The Financial Updates
CIBIL Score Information
CIBIL Score is a three-digit numeric summary of your credit history. The score is derived using the credit history found in the CIBIL Report (also known as CIR i.e Credit Information Report). A CIR is an individual’s credit payment history across loan types and credit institutions over a period of time. A CIR does not contain details of your savings, investments or fixed deposits.
A credit card comes with a specified pre-approved credit limit which can be used by the holder in a month. However, if you are in urgent need of cash, most banks offer you the facility of loans against credit card. Here, you can take a loan against the credit limit which you have been given. Once the bank approves your loan request, the limit will be credited to your account. Bank charge a certain interest rate for the repayment of the loan. You can repay this loan through Equated Monthly Installments (EMI) for a specified tenure.
Deposit in banks is a traditional and popular option for savings. If you are looking for a tax saving option with fixed income, then you can invest in bank’s tax saving fixed deposits (Bank FDs). Tax deduction is available under Section 80C of Income Tax on investments up to Rs 1.5 lakh made in it. However, tax saving FDs have a lock-in period of 5 years. Due to this, it is a safe option for salaried employees. Know how much interest SBI, PNB, HDFC Bank and ICICI Bank are offering on 5 year FD.
If you have multiple lines of debt or crushing credit card debt, you may consider borrowing a personal loan and using the cash to pay off your outstanding debts. Instead of making multiple payments each month, you will only have a single monthly payment. Depending on the details of your loan, your monthly payment may end up being lower than your previous monthly bills combined. Another benefit of obtaining a personal loan: Most have fixed interest rates and payments, so your bills are consistent and predictable, and won’t increase over the life of your loan.