Tuesday, 22 July 2014

Borrowers With Higher Credit Score Have More Chance For Loan

COIMBATORE: Borrowers with a credit score of 700 and above have a higher chance of getting their loan and credit card applications approved by banks, according to a study by Credit Information Bureau (India) Ltd (CIBIL).
 
This, the study said, indicated that Cribil TransUnion score has become an integral risk assessment tool for banks and financial institutions for sanctioning any new credit, Harshala Chandorkar, Senior Vice President, Consumer Relations and Communication, CIBIL, told reporters here today.
 
Credit grantors increasingly relied on CIBIL's services to make objective, faster and prudent lending decisions, she said, adding that many industry leaders also attrributed the decline in defaults and improvement in asset quality to the information support received from CIBIL.
 
To prove her point, Harshala said that usage of credit information has tamed the NPA rate, which was around 1.9 per cent in 2010 to under 1.3 per cent in 2013 and there was almost 30 per cent reduction in NPA rates over the last four years.
 
About 80 per cent of credit active population has a CIBIL TransUnion score greater that 750, which indicate that banks are increasingly lending to borrowers with higher CIBIL, she said.
 
There was more than 200 per cent increase in credit applications over the last three years, Harshala said and added, without revealing the numbers, that highest growth was witnessed in personal loans and two-wheelers segments followed by home loans over the last five years.
 
States of Maharashtra, Andhra Pradesh, Karnataka, Uttar Pradesh and Tamil Nadu contributed to almost 50 per cent of all enquiries for credit, Harshala said.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy: Economic Times

Monday, 21 July 2014

Cybercrimes Alone Cost India Rs 24,630 Crore In 2013

Cybercrime cost India about Rs 24,630 crores ($4 billion) in 2013, according to a report commissioned by the Delhi high court and submitted by Surinder S. Rathi, additional district judge and OSD to Delhi Legal Service Authority (DLSA).
 
The report, however, gave no further details about how it had computed the cost of cybercrime.
 
The report was commissioned in pursuance of a direction by the high court that a comprehensive study must be conducted on various issues, including the cost incurred in running the criminal justice system.
 
The bench of Justices Gita Mittal and J.R. Midha, which is yet to pronounce the quantum of sentence to three convicts, including Vikas Yadav, in the 2002 Nitish Katara murder case, had also asked the DLSA to compute the cost incurred in the trial of this case, besides determining the compensation paying capacity of the convicts.
 
In India, no empirical study has been conducted as to how much does a criminal case cost the exchequer and the taxpayers right from registration of the FIR to its logical conclusion post the trial in sentencing, the report said.
 
It said that despite India having 12,700-odd police stations and 15.70 lakh policemen manning them, incidents of crime have been spiralling uncontrollably.
 
“A lot is being done in this regard by all the stakeholders, but unfortunately owing to lack of scientific methodology and concerted efforts of all concern not much headway could be achieved,” the report said. It also said that the police, the first ring of criminal justice system, was in an almost pitiable state nationwide.
 
“Neither it (police) has the requisite manpower to deliver nor the technical expertise nor the infrastructure to contain crimes. To make things worse malice of corruption is eating into its vitals,” the report said.
 
It said the judiciary, the second ring of criminal justice system, was also not “far behind in fulfilling its constitutional obligations and meeting the expectations of its citizen of delivery of timely justice.”
 
“Courts are inundated with lakhs of cases pending trial. Such is the snail pace of trials that influx of cases at any point of time is outdoing the disposal. All this is resulting in piling up of cases in courts,” the report said.
 
The report also added that the ancillary support system, like jails, juvenile, justice boards, child welfare committees and forensic labs, all need to be brought out of slumber and urgently to save this system from crumbling.
 
On the cost of criminal justice system, the report said that measuring the cost of criminal justice is not easy, yet it is essential to the proper appraisal of any criminal justice system policy. “There is a urgent need to develop a comprehensive methodology for calculating the cost incurred by society on account of various criminal offences,” it said.
 
In its chapter on “Cost of Criminal Justice System,” the report, quoting the National Crime Records Bureau data, said that in 2013, as many as 66.40 lakh criminal complaints were received by the police stations across the nation. It said that in Delhi alone, a total of 86,800 criminal complaints were received at its 175-odd police stations apart from about 89 lakh distress calls received by it in 2013.
 
“Although better part of the world has awaken to the exorbitant financial cost of running the criminal justice system, but our country is yet to take its first step in the right direction. Owing to mindless and unscientific planning all the wings of criminal justice system are highly chaotic in their functioning and are immensely overburdened,” the report said.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: Asia Age

Side Effects Of Multiple Credit Cards

Credit card companies come up with tempting card offers for investors, albeit now more cautiously after the financial markets turmoil, by offering freebies such as life-time free credit, among other things.
 
Customers already possessing credit cards often find themselves taking up such offers and ending up with multiple credit cards. The moot question here is, should you be content with having one credit card or does it make sense to have multiple credit cards and if so, how many are enough?
 
Let’s understand what the benefits and pitfalls of having multiple credit cards could be.
 
