Credit Score Improvement Strategies

The way to get out of debt isn't by borrowing more. Do this instead: Debt can be a huge burden for a lot of people, especially when it's taken to fund consumerism. If you're in this position and ready to get out of debt, these are the steps I advise. 💡1. Understand why you got into debt in the first place. Was it due to lifestyle inflation, bad spending habits, funding education, or social influences? 💡2. Get organised. Make a list of everything you owe, to whom they're owed, the interest rate on each loan (or interest amount), minimum payments required and when you're expected to complete payment. 💡3. Get serious with your 'why'. Why do you want to get out of debt and why now? How will this decision affect your life and happiness? 💡4. Make lifestyle adjustments. ➡️ Figure out how much you can dedicate to repaying your loans monthly ➡️ Cut costs creatively and adopt a minimalist lifestyle. Think: Live Lean ➡️ Any expense that is not an absolute necessity should be cut off ➡️ Any extra savings from cutting off unnecessary spending should go into paying off more debt. ➡️ Set a realistic hard target for when this loan will be paid off ➡️ After each paycheck comes, pay debt first, spend what's left. ➡️ If you're actively investing, pause it, but don't sell off anything in your retirement account. ➡️ Always maintain a month's worth of emergency savings. You should save this first before paying off debt. ➡️ Do NOT borrow to offset another debt. ➡️ Find new ways to earn more money. Any extra cash will make reaching this goal quicker. ➡️ Stop comparing yourself to other people. ➡️ If you spent on things that can be substituted, sell them. It's more money to clear the debt. 💡5. Start tracking your spending. There are many good budget and expense trackers online. Pick a decent one and track every penny you spend for the next 30 - 90 days. This activity gives you a sense of accountability over your money, and you get clearer view of where you're sabotaging your efforts. 💡6. Finally, use one of two methods to pay off the debt: ➡️ Snowball Method - here you order your debt from the smallest to largest balance and work on clearing them in that order. Do not factor in the interest rate. ➡️ Avalanche Method - you order the debts from the one with the highest interest rate to the lowest (irrespective of the balance on them), and work on paying them off in that order. Neither is superior to the other, but I believe if debt is a behavioural problem for you, then using the snowball is better. Hope this helps you get some control. ----------------------- #Financefriday

"Why do you consistently monitor your CIBIL score? Are you aware that frequent checks can potentially lower your score?” This notion is commonly reiterated, even by individuals within the credit sector, particularly credit card salespeople. However, is this statement grounded in reality?   I've observed a significant shift in our generation's mindset; we now recognize the importance of our CIBIL score and the need to maintain it. Regularly checking your CIBIL score is not only acceptable but also a commendable habit. Contrary to the belief that it may harm your score, it can actually be beneficial.   Recently, I came across news indicating that landlords in Bangalore are requesting CIBIL scores before renting out spaces, a trend mirrored by several employers. To comprehend the rationale behind checking the CIBIL score, it's essential to distinguish between soft and hard inquiries. A soft inquiry, initiated by you, your employer, or your landlord, serves to assess your score or financial health without formally applying for credit. On the other hand, a hard inquiry is conducted by lenders or credit card providers when reviewing credit applications.   Soft inquiries have no adverse impact on our credit score since they don't involve an official credit application. Conversely, hard inquiries made by lenders during loan applications can temporarily lower the CIBIL score. When we apply for a loan, the lender conducts a hard inquiry, which is recorded in our credit report, potentially leading to a temporary decrease in the credit score.   Contrary to the myth that checking your CIBIL score can harm it, it is advisable to regularly monitor your report. This not only facilitates an understanding of your financial health but also shields you from potential frauds that could negatively impact your credit score. #cibilscore #credithistory #creditcards #loans #personalfinance #breakingthemyth

I received this message two days back. It highlights a critical issue impacting countless small manufacturers (Tier-2 and Tier-3) in India: delayed payments from large OEMs. This isn't just one isolated case; I've heard similar stories from numerous businesses. This delay in payments creates a domino effect throughout the entire supply chain. When OEMs don't pay on time, smaller companies struggle to pay their employees, suppliers (of materials, standard parts, etc.), and meet their own financial obligations. It disrupts cash flow and hinders growth. As the message sender rightly pointed out, it affects everything from timely salaries and employee morale to larger dreams like buying a home or car. It’s surprising that even some of the biggest names in the industry are reportedly delaying payments by 9-12 months in some cases. I've also heard of instances where toolmakers begin work without confirmed purchase orders, adding another layer of risk (trial before the PO). Some companies have even mentioned differing payment terms for overseas suppliers compared to domestic ones. This practice not only hurts MSMEs but also hinders the "Make in India" initiative. Prompt payments are crucial for building a robust and reliable local supply chain. By paying on time, OEMs empower Indian manufacturers to invest in better technology, upskill their workforce, and become more competitive, ultimately benefiting everyone. Of course, there are instances where the quality of parts or tools supplied by MSMEs might lead to payment delays or holds. However, the widespread issue of OEMs delaying payments is a serious problem that needs urgent attention. Addressing this will significantly boost the capabilities of Indian MSMEs and help OEMs localize their supply chains, reducing costs and lead times. I believe this is a conversation worth having. What are your thoughts? How can companies work together to ensure timely payments and support the growth of Indian MSMEs? #MSME

