Tips to improve your credit history

In an online chat with Get Ahead readers Harshala Chandorkar, Senior Vice President -- Consumer Relations, Communication & CIC Compliance Credit Information Bureau (India) Limited (CIBIL), answered queries on credit history and credit score.

Here are the unedited excerpts:

kavita bavekar: How to keep maintain a healthy credit trasaction?

Harshala C: Here are a few tips for maintaining a good credit history: Avoid late payments or defaults as far as possible; Maintain a healthy mix of credit: A higher concentration of home loans or auto loans (commonly known as Secured Loans) is likely to be more favourable for your credit score than a large number of unsecured loans.

M RAO: Axis bank charging the more interests on Credit card, not consider any request, keep on adding the interest on interest, if not paid it affecting CIBIL. can you please exempt the interest on interest for CIBIL scoring

Harshala C: If the entire amount that is due is not paid the bank will charge interest on the amount that has not been paid. It would be advisable to make the entire payment. If that is not possible, some banks give an option to the borrowers to convert the credit card dues as a Loan. The Rate of Interest is lower for a personal loan as compared to credit card.

Jagdish Rapata: Madam, last time I had asked you who monitors and is responsible for CIBIL. You guys do not deliver the CIR after taking payments. Your contact number does not work and emails are not responded to. Look at the number of complaints you have on Consumer websites. How are you yourself accountable as an organization?

Harshala C: Sir, your credit report was sent on 2nd August and since you had not received it we have resent the same on 6th August.

sachin bele: madam, all the payments made in august must be updated in cibil before 15th september. banks should provide you data for every 15 days, hence customer will be able to get the new loan easily.

Harshala C: Banks typically update the information with CIBIL within 30 days after the end of the month.

Bikram Mishra: Hi Madam. My cibil report shows two scores one is personal loan score which is 827 and other which is 795; what does this means

Harshala C: CIBIL TransUnion Score is a generic bureau score and the other score is the Personal Loan Score. Some banks use the Personal Loan Score when they eveluate the credit applications for Personal / Consumer Loans

Bikram Mishra: and what should I do the enhance my cibil scoreand whther 827 and 795 are good score

Harshala C: Reduce your utilization of credit card limits: While increased spending on your credit cards may not necessarily negatively affect your Score, an increase in the current balance on the card over time is an indication of an increased repayment burden and may impact your Score.

Monitor your co-signed, joint accounts monthly. Monitor the loan accounts for which you have stood as a 'guarantor'; Review your credit score and history frequently

samudra blr: Madam, If I default Alimony/Maintenance payment for my divorced wife Will it affect my credit history?

Harshala C: CIBIL does not collect information pertaining to Alimony / Maintenance payment.

aditya-misra: Hello Harshala ji, I had exited a credit card account after doing an OTS in the year 2010. Since then, I am using another crdit card and I am regular in my payments. I wish to know how long my credit score will be low due to the OTS, as I am getting a very smal credit limit for the present credit card payments of which are always on time.

Harshala C: I would suggest that you look at your own CIBIL report and CIBIL TransUnion Score. Since you have another credit card do ensure that you make timely payments on that credit card. Build a good credit history over a period of few months. Do check your report again after a few months to check the improvement in the score.

Suryant: Madam please give me your mail ID CC unnessery harreshmet me from last 8 yers. I will mail you all documentation for proper file case againest the CC

Harshala C: Please raise a dispute online on CIBIL's website. Steps given below: Log in to CIBIL’s Dispute Resolution webpage: http://rediff.ly/22npj Provide your name, address, date of birth, report Control Number (CN) and the nature of the dispute

CIBIL's Dispute Resolution Department will analyze and route the dispute to the lending institutions for confirmation. Please remember that CIBIL can only make changes to your report, once the lending institutions submit the updated/ corrected data.

chandrashekhar rao: Hello Ma'm, my credit score was 643. When I checked my credit sheet, it was some old outstanding which got compiled since long time. I contacted the Bank immediately and cleared the due payment and in return I got a No Due Certificate from them on 01.07.2013. When will it be updated in my CIBIL score and how better will it be after update ? Please suggest.

Harshala C: Do check your own CIBIL report and CIBIL TransUnion Score. While each bank will have its own credit scoring cut-off based on the credit sanctioning policies, it has been observed that most banks are lending to consumers with a CIBIL TransUnion Score of 750 and above.

