In this blog, we will delve into the world of urgent loans for CIBIL defaulters and explore what you need to know.

Who is Considered to be a CIBIL Defaulter?

CIBIL, or Credit Information Bureau (India) Limited, is a credit information company that maintains credit records of individuals and businesses. When an individual fails to repay a loan or credit card dues on time, it reflects negatively on their credit report, leading to a lower CIBIL score This makes them a CIBIL defaulter in the eyes of lenders.

Can You Get a Personal Loan After Being a CIBIL Defaulter?

One of the burning questions for individuals facing a CIBIL default is whether they can still obtain a personal loan. The answer is yes, but it comes with its set of challenges. Traditional lenders such as banks and financial institutions may be hesitant to extend credit to individuals with a history of defaulting. However, there are alternative options available for those in need of urgent funds.

Also Read:https://www.loansettlement.com/blog/rebuilding-your-credit-with-a-low-cibil-score-credit-card-tips-and-tricks/

Ways to Avail Personal Loans for CIBIL Defaulters Online

Secured Loan: One way for CIBIL defaulters to secure a loan is by offering collateral, such as property or gold, to lenders. Secured loans pose less risk for lenders, making them more willing to lend to individuals with a tarnished credit history.

Borrow at a Higher Rate of Interest: Another option for CIBIL defaulters is to approach lenders who specialize in providing loans to individuals with poor credit scores. These lenders often charge higher interest rates to offset the risk associated with lending to defaulters.

Withdraw Provident Fund: If you have a provident fund (PF) account, you may be able to withdraw a portion of the accumulated funds to meet your urgent financial needs. However, this should be considered as a last resort, as it depletes your retirement savings.

Seek Other Lending Options: Apart from traditional banks, there are various online lending platforms and peer-to-peer lending networks that cater to individuals with bad credit histories. These platforms may offer more flexible terms and conditions compared to traditional lenders.

Work on Improving Credit Score: While exploring immediate loan options, it’s essential for CIBIL defaulters to work on improving their credit score over time. This can be achieved by making timely payments, reducing outstanding debts, and maintaining a healthy credit utilization ratio.

Also Read:https://www.loansettlement.com/blog/5-essential-cibil-score-insights-for-personal-loans/

Conclusion

Being a CIBIL defaulter doesn’t mean the end of the road when it comes to accessing urgent loans. While traditional lenders may pose challenges, there are alternative options available for individuals in need of financial assistance. By exploring secured loans, higher interest rate options, utilizing provident funds, seeking alternative lending platforms, and focusing on credit score improvement, CIBIL defaulters can navigate their way towards obtaining the necessary funds during challenging times. Remember, it’s essential to weigh the pros and cons of each option carefully and make informed financial decisions.

Register with us today at https://loansettlement.com/ to learn more about our services and how we can help you!

The post Urgent Loans for CIBIL Defaulters: What You Need to Know appeared first on Loan Settlement.

What is a Default Payment?

A default payment occurs when a borrower fails to make an installment payment on their loan or credit account as per the agreed-upon terms and schedule. Whether it’s a personal loan, credit card, or any other type of loan, missing a payment deadline triggers the default status.

Consequences of Missing a Payment

Late Payment Fees: The immediate consequence of missing a payment is often the imposition of late payment fees by the lender. These fees can add to the financial burden of the borrower, making it more challenging to catch up with payments.

Negative Impact on Credit Score: A missed payment, especially if it escalates to a loan default, can significantly impact the borrower’s credit score. Being labeled as a personal loan CIBIL defaulter or having a default status on a credit card settlement can adversely affect one’s creditworthiness and ability to secure future credit.

Accumulation of Interest and Penalties: Apart from late fees, defaulting on a payment can lead to the accumulation of interest and penalties, increasing the overall amount owed. This can exacerbate the financial strain on the borrower and make it harder to resolve the default.

Legal Action and Debt Collection: In severe cases of loan default, lenders may resort to legal action to recover the outstanding amount. This can involve debt collection agencies, court proceedings, and even asset seizure in extreme situations.

Also Read Rebuilding Your Credit with a Low CIBIL Score Credit Card: Tips and Tricks

How to Avoid Default Payments

Set Up Reminders: Ensure you never miss a payment deadline by setting up reminders or automatic payments. This helps you stay on top of your financial obligations and avoid default status.

