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Muhammad Rodrigues

Muhammad Rodrigues

Asked on 4 February, 2019

What is a credit report?

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Credit score, which represents one's ability to repay, is crucial for getting approvals for loans, credit cards, or other credit requests. This score is based on one's "credit report" prepared and maintained by credit bureaus. After a person takes a loan/credit card, the bank/lender periodically reports the individual's credit activities to credit information companies or bureaus that collect information and maintain "credit reports".

Ananya Dasgupta

Ananya Dasgupta

Asked on 4 February, 2019

Which credit information companies are present in India?

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In India, there are four credit information companies (CICs) approved by the Reserve Bank of India - TransUnion CIBIL (Credit Information Bureau (India) Limited), Experian, Equifax, and CRIF HighMark. CIBIL is the oldest and most prominent credit bureau in the country that has been operational since 2000. The other three CICs were later issued licenses to operate by the central bank in 2010.

Pranav Bhatnagar

Pranav Bhatnagar

Asked on 4 February, 2019

Why is high usage of credit limit bad?

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High usage of credit card limit results in high credit utilization ratio, which is bad for the cardholder's credit score. Credit utilization ratio is the percentage of the total available credit currently being used. Credit reporting agencies use this ratio while calculating an individual's credit score. Higher credit utilization ratio indicates the borrower's credit hungry behavior, which impacts the credit score.

Aadhya Tata

Aadhya Tata

Asked on 4 February, 2019

What are some credit card mistakes to avoid?

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If not used wisely, credit cards can be a huge burden. Here are some mistakes to avoid: Having too many credit cards; they increase expenditure. Paying only minimum due amount instead of focusing on clearing the outstanding balance. Defaulting on bill payment and high credit utilization. Withdrawing cash using credit card; it attracts very high interest. Ignoring monthly statement and blindly pay the bill.

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