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Debt Counselling: Sanjay Agarwal

Source : BUSINESS_STANDARD
Last Updated: Mon, Sep 17, 2012 19:29 hrs
A consumer holds her credit cards in Washington

I read somewhere that credit rating agencies give out credit history to individuals. How can I procure one?
Credit history of individuals is available with credit bureaus and not the credit rating agencies. There are three active credit bureaus in India, Credit Information Bureau (India) Ltd, Equifax Credit Information Services Pvt. Ltd. and Experian Credit Information Company of India Private Ltd. To get your own credit history, you just need to visit their websites and follow the instructions for this. You may get it from any one or all three by paying their nominal charges.

Seven years earlier, I had taken a loan from a co-operative bank. Unfortunately, I was unable to service the loan properly, leading to complications with the bank. Today, I want to apply for a housing loan from a private sector bank. What are the chances of the private bank knowing about my poor credit history? Do co-operative banks also provide data to credit bureaus?
Today, co-operative banks are also providing data to credit bureaus. You may check your credit information report recorded with all three bureaus – Credit Information Bureau (India) Ltd, Experian and Equifax - by following the process mentioned on their websites and confirm whether your defaulted loan appears in their records or not.

I am 26, and earn Rs 35,000 per month. I pay Rs 10,000 as rent and send home another Rs 10,000. The rest is exhausted in paying for lifestyle and related expenses. My monthly saving is around Rs 7,000. I have been using my credit card since three months now. My credit limit is Rs 25,000, of which I have already used Rs 15,000, which I find difficult to pay many times. I don't want to accumulate debt any more and want to get rid of it as soon as possible. Kindly advice.
I always suggest that a credit card revolving credit is the most expensive debt available and it is advisable not to use it. Since you have been saving regularly, I feel you should clear all card dues in one go from your savings and thereon use your card judiciously by clearing all dues on a monthly basis. If you cannot clear all the dues in one go, request your card issuer to convert these dues into EMIs, so that you can pay on a monthly basis.


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