How AI Can Help Human Credit Managers Achieve Higher Efficiency and Effectiveness 💡 Orchestrated multiagent systems represent a major advancement in the decision-making layer. These systems comprise various AI “agents” that can be thought of as virtual coworkers. Enabled by advances in gen AI technology, these agents, like humans, have the capacity to eventually be able to plan (for instance, organize a workflow encompassing a series of tasks), think (come up with chain-of-thought reasoning), and act (use digital tools). These agents, when combined with predictive AI models and digital tools, could fundamentally rewire several domains of the bank. Multiagent systems can automate complex decisions and workflows through a twofold use of AI: 👨💻 The AI orchestration layer handles complex workflows and task planning. These AI orchestrators, programmed to achieve certain goals, are expected to eventually be able to do things like autonomously plan actions, reach decisions, and make use of existing tools, in-house data, and other AI agents to complete stated goals. These AI orchestrators could manifest themselves in the form of increasingly popular copilots for employees and customers. For instance, a copilot for a bank’s credit managers is capable of not just answering questions but orchestrating the entire credit workflow when a customer applies for a loan. 🤖 The AI agent layer comprises AI focused on completing specialized tasks as instructed by the orchestration layer or by other agents. Each of these AI agents, powered by LLMs, is fine-tuned through a combination of domain-specific data and human feedback. For instance, a policy agent, after being provided with the bank’s loan policies and related exceptions, can suggest the appropriate loan terms for a customer, much like a seasoned bank executive would. Meanwhile, a collateral inspection agent can be trained on documents and images related to collateral that customers use to apply for a loan, such as photos of small-business storefronts. As an illustration of how this works, consider how the traditionally complex task of underwriting credit for a small-business customer can be revamped through a mix of AI orchestrators and agents. The traditional way to do this is for humans to handle every step, moving from document collection to a discussion with the customer to assessment of collateral and so on. With orchestrated multiagent systems, agents can handle most of these tasks. A credit manager steps in to review the agents’ output and handle tasks that require the human touch: chatting with the customer, visiting the small business in question, and the final step, presenting the credit offer to the customer 💰 As a result, credit risk teams could evolve into a mix of humans working with many AI orchestrators and agents. Source: McKinsey & Company - https://lnkd.in/ePMv_4Gs #Innovation #Fintech #Banking #FinancialServices #Payments #Lending #AI #MachineLearning #Cloud #LLMs #GenAI 

You might often hear alarming headlines about credit card debt and student loans, but did you know that credit can actually be a powerful tool to advance your financial position? Good credit can open doors to better interest rates, higher credit limits, and even opportunities in housing and employment. On the flip side, bad credit can weigh you down, making it harder to achieve your financial goals. One surprising fact that stood out from our Inspired Money episode "Mastering Credit: Building a Solid Foundation for Financial Health" is that about 70% of credit reports contain serious errors or other mistakes. These errors can negatively impact your credit score, leading to higher interest rates or even credit declines. Good credit can help you in several ways: - Lower Interest Rates: With a higher credit score, lenders see you as less risky, which can help you secure loans and credit cards with lower interest rates. - Higher Credit Limits: Good credit can also allow you to access larger lines of credit, giving you more flexibility for big purchases or emergencies. - Better Housing and Job Opportunities: Many landlords and employers check credit scores as part of their evaluation process. A good credit score can make a positive impression and improve your chances of securing a preferred apartment or job. Tips for Maintaining Good Credit: - Pay Your Bills on Time: Payment history is a significant factor in your credit score. - Keep Balances Low: High credit utilization can negatively affect your credit score. - Monitor Your Credit Reports: Regularly checking your credit reports helps you catch and correct errors that could harm your score. Action Step: Get Your Free Credit Report Given that so many credit reports contain mistakes, it's crucial to review your credit report periodically. You can get a free credit report from credit reporting agencies to check for accuracy and see where you stand. Make sure to dispute any errors you find to help maintain or improve your credit score. Visit: www.annualcreditreport.com Your credit is more than just a number—it's a tool that, when managed well, can help you achieve financial stability and growth. So, take control of your credit today by getting a free report and ensuring your financial health is on the right track. Monitor your credit, manage it wisely, and leverage it to your advantage! What strategies have you found most effective in managing and improving your credit score? Share your thoughts and experiences in the comments. #credit #creditcarddebt #CreditScore #PersonalFinance #FinancialAdvisor

