unqualified for a loan or in the least give you a tough time.

• Get rewarded: If you have a credit score, you might well expect occasional rewards in the form of discounts, credit increment and other benefits owing to your clean conduct.

While being aware of your credit score and routinely checking one will keep you well informed and ahead of your counterparts, make sure you don’t make overdo it to the point that it starts causing anxiety!

As An Immigrant, Here’s How You Can Build an International Credit Score in the US

If you are planning immigration to the US, credit score is probably one of the last things you would worry about. However, in the US, many of the essential expenses such as renting an apartment, buying a car, signing up for a cellphone plan or applying for a credit card, requires you to have a personal credit score.

Worrying whether it’s possible or not? The great news is that it is possible to establish credit in the U.S. It may take work but with right credit decisions, you can definitely sail your boat. This guide can help you get started with the steps you need take to build your credit in the United States:

Apply for a secured credit card:
The international banks are not likely to provide you any credit card directly, considering they cannot have a credit check on you without a credit history. The only option you have is to apply for a secured credit card (one that is backed up by funds) with a credit union or a local financial institute. If you manage to get yourself a credit card like a Macy’s or an American Express card, it can be used to purchase at the Macy’s retail stores or online, wherever the cards are accepted. Once in possession, try to make minor bills such as $30 to $50 with the card and repay back the full amount immediately. In this way, you will start creating a good credit history.

Subscribe for auto payments: Subscribing yourself for auto deductions ensures that your bill payments are done in a timely manner. The credit information companies in the US consider mobile and utility bill payments while building your credit report.

Use your spouse’s good history: If your spouse happens to be a US citizen with a good credit history, rejoice, for they have won half the game for you. You can apply for a joint account with them or become an authorized user on your spouse’s credit card. You can then buy a car or rent a house together!

Talk to the lender in person: It is always better to talk to the lender in person as then you can better explain your situation. This also helps establish your legitimacy with the lender and they can better analyze you.

Report your rents: Make sure you are paying your house rents electronically as you can now report the rent to the credit bureau. This is one good way to build your history.

Leverage your home bank relations: If you were a credit card owner with an international bank in India, you might be able to call the bank and get them to issue you a U.S. credit card based on your past relationship.

Do not share your SSN: The social security number in the US is like the Aadhar number in India. It is a unique number assigned to each individual and is connected with all your dealings. Your Social security number is required while buying something. Let’s say you share the number with someone who requires a telephone connection on that number. In the case that they were to default on paying their bills on time, it would reflect badly on your credit report and will hamper your credit score.

If you follow the above pointers, you will be smartly prepared for your stay in the US. But wait, there’s more! Always keep an eye on all accounts so you can identify and resolve problems quickly. Check your credit score regularly to track your progress. Pull your credit report at least once a year from any of the approved credit bureaus. It’s free and seeing what is being reported about you is illuminating. All the best!

What Are The Five Cs of Credit?

A bank or any other lender evaluates a potential borrower before granting a loan and handing out the money. This evaluation can be called credit risk assessment as the bank is trying to understand the risk of potential default by the borrower on this line of credit. The Five Cs of credit is a widely popular framework which considers five characteristics of the borrower to helps lenders gauge the creditworthiness of the borrowers.The 5 Cs of credit are Character, Collateral, Conditions Capacity, and Capital in no particular order. Let us understand what these 5 Cs stand for.

1. Character:
Sometimes also referred to as the credit history, a character is the first among the C’s (in our list). If you are one of those who thinks “what has good character got to do with a loan?” then oops! Your character is, in fact, one of the most apparent parameters by which lenders gauge your risk and trustworthiness. In financial terms, the character represents a borrower’s reputation for repaying debts. This information appears on the credit report generated by the credit information companies such as CRIF. Apart from credit score, the credit report also contains information about how much an applicant has borrowed in the past and whether they have repaid loans on time. Information from these reports helps lenders assess the borrower’s credit risk.