Budgeting and Financial Planning: Create a budget that accounts for loan repayments and prioritize timely payments. Effective financial planning can help you allocate resources efficiently and avoid default situations.

Communicate with Lenders: If you anticipate difficulty in making a payment, communicate with your lender proactively. Many lenders offer assistance programs or options for loan settlement that can help you navigate temporary financial hardships.

Seek Professional Advice: In case of financial distress or difficulty managing debts, consider seeking advice from financial advisors or credit counseling services. They can provide guidance on debt management strategies and help you avoid default payments.

Register with us today at https://loansettlement.com/ to learn more about our services and how we can help you!

Conclusion

Understanding the concept of default payments and their consequences is essential for borrowers to maintain financial health and creditworthiness. By staying vigilant, communicating with lenders, and seeking assistance when needed, borrowers can mitigate the risk of default and navigate their financial obligations responsibly. Remember, prevention is always better than cure when it comes to default payments.

The post Default Payments: What Happens When You Miss an Installment appeared first on Loan Settlement.

In this extensive guide, we will explore the world of instant loans for bad credit, understanding their significance and mastering the art of negotiation to secure the best deals. Whether you’re seeking an instant loan to overcome a low CIBIL score or  looking for debt relief,  this blog aims to provide you with the knowledge and strategies essential for effectively navigating your financial challenges.

Understanding Instant Loans

Instant loans serve as a crucial financial lifeline for individuals facing urgent or unforeseen monetary challenges. Their defining features, including rapid approval and disbursement make them an attractive option for those in immediate need. Unlike traditional loans, instant loans boast a streamlined approval process, often requiring minimal paperwork and allowing borrowers to access funds within a short timeframe. The short-term nature of these loans, with repayment periods typically ranging from weeks to months, makes them ideal for addressing immediate expenses like medical bills or unexpected travel.

One of the key advantages of instant loans lies in their accessibility, especially for individuals with less-than-perfect credit histories. With fewer documentation requirements and no need for collateral, these loans offer a practical solution to those who may struggle to secure traditional financing. The online application process and electronic transactions further enhance convenience for borrowers, enabling them to apply from the comfort of their homes and receive funds swiftly.

While instant loans provide immediate financial relief, borrowers should exercise caution and fully comprehend the terms and conditions. It’s essential to use these loans judiciously, only in situations of genuine need, and to ensure timely repayment. Exploring alternative financial strategies and seeking advice can empower individuals to make well-informed decisions about their financial well-being.

The Importance of Negotiating Loan Terms

Negotiating the terms of an instant loan is not only about getting a better deal, but it’s also about ensuring that the loan aligns with your financial needs.  Lowering interest rates, even by a small margin, can lead to substantial savings over the life of a loan, particularly for extended commitments like mortgages. Beyond cost considerations, negotiation allows borrowers to customize their loan arrangements, tailoring repayment plans to ensure financial manageability. This flexibility extends to choosing loan amounts that precisely meet their needs and aligning repayment terms with income and financial goals. The transparent and clear terms resulting from negotiation reduce the risk of hidden fees or unexpected charges, fostering financial transparency.

Moreover, negotiating for favorable terms acts as a safeguard against debt traps, helping borrowers avoid the pitfalls of unmanageable repayment schedules. Responsible negotiation demonstrates financial prudence and can positively impact credit profiles, potentially leading to improved credit scores. The peace of mind derived from securing favorable loan terms contributes to reduced financial stress and anxiety. Beyond individual benefits, negotiated loan agreements provide legal protection for both parties, minimizing the risk of disputes. Ultimately, negotiation empowers borrowers economically, equipping them with essential skills to make informed financial decisions and advocate for their financial well-being, thereby avoiding unnecessary financial hardships.

Read also: https://www.loansettlement.com/blog/the-secret-to-getting-an-instant-loan-without-a-cibil-score/

Steps to Successful Negotiation

Thorough research forms the essential foundation for successful negotiation when seeking instant loans. Prior to engaging with any lender, it is crucial to conduct a comprehensive analysis of the market, gaining insights into the diverse lending options, terms, and prevailing interest rates. Armed with this information, borrowers can make well-informed decisions during negotiations, pinpointing competitive lenders and those more willing to accommodate individuals with less-than-perfect credit. Maintaining a positive and collaborative attitude is equally pivotal in negotiations. Approaching the process with respect and professionalism fosters goodwill with lenders, potentially resulting in more favorable terms.