Why would one need more than one credit card?
 
Credit Limit: If you feel that your credit limit on the single card doesn’t suffice, then you may need more than one card. Nevertheless, remember, if you have a good payment history, credit card companies reward you by enhancing your credit limit, which may eliminate the need to go in for one extra card.
 
So make sure you make your credit card payments on time- the benefits are manifold. You credit score will not get adversely impacted, you will not have to pay high interest on your card and credit card companies may enhance your credit limit.
 
Convenience: At times, merchants do not accept all cards, for example, some may accept only Visa or MasterCard. So if you have only one card, you may face inconvenience. Also, sometimes your card may get rejected for technical and other reasons. So a back up is required.
 
Fraud Protection: If you use your credit card for online transactions, for fraud protection, you may find it useful to use only one card for such purpose and restrict the credit limit on it, so that even if your card details are hacked, the extent of damage is limited.
 
Benefit-oriented cards: There are some cards which provide maximum privileges or a good deal if used for a particular purpose such as petrol purchases or air miles. You may want to take advantage of the same and therefore have a card for that purpose only.
 
What are the drawbacks of having multiple cards?
 
Credit history: Maintaining a clean credit history is becoming increasingly important with credit bureaus, like Cibil tracking your payment. The probability of missing a payment date is higher if you possess several credit cards as you will have to keep track of the payment date of each of the credit cards. If you renege on your payments, your credit history will be get affected, which will adversely impact your credit score and your ability to get loans in the future. Multiple credit cards require you be to very responsible.
 
Purchasing Power: Credit cards give you the purchasing power as you do not need money in your account to make a purchase. If you are impulsive, then having multiple cards can prove to be a recipe for disaster as you may spend without thinking of your repayment capability. That will result in postponement of payments and over a period of time, accumulate into a large debt.
 
Effort: Managing multiple credit cards is an effort because it requires a proper schedule, which you need to figure out and keep a tab on. You need to keep track of the payment dates, the interest free period and the credit limit.
 
There is no clear cut method that determines how many cards are enough. One may not suffice, because you need a back up just in case your credit card is not getting accepted for whatever reason and also for various other reasons as stated above. But at the same time, having too many cards requires you to act responsibly so that you do not tarnish your credit history and find yourself in a financial mess. So the next time you receive a call for a credit card, ask yourself whether it adds any value for you and whether you will be able to manage it responsibly!

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: Financial Express

Friday, 18 July 2014

Credit Score Says How Likely You Are To Repay A Loan

An individual’s credit score provides a lender with an indication of the “probability of default” of the individual based on their credit history.
 
What is a credit score?
A credit score is a 3-digit numeric summary of your credit history. The score is derived by using the details found in the “Accounts” and “Enquiries” sections on your Credit Information Report (CIR) and ranges from 300 to 900 points.  The closer your score is to 900, the more favourably your loan application will be viewed by a lender. The score plays a critical role in the loan approval process.
 
What does my credit score mean?
An individual’s credit score provides a lender with an indication of the “probability of default” of the individual based on their credit history. What this means in simple English is that the score tells a lender how likely you are to pay back a loan (should the lender choose to sanction your loan) based on your past pattern of credit usage and loan repayment behaviour. The closer you are to 900, the more confidence the lender will have in your ability to repay the loan and hence, the better the chances of your application getting approved.
 
How is the credit score used?
A credit score is used by loan providers to screen loan applications. For example, Bank A may decide that it will decide to only lend to applicants with a credit score for 700 and above.  On the other hand Bank B may decide that it will only lend to applicants with a credit score of 600 and above.  Each lender decides what an adequate score is as per its credit policy. The credit bureau does not recommend what credit score a lender should use as a cut off.
 
However, it is important to note that the credit score is only one of the pieces of information used by a loan provider.  Your income details and overall debt exposure are also considered before a lender takes a decision on your loan application.
 
How do I find out what my credit score is?
You can find out what your credit score is by purchasing from the credit bureau.  The credit score is provided to you along with a CIR so that you have the basis upon which your credit score is calculated. If you feel that there is an inaccuracy on your CIR you should get that corrected because inaccuracies in your “Accounts” or “Enquiries” sections may affect your credit score.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy: DNA

Delhi Cops Teach How To Fight Cyber Crime

NEW DELHI: Delhi Police has donned the mantle of teacher without a cane. In its bid to reach out to people with information about threats of the virtual world, the department's cyber cell will teach students at graduate and postgraduate levels a two-week course on cyber crime, security and forensics, inspired by the success of its first batch of 12 from Sardar Patel University of Police, Security and Criminal Justice, Jodhpur. This batch was inducted on June 16. 
 
"Students from all over India can apply and our officers will shortlist batches as per our infrastructure and constraints. Those pursuing courses in computer applications, forensics and cyber security are eligible," Satish Golcha, joint commissioner of police, Economic Offences Wing, said. 
 
The current batch was explained what crimes like hacking, data theft, crimes of persuasion, credit card, e-banking frauds, extortion, stalking and fake profiling are and how police dealt with them. In the course of the training, senior investigating officers will share their experiences while handling a case. 
 
