How to improve your credit score through simple snowball effect?

If you are reading this you are definitely looking for improving your CIBIL score (the most widely used credit score referred by lenders to hand out the loans) and this article will certainly help you in achieving this objective specially if you haven’t taken a loan before.

Since you don’t have a credit history the lending institutions will hesitate to approve your loan application especially medium to large ticket sized loans for items like Cars, Home etc. Let’s first understand the range of scores assigned by credit rating agencies and their grades:

Credit Score Ranges
Range	Grade
0 or -1	No Credit History
550 - 300	Bad
551-649	Poor
650-699	Fair
700-749	Good
750 and above	Excellent

If you fall into the first three categories of the above table, not only there is higher chance of application rejection but also the cost of loan is going to be higher, which is the interest rate you pay on the loan amount. The only way to improve your credit score is to make timely payment on your dues and in short term that can be done either by having a credit card and paying all its dues timely every month or you can improve yourCredit Score with Personal Loans.

5 Things You Should Know about Credit Monitoring

Imagine you going through a lot of pain to maintain that perfect credit score. You make all your payments on time, no defaults and there is no chance of you being in bad books of credit. All of a sudden you encounter an emergency and decide on applying for a personal loan. When applied for the same, you are rest assured that your loan will be sanctioned within no time; all of a sudden you receive a bad news stating your loan has been rejected! Now you are in a confused state on how this happened and how is it possible on the first place, because you used to make all your payments on time.

After a brief inquiry, you happen to know that you are a victim of identity theft and your information is used for making various financial purchases. Your banker understands the same and suggests you opt for a credit monitoring plan. But what is a credit monitoring plan? Is that necessary for me? How is it going to be beneficial for me? If you have been a victim of identity theft, the answers to such questions are mentioned below:

Credit Monitoring

Let us first understand what is credit monitoring. A credit monitoring service is offered by various third party companies who can keep a track on your credit related transactions and maintain your credit score for future transactions. Customers usually use this service to guard them from identity theft and also to improve cibil score.A credit monitoring service keeps a close eye on your credit activity and notifies you of any credit transactions happening towards your account. The transactions can include any hard inquiry, purchase of a new loan, etc. Some monitoring services also give you a comprehensive tracking of the cibil scores.