Precise communication about financial needs and circumstances is paramount. Openly discussing income, expenses, and the specific need for the instant loan helps lenders tailor terms to individual requirements. Posing questions during negotiations ensures a thorough understanding of the loan agreement, preventing unforeseen surprises. Furthermore, it is imperative not to settle for the initial offer. Comparing offers from various lenders enables borrowers to pinpoint the most competitive terms, ensuring they secure not just a loan, but the best available loan for their unique circumstances. By adhering to these negotiation strategies, borrowers can navigate the instant loan landscape with confidence and secure terms aligned with their financial objectives.

Negotiation in Personal Loan Default

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What is a Low CIBIL Score?

Your CIBIL score or  credit score is a numerical representation of your creditworthiness. It is calculated based on your credit history and provides potential lenders with an idea of how risky it is to lend you money. The CIBIL score in India typically ranges from 300 to 900, with a higher score indicating better creditworthiness. In simple terms, a low CIBIL score indicates that you might have a history of financial issues, late payments, or defaults on loans or credit cards. It can affect your ability to secure new loans or credit cards, and even if you do, the terms and interest rates may be less favorable.

A low CIBIL score usually falls below 600. A low score is a red flag for lenders, signaling that you are a risky borrower with a history of credit-related issues. However, a low CIBIL score is not the end of the road, and there are ways to secure loans even with bad credit.

Why Does Your CIBIL Score Get Low and What Are Its Effects?

Several factors can contribute to a low CIBIL score, and understanding these is the first step in improving your financial health. Here are some common reasons for a low CIBIL score:

Late Payments: One of the most significant contributors to a low CIBIL score is consistently making late payments on credit cards, loans or bills. Late payments can significantly impact your credit history and score.

Defaults on Loans: Defaulting on a personal loan, which is our priority keyword, can severely damage your credit score. Lenders consider this as a strong indicator of financial irresponsibility.

High Credit Card Balances: Carrying high credit card balances relative to your credit limit can also harm your score. This is known as credit utilization, and it’s crucial to keep it low.

Credit Card Settlements: Settling credit card debts with a settlement agency, another priority keyword, instead of paying them in full can negatively affect your credit score.

Multiple Loan Applications: Each time you apply for a loan or credit card, it results in a hard inquiry on your credit report. Too many hard inquiries within a short period can lower your score.

The effects of a low CIBIL score are far-reaching. You may find it challenging to secure loans and even if you do, the interest rates offered could be exorbitant.

Is it Possible to Get a Loan with a Low CIBIL Score?

Yes, it is possible to get a loan with a low CIBIL score. While it may be more challenging, there are options available for individuals with bad credit. Let’s explore some strategies to help you secure a low CIBIL loan in 2023.

Remember that improving your credit score is a long-term goal. As you work towards rebuilding your credit, you will gradually regain access to more favorable lending terms and better financial opportunities. In the meantime, explore the options available to you, such as applying with a co-applicant, considering alternative lenders, showcasing your stable job, opting for smaller loans, and seeking a guarantor.

How to Get a Loan with a Low CIBIL Score?

Apply with a Co-Applicant: One effective way to increase your chances of getting a loan with a low CIBIL score is to apply with a co-applicant. A co-applicant with a strong credit history can offset your low score, making lenders more willing to approve your application.

Consider NBFC’s and FinTech Digital Lenders: Traditional banks may be hesitant to lend to individuals with low CIBIL scores, but Non-Banking Financial Companies (NBFCs) and FinTech digital lenders often have more flexible lending criteria. They may be more open to working with borrowers who have experienced financial challenges in the past.

Showcase a Stable Job and Reputed Employer: A stable job and a reputable employer can boost your credibility in the eyes of lenders. If you can demonstrate consistent employment and a regular source of income, it can compensate for your low CIBIL score.

Opt for Smaller Loans: If you’re struggling to secure a significant loan, consider opting for a smaller loan amount. Lenders may be more willing to approve smaller loans, and successfully repaying them can help rebuild your credit over time.

Find a Guarantor: Having a guarantor, someone who agrees to take responsibility for your loan if you default, can be a powerful tool for securing a loan with a low CIBIL score. Lenders may be more comfortable lending when they have an additional layer of security.

Also Read Rebuilding Your Credit with a Low CIBIL Score Credit Card: Tips and Tricks

While a low CIBIL score can present challenges, it should not be an insurmountable barrier to accessing the financial resources you need. By understanding the factors that contribute to a low score and implementing the strategies mentioned in this guide, you can increase your chances of securing a low CIBIL loan in 2023.