"We will hold a special session to acquaint students with Trojans, virus, malwares, spywares, Keylogger software and steganography," DCP (EOW) S D Mishra said. "Students learned how to make disk-to-disk images of hard disks, optical drives and pen drives as well as copy information on various mobile phones using Logicube Forensic Dossier, Logicube Talon and FREDDIE. Details about extraction of deleted data and analysis of the imaged data were also taught," DCP (EOW) Mangesh Kashyap said. 
 
Students will now be given extensive training on various aspects of cyber forensic analysis using software tools available in the lab such as Access Data Toolkit, Encase and NUIX. They even had a practical session on tracking website hackers. The batch was taken on a field trip to National Informatics Centre from where all government websites are hosted. 
 
"They were told about the features of Crime and Criminal Tracking Network and Systems, Delhi Police Dossier System, Delhi Police ZIPNET, Delhi Police PCR control room and Delhi Police fingerprint system through interactive sessions at the CCTNS Training Centre," Golcha said. 

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: Times of India

Tuesday, 15 July 2014

Your Deleted Smartphone Data Can Be Recovered!

Selling your used smartphone? Deleting files may not be enough!  Researchers from Prague-based security software company AVAST said they were easily able to retrieve personal data from used smartphones sold online, despite consumers deleting their data.
 
From the used devices, AVAST was able to recover more than 40,000 personal photos, emails, text messages, and – in some cases – the identities of the sellers. ”We purchased a variety of Android devices from sellers across the US and used readily available recovery software to dig up personal information that was previously on the phones,” said Jude McColgan, President of Mobile at AVAST. ”The take-away is that even deleted data on your used phone can be recovered unless you completely overwrite it,” he said.
 
AVAST analysed 20 used smartphones whose previous owners had performed a factory reset or a ‘delete all’ operation on their devices. The researchers were able to recover more than 40,000 stored photos, more than 1,500 family photos of children, more than 1,000 Google searches, over 750 emails and text messages, more than 250 contact names and email addresses, four previous owners’ identities and one completed loan application. ”More than 80,000 used smartphones are for sale daily on eBay in the US. Along with their phones, consumers may not realize they are selling their memories and their identities,” McColgan said.
 
“Images, emails, and other documents deleted from phones can be exploited for identity theft, blackmail, or for even stalking purposes. Selling your used phone is a good way to make a little extra money, but it’s potentially a bad way to protect your privacy,” added McColgan.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

CS IdentityShield helps you to Monitor, Protect and Recover your Identity from multiple risks.

Courtesy: BGR

Monday, 14 July 2014

After Credit Info, Cibil Eyes Insurance Sector

India's largest credit information company, Credit Information Bureau (India), abbreviated as CIBIL, is planning to extend its services to the insurance sector. With members ranging from all leading banks and financial institutions to NBFCs and housing finance companies, Cibil is likely to provide credit information to both life and general insurance companies.
 
The data will help insurers to arrive at a fair pricing—those obtaining high credit scores could bargain for attractive premiums.
 
Speaking on the sidelines of Cibil's third annual credit information conference here on Wednesday, chairman MV Nair said, “We are looking at the insurance industry and have started initial discussions with the insurance regulator, Irda.”
 
He said as Irda was in the process of floating a separate credit information bureau on the lines of Cibil for the insurance industry, the company decided to approach them. “We are talking to the insurance regulator to offer our expertise as well as platform,” said Nair.
 
The whole process of providing credit information to insurers will also be same as in the case of banks: those with a good track record will get benefits and chances are that premiums can be attractive, too. The modalities are yet to be worked out, Nair said.
 
Currently, Cibil caters to financial institutions, including banks, credit card companies, NBFCs, co-operative banks and lenders. Cibil has 840 members and the number of consumer records processed increased to 200 million from 13 million in 2004, he said.
 
Pointing out that the credit information system has brought in huge dymamics into the system, providing a win-win situation for both lenders and borrowers, Nair said the delinquency ratio in credit cards, one of the important retail products, was at 7% for 90 days plus outstanding but after Cibil's offerings since 2008, it has reduced to 1.5%.
 
“This is a clear indication that banks have started using the information on the track record of borrowers. They started choosing the borrowers carefully and this has led the drop in the delinquency rates,” Nair said, adding “huge awareness among the borrowers was another big advantage”.
 
Emphasising the need to have a good credit track record, he said: “Unless the customer has a good score, he may not get a credit card or any other loan; so borrowers will try to keep their payment track record good.”
 
In the housing loan sector, those with a score of 700 numbered around 23% in 2010. Today, the figure has risen to 63% meaning that the banking sector had started choosing borrowers with better scores. The natural sequence will be those who have better scores will bargain for a better price.
 
Cibil had recently tied up with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to offer greater value and comprehensive access to credit and mortgage information to credit institutions and consumers. This partnership will enable both organisations adopt a more co-ordinated approach to their respective functions and collaborate with each other to offer seamless solutions to credit institutions.

Credit Sudhaar is India's first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.

Courtesy: Financial Express