CreditMantri Finserve Private Limited
4th Floor Sudhama, 36 Vijayaraghava Road,T Nagar, Chennai, Tamil Nadu 600017
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
Get answers to commonly asked questions related to the credit score and credit reports
Dealing with credit card debts could seem tough and as a result it could also have an impact on your credit score negatively. In such a scenario, you might be looking for a way out. There are not options available to manage your credit card bill payment by taking another loan. This could also be called credit card consolidation loan for bad credit.
The debt consolidation loan unifies all the debts of the borrower that one owes to various lenders and pays all of them with a lump sum payment. Now the borrower has only one loan to repay which is the debt consolidation loan.
A bad credit history or credit score is a resultant of poor management of your credit. It could be due to any of the following reasons
A bad credit puts you in the bad book of the creditors and any future loan application is turned down due to the above reasons.
When you are overwhelmed with your credit card debt, taking another to pay off your bill payment can help you manage your financial trouble. This is known as debt consolidation. The idea is to pay off existing debts using a single loan thereby leaving you with just one monthly payment rather than several. If you have credit card debt, then most probably you are paying thousands in the form of interest. The goal is to lower the interest rate and the monthly outgo while paying off your debt in a hassle-free manner.
Following are some of the options that you can use to pay off your credit card debts.
Debt Consolidation Loans
There are lenders who offer credit products in the name of debt consolidation loans. The idea of the introducing this kind of loan is to manage all your debts under one loan. The bank offers a certain amount of loan and the rest will be contributed by you to pay off the entire credit card debts. Now you will be repaying the debt consolidation loan alone with interest rate charged. This is an effective method to manage your credit card bill payment if you have not paid for a long time.
A person loan could be a best consolidation tool as it is an unsecured loan and could be taken from any lender. With a bad credit, you might have to be open for unattractive interest rates. However, in general, credit card interest rates are higher than the persona loan interest rates. Hence a personal loan could be a viable option to reduce your credit card debts.
This is another one of the best option if your credit card debt is low. Short-term loans can be obtained with minimal documentation from NBFCs and online lenders. The loans are disbursed quickly, and the process is quick and simple. Most lenders do not use credit score as the criterion to grant short-term loans and you can use this as advantage to clear your credit card debts.
Features of debt consolidation for bad credit
You can get a debt consolidation loan with instant approval. The loan is processed quickly, and you require only minimum documents to get the loan. Most of the debt consolidation loans do not require any collateral and you get it for attractive interest rates.
One cannot improve their bad credit overnight. Having bad credit is not the end. One can improve the credit score by following the steps given below.
1. Paying of your old debt
In case you have a “settled” account – where you have only paid partial amount of your debt or “written off” account – you did not pay your debt at all and the bank has considered it as a bad debt and conveyed the same to the credit bureau, you need to settle those accounts. If you do this, it will boost your credit score.
2. Keep your credit balances low
Make sure that you don’t exceed more than 50 % of your credit limit. This helps you to keep your credit utilization ratio (the proportion between your actual spending and your credit limit) at a lower rate and has a positive impact on your score. For example, if your credit limit is Rs. 1 lakh, make sure that you do not exceed a monthly bill of more than Rs. 50,000. A bigger credit utilisation ratio implies lack of spending discipline.
Remember to pay your dues in full rather than paying the minimum amount for your credit cards.
3. Apply for new accounts only when needed
Make sure that you don’t open too many new credit accounts. Every time you apply for credit (whether a loan or credit card) it results in an enquiry by lenders. Multiple enquiries in your credit report reflect that you are ‘hungry’ for credit and may not be able to fulfil your debt obligations.
A CIBIL™ score is a three digit number between 300 and 900 that gives potential lenders a quick idea of your loan
Credit repair involves rebuilding your credit health to a level where you become eligible for loans.
A CIBIL™ Score is an indicator of an individual’s credit worthiness. It impacts the individual’s ability to borrow
A credit report is a history of your credit behaviour and contains detailed information on all your loan and credit
A credit rating - also known as a credit score - is a 3 digit number between 300-900 that gives potential lenders
A bad credit score is generally one that is less than 650. A credit score is a three digit number in the range of 300-900
Yes. In fact, a credit score of 850 is very good! Most lenders look for a minimum credit score of 750 to approve loans
There are several ways in which you can improve your credit score. Depending on how good or bad your score is,
Is 800 a good credit score? Yes. In fact, a credit score of 800 is very good! Only a small percentage of people reach,
Is it possible to obtain a free credit check or credit report? The answer is yes and no!
Your CIBIL™ Score plays an important role in getting loans and credit cards sanctioned, because it gives lenders
It is not possible for anyone, either lenders or borrowers, to get a CIBIL™ score or credit report for free.
It is important to know that there is no such thing as a CIBIL™ defaulter list. There used to be a defaulter list earlier,
There is really no number that can be established as the average credit score in India. Many people see regular
You can repair your credit absolutely free if you do it yourself! However, many people choose to get professional help
First, it is important to note that there is no ‘Defaulters List’ that is maintained or circulated by CIBIL™ or any of the other
Sourav and Ankit are watching the New York Marathon on TV and decide that they want to run a marathon.
In India, the best credit score to have is one that is 750 or above. The three credit rating agencies that operate in India
Is a credit score of 700 good? While it is not a very bad score, it is not good enough to automatically qualify
It is difficult to get a loan with a credit score of 650. Most banks look for a minimum score of 750 when deciding
It is not likely that you will get a loan with a credit score of 600. Most banks look for a minimum score of 750
It is difficult to get a loan with a credit score of 550. Most banks look for a minimum score of 750 when deciding
A poor CIBIL™ score can increase your financial problems and make it difficult to access credit, whether as a loan or credit.
One common worry that runs through your mind after you have made a credit card settlement is,
Get low interest loans & Lifetime FREE credit cards
Get customized Credit Health Report
Improve your creditworthiness
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.