Remember that improving your credit score is a long-term goal. As you work towards rebuilding your credit, you will gradually regain access to more favorable lending terms and better financial opportunities. In the meantime, explore the options available to you such as applying with a co-applicant, considering alternative lenders, showcasing your stable job, opting for smaller loans and seeking a guarantor.

So, if you find yourself in need of a loan in 2023 and have a low CIBIL score, don’t lose hope. With the right approach and determination, you can navigate the financial landscape and access the financial assistance you require, even with bad credit. Your financial future is in your hands, and it’s never too late to start improving it.

The post How to Get a Low CIBIL Loan with Bad Credit in 2023 appeared first on Loan Settlement.

Difference between “Loan Write Off” and “Loan Waiver”

Loan Write Off: When a lender writes off a loan, it means they have determined that the loan is unlikely to be repaid, and as a result, they remove the outstanding loan balance from their books as a loss. This doesn’t mean you’re free from the debt; you may still owe the money, but it’s no longer actively pursued by the lender.

Loan Waiver: A loan waiver, on the other hand, is when a lender intentionally forgives a portion or the entire outstanding loan amount, typically as a gesture of goodwill or under specific government schemes. Loan waivers are usually granted in specific circumstances and may have eligibility criteria.

Best 5 Ways to Write Off Your Loan

Loan Settlement: Negotiate with your lender to settle the debt for a reduced amount, often less than the original loan balance. This can be a win-win situation where you pay less, and the lender recovers at least a portion of the loan.

Debt Relief Programs: Explore government or nonprofit debt relief programs designed to assist individuals facing financial hardship. These programs may provide options to write off debt

Loan Default: While not recommended, in some cases, allowing your loan to go into default may lead to the lender writing it off. However, this can severely impact your credit score and financial future.

Credit Card Loan Management: If your loan is in the form of credit card debt, consider balance transfer, consolidation, or working with the card issuer to negotiate a settlement.

Bankruptcy: As a last resort, filing for bankruptcy may result in the discharge of certain types of debt, although it has serious consequences for your creditworthiness and financial stability.

Read also:https://www.loansettlement.com/blog/ways-to-write-off-debt-and-what-works-best-for-you/

Key Things to Remember Before Writing Off a Loan

Before making the decision to write off a loan, it is crucial to grasp the legal and financial ramifications associated with each method. Seeking guidance from financial advisors or debt counselors is paramount, as their expertise can shed light on the most suitable approach tailored to your specific circumstances. Additionally, a thorough assessment of your overall financial situation and budget is essential to gauge the feasibility of such a decision and its potential impact on your financial stability.

Communication is key and openly discussing your situation with your lender allows for the exploration of alternative solutions that may be more manageable for both parties involved. By considering these key factors, individuals can make informed decisions when contemplating the complex process of writing off a loan.

Pros of Writing Off Your Loan

Opting to write off a loan comes with several potential advantages, including a significantly reduced financial burden, providing immediate relief from creditor harassment, and offering a fresh start toward financial recovery. By alleviating the weight of outstanding debts, individuals can regain control of their financial well-being. However, it’s crucial to be aware of the associated downsides. Writing off a loan can have a negative impact on your credit score, affecting your ability to secure favorable terms for future credit. Additionally, there may be potential tax consequences to consider, and the act of writing off a loan could limit your access to credit in the future. Balancing the pros and cons is essential when making such a financial decision, weighing short-term relief against potential long-term consequences.

Getting your loan written off can provide much-needed relief if you’re facing financial hardship, but it’s not a decision to be taken lightly. Consider your options carefully, seek expert guidance, and weigh the pros and cons before proceeding. Remember that financial responsibility and planning are crucial for a stable financial future, even after a loan write off.

In case, you are not able to repay your loans, we can help!

Loansettlement.com is India’s leading loan settlement platform. We have a proven track record of successfully settling loans for our customers. Our team of experts will work with you to create a customized repayment plan that fits your budget and helps you get out of debt as quickly as possible. We understand the stress and anxiety that comes with being in debt, and we are here to help you get out of it as quickly and easily as possible.

If you are struggling to repay your loans, register with us today at https://loansettlement.com/

The post Top 5 Ways to Get Your Loan Written Off appeared first on Loan Settlement.