Why Identity Access Management Is Critical for Modern Enterprises Identity Access Management (IAM) is the vital part of any robust security architecture - especially as traditional perimeters dissolve in today’s distributed environments. For technical leaders and practitioners, effective IAM isn’t just about authentication. It’s about implementing continuous, granular controls that adapt to organizational change and emerging risk. Key pillars include: User Access Reconciliation: Regular alignment of granted permissions with actual entitlements in critical systems is non-negotiable. Automated and periodic reconciliation detects orphaned accounts and excessive privileges, reducing attack surfaces. Privileged Access Management (PAM): High-risk accounts with broad capabilities must be tightly governed. PAM enforces strict controls such as just-in-time elevation, session monitoring, and audit trails to protect sensitive assets from exploitation. Timely Access Revocation: When users change roles or exit, immediate deprovisioning is crucial. Delays can leave dormant accounts vulnerable to misuse or compromise. Automated workflows ensure access rights are always in sync with current employment status and responsibilities. Principle of Least Privilege: Users should have the minimal access needed to perform their functions - nothing more. This foundational control limits exposure and contains lateral movement in case of breaches. Periodic Role Transition Audits: Role transitions are inevitable. Regular reviews of access entitlements ensure that evolving responsibilities are matched by appropriate authorizations, preventing privilege creep and segregation-of-duty violations. In a zero-trust era, identity is the new perimeter. Mature IAM programs employ multifactor authentication, continuous role audits, and real-time response to changes, providing both agility and security at enterprise scale. #IAM #CyberSecurity #IdentityManagement #PAM #ZeroTrust

Till Debt Tear Us Apart.. He found himself drowning in debt after using credit cards to cover medical expenses and unexpected emergencies. The monthly statements piled up, and the interest rates seemed overwhelming. He started to panic when look at his savings account. If he continued to hide this issue under the carpet, things would only lead him to a dead end. We sat down together and took a hard look at his financial situation. We discussed the root causes of his debt, it made him realize that understanding these causes was crucial to preventing future financial troubles. We listed out all his debts, from the smallest balance to the largest, but something caught our eye, the interest rates. We decided to come out with a debt repayment plan:focus on paying off the debt with the highest interest rate first while making minimum payments on the rest. Once the highest-interest debt was eliminated, we would move on to the next highest, and so on. This approach would save him money on interest over time and help him become debt-free faster. We started with his credit card, which had a staggering 18% interest rate. We adjusted his budget, cutting out non-essential expenses, and directed all extra funds towards this high-interest debt. It wasn’t easy, but every payment brought him closer to his goal. Month after month, he chipped away at that credit card debt. Finally, the day came when the balance hit zero. The sense of relief and accomplishment was immense. Without missing a beat, he redirected his efforts to the next debt on his list, a personal loan with a 8% interest rate. As he continued his journey, he noticed something amazing. Not only was his debt decreasing, but he was also becoming more financially savvy. He learned to live within his means, avoid unnecessary purchases, and save for emergencies. Each debt he conquered gave him more confidence and control over his finances. Years later, he made his final payment and became completely debt-free. The strategy had worked its magic, and his persistence paid off. He celebrated his financial freedom with a small treat and a promise to himself to stay debt free. By focusing on the highest-interest debts first, he saved money and freed himself from the burden of debt. Getting a handle on your debt can feel overwhelming. But by identifying the root causes of your debt and determining what method of debt repayment is most sustainable, you can create a debt management plan that works for you ,even while you work toward other financial goals. Remember you have the choice to choose your money destiny. #Vivfpjourney #financialplanning