Beyond your credit, lenders may also take a literal approach to the word “character” and analyze your personal attributes. They may conduct an interview or require references. Be polite, prompt, and prepared when you approach a lender. That might just make the difference to your loan approval.

2. Capacity:
Every lender must make sure that it is lending money to someone who has the capacity (or simply income or wealth) to repay. It is a measure of the borrower’s ability to repay a loan by comparing income against recurring debts and assessing the borrower’s debt-to-income (DTI) ratio. The DTI is calculated by adding together a borrower’s total monthly debt payments and dividing that by the borrower’s gross monthly income. The lower an borrowers DTI, the better the chance of qualifying for a new loan. Every lender is different, but many lenders prefer an applicant’s DTI to be around 35% or less before approving an application for new financing.

3. Capital:
Lenders consider any capital put by the borrower in their investment, in other words, the own contribution or the down payment. A large contribution by the borrower minimizes the chance of default. Borrowers who can place a down payment on a home, for example, typically find it easier to receive a loan. Down payments indicate the borrower’s level of seriousness and whether the borrower’s goals are realistic and in congruence with the paying potential. Down payment amount can also affect the rates and terms of a borrower’s loan. Larger down payments may result in better interest rates and terms.

4. Collateral:
Collateral is any personal asset that the borrower pledges in order to support the loan. It acts as a lender’s back up in case you abscond or are genuinely unable to repay your loan. After all, it’s a business and none of the two parties would want to be at a loss. In the case of a loan default, the lender will have to liquidate your assets which have been put as security against the loan. The collateral can be your house property, land, equipment, inventory, real estate, accounts receivable, or any other item holding monetary value in the market. Banks measure collateral quantitatively by its value and qualitatively by its ease of liquidation. The simple formula is; Risky collateral = difficult to liquidate = more expensive loan. Most obvious examples of collateral include houses, cars, stocks, bonds, and cash, basically, all things that are readily convertible into cash to repay the loan.

5. Conditions
The conditions of the loan, such as its interest rate and amount of principal, influence the lender’s decision to finance the borrower. Conditions can refer to how a borrower plans to use the money. For instance, if a borrower applies for a car loan or a house loan the lender is more likely to approve the loan because the intent is specific and clear. Additionally, lenders may also consider factors such as the state of the economy, the trends in your business’s industry current environmental conditions, and even geographic or political events. The point is that, for conditions, lenders look for factors beyond your business alone that might affect whether you can make good on your debt.

Understanding what your lenders are looking for will help you prepare a better loan application. And, hopefully, this carefully-crafted application will help secure a better loan for your personal or business use. CRIF is a consumer credit bureau providing free credit report & credit score for both persons and businesses.

5 Top Myths About Credit Scores – An Infographic

Today’s goal: To debunk credit myths with credit facts – especially when it comes to your credit Scores. When you hear or read something about credit or finance, how do you know it’s true? How can you be sure it’s not a credit myth – something someone is merely passing along without checking its accuracy? Today we’ll try to reduce the amount of research you may otherwise have to do by pointing out some common credit myths . These are some common statements you might have thought were facts, until today. Let’s start with…

Myths and Facts About Credit Score

Business Credit Score vs. Personal Credit Score

Personal Credit Score vs Business Credit Score, What’s the Difference?

Personal credit score and Business credit score are two different types of scores that show the financial ability. A personal credit score is the depiction of an individual’s credibility while a Business Credit Score is the representation of the business’s credibility. The scores are usually not linked with each other unless the business is a small sized business where the owner’s personal credit score influences too. Let us break down both the scores for you to understand it better.

What is Personal Credit Score?