Understand the Basics of CIBIL Score and Its Role in Credit Card Approval 

When it comes to applying for a credit card, understanding your CIBIL score is crucial. Your CIBIL score is a three-digit number that summarizes your creditworthiness based on your credit history. This score is used as a basis for lenders to decide whether or not to approve your credit card application or during a credit card settlement process. A good CIBIL score means that you have a higher chance of getting your credit card application approved with favorable terms such as lower interest rates and higher credit limits. So, it’s essential to maintain a good CIBIL score by making timely bill payments, reducing credit utilization, maintaining a healthy credit mix and write off debt. Remember, your CIBIL score plays a crucial role in your financial health and your ability to access credit in the future.

Know Your Options for Credit Card Approval Without a CIBIL Score 

If you’re just starting out in the world of credit, it may seem impossible to get approved for a credit card without a CIBIL score. However, there are actually several options available to you. One option is to apply for a secured credit card, which requires a deposit that serves as your credit limit. Another option is to ask a family member or trusted friend to add you as an authorized user on their credit card, which can help you build your credit history. You could also consider taking out a credit builder loan or opt for a prepaid credit card. By exploring these options, you can start building good credit habits and eventually qualify for a traditional credit card.

Also Read What is a Good Credit Score in India? Understanding Credit Scores

Get Your Income Verified to Secure Credit Card Approval 

When applying for a credit card, one of the key factors that determines whether you’ll be approved or denied is your income. But simply stating your income on the application form isn’t always enough – many credit card issuers require that you verify your income in order to secure approval. While this extra step can be a hassle, it’s an important one to take. Not only does it provide the issuer with reassurance that you can afford to pay back any charges you make on the card, but it also helps prevent fraud and identity theft. So, if you’re looking to apply for a credit card, make sure you’re prepared to verify your income. It could make all the difference in whether you’re approved or denied.

Take Advantage of Offers That Don’t Require a CIBIL Check 

If you’re looking for a way to get approved for offers without having to undergo a CIBIL check, you’re in luck. There are many offers out there that welcome individuals who haven’t built up their credit or a  loan for CIBIL defaulters. Whether you’re just starting out in your career or have had setbacks in the past, there are options available to help you get the things you need without having to worry about your credit score . Be sure to research and compare different offers to find one that fits your needs and budget. With a little bit of effort, you can take advantage of these opportunities to improve your financial situation and start building your credit for the future.

Choose Credit Cards That Offer Benefits (e.g., No Annual Fee) 

Credit cards are essential tools for many people, but choosing the right one can be a daunting task. The good news is that several credit cards offer various benefits, such as no annual fee. This means you can enjoy the perks of having a credit card without paying extra charges every year. However, when picking a credit card or comparing different options, it’s essential to consider your spending habits, credit score, and the rewards program. For instance, some credit cards offer cashback programs, while others offer travel points or exclusive discounts from partner stores. Regardless of which option you choose, make sure to read the terms and conditions and use your credit card responsibly to avoid any financial trouble.

Look Out for Low-Interest Rates on Credit Cards without CIBIL Checks

If you’re in the market for a credit card, it’s important to be cautious of offers that seem too good to be true. Low-interest rates can be appealing, but make sure you’re not sacrificing security in exchange for a temporary reprieve on high interest rates. Some credit card companies offer low-interest rates without performing a CIBIL check, which means they may not be taking steps to ensure you’re a reliable borrower. It’s important to do your research and compare offers before making a decision. Don’t let the lure of a low-interest rate blind you to potential risks.

The bottom line is that it is entirely possible to get a credit card without needing to rely on a CIBIL score. Indeed, if you take the time to understand what your options are, you can find viable cards that offer necessary benefits for those looking for financing and more control over their finances. Understanding how to navigate credit cards and alternative forms of credit can give you the power to purchase goods and services freely—without worrying about your credit score. Moreover, understanding the various alternatives allow consumers access to better interest rates while also navigating potential sources of scams or abusive practices. Ultimately, individuals should ensure they review all terms and conditions of potential credit card offers, as well as contact customer service representatives with any additional questions or concerns.

You can also go one step further and take the help of a credit card settlement agency

The post Credit Card Without CIBIL Score: Your Guide to Getting Approved appeared first on Loan Settlement.

