March 24th, 2015, Bangalore: Addressing an informal gathering of a few media persons and members of the public, Mr. Rajendra, Principal Consultant at Credit Clear, one of the leading management consulting services specialising in individual credit rating improvement, explained a few vital things about credit score and their reports in simple terms as a part of the initiative the organization has in making people understand these concepts better.

A member of the audience cited an example of his colleague, who had paid off a loan of about Rs. 11 lakhs that he had taken from a reputed bank to buy a top-class sedan. He mentioned that just after he closed his loan, his credit rating fell a few points instead of rising. Mr. Rajendra then asked a few pertinent questions about the other credits of the borrower during the same period. It was ascertained that the borrower’s two credit card debts were written off and also during the course of the loan repayment, he had made a few late payments for the last few EMIs.

Mr. Rajendra stressed the fact that although the loan was closed, the credit information report factors in the late payments and previous poor payment history as well as the recently acquired negative status of his credit cards while generating the individual’s credit score. He mentioned the increasing number of youngsters applying for cards and loans and why banks were being cautious, hence heavily relying on CIBIL ratings and reports. He pointed out, “The credit score generation algorithm would consider late payments as a negative mark against the individual.”

He also mentioned that some individuals ill-advisedly did not clear their total outstanding dues on their loan or credit card and instead approached the bank for a Settlement, would also not be considered favourably by other banks when they apply for new credit. The reason is that although the account’s current balance was made nil in the credit information report, the very fact that he was unable to make the scheduled payment in full that resulted in lesser-than-expected earnings for the bank as they have to waive off a portion of their principal and interest in order to get a settlement with the borrower.

Mr. Rajendra mentioned an increased trend in people applying for more than 5-6 credit cards. He advised, “Having more than 3 credit cards at any given time sometimes makes the borrower seem “credit-hungry” in that he was trying to live beyond his means.”

About the Company– The offices of Credit Clear are located in the upscale locality of Koramangala, Bengaluru, open to customers of all professions and financial backgrounds. With their motto of Respect, Integrity and Customer Focus; a majority of their clients are serviced entirely online via email and phone without even having to meet face-to-face. Their satisfaction stems from the fact their professional approach improves the individual’s credit rating and minimises credit application rejections and most importantly ensures that they are now ready to avail credit at any time to realise their business opportunities or for any credit emergency.

The organization aims at providing bespoke solutions to all their customers and can easily be contacted online at www.creditclear.in or via email or phone (+91-9482581816). They also have an excellent live chat facility on their website.