Many people link an individual’s overall credit behaviour to their credit score. However, the credit score only summarises it with a three-digit number. There is much more beyond the credit score that can be found in an individual’s credit report. It provides comprehensive details of an individual’s credit behaviour. These details help financial institutions underwrite … Read more
A credit score of 600 is not considered outstanding, which makes getting a personal loan in India more difficult but not entirely impossible. A score of 600 is generally considered fair, meaning lenders and financial institutions may consider you a high-risk borrower. Even considering these risk factors, some non-banking financial institutions (NBFCs) and select traditional … Read more
Closing a credit card might seem like a simple and straightforward financial decision, especially if you are trying to cut down on unnecessary spending or avoid hefty fines and late payment fees. However, in India, this move can immensely impact your credit score and your overall credit profile in a negative way. That is why … Read more
To combat the ever-rising number of credit card defaults in India, leading financial institutions and banks have implemented strict rules for recovering overdue amounts. Kotak Mahindra Bank, in accordance with Reserve Bank of India (RBI) regulations, ensures that overdue recovery notices are delivered to credit card users seamlessly. This process involves several steps, from initial … Read more
Maintaining a clean credit profile and a good credit score is essential for securing personal loans, credit cards and other similar credit instruments. Due to the recent Reserve Bank of India regulations, Indian credit card users can now cross-check their credit scores for free through the official websites of authorised credit bureaus. Credit Score: Basic … Read more
India’s personal loan market is projected to grow at a CAGR of 26.55% between FY2025 and FY2032, according to a report by Markets and Data. This growth aligns with the country’s expanding credit landscape, supported by economic development. With personal loan volumes rising rapidly, borrowers must be extremely careful about opening new credit lines. Instead, … Read more
In India, credit rating bureaus generally provide credit scores ranging from 300 to 900. A credit score of 720 is typically considered a strong indicator of an individual’s financial health. It reflects responsible financial management and credit behaviour while also opening doors to various financial opportunities, such as easier loan approvals, fair repayment terms, and … Read more
As the Indian economy continues to evolve and grow, the travel theme is gaining traction. The aspiration to visit new places and travel with joy is becoming an integral part of life for many Indians. Now, to meet such aspirations quickly and seamlessly, more and more people are applying for personal loans and opening up … Read more
In personal finance, the terms ‘credit report’ and ‘credit score’ are often used interchangeably, though they represent different concepts. Both serve as tools for assessing the creditworthiness of loan applicants and borrowers, but understanding the difference between them is crucial. 1. Definition, meaning and purpose A credit report is a complete and comprehensive white paper … Read more
A credit score is nothing but a credit profile of an individual. It is a score card that helps in telling the lender as to how creditworthy, honest and sincere the loan applicant is with regards to repayment of their loans. Not only this, an individual’s clean credit profile, a high credit score also signifies … Read more