Understand what a CIBIL Score is and how it affects your credit history 

Your credit history plays a critical role in determining your financial health. The CIBIL score is a three-digit numerical figure that determines your creditworthiness. Simply put, it is like a report card that tells a lender how well you manage your finances. A higher score implies that you are responsible in handling credit, whereas a poor score indicates otherwise. Your CIBIL score determines your eligibility for loans, credit cards, and other financial products. Therefore, it is crucial to understand the factors that contribute to your score and how you can maintain a good one.

Also Read Short Term Loans Without CIBIL: The Best Options For Bad Credit

Know the different types of Low CIBIL Score Credit Cards and what benefits they offer

A low CIBIL score can sometimes pose a challenge when it comes to getting a credit card or an instant loan for low CIBIL Score. However, certain credit card providers have come up with different types of low CIBIL score credit cards to help those with poor credit histories. These credit cards offer several benefits, including low annual fees, lower interest rates, and cashback rewards on purchases. Some low CIBIL score credit cards also come with special discounts on dining, shopping, and fuel purchases. Although the credit limits may be lower than standard credit cards, these types of credit cards are an excellent way to start rebuilding your credit score while enjoying the benefits that come with them.

Find the right card for you by thoroughly researching fees, interest rates, and other important factors 

While it may be tempting to choose the first credit card offer that comes your way, taking the time to thoroughly research fees, interest rates, and other important factors is crucial when it comes to finding the right card for you. After all, not all credit card offers are created equal. By examining the fine print and considering your spending habits and financial goals, you can find a card that will not only fit your needs, but also offer valuable rewards and benefits. So before signing on the dotted line, invest some time and effort into researching your options. Your wallet (and credit score) will thank you in the long run.

Stay organized by tracking all your transactions in one place 

Keeping track of all your financial transactions can be overwhelming, but with the right system in place, it can be a breeze. By tracking all of your transactions in one place, you can stay organized and make informed decisions about your money. Whether it’s a spreadsheet, a budgeting app, or a good old-fashioned ledger, finding a system that works for you will save time and headaches in the long run. Plus, having a clear understanding of your spending habits can help you identify areas where you can save and make smarter financial choices overall. Don’t let the fear of tracking your finances hold you back – take control and start tracking today.

Pay your bills on time to demonstrate responsible spending habits 

Paying your bills on time is not just important to avoid late fees or negative marks on your credit report, it also signals to lenders that you are a responsible spender. Demonstrating this behavior is crucial in establishing and maintaining a strong credit score. Being consistent with bill payments shows that you are capable of managing your finances and are trustworthy when it comes to loan repayments. Additionally, if you’re planning to apply for credit in the future, lenders will investigate your spending habits to decide if you’re a low-risk borrower. So, always make sure to pay your bills on time, as it’s not just good financial behavior, but a great way to prove yourself as a responsible spender.

Take advantage of rewards programs or cashback opportunities to make the most of your card

Credit cards can be a great tool for managing your finances and earning rewards. By taking advantage of rewards programs or cashback opportunities, you can earn points or cashback on purchases you make every day, like gas and groceries. These rewards can add up over time and could even help offset the cost of annual fees or interest charges. Plus, some credit card rewards programs offer special perks like discounted travel or exclusive access to events. So if you’re not already using your credit card’s rewards program or cashback offers, it might be worth exploring what options are available to you. Just be sure to pay off your balance in full each month to avoid any interest charges.

Rebuilding your credit with a Low CIBIL Score Credit Card can seem like an intimidating task, but it doesn’t have to be. With the right understanding and research, you can find the perfect card for you that fits your lifestyle while supporting your efforts to rebuild your credit. Establishing responsible spending habits is essential to rebuilding your credit, so track all of your transactions in one place and remember to pay bills on time. Finally, don’t forget to take advantage of any rewards programs or cashback opportunities available to make the most of your card. Taking these steps will put you on a path towards building a healthy financial future, and likely provide you with some added perks along the way!

The post Rebuilding Your Credit with a Low CIBIL Score : Tips and Tricks appeared first on Loan Settlement.

When looking for a debt settlement company, it’s important to consider the following factors:

– The company’s fees: Make sure you know how much the company will charge and what services they provide.

– The company’s reputation: Do your research and make sure you choose a reputable company with solid management team and a good track record.

– The company’s experience: Make sure the company has a lot of experience in debt settlement and knows how to negotiate with creditors.

– The company’s approach: Make sure the company has a plan that is right for you and your specific situation.

