Your Better Half Needs a Better Credit Score
Next time you’re buying jewelry or flowers for your wife, consider that she might be better served by something a little less pretty – but much more necessary. A CIBIL credit rating in her own name. And no, we’re not joking!
In India just 22 % of people have a credit score, and even fewer know their score, which is quite low. Wives who have actually never taken up active work are even less likely to have a CIBIL score.
If you are questioning exactly what all this has to do with and why should your spouse need an independent rating then please continue reading and you’ll discover why…
Why should women have an independent CIBIL credit score?
Primarily when we think about financial self-reliance for women (particularly those who stay-at-home) we think that a separate savings account suffices. Even a a great deal of working married women do not bother about having an independent CIBIL score or give adequate significance to preserving it.
The majority of the times given that husband and wife have a joint account, or due to the fact that the address evidence might be in the husband’s name the better half may not have a credit card in her name; she might be an authorized user on her husbands card. An add-on card such as this does not assist in producing credit history for the add-on user.
Likewise, the loans may be in the name of the husband; this is more likely in case the better half is not working or is self-employed. Out of benefit or ignorance wives or their partners may not give enough attention to this aspect.
Just like one purchases insurance coverage to care for dependents, an independent credit score is a way to ensure your other half’s financial independence with or without you. In an occasion like the death of the spouse or separation (not to sound morbid, however one is smart to be prepared for the worst) women find it difficult to get loans whether for a vehicle or to begin their own business due to absence of a CIBIL rating.
Banks are comfortable lending to people who have some credit trail which shows their treatment of debt.
A loan application is likely to be rejected if there is no CIBIL score or the individual may be forced to obtain at a higher rate. A CIBIL rating paves method to much faster processing of a loan application; a high CIBIL rating can provide the borrower some leverage to negotiate much better terms also.
If the partner has a CIBIL rating then it can be helpful in case the other half’s application for a loan is rejected for some reason. The better half can end up being a primary applicant or maybe the co-applicant too. Typically with a co-applicant the loan eligibility is higher.
4 reasons that women, single or wed; working or non-working ought to have a CIBIL Score:
1. CIBIL rating aids in getting a loan; whether one is wed or single.
2. It guarantees monetary independence; one can start a business or purchase an automobile with the help of a loan.
3. In case the other half is unable to apply for a loan in his name for whatever reasons the wife can do so if she has a CIBIL score.
4. Other half can end up being a co-applicant if she has a CIBIL score; with a co-applicant the loan eligibility is greater.
Ways to get a Credit Score?
For wives who do not have a different income source it may look like a challenging job. It is not! One could begin with the easy procedure of getting a credit card; not an add card however a separate card.
In some cases bank might not want to provide a card to a person who has no stable source of income. In such a circumstance one might look at the option of taking a secured card.
A secured card is a credit card that is issued versus security; usually it’s a set deposit that is utilized as collateral. One might consult the bank– if the bank issues a credit card against a FD.
This card ought to be utilized regularly even if there is a single transaction and the charges need to be paid on time. If one has a credit card it ought to not be surrendered in case of a marital relationship or giving up active employment. It’s a prudent choice to keep the card and utilize it thoroughly continually.
Likewise if your better half has a CIBIL Score in her name she must notify the credit rater about name change post-marriage so that the credit history is carried forward.
Being aware of the importance of a CIBIL score is just the initial step in the trip to credit score self-reliance. Next is to begin a credit path. It is similarly essential to be knowledgeable about the right way to maintain it. And for that, simply stay right here at CreditSmart.in!
Jewelry, flowers, and fashion all come and go, but the long term positive impact and security of having her own CIBIL score will be felt for a lifetime. This year put some effort in to get her that little 3 digit number…Trust us, she’ll love you for it.