ATM :: How Credit Score Can Help in Getting Instant Finance at Electronics Stores


Harshala Chandorkar | Updated On: May 08, 2015 19:45 (IST) | NDTV Profit

ATM

Nita and Meerak, a young couple working in a BPO in Bangalore, used a water cooler at their home each summer. But with the rising heat and diminishing water supply at their place, they planned to purchase an air-conditioner (AC) for the bedroom.

During one of the weekends, they visited a popular electronic store in the mall near their house. But to their dismay, they realised that they did not have enough savings for purchasing the desired AC, as it was costing significantly higher than their budget. The young couple decided to postpone their AC purchase for another year and confided to the sales person at the store that it is out of their budget at the moment.

The sales person at the store then counselled Meerak and Nita on the available finance opportunities at the store which they could avail for purchasing the much needed AC. There was an in-house counter of a leading personal finance company at the store itself where the two went to understand the terms and conditions of the consumer durable loan for purchasing the AC. On discussing with the finance company representative, Nita and Meerak were pleasantly surprised to know that they could instantly avail a loan for purchasing the AC at feasible terms and conditions and take it home the same day.

Meerak then filled the loan application form and provided all the requisite details and proofs. The finance company representative instantly checked Meerak’s CIBIL TransUnion score on his computer. He found Meerak’s CIBIL TransUnion score satisfactory as it aptly met the company’s lending criteria for consumer durable loans. He then explained to Meerak and Nita that because Meerak had a high CIBIL TransUnion score and a good credit history, the finance company was able to provide them finance for purchasing the AC instantly.

Having worked in a financial BPO, Meerak had an understanding of the importance of a good CIBIL TransUnion score and a healthy credit report for availing credit cards and home loans. But only now did he realise the larger role that the CIBIL report and CIBIL TransUnion score played in his life. Due to a good CIBIL TransUnion Score, he and his family could now immediately enjoy the comfort of an AC without having to wait for another year to purchase the same.

Having experienced the benefit of financial discipline and a good CIBIL TransUnion score, the couple resolved to continue to maintain a good credit history and set down some ground rules on managing finances.

Here are a few things to remember:

1) Keep track of all loans and credit card EMIs: Keep a regular check on all the loans and credit cards and ensure that you make the payments before the due date every month.

2) Set payment alerts: In order to better manage payments of credit card bills, set up an alert on phone and email so that you are reminded of the dues even if you forget.

3) Keep track of guaranteed loans: If you have guaranteed a loan, do ensure that the payments on this loan are being made regularly and there is no delinquency or default on them. The guarantor’s CIBIL TransUnion score gets impacted if there is a delinquency or default on the loan repayments by the principal borrower.

4) Review CIBIL report and CIBIL TransUnion score: Before applying for any loan, credit card or finance for electronic goods, do make sure that you check your CIBIL report and CIBIL TransUnion score. This practice will help you avoid any unpleasant circumstances in the form of loan rejection. You can always work towards improving your credit history and CIBIL TransUnion score in case it is low and apply for loans or finance opportunities once it improves.

It is important to understand that a good CIBIL report and CIBIL TransUnion score is very critical for having access to finance when you need it. With availability of instant credit information and score from CIBIL, finance companies are able to assess an applicant’s credit discipline and are able to sanction the loan immediately. A good CIBIL report and a high CIBIL TransUnion score can be your gateway to building a prosperous future.

(Harshala Chandorkar is Senior Vice President-Consumer Services and Communications at CIBIL)

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.

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