7 Important Things to Avoid Regarding Personal Loan

Personal Loans are a great a way to tide over your short term financial need as it requires relatively less documentation, quickly disbursed and doesn’t require any collateral. The interest rates these days offered by banks and financial institutions are also very competitive especially for borrowers with high credit score.  But there are certain vital things that one should keep in mind regarding personal loans:
  1. Avoid Applying for loans with too many banks: This is a very important point as not many people are aware of this fact. You need money urgently and you might be tempted to apply with multiple banks in case your desired bank doesn’t approve your application. With advent of online banking, it has become very easy to apply for personal loan online with several banks. This is a bad strategy in this case. Every time you apply for a loan with a bank or any financial institution, it will check your Credit Score on CIBIL. Now with each credit score check your overall credit score comes down a little bit. Now if some four - five banks check your Credit Score at the same time it’ll hamper your score in a meaningful way, which in turn will pose a problem in getting your loan sanctioned. Also lower credit score result in higher personal loan interest rates.  
  2. Avoid taking large loan amount: Just because personal loans are structured in such a way that you don’t have to discuss the reasons for taking one, it doesn’t mean you try to get as much as you can. Take only as much as you can afford to repay. Taking a loan amount more than you can afford to repay on time will put you in a debt trap. 

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.

Kya Lena Chahiye?

My reply to everyone asking me "Kya Lena Chahiye" after this brutal market fall.

Equity Portfolio Update

Significant panic witnessed in our markets due to IL&FS issue which lead to very sharp corrections in some of our stocks we hold in our portfolio. This was largely expected and we were more than 40% invested in liquid bees. Deployed all the cash today to bring down the cost of some of our holdings and also added a new name which I feel could be a potential turn around candidate as the sector itself is at the cusp of turnaround.

You can check the latest portfolio from the following link: InvestorZclub Equity Portfolio

Go Cashless with Debit Cards

Debit cards make daily money management easy and fuss-free, and they also offer many benefits that save your money. 

The country took to the Digital India initiative in a big way when de-demonetization was announced in November 2016, bringing the nation to a standstill. With ready cash not available, people were forced to transact using their debit and credit cards for all their needs. However, this was a positive development as far as spending electronically goes – debit cards offer tremendous mobility to all users since you don’t need to dispense with cash at all. Whether swiping the card at a payment terminal, or withdrawing money using the ATM card, or using the card number while completing an online purchase, a debit card makes money management really simple.

Leading banks in India offer customers debit cards online, with frequent cashback offers and discounts on using the card. Apart from the convenience of using the card, the debit card offers result in good savings and unique experiences for the card holder.

The argument for using debit cards…

Earlier, most people preferred using credit cards instead of debit cards, because the former added a lot of reward points on most purchases. However, banks have excellent debit card offers that offer customers a range of experiences, discounts and cashback on using the card at select merchants. These days, airlines, five-star hotels and high end retailers also accept payment using debit cards, while some e-commerce giants offer EMI schemes against debit cards as well. Moreover, debit cards are always a better option than credit cards, for the following reasons: 

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 loanWhen 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.

Major Crypto currency bubble burst

Major cryptos that saw more than 80% correction from high

How to Plan for Retirement When You're Already in Your 40's?

We are always told to start saving for retirement right from the time when we are young. However, what are you to do if you weren’t able to save much and have entered your 40s now? Is it still possible to plan for your twilight years now? The answer is “yes”!

The following are some tips on how you can plan for your retirement even if you started late:

1. Pick a Number
The first thing you need to do is determine your retirement amount. Many experts believe that you need around 10 times your ending income to survive through the retirement years.  However, since you are beginning to save money quite late, you may not be able to achieve that target by the time you retire. So, what you can do is crunch some numbers and get a “conservative” figure that works for you.

2. Start Saving
Now, not only you need to start saving as soon as possible, you must increase the saving amount every month. The rule of thumb is that you should put 10% of your income in the retirement fund, but in this case, it might not be enough. This is because you have to achieve your target in less time as opposed to those who start saving for retirement early. Thus, you should go for 20% savings instead.
You should also try to increase the percentage over time as you see fit. Just be sure you have enough room for the payment of EMIs and credit card bills as you don’t want to hurt your CIBIL score. After all, it’s not easy to get a loan with bad credit score.

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