You can access your CIBIL TransUnion Score and report on CIBIL's website in 3 easy steps: Step 1: Fill online form- Visithttp://rediff.ly/1gsxk and duly fill in the online request form; Step 2: Payment – Make payment of Rs. 470 via Net banking / Debit / Credit / Cash Card; Step 3: Authentication – Answer 2 questions based on your credit history

If you are successfully authenticated you can download your credit report consisting your credit score and also receive it via e-mail. If you fail the authentication then you can upload scanned copy of your identity proof and address proof on CIBIL's website. The report will then get delivered to you via express delivery.

Sanju Jayaprakash: Couple of questions :1) i understand the repayment criteria for good credit history, but what is not visibile is how will this affect the calculation 2) Most Banks don't update the repayment history on time and hence potential applications get rejected for low score in an way banks use this an excuse for rejecting legitamate applications,

Harshala C: Your CIBIL Report is a month on month record of all loan-related EMI (home loans, personal loans, automobile loans and so on), credit card payments. The CIBIL TransUnion Score is a 3 digit numeric summary of the credit history. The Score is derived by using the details found in the "Accounts" and "Enquiries" sections on the Credit Information Report (CIR) and ranges from 300 to 900 points.

Banks typically update the credit information within 30 days after the end of the month. If any information on your credit report is not updated please raise a Dispute online. We will coordinate with the banks to get the information updated.

sainath gabbita: May i have your email ID and contact nos to represent my long pending case is not resolved over 6 months.My income is updated wrongly.I made 20 calls and wrote over 15 e mails but to no avail.want to escalate please.

Harshala C: I apologise for the inconvenience caused to you. Please let me know your Service Request Number which will help us to look at the case and respond to you.

KIRAN kumar: How do one can check his/her CIBIL score

Harshala C: You can access your CIBIL report and CIBIL TransUnion Score on CIBIL's website in 3 easy steps: Step 1: Fill online form- Visithttp://rediff.ly/1gsxk and duly fill in the online request form; Step 2: Payment – Make payment of Rs. 470 via Net banking / Debit / Credit / Cash Card; Step 3: Authentication – Answer 2 questions based on your credit history

If you are successfully authenticated you can download your credit report consisting your credit score and also receive it via e-mail. If you fail the authentication then you can upload scanned copy of your identity proof and address proof on CIBIL's website. The report will then get delivered to you via express delivery

bhubaneswar mishra: May i have your e mail ID and contact nos to represent my long pending case is not resolved over 6 months.My income is updated wrongly.I made 20 calls and wrote over 15 e mails but to no avail.want to escalate please.

Harshala C: I apologise for the inconvenience caused to you. Please let me know your Service Request Number which will help us to look at the case and respond to you.

Christchary guntupalli: Mam, what CIBIL score is good, and will be eligible for easier access to loans? Whether 763 is a good score?

Harshala C: While each bank will have its own credit scoring cut-off based on the credit sanctioning policies, it has been observed that most banks are lending to consumers with a CIBIL TransUnion Score of 750 and above.

chandrashekhar rao: Hello Ma'm, my credit score was 643. When I checked my credit sheet, it was some old outstanding which got compiled since long time. I contacted the Bank immediately and cleared the due payment and in return I got a No Due Certificate from them on 01.07.2013. When will it be updated in my CIBIL score and how better will it be after update ? Please suggest.

Harshala C: Please check with your bank if they have sent your updated informtion to CIBIL. If yes, the information will be updated in your CIBIL report. You will have to build a month on month positive credit history for your CIBIL TransUnion Score to improve

RAJESH KUMAR: Hi, if my score is less than the bank criteria & if apply again & again will my score will reduce

Harshala C: Every time you apply for a loan or a credit card to bank and the bank accesses you report from CIBIL, there will be an 'Enquiry' created on your report. Enquiries on your CIBIL report do impact your CIBIL TransUnion Score marginally.

nagesh-pande: If my score is 595, Can i will be eligible for any type of Loan

Harshala C: While each bank will have its own credit scoring cut-off based on the credit sanctioning policies, it has been observed that most banks lend to consumers with a credit score of 750 and above.

It would be advisable to that you improve your credit history and then apply for a loan.

Some suggestion to improve your credit hostory : Always pay your loan/ credit card dues on time; Maintain a healthy mix of credit; Apply for new credit in moderation; Monitor your co-signed, joint accounts monthly. Monitor the loan accounts for which you have stood as a ‘guarantor'• Review your credit score and history frequently

shyam kumar: I have my CIBIL report and they assigned score 761. is it a good score reflecting my credit wothiness? I didn't understand most of the report, since it is written in finance related terminologies. Please guide me to improve my credit score further?

Harshala C: Thank you all for participating in the Rediff ZaraBol Chat show. Be financially disciplined and make timely payments on all you loan and credit card dues. Do remember that your CIBIL Report and CIBIL TransUnion Score is your reputational collateral.