Loansettlement.com is led by experienced entrepreneurs who are alumni of IIT, IIM and MIT USA. They bring more than 30 years of entrepreneurial experience in varied domains – finance, consulting, online education and global careers management.

Our goal is to assist individuals in financial difficulties in getting out of debt. It’s widely acknowledged that if you default on your loan payments in India, recovery agents will pursue you and your life will become hellish, despite several Supreme Court rulings prohibiting the use of harsh measures during collection. We not only help you to negotiate settlement with the banks/ NBFCs but also put a stop to this kind of illegal harassment.

If you’re looking for a debt settlement company in India, please contact us today. We have significant expertise and we know how to get the best results for our clients.

For more information and to talk to our financial and legal advisors, register at loansettlement.com.

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• The complainant, Vibhu Bhakru, had taken a credit card from the Opposite Party, Standard Chartered Bank in 1999 and had been very regular and prompt at payments.
• On 24.02.2004 an invoice was sent to the complainant demanding payment of Rs.750/- charged on account of renewal. The complainant requested redemption on the points accumulated under the reward scheme by the bank against the renewal charges of which he was assured.
• The credit card duly expired in February 2004 but he was not issued the renewed card. He made several calls to customer care which were unhelpful.
• In May 2004, he was shocked by a telephonic call from an agent of the bank demanding payment of Rs. 28,000/-. Any explanation that he had not used the card after Jan 2004 had fallen on deaf ears after which he was visited by agents who demanded payment towards credit card usage.
• He filed another complaint with customer care but was again demanded payment of Rs. 28,000/-. After a dispute declaration by the Bank in March/April 2004, the complainant started receiving threatening calls. Despite several attempts to mediate the misunderstanding, he once again received a threat on 11.12.2004 for the collection of a levy of 20% on the outstanding if the payment was not made within 20 days.
• The bank claimed the complainant as frivolous who was filed with intentions of unjustly enriching himself at the expense of the OP Bank.

Judgement

The Commission imposed punitive damages of Rs.10 lacs deposited in favor of state consumer welfare fund and Rs.20, 000/- as compensation towards the complainant for trauma, mental agony, and harassment, loss of reputation and loss of creditworthiness.

Learnings from the case

Banks and financial institutions that provide loans and credit cards are not to resort to methods that have no legal back up. They are not to use abusive and threatening languages on the telephone and are most certainly not to visit the residence of consumers. They should keep a record of all the transactions between them and the customer and not demand unfair compensation.

The post Vibhu Bhakru v Standard Chartered Bank appeared first on Loan Settlement.

An important feature of credit cards is the option of paying minimum amount due. If any individual falls short of funds, they can pay the minimum amount offered on the credit card and avoid penalties. However, it is easy to fall into a debt trap if one uses this facility for a long time.

What is minimum amount due?

It is the minimum amount that a person is required to pay on or before the due date of payment to maintain the card account. Minimum amount due is usually calculated at 5% of the outstanding balance. Any unpaid amounts from previous bills also get added to the current minimum amount due. It also gets higher if the cardholder bought something on EMI through the card or spent more than the credit limit.

Most credit cards charge an interest rate of 3% per month which is equivalent to 36% annually. Banks keep levying interest on the outstanding amount left after the payment of the minimum amount. Since the interest rate is very high, most of the minimum amount paid goes towards interest charges and the outstanding amount is reduced marginally.

Let us take an example. Say an individual has an outstanding balance of Rs.50,000 and pays the minimum for each month- the minimum amounting to at least Rs.2000. In this case, it will take a minimum of 44 months for the entire outstanding amount to be paid in full, assuming that there are no more transactions done on the card.

Though the interest on the bill outstanding amount is not waived, minimum amount helps one avoid late payment fee which usually ranges between Rs.100- Rs.1000.

If an individual chooses to pay the minimum amount due, they do get temporary relief but a habit of paying minimum amount every month will result in the total bill multiplying quickly.

What happens if a person chooses not to pay the minimum amount?

A person choosing not to pay the minimum amount of due will be charged an additional fee, interest, and other charges. There may also a possibility of suspension of the card when the dues cross the credit limit. Not to mention that the effect on the creditworthiness and the credit score will make it harder to get loans in the future.

Paying the minimum is okay if it is for genuine reasons and used once in a while. Ideally one should not use more than 50% of their credit limit in a month as credit card spending usually comes with a risk of overspending and it is easy to fall int a debt trap.

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