This was 4 years ago. I received an email from a grieving man on the verge of giving up. He clearly asked me to talk him out of committing suicide as his financial situation was making him consider the worst. Fast forward 4 years, I receive another email from the same man, thanking me for an email I had written to him then. I guess something in it helped save his life. This article is about the small pieces of advice for people struggling with debt of their own. A few practical tips. 💸 “1 lakh rupees in your bank account may not seem like much, but if you owe that same amount to someone, it can feel overwhelming.” Share this with someone you think may need right now. We’ve all experienced financial troubles at some point in our lives. I remember when I found myself in a difficult situation over a mere ₹30,000. It felt like a mountain. Threatening calls, visits from aggressive collectors, and the panic in my sister’s voice when she had to face them at home were all too real. It was a wake-up call that made me realize I needed to take control of my finances. If you’re struggling with debt, you’re not alone. Here are six practical strategies that can help you regain your financial footing: Negotiate with Your Lender 🤝 It might sound intimidating, but negotiating with your lender can yield surprising results. I once called my credit card company about a late fee, and after explaining my situation, the charges were waived. I figured it was all about the person I was dealing with at the other end that mattered. He was kind to me and took only a few minutes to call the charges off. Don’t hesitate to ask for a reduction in your liability. Avoid the Debt Spiral 🔄 It’s tempting to take on new debt to pay off existing loans. Resist the urge! Instead, focus on paying off small amounts regularly. Even small payments can make a significant difference over time. Seek Help from Family 👪 Swallow your pride and ask family for help. They can provide interest-free loans, giving you the breathing room you need to address your financial situation. Ditch the Credit Card 🚫💳 Relying on credit cards can lead to overspending and increased debt. Avoid the temptation of using them and focus on living within your means. Increase Your Income 💼 Look for ways to boost your income. Whether it's freelancing, taking on a part-time job, or monetizing a hobby, having extra income can ease your financial burden. Many people are indulging in side hustles, whether alone or with a friend to carve a brighter future. More people are starting businesses these days than ever before. Consider Legal Bankruptcy ⚖️ This point isn’t for everyone. If your debt feels insurmountable, consult a legal advisor about declaring bankruptcy. While this should be a last resort, it can offer a fresh start. ✨ If you’ve faced similar challenges, what strategies worked for you? Share your thoughts below! #FinancialFreedom #DebtManagement #PersonalFinance #LifeLessons #FinancialLiteracy

The Four Quadrants of Payment: A Business Owner’s Journey Being a business owner, I deeply understand the importance of payments. Today, I want to share my journey a story about payments. Payments come in many forms: the salaries of our team, vendor settlements, and payments for services we rely on. Over the years, I’ve lived through all four quadrants of the payment cycle. In the first quadrant, I was an employee, eagerly waiting for my salary to be credited on time. Like many, I felt the anxiety when payments were delayed, and the relief when they arrived as expected. As time passed, I moved into a senior role this was the second quadrant. Here, I began to see the bigger picture. I understood the importance of receivables payments we needed to collect from clients and customers to keep the wheels turning. It became clear how essential cash flow is for any business. Eventually, I stepped into management, entering the third quadrant. In this role, the responsibility of paying vendors on time fell on my shoulders. I realized that delays in vendor payments could disrupt our operations and relationships. It taught me the critical role of discipline and communication in financial commitments. Finally, as a business owner, I arrived at the fourth quadrant the one where you carry the weight of it all. Here, the responsibility isn’t just about receiving payments but also ensuring timely payouts to employees and vendors alike. It’s about balance. It’s about integrity. Having experienced all these phases, we made an important decision in our company: to honour every payment commitment on time, without compromise. We set fixed dates for salaries and vendor payments. And if any issue arises, we make it a point to communicate transparently with our partners about the delay. This simple practice has built tremendous trust in our relationships. Because, at the end of the day, timely payments are not just transactions they’re a reflection of our values. They build credibility, strengthen partnerships, and create a culture of trust and respect. So my message is simple: pay on time, every time. It makes all the difference. The Future wall Kaay Innovation

📉 “Bhai, I never took a loan. My credit score must be excellent!” Umm... hate to break it to you, but that’s not how it works. 😬 Let’s bust some common Credit Score Myths today: 🧠 MYTH 1: No loans = Great score TRUTH: No loans means no credit history. Lenders can’t trust what they can’t track. 🧠 MYTH 2: One missed payment? No big deal. TRUTH: It’s a very big deal. That one miss stays in your report like a permanent stain on your white kurta. 🧠 MYTH 3: Checking your score lowers it. TRUTH: Only lenders doing a “hard inquiry” affect it. You checking your own score? Zero effect. (Stalk your score like your crush’s Insta. No judgment.) 🧠 MYTH 4: Higher income = Higher score TRUTH: Credit score isn’t about your income. It’s about your behaviour. Even a millionaire can have a poor score with bad habits. ✅ Bottom line: Treat your credit score like your fitness—maintain it, track it, improve it over time. Because good credit = cheaper loans = more freedom = financial peace. And who doesn’t want that? #creditscore #financefacts #moneymyths #financialwellness #IndiaFinance