Personal Credit Score is a three digit number ranging from 300 to 900 representing your financial ability and credibility. A credit score is primarily based on the credit report information that is sourced from RBI regulated credit bureaus like CRIF. The perfect credit score to get a better credit is 750 and above. Higher the score, higher is the credit limit for your credit card, lower are the interest rates and faster is the process of getting the loan as a good credit score is ideally the best way to know one’s financial habits. A score of 650 or lower will hamper your chances to get a credit from trusted financial institutes. Simplest ways to maintain and have a good credit score is to keep a check on your credit report, paying bills on time and being financially consistent and stable.

Who and What Determines Your Personal Credit Score?

Credit Bureaus like CRIF assign your creditworthiness a score, using variations of the CRIF Score algorithm.
Personal credit score is made of five key components:
● Payment history (35%)
● Amounts owed (30%)
● Length of credit history (15%)
● Credit mix (10%)
● New credit (10%)

Tips to Boost Your Personal Credit Score

● Since paying your lenders on time represents 35% of your credit score, sign up for automatic payments for all of your credit accounts.
● Adjust your due dates according to you by requesting the banks or lenders. You don’t have to settle for a due date that is poorly timed with your paycheck.
● Aim for a credit utilization ratio of 30%. Whenever it is possible, pay off your credit cards in full month after month. A credit utilization ratio of under 30% across all cards is a sign for lenders that you’re managing your credit responsibly.
● Handle new credit carefully as opening too many new credit accounts will depict a behaviour that shows instability and every time you open a new credit account your credit score takes a small hit.
● By closing your oldest account, you may dramatically reduce your length of credit history and negatively affect personal credit score.
● Every year you can check your credit score online with RBI regulated and trusted credit bureau like CRIF for free. Keeping a check on the credit score is a habit that you should instil to be aware when the score falls or when it should

Why does an Individual need a credit score?

To have a credit score is mandatory for an individual to make sure that his credibility is not questioned when he seeks credit from the financial institutions. Having a good credit score means escalated loan process, better interest rates, bigger credit limit and faster approvals on loan requests.

What is Business Credit Score?
A Business credit score is a numeric representation of your company’s creditworthiness. It ranges from 300 to 900 in India. The information on your business credit report is used to produce the score, and business lenders use it when they are considering your credit application to predict the financial stability and credit behaviour. A higher score means your business has a history of paying bills on time.

Who and What Determines Your Business Credit Score?

Credit Bureaus like CRIF take into consideration various factors while calculating and determining the credit score for your business. Key Components of the Business Credit Score are:
● The number of years in Business.
● Lines of Credit applied for past 9 months.
● New Lines of Credit opened
● Collections and Liens past 7 years
● On time payment history.

Tips to Boost Your Business Score:

● Check your credit report at all times to keep track of what has a negative and what has a positive effect on your credit score.
● Pay your bills on time to show stable credit behaviour.
● Decrease your credit utilization ratio for reflecting a good credit behaviour of the company.
● Make sure when you pay off the debts the negative account is deleted.
● Add positive payment experiences in the payment history of the business.
● If you have a small sized business then keep your personal credit score on a check too.

Why Does Your Business Need Credit Score?

A business credit score helps in separating business from personal finances. During the application process, your underwriter will take a look at additional documentation, such as bank statements or business credit reports. Keeping your finances separate is important for two key reasons, tax deductions and preventing a creditor from having a stake in your personal assets to satisfy a debt.

Ways To Maintain Your Credit Score – An Infographic

If you need to maintain your credit score, it won’t happen overnight.Credit scores take into account years of past behavior you can find on your credit report, and not just your present actions. But there are some steps you can take now to start on the path to better credit, read our infographic to know more..

Benefits Of Having a Good Business Credit Score – An Infographic

Good credit is the lifeline of your business. Sure, it’s a must for obtaining funding for launching or expanding your business. But that’s only the beginning. Here are just a few of the many benefits of good business credit score.

 

Planning to Buy That Fridge, TV or Mobile Phone on EMI? 3 Tips to Consider for Christmas Shopping!

