How peer-to-peer loan boost credit scores?

Peer-to-peer (P2P) loan system is successful alternate financing across which has already gained roots and is a very attractive investment option for investors. P2P loans work differently than getting a traditional bank loan. While P2P allows borrowers to check rate without affecting creditsscore, a user’s request may be turned down if the score is below 630. These loans are the most common forms of personal loans.

People opt for P2P loans as a way to pay down debt more quickly at lower interest rates.  P2P loans are also referred to as person-to-person lending and social lending, and companies that offer P2P loans are called P2P lenders or marketplace lenders. In India, the Reserve Bank of India (RBI) has already acknowledged this innovation and framed regulations for the sector to avoid any mishaps. It is offered to those who are at least 18-years of age, hold a verifiable bank account and a Social Security Number.

What are P2P loans?

This financial innovation directly connects verified borrowers seeking unsecured personal loans with P2P lenders. Verified borrowers are listed on the P2P lending platform and investors can see the details about the borrowers before lending money to them. Once the application is submitted, the investor may offer the user a variety of loan offers. Selecting any one of the offers requires the user to submit a hard credit check which impacts the credit score. Once approved the funding happens directly in the account within 14 working days.

How P2P loans boost creditsscore? 

Soft pull: The initial P2P loan process extracts a soft pull which does not impact the credit score at all. So, if the loan gets rejected, the inquiry will still not impact your scores. However, if the loan gets approved and funded, the inquiry reported is reflected as a hard inquiry.

Predictable payment: P2P loans are reported as ‘instalment debt’ for which there is a fixed repayment period. The user is mentally prepared to pay the set amount of money that is due every month lessening the chances of missing payments and damaging the scores. This makes the loan predictable for the lender as well as the borrower.

Better cash flow: Those opting for P2P loans get it on lower rates which allow free flow of cash. This allows the user to have more financial flexibility and he continues to pay his debts and overall obligations with responsibility. This is good for a healthy score.

A P2P loan is a powerful tool that ensures and motivates the user to pay off his debts quickly once and for all. And that does wonders for his creditsscore.

For further information log on to https://creditsscore.in/. 

Know more about credit rating

A lot has been said about credit ratings that influence the financial strength of companies and their ability to meet debt repayment obligations. The credit rating is determined after weighing the liabilities and assets of the firm. The ratings are assigned by a Credit Rating Agency (CRA) and it takes into accounts factors like firm’s financial statements, type of debts, previous credit repayment history and future capability, etc. Each of these factors contributes to computing the company’s rating.

The process of credit rating starts after a rating request from the issuer, signing of a rating agreement and paying a requisite fee. The process, by all accounts, is extremely intensive. Both negative and positive factors affect your firm’s ratings. The CRAs assign the rating to debt instruments like non-convertible/partially convertible debentures, short-term debt, bonds, fixed deposits, etc., and not to equity instruments. These agencies owe a huge responsibility to the lenders/investors; and irrespective of any issues, they are liable to ensure transparency in the rating exercise.

Before we move on, it is important to realise that credit rating is not a guarantee, but merely an opinion of a rating agency.

Just check out on points on which ratings can be delivered.

• Credit ratings are provided on 
• Bond/debenture - issued by corporate, government etc.
• Equity shares -  issued by companies, but is not mandatory in India
• Medium-term loans (Public deposits, CDs etc.) – rated on fixed deposits taken by companies 
• Short-term instruments – the rating of commercial papers is mandatory
• Real estate, builders and developers – 
• Chit funds - rated on their ability to make timely payment of prize money to subscribers
• Collective investment schemes – rating depends whether the scheme will be successful or not 
• Insurance companies - rated based on their claim paying ability
• Borrowers 
• Banks – ensures their credibility and the capacity of repaying customer’s deposits
• States – helps attract investors from within the country and abroad
• Countries – aids interested foreign investors and lenders to know the repaying capacity and willingness of the country to repay loans.

  Keep a track of your ratings

Keeping a track of your company’s rating ensures there are no errors on your file.  Once the rating is assigned and accepted, the CRAs are liable to perform periodic surveillance of the credit quality of the rated instrument/ company. The ratings keep changing depending on the company’s financial performance and the CRA may notify it from time-to-time.

So, check your credit rating regularly and get in touch with the credit reporting body if you need your company’s report needs to be corrected.

To find out more about matters that could affect your firm’s ratings stay around and log on to https://civilscores.com/credit-rating.  

Can my brother access my free credit score online?

Your credit report is your personal property or document and you have every right to safeguard it – from everyone. It has a lot of sensitive information including your Social Security number. So, no one and absolutely no one is legally entitled to see your free credit score online – not even your brother- unless you share the login details and authorise him to do so or somehow he manages to get hold of them.

The best thing about credit reports is that the section that lists credit inquiries – who made them and when – are displayed and you will know if that person is authorised to do it or not.

• Authorising another person to your report:

Adding someone to a card account as an authorised user is a process initiated by the primary card-holder. In this case, either one of them or they both jointly bear the responsibility for all charges on the card. Having an authorised user to your credit card means you are allowing them to make purchases with it. But because you continue to be the primary cardholder, the onus of paying for those expenses lies on you.

• What to do in case your brother gets access to your credit report?

Committing a crime of this order isn’t easy for any family member and neither does it leave them feeling great about themselves. Remember, simply adding an authorized user won't affect your Credit scores, but if you do realise that your brother has been making unreasonable expenses like buying video games, etc., at the expense of your credit scores, he can be easily be removed from your credit reports any time.

• In case of illegal viewing: Illegal or unauthorised viewing of your free credit score online checks, it should be taken seriously. It is as if someone has broken into your house and looked through your cupboard and files. Credit reports systematically contain all your financial records.

If your brother has made an illegal inquiry it is important to report the matter. And this means you are in a tough situation. If you still decide not to go that far and not to take any legal action against your brother for unauthorised viewing of your credit scores, there still are certain steps that you could simply adapt to discourage your brother from running free credit score online checks in future. 

Let’s check them out

• Notify the bureaus 
• Place a fraud alert
• Change passwords 
• Place protection tools like trackers, simulators, etc:
• Place a freeze on the account
• Be cautious

• Review credit reports carefully

Log on to https://creditsscore.in for more information on the subject.

Fearlessly check credit score online with apps to protect your data

Worried that you and your family could become a victim of online fraud? Your fears to check credit score online are not baseless when hackers are always a step ahead and scheming to get hold of people’s data.

Of course, some agencies monitor and protect your data if you subscribe to them, but still the onus of protecting your online data lies on you. The problem with the standard way of logging into accounts via a username and a password is that they are easily guessed. For the sake of convenience, people use the same password for all held accounts, thus, putting all accounts at risk. Hence, it’s critical to adopt tools that will provide your data with an extra protective cushion.

Let’s check out some ways that can help you save your data.

1. Trackers: It allows you to track any unusual changes in credit scores and report. You can spot and clamp suspicious activities and minimise the damage. There are several check credit score online tracking apps that have provided satisfactory results to the users.
2. Multifactor authentication: It provides an extra layer of protection to the account beyond a password. The verification process requires you to provide a second piece of proof to verify your identity. So, even if an unauthorised person has your login/username and password, he cannot access the data.
3. Lost-wallet safety kit: It allows you to securely store crucial data of cards they carry with them every day. The tool offers pre-registration of debit, credit cards, and medical identification cards, etc. If the data ever gets lost/stolen, the app has to be updated or inform the protection service agency if you have subscribed for it. The stolen/lost cards will be blocked immediately and would be of no use to anyone else.
4. A fraud alert: If you happen to physically lose your credit card, you just need to contact your card issuer and inform them about the loss. The issuer then cancels your account and issues a new credit card with a new account number, thus preventing any fraudulent activities from your account and protects your credit scores as well.
5. Install protection software on devices:  Whether you are accessing your accounts from your mobile, tablet, laptop or desktop, install protection software and keep updating them from time-to-time. They are good at blocking all attacks.

Not everyone needs these check credit score online protection tools and services. But if you think your data has been compromised or believe you are at a higher risk of becoming a victim of identity theft, then stay with https://creditsscore.in.

Stuck while buying a house? Know how to improve credit score

Credit scores brimming with energy are ideal when it comes to buying a house or getting a home loan. Credit scores below 650 are unhappy scores and the score holder needs to take strategic steps on how to improve credit score. The rewards these scores fetch are not as good as rewards fetched by 700+ scores.

But if you are one of those who often shuttle between bad and mediocre credit scores and seeking a home loan, there’s good news for you. You can still get a loan and have your dream home.

Working on how to improve your credit scores can be a daunting task, but we are here to hold your hand and guide you through some basic steps that will tell you how to improve credit score before applying for a home loan. 

Let’s check out options to strengthen and solidify your scores.

1. Check your credit report: This is the first step to improve the scores and you need to be in full control of your report. It is important to know what is bringing it down; where exactly you stand and what needs to be done. This way, you can work on the problem areas and avoid major errors from happening.
2. Fix the errors: Most people whose home loan applications have been rejected for they have had errors or inaccurate information in their credit reports. Check out yours. Once you spot the error file, claim with your credit bureau and wait for a response which should come within 30-60 days. 
3. Get out of debt fast: About 30% of your score is calculated on how much you owe. Find out your debts, decide which ones you need to pay first and stop taking fresh debt to pay off your old debts. That is a bad idea.
4. Automate payments: Once you automate your finances, you won’t have to worry about manually paying bills each month or forgetting a payment. You automatically start investing. Ideally, you could also improve your score by paying at least the minimum amount and if possible a little more every month.
5. Lower credit utilisation: This is the second biggest factor in determining your credit score. It contributes 30% of your score and reflects how financially responsible you are. The amount of available credit you are using is called credit utilisation ratio.

Tip: Do not close any accounts within six months of filing the loan application. You need as much credit as possible when you apply for home loans.  

If your credit is not as strong as you would like, work on building it. If you are still fretting on how to improve credit score stay with us for more.

Join us on https://creditsscore.in/how-to-check-credit-score.

Pre-screened credit companies offer cards based on credit scores and more

If your buddy has been receiving pre-screened credit card offers, chances are that he is one of the ‘potentially desirable customers’  as far as the card companies are concerned. However, just receiving the pre-screened credit card offers in your mailbox doesn’t mean you have one already. If you are interested you will have to apply. And then only will the actual processing be initiated.

When companies offer the card, it means the user meets certain initial criteria the card companies are looking for in potential new customers based on limited data it has about the user.  So it doesn’t make much sense to outrightly discard credit card offers. You just need to be selective. And yes, it is perfectly safe to scan the offers before sending them to the trash. But before that it is always nice if the user runs a credit score check of his account.

How it works

Credit card companies pull the user’s credit report which is a hard inquiry. Though this has a minor negative effect on the user's credit score and it is temporary. Hence, the user should use his discretion and apply for the offer with immense care. Scan and compare offers of other credit card companies and even research the lenders independently, look out for annual fee and rewards programmes, cashback, etc.

What to look out for?

Credit companies that offer good perks have a good credit card. It doesn’t make much sense unless the rewards are luring. The best part about pre-screened offers is that it provides its users with product choices, better rates and terms than most other offers usually available in the market. Remember, the credit card industry is on a boom and all of them are offering competitive offers. A credit card must best suit the user’s lifestyle and financial situation. So, it is important to read the offers carefully and opt for the best deals.

The final step:  

Once the user applies the company will review the application to determine whether the credit history meets the criteria it had offered the user. Credit card companies will take a look at the user’s credit report or verify his income. Sometimes, the applications of pre-screened users too get disapproved for various reasons including poor credit score, income, inability to pay, etc. It is the credit card company is the one that works and approves on the user’s eligibility to possess a credit card.

As far as credit cards are concerned, pre-approved, pre-qualified, and pre-screened credit cards, all mean the same.  Users who haven’t received a pre-screened credit card offer need not feel disheartened. It doesn’t mean they do not qualify for it. They can apply for one on their own and suit their requirement and get the best deals.

Log on to https://creditsscore.in/ for more information. 

Apps that tell you how to check credit scores

A customer’s credit data influence his chances of securing a loan, good interest rates and impacts his chances of purchasing a house or a car. No wonder, he needs to monitor his credit scores as often as he can and the apps installed on his androids are a good option. In other words, the apps help a user know his credit that is a key metric for raising bank loan or seeking credit cards.

The money market is full of lenders and creditors who push customers to check out their apps and provide free guides and tutorials on how to check credit score. Over the years, these apps have been downloaded by many and it has made their lives extremely easy by providing accurate information and scores. But a user must identify trustworthy apps that could help him manage their credit scores and not put him in trouble of any sort.

Having ready access to credit scores can come very handy while filling out a rental application, applying for jobs, renting accommodation, seeking insurance and more.

A user can avail this facility by downloading the app on his mobile phone and clicking on the section, ‘My Credit Score’ under the user profile section. The user may be required to fill in certain basic details like name, registered email, address, phone number and more after which a summary of the report is displayed within minutes on the screen. Not only this, apart from the how to check credit score facility, from time to time, most apps do come up with instant and exclusive offers like a huge sum of free credit to lure customers.

Apart from this, he can also avail detailed credit report on his registered email address containing details of his credit utilisations and repayment history. This helps him ascertain his credit rating. This detailed statement is a record of all the in-use credit card and loan accounts in his name. The report also bears important tips and suggestions on improving credit score and maximising spending and safety measures that need to be incorporated to stay away from technical errors and the clutches of scammers. It is a ready guide that tells you where you stand with late payments, how you can apply for a mortgage and more.

Last, but not the least, app users must also keep in mind to upgrade to latest versions on ‘how to check credit score’. A good score makes you a good tenant, a good employee and a good borrower. It indeed is your credential.

Stay with us on https://creditsscore.in for further details on how apps can help a user check his credit score in a jiffy.