May- the hottest month in India is here. The mercury is rising higher with each passing year. Nita and Meerak, a young couple working in a BPO in Bangalore, managed with a water cooler to cool their home each summer. But with the rising heat and diminishing water supply in their home, they planned to purchase an air-conditioner (AC) for their bedroom. Over a weekend, they visited the popular electronic store in the mall near their house. But to their dismay,they realized that they did not have enough savings for purchasing the desired AC,as it was costing significantly higher than their budget. The young couple decided to postpone their AC purchase for another year and confided into the sales person at the store that it is out of their budget at the moment.
The sales person at the store then counselled Meerak and Nita on the available finance opportunities at the store which they can avail for purchasing the much needed AC. There was an in-house counter of a leading personal finance company at the store itself where Meerak and Nita went to understand the terms and conditions of the consumer durable loan for purchasing the AC. On discussing with the finance company representative, Nita and Meerak were pleasantly surprised to know that they can instantly avail a loan for purchasing the AC at feasible terms and conditions and take it home the same day. Meerak then filled the loan application form and provided all the requisite details and proofs. The finance company representative instantly checked Meerak’s CIBIL TransUnion Score on his computer, based on the details he had provided in the form. He found Meerak’s CIBIL TransUnion Score satisfactory as it aptly met the company’s lending criteria for consumer durable loans. He then explained to Meerak and Nita that because Meerak had a high CIBIL TransUnion Score and a good credit history, the finance company was able to provide them finance for purchasing the AC instantly.
Having worked in a financial BPO, Meerak had an understanding of the importance of a good CIBIL TransUnion Score and a healthy credit report for availing credit cards and home loans. But only now did he realize the larger role that an individual’s CIBIL report and CIBIL TransUnion Score played in his life. Due to a good CIBIL TransUnion Score, he and his family could now immediately enjoy the comfort of an AC without having to wait for another year to purchase the same.
Having experienced the benefit of financial discipline and a good CIBIL TransUnion Score, the couple resolved to continue to maintain a good credit history and set down some ground rules on managing finances:
Keeping track of all loans and credit card EMIs: Keep a regular check on all the loans and credit cards and ensure to make payments on them before the due date month-on-month.
Set payment alerts: In order to better manage payments of credit card bills set up an alert on phone and email so that you are reminded of the dues even if you forget.
Keep track of loans you have guaranteed: If you have guaranteed a loan then do ensure that the payments on this loan are being made regularly and there is no delinquency or default on them. The guarantors CIBIL TransUnion Score gets impacted if there is a delinquency or default on the loan repayments by the principal borrower.
Review CIBIL Report and CIBIL Transunion Score: Before applying for any loan, credit card or finance for electronic goods ensure to check your CIBIL Report and CIBIL TransUnion Score. This practice will help you avoid any unpleasant circumstances in the form of loan rejection. You can always work towards improving your credit history and CIBIL TransUnion Score in case it is low and apply for loans or finance opportunities once it improves.
It is important to understand that a good CIBIL Report and CIBIL TransUnion Score is very critical for having access to finance when you need it. With availability of instant credit information and score from CIBIL, finance companies are able to assess an applicant’s credit discipline and are able to sanction the loan immediately. A good CIBIL report and high CIBIL TransUnion Score can be your gateway to building a prosperous future.
About Author
Harshala Chandorkar, Senior Vice President- Consumer Services and Communication, Credit Information Bureau (India) Limited (CIBIL)
Harshala has been with CIBIL since its inception in the year 2000. She is a member of the pioneering team that established credit information infrastructure in India. Prior to joining CIBIL, she was working with HDFC for 4 years.
At CIBIL, Harshala has driven the establishment of our country’s first direct-to-consumer service on credit information that enabled individual consumers to access their own credit reports directly from the bureau. She has also lead the implementation of the online authentication platform through which thousands of consumers are accessing their own CIBIL reports and CIBIL TransUnion Score instantly on CIBIL’s website. CIBIL’s consumer relations platform also facilitates online dispute and grievance management for consumers.
Harshala has extensively contributed to the development of the credit information infrastructure in the country and is amongst few of the most trusted experts in this domain. The Reserve Bank of India’s committee, headed by Shri. Aditya Puri, for recommending data format for furnishing of Credit Information to Credit Information Companies also acknowledges Harshala’s contribution.
Harshala is an ardent campaigner for driving financial literacy and consumer education on credit. As a veteran on credit information she contributes informative consumer education articles in newspapers, addresses consumer queries through talk shows on television channels and chat sessions on web portals. She also conducts voluntary credit education workshops for corporate employees and industry associations. She is also a guest speaker at leading management colleges in India.
Harshala is a qualified Chartered Accountant and her financial background coupled with her experience and expertise in credit information domain has helped her gain a respectable position in the industry.