We are in the midst of the festive season and discounts are flashing everywhere you turn your face. As such, you would be tempted to buy that TV or fridge or phone you were ardently longing for, but couldn’t lay your hands on them considering the enormous price. “Not anymore!” — proclaims one of the advertises on a famous online e-commerce website. These concerns no longer exist because of the advent of EMI facilities on expensive online products.

EMI or Easy Monthly Installment actually feels like it was invented keeping the Indian customers in mind. With festivals dotting the Indian calendar all around the year, and a prosperous population a.k.a. ‘Market’ to consume anything and everything the world has to offer, it just makes sense to make buying easier for buyers. This is especially true when you know they will be buying more this way. However, as a customer, you should always be cautious and clever when practicing this seemingly powerful facility to buy things beyond your capacity. Credit cards and EMIs while feasible could prove to be a big headache if dealt with clumsily. Here are a few tips you should remember whenever you plan to buy online, especially electronics on EMI:

Tip 1: Choose The Right EMI Option

When you are looking to buy a phone online on EMI with your Credit card, you have to be mindful of certain payments. While there is a good 12% to 18% interest rate on the EMI, some brands and banks even offer a 0% interest rate. Banks try to mitigate their losses by performing credit risk assessment before allocating you a loan. Most banks such as HDFC, SBI, ICICI etc. offer you with EMIs ranging from a period of 3 to 36 months.

Take the example of an iPhone X which is available at a discounted price of Rs. 79,999/- on Flipkart and which can be purchased using the EMI facility. Here, ICICI bank is offering multiple standard plans from 3 EMIs at 13% PA i.e. 27,247 p.m. to 36 EMIs at 14% PA i.e. 2,735 p.m. Also, you need to do the down payment along with a one-time processing fee (generally 0.5 to 1% of the total amount) and then pay the remaining amount in installments. Which means for an EMI of 3 Months, you will be paying a total of Rs. 81,741 i.e. Rs. 1,742/- extra while for an EMI of 36 months, you’ll end up paying Rs. 98,460/-, which is a whopping Rs. 18,461/- extra. This is an amount in which you can easily buy another decent smartphone.

If you are genuinely looking to buy something without the hassle of interest filled payments , then the best option is to look out for a‘0% interest EMI’ or ‘No cost EMI’. There are only a few banks which provide you with this option compared to the standard EMIs. Hence, you need to ensure your bank provides you with this facility so that you can avail its benefits. There is a certain one-time charge that they accrue though. But it is still a feasible option than standard EMI.

Let not the lure of paying less amount each month fool you into paying much more than the actual price. It is advisable to choose a moderate tenure of EMI where you can pay the monthly dues without much sweat while keeping the interest rates under control.

Tip 2: Buy Only The Essentials

Most e-commerce websites entice you with the option to buy expensive products online using Easy EMI options. The algorithm of the online websites is such that you will be searching for a TV, and a suggestion for a home theater will be displayed on the page end. You would be looking for a mobile phone, and a suggestion for covers and screen guard will pop up. All these fascinating offers are only good to bewitch you and make you spend more than you had initially planned. Whenever spending, you need to analyze and decide whether the amount you are willing to pay is congruent with your current financial situation and needs. Always remember that whether it be a TV or a fridge or a phone, it is just a product and not an asset. Hence, the value will only keep depreciating over its limited lifetime.

Tip 3: Pay Your Dues On Time

An EMI paid from a credit card is deducted wholly at one go. That means If you want to buy a TV worth 50,000, your credit limit should be at least 50,000 or more to deem you eligible. When you purchase anything on EMI, the whole amount is deducted from your credit amount and you are required to repay this amount in EMIs to your credit provider. Pay your dues on time and avoid defaulting. In this way, your credit score will also be maintained.

Hence, if you are planning to buy a TV, fridge or mobile phone this Christmas, always go for an EMI option which does not stretch your finances beyond limits. Keep your heads on your shoulders and do not get carried away in the festive fervor. We at CRIF hope you enjoy Christmas and keep your spirits & credit score high!