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.
If you’ve spotted an error on your credit report, you should take immediate steps to correct the inaccuracy. An error on your credit report could lead to lower credit score and impact your ability to open a new credit account or get a loan. Here are steps you can take to ask the credit bureaus to remove incorrect black marks from your credit.
If you’re like most businesses, you have a host of third-parties that you depend on to support your core business functions. Third parties may include suppliers, distributors, resellers, local agents, joint venture partners, and so on. Many of these third parties have access to your internal network, some are directly associated with your clients, while some are highly crucial for your production process.
All these factors put third parties in a position from where they can directly affect your business as well as reputation. Hence, it is required to perform due diligence prior to hiring a third party. This infographic outlines four steps for an effective third party due-diligence process.
When someone owes you money, you are exposed to Credit Risk – the risk of incurring a loss if the person will not return your money. When you are in business, you deal with many parties and have exposure to such a credit risk.
Whether these risks relate to new or existing customers or even with suppliers, the only way to mitigate them is by having a clear, up-to-date insight into each business’s associated risks. To do that, corporates can source data through a Business Information Report (also known as BIR) through an independent agency such as CRIF.
Banks check your CRIF Credit Score before approving your loan, so work towards a higher credit score with good credit habits. The higher the score the better are your chances of loan approval.
A home loan is a smart way of converting your dream of buying a home into reality, without much digging into your savings. But when it comes to paying the home loan equal monthly installments (EMIs), it’s not always easy to handle the unanticipated overheads. So, If you have some additional liquidity, should you use the money to prepay an existing home loan or invest it in other financial instruments? Here are some tips and suggestions in the below infographic to decide better.
A good credit score can significantly improve your chances of obtaining a big-money loan to acquire the home you always wanted. Credit score is values that are ascertained after analyzing an individual’s credit files and are used to determine whether a person is creditworthy or not. Banks are quick to deny loans if credit scores do not meet their prescribed limits. Therefore, it is imperative that this credit score is improved before applying for a home loan.
Artificial Intelligence is the future of banking as it brings the power of advanced data analytics to combat fraudulent transactions and improve compliance. AI algorithm accomplishes anti-money laundering activities in few seconds, which otherwise takes hours and days. AI also enables banks to manage huge volumes of data at record speed to derive valuable insights from it. Features such as AI bots, digital payment advisers and other anti-fraud solutions lead to a higher quality of services to a wider customer base. All this translates to increased revenue, reduced costs and a boost in profits.
If your credit history is not where you want it to be, you’re not alone. Improving your credit scores takes time, but the sooner you address the issues that might be dragging them down, the faster your credit scores will go up. You can increase your scores by taking several steps, like establishing a track record of paying EMI’s and card dues on time, paying down debt and checking your CRIF credit report regularly.
Identity theft occurs when someone uses your name, credit card number, or other personal information without your knowledge & permission. This personal information is often misused for performing fraudulent or criminal activities. How your information is stolen, and how it is used, may vary. For instance, your PAN card number could be used by thieves to falsify their income and credit history when they apply for a loan, open new lines of credit or file taxes.
There have been instances where people, whose identities have been stolen, have spent years of time & money cleaning up the mess left behind by the thieves. So, as soon as you suspect that you’ve been a victim of identity fraud, take these 6 steps immediately to clear your name and your credit: