🙏 dear sir my name manoj kumar, Credit/cibil score is not showing.. What is the Reason, please help,

Ans: When applying for credit or loans, it's essential to check your credit score from multiple bureaus to ensure accuracy and to understand how different lenders may perceive your creditworthiness.

While all these bureaus provide valuable credit information, individual lenders may have their preferences for which bureau's score they rely on. Therefore, monitoring and maintaining a good credit profile across all major credit bureaus can increase your chances of approval for loans and credit cards.

Ans: A CIBIL Score is a three-digit numerical summary of your credit history. It is a measure of your creditworthiness, or your ability to repay a loan. Lenders use your CIBIL Score to decide whether to approve you for a loan, and if so, at what interest rate.

A good CIBIL Score is 750 or higher. A score of 300 to 600 is considered poor, and a score of 601 to 749 is considered fair.

There are a few ways to check your CIBIL Score:

• You can get a free CIBIL Score from the CIBIL website.
• You can check from any third-party app such as Paytm, Cred, etc.
• You can ask your bank or credit card company for your CIBIL Score.

Ans: You have an outstanding credit card debt that hasn't been cleared for three years. This has negatively impacted your CIBIL score, and you are concerned about how clearing the debt might affect your score.

Impact of Clearing the Outstanding Amount on CIBIL Score
Positive Impact: Clearing the outstanding amount will positively impact your CIBIL score over time. Your credit score improves when you settle debts, demonstrating responsible financial behavior to lenders.

Time Frame for Improvement: While clearing the debt will help, it may take a few months for your CIBIL score to reflect the improvement. Consistent, timely payments in the future will further boost your score.

Steps to Close the Credit Card Without Further Impact on CIBIL Score
Negotiate a Settlement: Contact the bank and negotiate a settlement for a lower amount. Ensure that the settlement is reported as "Paid in Full" rather than "Settled," as "Settled" can negatively affect your CIBIL score.

Full Payment: If possible, pay the full outstanding amount. This will ensure the account is closed cleanly and positively influence your CIBIL score.

Obtain a No Dues Certificate: After clearing the outstanding amount, request a No Dues Certificate from the bank. This document serves as proof that your account is fully settled.

Check Your CIBIL Report: After settling the debt, regularly check your CIBIL report to ensure the payment is reflected correctly. If there are discrepancies, raise a dispute with CIBIL.

Maintaining and Improving Your CIBIL Score
Timely Payments: Make sure to pay all future credit card bills and loan EMIs on time. This is crucial for maintaining and improving your CIBIL score.

Limit Credit Utilization: Keep your credit card utilization below 30% of the credit limit. High utilization can negatively affect your score.

Diversify Credit: Having a mix of secured (like home loans) and unsecured credit (like credit cards) can positively impact your score.

Monitor Your Credit: Regularly monitor your CIBIL score and report. This will help you stay informed about your credit health and take corrective measures if necessary.

Final Insights
Clearing your outstanding credit card debt is the first step towards improving your CIBIL score. While it might take some time for your score to reflect this improvement, consistent and responsible financial behavior will ensure a positive impact. Negotiating a settlement or paying the full amount, obtaining a No Dues Certificate, and monitoring your CIBIL report are key steps to closing the credit card account without further negative impact.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I'm sorry to hear about your situation. Let's look at how you can improve your CIBIL score and become eligible for loans again.

Understanding Your Current Situation
You’ve done a commendable job by managing the loan repayments diligently. Your awareness of your financial standing is the first step towards improvement.

Loan Given: Rs 3 lakhs
Repayment Issue: Affecting CIBIL score
Current Loan: Settling month on month
Financial Impact: Not eligible for new loans or EMIs
Analyzing the Impact on Your CIBIL Score
Your CIBIL score reflects your creditworthiness. Missed or delayed payments can negatively impact it. Let's assess the key areas affecting your score:

Loan Default
Defaulting on a loan severely impacts your CIBIL score. Lenders view this as a high-risk behavior.

Repayment History
Timely repayments are crucial for a healthy CIBIL score. Even one missed payment can lower your score significantly.

Credit Utilization
High credit utilization ratio can lower your score. It indicates that you are overly reliant on credit.

Steps to Improve Your CIBIL Score
Improving your CIBIL score requires a strategic approach and disciplined financial behavior. Here’s a detailed plan:

Regularize Loan Repayments
Continue clearing the outstanding loan amount. Speak with your lender to negotiate better repayment terms if needed.

Clear Outstanding Debts
If you have other outstanding debts, prioritize clearing them. Reducing your debt burden improves your credit score.

Timely Payments
Ensure timely payment of all EMIs and credit card bills. Set up reminders or automate payments to avoid missed deadlines.

Strategies to Rebuild Your Credit Score
Rebuilding your credit score will take time and consistent effort. Here’s how you can go about it:

Obtain Your CIBIL Report
Get a copy of your CIBIL report to understand your current score and the factors affecting it. Look for any discrepancies and get them corrected.

Avoid New Credit Applications
Refrain from applying for new credit cards or loans while rebuilding your score. Multiple inquiries can further lower your score.

Maintain Low Credit Utilization
Keep your credit card utilization below 30% of the limit. High utilization signals financial distress.

Use a Secured Credit Card
Consider using a secured credit card. It’s backed by a fixed deposit and helps rebuild credit without the risk of overspending.

Benefits of Timely Loan Repayments
Timely loan repayments have multiple benefits beyond improving your CIBIL score. Let’s explore:

Improved Creditworthiness
Consistent repayments show financial responsibility, making you a desirable candidate for future loans.

Access to Better Loan Terms
A good CIBIL score can help you secure loans at better interest rates and terms.

Importance of Credit Mix
A healthy credit mix includes both secured and unsecured loans. This diversification can positively impact your CIBIL score.

Secured Loans
Loans backed by collateral like home or auto loans. They are seen as less risky by lenders.

Unsecured Loans
Loans without collateral like personal loans and credit cards. They carry higher interest rates and risk.

Disadvantages of Direct Funds
Direct funds require active management and market knowledge. Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) ensures professional management.

Market Volatility
Direct funds expose you to market volatility. Professional management can help navigate these fluctuations better.

Time and Expertise
Managing direct funds requires time and expertise. Professional advisors can provide insights and strategies tailored to your goals.

Advantages of Regular Funds
Investing in regular funds through an MFD with CFP credential provides multiple benefits:

Professional Management
Funds are managed by experts with deep market knowledge. They can make informed decisions on your behalf.

Regular Monitoring
Professional managers regularly monitor and adjust the portfolio to align with market conditions and your financial goals.

Final Insights
Improving your CIBIL score is a gradual process that requires consistent effort and financial discipline. By regularizing your loan repayments, maintaining a low credit utilization ratio, and seeking professional financial advice, you can rebuild your creditworthiness and become eligible for loans again.

Remember, patience and persistence are key. Stay committed to your financial goals and make informed decisions to secure a better financial future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

Ans: Since your CIBIL score is now a strong 765, it reflects a solid recovery despite past issues. However, to further improve it, focus on maintaining a perfect repayment history for all current credit. Avoid closing old accounts with good history, as they contribute positively. Regularly monitor your CIBIL report to ensure no errors. Over time, consistent and responsible credit behavior will enhance your score further.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment