What are the ways to earn more credit card points?

Knowing how to earn credit card points and how to use them in the best way is crucial to boost your financial strength. Credit card points and rewards are the issuer’s way of “rewarding” your loyalty. Credit card issuers offer these rewards to build loyalty and cultivate good spending habits amongst cardholders. 

You can use these rewards to get exclusive discounts and benefits that help maximise savings. So, read on to learn how you can earn credit card points to optimise your benefits. 

What is the right way to earn more credit points?

If you are wondering how to earn credit card points, the right way is to make as many credit card transactions as possible and clear your monthly bills on time. If you fail this, even the best credit cards promising great rewards will charge 30% or more interest. 

So, no matter what purchase you make, you should be able to pay it back at the end of your card billing cycle. You should never have a partial payment on your credit card and end up paying interest on your spending.

Delayed or unpaid payments can have a negative impact on your credit score (check your credit score here), which can then affect your eligibility for future borrowing. Always remember not to go beyond your repayment capacity in order to get reward points.

Best ways to earn more credit card points

Check out the best ways through which you can earn more credit card points.

Go cashless, swipe for things that don’t charge a fee

Using your credit card instead of a debit card or cash for transactions and paying your credit card bill at the end of the billing cycle is one of the simplest ways to earn more credit card points. 

All the small purchases, when accumulated, can get you great rewards and bonuses. For example, pay your Wi-Fi bills and Netflix subscriptions through your credit card instead of a debit card.

Use online shopping portals

Using your credit cards for online shopping can be a great way to earn more points. Several brands, such as Apple, Nike, Gap, etc., are available online. You can consider getting the Fibe Axis Bank Credit Card if you prefer online shopping. 

It provides up to 3% cashback on every transaction you make. Along with that, you can link it with your UPI and pay conveniently.

Also Read: Fibe Axis Bank Credit Card on UPI apps

Pay for your colleagues, friends and family

Great offers are available on credit card payments at various merchandisers. See if your friends, neighbours, or other people around you are interested having you pay for them through your card and transferring the amount to your account. 

You will earn more credit card points by purchasing on their behalf and they, too, will be rewarded with discounts and offers. 

Take on office expenses with your rewards Card

If you have expenses at the office that you need to pay for yourself and get redeemed from the office later, then that’s another way to earn more credit points. You can use your credit card for the following reasons:

  • Booking business trip tickets
  • Paying for team and business lunches, dinners, etc.
  • Cab and travel expenses
  • Hotel stay during office travel
  • Business software and subscriptions

You can pay for these expenses conveniently via UPI through the Fibe Axis Bank Credit Card. If the expenses are on the higher side, you can convert them into budget-friendly EMIs and repay the amount conveniently.

Insurance, Home Loan Repayments, Investments, Rent

You can use your card in many places instead of paying with cash, UPI, or net banking. You can then pay the credit card bill and restore the limit. Some options are:

  • Insurance payments
  • Home loan EMIs in case the issuer allows for credit cards
  • Utility bills

Online Groceries 

Groceries and dairy products are something that everyone buys almost every day. Instead of making separate payments, making weekly or monthly payments for them through your credit card can get you more points. 

Make the Best Use of the Reward Structure Available

If you are wondering how to use credit card points, here are some common rewards programs offered on credit cards.

Balance Transfer Option

Occasionally, card issuers run balance transfer programs that may give you points for transferring the balance from one card to another.

Travel Rewards and Air Miles Conversion

Some cards also let you earn credit card points and convert them for air miles. They frequently give you a bonus when converting rewards points to air miles. 

Milestone Points

Some credit cards provide additional reward points for meeting certain spending criteria. You can generally check this through the terms and conditions document that the issuer provides. By tracking this milestone, you can earn more points on your credit card. 

There are several ways to earn more credit card points, but you should only spend what you can repay. You may want to use your credit card everywhere to earn more points, but you should also remember that if you do not pay the bills on time, your credit score can get negatively affected. 

Apart from points, credit cards offer a range of other benefits that help you save more. If you like cashback, the EMI conversion facility, discounts on dining, complimentary airport lounge access and fuel surcharge waivers, the Fibe Axis Bank Credit Card is ideal for you. Get it now on the Fibe App and enjoy instant approval! 

FAQs on How to Earn Credit Card Points

What is the smartest way to use credit card points?

You can use credit card reward points to pay off your card bill. Most commonly, the value of credit card points is 25 paise for 1 point. However, remember that this can vary depending on the issuer. Alternatively, you can redeem these points to get discounts on various purchases.

How to get credit points fast?

Choose the best credit card for points and see which categories of spending help you earn higher rewards, such as travel, dining or online shopping. Additionally, you can go cashless and use your credit card for daily expenses to get more reward points. That said, make sure to use your credit card wisely to avoid overburdening your monthly finances.

How much cash are 5,000 points?

The cash equivalent of reward points varies depending on the credit card and issuer you choose. For some cards, 1 point may be equivalent to ₹0.25 or more. You can check these details by contacting your issuer or checking your credit card statement.

What can HR do to ensure successful retirements?

Retirement isn’t just about employees ending their careers at the respective organization, it’s more than that. The old guard exits the organization while new blood comes in. The vision of retirement involves much more than a simple goodbye. Many teams look exclusively at the financial aspects though, but this pandemic has taught everyone that efforts can be made for a smoother transition.

Here are some strategies and tips to consider for the HR function.

  • Overall Development: Retiring members should be given opportunity to talk to and guide their successors. Knowledge silos whereby the knowledge remains stuck in one place should be avoided and an inter-departmental ideas exchange should take place. Appreciation for other departmental workers can help reduce any future chaos or sub-standard work causing a dent in the organization’s financials. 

Consider periodic retirement assessments to understand how many retirements may take place in the next period so that you can focus on getting replacements and giving a seamless transition to the retiring employees.

  • Don’t undervalue the old guard: Respect the experience your retiring employee has given you and give adequate value to them, even in their last few days. This will let the employees know that you care about them, and they would willingly be ready to share their knowledge and experience with the new blood. This will help in organizational efficiency and will not let a vacuum take place once they retire while someone new comes in. 
  • Choose the better conversation: Rather than being blunt like asking them if they are planning to retire soon or if they are ready to transition to that life, ask them what they plan in their retirement years. Try suggesting to them things they can do to enjoy their after-work life. Talk to them with a positive mindset. The relationship with your employee is what is positioned at the highest level of meaning and purpose. It’s about the journey and not the destination. 

As an HR manager, try participating in that journey to enhance the employee experience. Investing in that experience can assist the organization reap better benefits as the employees will be motivated more to work better, even in their last days.

  • The greatest gift of flexibility: Rather than gifting them a parting gift like a retirement watch or stationery, gift them flexibility. Try creating a creative retirement program for your employees focusing on flexibility as an important factor. The idea is to create something without future expectations or pre-set notions of limitations. 

Find the right tools and resources; engage your employees to design such a plan which will allow the employee to have a seamless transition. You can also get a dedicated career coach. They would help the employees with the self-assessment for in-depth retirement plans. They can help ‘think out of the box’ while considering ‘normal’ retirement plans. You can also consider an alternative to full retirement plans like consulting or as a trainer for the organization.

  • Drafting a succession plan: Once your present employee retires, you need to find a suitable fit to replace them. Rather than just focusing on age, gender, or a particular characteristic; we should focus on finding similar or better skill-sets to help with their roles and responsibilities. This plan would disallow any kind of self-limits and create opportunities while searching for replacements for the retiring employees.

Try utilizing similar strategies before it’s too late. Get on with different programs like What Are Employees Truly Expecting from Financial Wellness Programs?. Early Salary has many blogs and ideas which can help you going ahead Planning for Retirement Extending Financial Wellness Into Retirement, With Technology Financial Wellness – All about having the financial freedom to make choices.

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Your Credit Score Affects Your Job? Here’s How

Whether you are a young professional or a seasoned professional in the workforce for over a decade, entering into a new work environment is like stepping on a new planet.  As you prepare your CV, learn new lingo, there is one more thing you need to check- credit history and credit score. Yes, your credit score can affect your employment. This has been made possible with the tie-up of TransUnion (global credit bureau) and hiring firms which have begun reviewing your credit score too. To know about credit score, read our post explaining everything you need to know here. 

Some public sector units such as the State Bank of India and private corporations have already added the candidate’s CIBIL score in the criterion. SBI in its notice (Ad. No. CRPD/CR/2016-17/01), dated April of 2016 also mentioned that an unsatisfactory CIBIL score, would result in the rejection of the job application.  Read on to know how your credit affects your employment and how it is being evaluated by employers.

Credit Score & Jobs: Security & Background Checks

Your credit report helps in the verification of your identity, background, past employers and education. This prevents identity theft or embezzlement and is a key information source especially if you have omitted any information on your CV/resume. While worthy references add value to your CV, a good credit score can also improve your chances of scoring a position, particularly if the new gig involves financial management or handling sensitive financial work. It is like a proxy variable used to evaluate personal attributes such as reliability and honesty.

Job & Role Fit  

An individual with a good credit score has good financial history and performance. This is seen as a positive act, indicating that you are responsible, unlikely to indulge in illegal activities and can potentially strengthen internal corporate ethics. It is like a macro snapshot of your past employers and how well you have fulfilled your financial responsibilities. It will also indicate whether you were or are in financial distress. Consider, for example, you are applying for an accountant’s job but made mistakes in personal financial management,  why would the employer risk hiring someone who did not fulfil their own obligations?

Impact on Present Performance 

Your credit score may not be high for some genuine reasons, especially in times like these where the pandemic led economic recession affected so many jobs. However, its impact may haunt you for long if corrective action has not been taken. If you are in a debt trap, that would be reflected in a bad credit score. This is likely to amount to financial stress which may affect your performance at work. Even if it might not always be true,  employers may see it as a performance determinant. 

Don’t Let Credit Score Affect your Employment

Avoiding a Credit Score Related Job Loss

Financial discipline in personal life is now as important as professional and educational qualifications when seeking a job opportunity. Credit score as a criterion for employment is more important in few sectors such as telecom, banking and insurance, credit rating agencies. Make sure you prioritise financial wellness so the right career opportunities don’t pass you by.

There’s a lot more that Fibe can help you with. To know how we can help you with financial wellness ideas, credit, or loans to fulfil instant loan needs, by downloading the Fibe app now. Reach out to us on:

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Know about the 3 loans that give you tax benefit

Tax rebates are certainly an added advantage for several types of loans. Education loans, home loans, auto loans, and personal loans are among them. However, it becomes extremely important to understand that while some loans carry a tax benefit along with then, not all loans do.

Any form of loan, no matter how small, is a major financial risk for any customer. Home and car loans, for example, have long repayment terms, making repayment a daunting and tedious process on a regular basis. The Government of India has understood this indeed for free-flowing credit within the economy, and has come up with different tax benefits as a measure to increase the general population’s standard of living. 
To know more about Income Tax 1961, how to maximize savings, check here.
Let’s take a look at three significant loans that are eligible for a tax refund under the Income Tax Act of 1961.

1. REPAYMENT OF EDUCATION LOANS: DEDUCTIONS UNDER SECTION 80E

  • Higher education, whether in India or abroad, is a significant financial investment these days. When faced with a financial emergency, an education loan from a recognized institution will help.
  • It may be used to cover expenditures such as tuition, books, housing, transport, research materials, and other academic-related costs. 
  • Only the interest part of the loan, not the principal, is liable for a tax deduction.

This deduction is in addition to the tuition fee deductions of up to Rs 1.5 lakh that a person may claim under Section 80C.

  • Tax incentives on school loans are available for up to eight years.

Borrowers are usually given a one-year moratorium period before they must begin repaying their loans.

2. DEDUCTIONS/SUBSIDIES UNDER SECTIONS 80C, 24, 80EE, 80EEA, AND CLSS FOR HOME LOANS

A home loan will assist both self-employed and salaried individuals in realizing their dreams of homeownership. But did you know that the loan will help you save money on your taxes?

The government’s tax breaks will significantly reduce the financial burden on home buyers. The Income Tax Act of India provides for interest and principal part exemptions.

  • Section 80C: Under Section 80C of the Income Tax Act of 1961, borrowers can seek a tax refund of up to Rs.1.5 lakh on principal repayment.

To qualify for this deduction, the house must be owned for at least 5 years. Both borrowers can avail a deduction of up to Rs 1.5 lakh for joint home loans.

  • Section 24B: On the annual interest of the EMI charged, a deduction of Rs 2 lakh may be claimed under Section 24B. Both parties to a joint home loan can demand a deduction of Rs 2 lakh each.
  • Section 80EE of the Tax Code: First-time homebuyers are the focus of this segment. Homebuyers have two options for seeking deductions under section 80EE.
  • Option 1: Homebuyers can claim an additional tax deduction of up to Rs.50000 under Section 80EE if the loan amount is less than Rs.35 lakh and the property cost is less than Rs.50 lakh.
  • Option 2: Under section 80EEA, homebuyers can deduct up to Rs 1,50,000 for homes sanctioned on or after April 1, 2019. The house should not be worth more than Rs 45 lakh, and the taxpayer should not have taken advantage of section 80EE deductions.
  • Credit Linked Subsidy Scheme (CLSS): First-time homebuyers can get a tax break of up to Rs 2.67 lakhs under the Pradhan Mantri Awas Yojana.

3. PERSONAL LOANS: INDIRECT DEDUCTIONS BASED ON LOAN USAGE

Personal loan, as we all know, are ideal for getting you out of a financial bind. They’re easy to get because they’re unsecured, but they’re a little pricey because lenders tend to charge high-interest rates.

You can look here to know more about claiming benefits while taking a personal loan.

Many people ask whether they can seek a tax refund on a personal loan because it is not considered part of their income. The tax gain of personal loans is dependent on how they are used. Personal loans for various reasons, such as college, home purchase or renovation, business expansion, and so on, are eligible for tax deductions.

  • Under section 24(b) of the Income Tax Act, tax deductions on interest charged on a personal loan can be claimed if the money is used to pay for a down payment on a home or renovations.
  • When borrowed money is used for a commercial purpose or to buy an asset, the cost of acquisition is increased by the interest charged. As a result, capital gains are reduced, lowering the tax liability.

As you can see, the three loans listed above not only provide cash flow when you’re in a financial bind but also provide tax relief. However, it’s important to note that having a loan, regardless of the sort, is a significant commitment that should not be taken lightly. It is, after all, borrowed money that must be repaid. 

If you’re looking for an instant personal loan for upgrading your quality of life, do check out EarlySalary’s credit suite, enabling you to avail loans for low interest (as low as INR 9/ day). 

 Feel free to contact us for any questions on credit, loans, and your instant cash needs!

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Should I Take A Debt Consolidation Loan?

Materialistic needs and high expectations can trap us in an endless loop of debt. After all, who can resist using that leftover limit on your credit card, a zero percent EMI offer, or that sale with huge discounts?

Would you be taken aback if we told you that the same financial system that gave you all the loans also gives you a way out of the problem? 
Lately, personal loans have become increasingly common – especially for debt consolidation.

A personal loan to pay off high-interest credit card debt might sound harmless, but it shouldn’t be done carelessly. 
Rolling multiple debts, typically high-interest debt such as credit card bills, into a single payment is plausible for moderate amounts of consumer debt.

You can use a personal loan for anything and everything you want. But if you’re thinking of using it as a debt consolidation loan, here’s  a list of things to keep in mind:

A good credit score:

If you want favourable terms and a low-interest rate on your loan, you’ll need at the very least, a good credit score.

You have debt with high-interest:

If you manage to qualify for a lower rate than what you’re paying currently, going for a debt consolidation loan should be a no brainer. 

You have a repayment plan:

Credit cards have no preset repayment plan. If you continually use your card and pay only the minimum amount due every month, you could very well be stuck in a debt trap. Personal loans have a set repayment term making them an outstanding alternative.

Single EMI vs Multiple EMIs:

A Personal Loan for debt consolidation allows you to centralize all your EMIs into a single EMI and pay off your debt, so you no longer have to keep track of the various EMI dates or fret about missing them. Of course, making a monthly single loan payment via EMI is easy.

Debt consolidation for debts on credit card:

If you fail to pay off your credit card dues on time, you will greet penalties. Instead of using revolving credit on your cards, you can take a single Personal Loan which enables you to pay a lower interest rate on your debt. You can also pay it off in easy EMIs over some time.

Quicker Debt Payoff:

A personal Loan comes with a fixed EMI and interest rate over a stipulated tenure, varying from 3 months to 3 years. After debt consolidation, you can also pay off your loan in a short period, with a single payment each month, at a fixed rate of interest. 

If you find yourself persuaded to step into the province of Debt Consolidation, before you apply, figure out what the loan’s lifetime cost will be. We suggest you use a credit card payoff calculator and analyze your expenditure if you continue paying on your credit cards instead.

Then determine if you’ll save sufficient to make the loan process worth it.
Consider the loan quantities, repayment periods, and other features to ensure you find the exact fit. The best debt consolidation loans offer low-interest rates, flexible repayment terms, and low or even no fees. Lenders mostly allow you to get prequalified for a loan before you officially apply.

A consolidation loan may be alluring because it frees up available credit on your credit card. But if you just transfer the debt, and rack up more on those cards you just paid off, you could end up in an even worse financial situation.

Before moving forward with a loan, we advise you to address potential spending issues.
Countless people are now turning to platforms like Fibe to avail loans instantly and especially in times when stepping out of the house is dangerous. Honestly, the SalaryCard from Fibe is your easiest solution.

At Fibe we offer Financial Wellness solutions, Financial Planning, and many more services. Click here to acquaint yourself with the benefits of availing loans from Fibe and the required procedures.

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What do Appraisals Look Like for the Post-Pandemic Year?

Organizations are in a bind when it comes to performance appraisals this year, with interesting implications in line for pay increases, along with the retention of top talent, and overall employee morale in these unprecedented times.

We have already begun to feel the effect of the coronavirus pandemic on key business and people processes through sectors as the global economy struggles to cope. At this point, it’s difficult to estimate the possible cost of this outbreak because we’re still trying to deal with the crisis. However, we can see how the pandemic is impacting different organizations.

The objective of performance management is to pursue a method that helps individuals and teams manage themselves efficiently to achieve their objectives and organizational success. To be efficient, effective performance management should build unity and a common understanding of what needs to be accomplished and what individuals or teams must do, learn, and improve.

Performance reviews are used to equate an employee’s accomplishments to their objectives and aspirations, as well as to set performance criteria for various positions and levels.

Owing to the current state of affairs and low or no business demand, all companies in all industries have reduced critical operations. The aviation, transport, hospitality, and tourism sectors have been hit the hardest by the lockdowns. The car industry is also experiencing significant supply chain disruptions as a result of the outbreak. Salary increases and bonus pay-outs are likely to represent the financial effect of the recession across companies, and these industries are likely to be the hardest hit.

Projected Wage Increase: 9%

Also, the prolonged economic recession that followed the virus pandemic is expected to affect the pay-outs this year. In 2020, Indian workers’ wages are projected to rise by 9.1% on average. According to an Aon report, this wage rise was the smallest in a decade, reflecting the economic downturn we were witnessing. However, the impact of the pandemic on the global economy would be greater. Many companies are taking a wait-and-see approach to determine the current situation, so we can anticipate gradual delays.

Furthermore, we should expect hikes to be cautious, with a greater effect on bonus payouts than fixed pay raises since they are a result of an organization’s business success.

According to a study in a leading financial newspaper, India’s IT services sector will have to freeze pay raises and reduce incentives to cope with the losses incurred as a result of the Covid-19 pandemic. 

Many businesses have communicated the possible financial effect of the pandemic on their workers. Because of the coronavirus pandemic, Google has reported delaying employee performance evaluations and promotions. Back in 2020, Apollo Tyres had confirmed that its top management would receive a pay cut ranging from 15% to 25%. Air India, which is owned by the Indian government, has also announced a cut in allowances. 

Employees are also nervous at the moment, and they are vulnerable to rumors and speculations about appraisals and wage increases, which can damage employee morale. Although the economic downturn is inevitable, we must note that it will pass. Our workers are our most valuable asset.

Employers can create a loyal, committed, and empowered workforce during periods of crisis by being prudent and open in their decisions and communication. It’s time to connect with staff and control their desires. This necessitates companies being proactive and explicitly communicating to their workers the financial effect of the economic recession on revenue and profitability, as well as how this relates to bonus and salary increases. This will not only help them explain the salary changes they intend to make in the future, but it will also help them maintain employee productivity and minimize future turnover.

Organizations cannot afford to lose top talent at a time when they are searching for creative ways to ensure business continuity. As a result, rather than postponing assessment conversations, holding them now would help with future growth and aspirations. In addition to immediate monetary rewards, recognized talent must be told they are top performers through appraisals to be retained. Employee apprehensions would be reduced as a result of appraisal talks, as will greater openness in communication, which is critical during these periods.

This coronavirus pandemic has forced companies to make difficult choices, but it has also allowed them to reflect, rethink their strategy, search for ways to cut additional costs, be creative, introduce effective business continuity models, and most importantly, learn to cope with these difficult times resiliently when leading their teams. These are the groups that will assist organizations in regaining their footing when the time comes.

The year 2019-2020 witnessed a number of layoffs due to the effect of Covid 19.  The most famous of them being Uber technologies who laid off 3000 employees in India. A number of such other countries also laid off employees under pressure from lesser economic activities in the lockdown periods. This definitely resulted in resentment in the hearts of the employees. On the other hand, in the post covid scenario, companies are gradually coming back on track and have started with increasing the salaries of their employees. This has in fact given a boost in the moral status of the employees and increased their performance.

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Here’s How To Get Started on a Financial Wellness Program

Financial wellness has become one of the top concerns for employers and employees alike, throughout the world. The increased sensitivity of several organisations towards their employee’s financial wellness is extremely visible from the Bank of America Report, titled “ 2020 workplace benefits report”. In the said report, it was recorded that as many as 62 percent of the employers feel “extremely responsible” for their employee’s financial wellness in the year 2020, as opposed to just 13 per cent in the year 2013. 

On an individual employee level, financial wellness and the associated stress are some of the most significant concerns in most of the workforce. In fact, according to the Betterment for Business report (2020), as many as 77% of millennials and Gen Z in the workforce are of the opinion that thinking about their finances causes them stress which consequently affects their performance at work. 

From the above reports, it is easy to gauge that in the present times, a financial wellness program has become a must-have benefit for all organisations, regardless of their size or structure. 

Financial wellness Program: What exactly does it mean 

In contemporary times, the organisational setup as well as its goals have become fairly dynamic. A vast majority of the organisations recognise the fact that there is a palpable rise in the employee’s expectation from a financial wellness program. Therefore, it is pertinent to understand what exactly a financial wellness program may mean to each and every stakeholder involved. 

The concept of a financial wellness program has evolved from the exponential growth in the complexities in the field of personal finances. Along with the abundance in the availability of personal finance options, financial wellness programs are essentially aimed at providing effective assistance to all the employees in meeting their personal finance goals.

For instance, with the COVID 19 outbreak, it was seen that even the remote employees needed assistance with respect to the contingent situations arising such as an unexpected medical bill or managing the household or personal finances with salary cuts.

Essentially, a financial wellness programme can entail assistance with respect to matters like consumer credit building, financial goal setting, financial crisis management, personal and household budgeting among others. 

Financial wellness program: Where and how to start

Owing to the very subjective nature of the benefits that a financial wellness program aims to provide, it is not possible to have a straight jacket formula as to what an ‘ideal’ financial wellness program can be. Since personal finances and its related problems will be different for different employees,  no one-size-fits solution can be laid down which will make a financial wellness programme tick.

However, since it plays a  very important role in the organisation’s success, here are a few steps that you can keep in mind: 

  • Identify the diverse and contemporary needs of your employees

The workforce today is far from being homogenous. It comprises people of different generations, different backgrounds and varied personal finance goals and aspirations. The first step is to identify what is the void that we are trying to fill by way of this financial wellness program. 

  • Try finding offbeat approaches or combinations of approaches to the financial wellness of the employees 

Different kinds of personal finance problems can be tackled by different kinds of techniques. It is pivotal that you pick and choose the techniques and facilities that effectively help your employees in the most effective manner. For instance, Google not only offers financial advisors and financial education but also extensively believes in showering its employees with perks like free lunches, happy hours, snack bar et al. So, it is pivotal to choose from a plethora of services that are available today to make such a financial wellness program which suits the needs of your workforce the best. 

  • Have a robust feedback mechanism in place 

Since matters pertaining to personal finances can be extremely subjective, it is important to keep a line of communication open constantly for the ultimate beneficiaries of the financial wellness program. For instance, the personal finance needs of the employees significantly changed during the COVID 19 Pandemic and from office perks, more emphasis had to be given to medical facilities, ergonomic needs for WFH et al. 

  • Try to set up tangible goals for the success of the financial wellness program 

You can set up certain parameters and benchmarks for measuring the success of the financial wellness program and can periodically review its viability keeping these benchmarks and qualitative checks in view. This will render your financial wellness program extremely dynamic, along with being perfectly aligned with your organisation’s growth. 

Concluding words 

Having a well rounded, dynamic and personalised financial wellness program for each and every one of your employees may seem to be a tedious task.  The task is painstaking but definitely not impossible to manage. You can look at how popular brands have designed their financial wellness programs and try to fashion one of your own for your organization.
Apart from that, you can also partner up with a 3rd party organisation that has the requisite knowledge and specialised skills to handle all personal finance needs of your employees. 

We, at Fibe, are your perfect financial wellness partners. With loads of services at your disposal such as easy salary advances, instant loans, flexible EMIs among other things, we can take care of all your employees’ financial wellness needs with just a few clicks. What are you waiting for? Partner up with us and take care of all of your organization’s financial wellness needs. 

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How to Correct CIBIL Score: A Detailed Guide to CIBIL Report Correction

CIBIL scores are significant to prosper in any financial avenue, such as taking a loan or a credit card. This is why learning how to correct the CIBIL score is essential. Financial institutions, including banks and NBFCs, look at your credit score to ascertain your creditworthiness and whether or not you are eligible for loans.

By carrying out the correction process in case of any issues, you can boost your creditworthiness and get easy access to credit. But how can you raise a dispute and maintain the accuracy of your CIBIL score and report?

It is easy to correct credit report mistakes if you know exactly when and how to correct a CIBIL report. Even after you spot the errors in your credit report, the bureau may take a while to resolve your dispute. This is because of a certain set of standard procedures that credit bureaus like TransUnion CIBIL follow. 

Read on to learn more about the process.

How to Spot Credit Report Errors?

Sometimes, there may be minor errors in your report, such as misspelt name, wrong date of birth, incorrect or outdated residential address, etc. It can also be a major error, such as a wrongly credited loan or an outstanding credit balance.

Resolving minor errors is not much of a hassle. However, major issues can be challenging and may take some time to reflect corrections on your report. You can identify any issues by downloading your credit report from the official website and then applying for a CIBIL report correction. Here is an in-depth review of the types of errors you need to look out for:

  • Inaccurate Personal Information

Sometimes, your personal information on the credit report, such as name, age and contact information, could be either misspelt or missing. While going through your report, make sure all the details are correct. Additionally, check there is no error in your Aadhaar and PAN details.

  • Current Balance is Not Updated

Sometimes, your credit report may show an error in your credit balance. These errors occur as a result of the gap between the payment time as the financial institutions only report to the credit bureau every 30-45 days. Thus, it is imperative to check your report periodically.   

  • Incorrect Overdue

Overdue is the amount that you owe your credit provider, which has a significant impact on your credit utilisation ratio and overall score. Thus, it is vital for you always to double-check your overdue amount. 

  • Outstanding Loans

You must check for your outstanding loans and their status. If you have repaid the loan but your credit report says otherwise, immediately file for a CIBIL report correction online. Any delays in payment are reflected in your report and have a significant impact on your creditworthiness. 

  • Duplicate Account

There is a slight possibility of the same account reflecting more than once in your CIBIL report. This can increase your debt, leading to a negative impact on the score. You may also see an account that you have not authorised that has been opened by a fraudster. In such instances, contact your issuer or lender immediately or raise a dispute. 

In conclusion, you should look for incorrect figures, loans/cards, dates or due dates and ensure that the information in your credit report is correct. 

How to Raise a Dispute on Spotting Errors in the CIBIL Report?

For good financial health, you should know how to correct the CIBIL score. For this, you can raise a dispute through the CIBIL website or by sending a letter to the registered office address. Here are the steps to correct the CIBIL report online and offline.

Online CIBIL Dispute Resolution

  • Step 1: Log in to myCIBIL.com with your user credentials
  • Step 2: Check your latest CIBIL score and report  
  • Step 3: Fill the Dispute Request Form online
  • Step 4: Submit the form

Once you successfully submit the dispute form, the bureau will forward your request to the concerned financial institution. They will then review your data and make the required changes. 

You can check the status of your dispute by logging into your CIBIL account. Remember, the entire process may take at least 30 days and you will receive updated and accurate reports from the credit bureau.

Raise CIBIL Dispute Offline

To raise a CIBIL dispute offline, you can write to TransUnion CIBIL by mailing the registered office. You can send the letter with the relevant documents to this address:

TransUnion CIBIL Limited 

(Formerly known as Credit Information Bureau (India) Limited) 

One World Centre, Tower 2A, 19th Floor

Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013

Ph: +91 – 22 – 6638 4600

Specific Problems Reflected in Credit Reports with Solutions

For easier reference, here is a list of common problems associated with credit reports and possible methods to obtain solutions.

  • Problem: Poor Credit History

A low credit score on your credit report indicates irresponsible credit behaviour in the past. Frequent delays in repayment, high utilisation of credit, credit card debts, etc., are some reasons leading to a low credit score. This reduces your ability to avail of credit in the future.

Solution: Make sure you pay your credit card bills and EMIs on time. Borrow only what you need and as per your repayment capacity and avoid making minimum payments. If you’re unable to work with the current plan, try and work out an alternative payment schedule by restructuring repayment with your lender.

  • Problem: Errors in Personal Information

These are minor errors that include misspelt names, age, contact information and errors in account details.

Solution: Get your credit report copy from the credit website and check your personal information. If you spot an error, raise a dispute by filling up the online CIBIL dispute resolution form.

  • Problem: Days Past Due (DPD)

DPD means the number of days since you’ve not paid the due amount. Anything other than ‘000’ or ‘XXX’ in your DPD section indicates you have delayed your payment. This paints a bleak picture of your credit usage and responsibility and lowers your score.

Solution: Multiple late payments will lower your credit score. The best way to avoid this is by setting monthly reminders to pay the amount due before the given due date. You can also set auto-debit instructions to ensure you don’t miss a single payment. However, make sure you have sufficient balance, or you may have to face a penalty from the bank too.

  • Problem: Error With Account Ownership

There may be a few accounts mentioned on your credit reports, but they may actually not be yours. Known as errors with account ownership, this could be an administrative error or could indicate fraudulent usage.

Solution: If there are incorrect mentions of open accounts on your credit report, raise a dispute immediately to avoid further errors. If there are administrative errors, you can raise a dispute to correct them. If it is a fraudulent account, early action will protect your information and creditworthiness.

  • Problem: Overdue for Paid–Off Accounts

Your credit report may show an outstanding overdue amount which you have already paid. There may also be an error in the payment history despite regular payments.

Solution: The lenders submit their data to credit bureaus once in 30-45 days. If you have received a copy of your credit report within this time period and there is an error, it could probably be because your data is not yet reconciled. If there isn’t any change after 45 days, raise a dispute with the bureau to rectify the error.

It is essential to have a high credit score and to attain this, you need to make sure your credit report is up-to-date and error-free. So, generate your credit report regularly and make sure your credit score is not affected by any of the errors mentioned above.

Also Read :  Why CIBIL Score is Important

How to Improve Your CIBIL Score?

Having a low score despite an accurate report means that you need to make some changes to your credit behaviour. With most lenders, a credit score of 750 or above may be helpful in negotiating favourable loan terms. To get there, here is how to correct the CIBIL score with disciplined actions:

  • Make timely payments of your EMIs and credit card bills
  • Raise a dispute with the bureau if you detect any errors in your report
  • Maintain older credit card accounts with excellent repayment patterns
  • Avoid applying for credit too frequently or with many lenders simultaneously
  • Don’t opt for the settlement option
  • Keep your credit utilisation ratio at an acceptable level of 30% or under

Having a healthy credit score can come in handy at any time, more so during emergencies. Therefore, build good credit habits to stay credit-ready. However, if you have a low score and need instant access to funds, you can apply for loans with lenders like Fibe.

At Fibe, we don’t rely on credit scores to gauge your creditworthiness and instead have an alternate credit scoring system. With the Fibe Instant Personal Loan, you can get cash of up to ₹5 lakhs at attractive interest rates and flexible tenures. Download our Personal Loan App or register on the website to apply seamlessly online.

FAQs on CIBIL Report Mistakes

How can I correct my CIBIL score mistake?

You can carry out the process of CIBIL score correction online by submitting the dispute form available on the credit bureau’s official website.

How long does it take to correct a CIBIL score?

Rectifying an error in your credit report and score can take up to 30 days.

What if my CIBIL report is wrong?

If your report has any inaccuracies or inconsistencies, you should immediately report the same by submitting a dispute form available on the official website.

How can I update CIBIL immediately?

Rectification of the errors in your CIBIL report can take up to 30 days. As such, you cannot update the report immediately.

In how many days is the CIBIL score updated?

The credit bureau updates the information in your CIBIL report every 30 to 45 days. You can check your CIBIL report once a month or once every two months to get the updated information and score.

How to clear overdue amounts in CIBIL?

An overdue is the outstanding amount for the previous billing amount. Once you pay all your dues, including EMIs and credit card bills, the overdue amount reflected in your report will clear and your score will improve.

How to report the wrong CIBIL score?

Your CIBIL score is a culmination of the information in your report. As such, you cannot correct the score but rather any inaccurate information in your report. For this, you must learn how to correct a CIBIL report by raising a dispute through an online form. Generally, the bureau takes at least 30 days to offer a resolution.

What is the control number in a CIBIL dispute form?

A control number refers to the ten-digit number mentioned in your CIBIL score report.

How can I correct my CIBIL score immediately?

Two ways to improve your score are to fix credit report errors and pay outstanding EMIs and credit card bills. Even if you take these two approaches, your latest credit score will get updated in 30 to 45 days.

Is it possible to repair my CIBIL score?

Yes! Here are some ways you can achieve a correct CIBIL report:

  • Pay your EMIs and credit card bills on time by setting up autopay or reminders
  • Raise a dispute to fix any errors in your credit report
  • Avoid applying for loans and credit cards frequently
  • Opt for different types of credit
  • Keep your old credit accounts open

How to remove a closed account from your CIBIL report?

Depending on whether they have a positive or negative history, an old account can stay on your credit report for up to 10 years. To remove them, you can file for dispute or formally request your creditor to remove them.

Looking for consumer credit options in this economy? Here is how to do it.

Compiled By : Vimal Saboo, Chief Business Officer at Fibe

About Vimal: He is a Chartered Accountant and comes with an experience of 22 years in banking and credit domain. In his current role at Fibe, he focuses on building the Credit Risk Profiling system and spearhead Credit Risk, Analytics, Collection & Operations.

Retail consumer lending started to pick up momentum in 2000-2004 when private sector banks started focusing on consumer lending, but it had a setback due to the global recession in 2008. The industry came out of recession in 2-3 years and again started to pick up momentum from 2012. In the last 5 years, consumer lending has picked up significant momentum due to participation/innovation from Fintech. 

In India, there are approximately 30 crores individuals who have taken some form of credit from the organized market, and most of it is in the form of consumer durable loans or Kisan credit cards. Total consumer credit outstanding in India is approx. US$ 720 Billion (around Rs 52 lacs crores). Per capita, the average debt outstanding in India is around US$ 550 (Rs 40K) which is around 30% of per capita income.

In the USA, credit culture has been there among consumers for more than a few decades wherein people buy almost everything on credit card and pay in Equated Monthly Instalments. 

Just to give a few numbers, credit card outstanding in the USA is almost US$ 950 Billion translating to approx. US$ 6,500 per capita outstanding. In the US, almost 61% of people have at least one credit card and the average person has 4 credit cards. Mortgage outstanding in the US is around US$ 10 Trillion. An average personal debt carried by an American is around US$ 93,000 which is around 175% of per capita income.

Millennials and Gen Z are more willing to take credit to fulfill their aspirations/discretionary spends hence there will be more consumer credit growth in the next 10 years. Also, with more product innovation like short-term loans, Debit card EMI and buy now pay later (BNPL) in addition to traditional products for buying home, vehicles, credit is becoming more easily accessible by improving customer onboarding experience. 

Now customers have multiple choices for credits at various places like small credit being offered (around Rs 5-10K limit) at different e-commerce platforms to use while buying products/services and pay them in bulk/EMI OR buying the product at zero cost with help of merchants tying up with lenders. 

While the consumers have lots of options but at the same time, the consumer needs to behave rationally/responsibly while taking credit and/or repayment as he has been getting multiple tiny limits from various e-commerce platforms.

Although there is an increase in credit cost due to COVID 19 and its impact will still be seen for the next 2-4 quarters also especially coming from the SME/MSME sector. However, lenders are coming back and started lending aggressively with the introduction of newer products.

Let’s Make Our Finance Full of Colors

Excited to welcome spring and celebrate Holi, most colorful festival of the year? The festival not just reiterates the happiness of being together and embracing each other irrespective of our differences, but also reminds us to get over the evil. 
This year, you can make Holi more colorful and merry with your financial portfolio. As the festival of color is approaching, we share with you 5 ways to make your financial portfolio brighter and more colorful.

1)Get Rid of Bad Debt & Financial Clutter

First step towards financial happiness begins with decluttering. Just like the bonfire on the night before Holi marks the burning of Holika or victory of good over evil, begin with paying off bad debt. Cleaning financial clutter needs time but should be done quickly as they cost you more in terms of interest rate and also erode the potential tax benefits and poorly impact your credit score and creditworthiness. 

As a rule of thumb, steer clear of any form of bad debt or debt for debt, review your bank statements and credit card statement to trace financial clutter. This way you can improve your CIBIL score and get much better offers and interest rates on your future debt applications. It’s a double-edged sword which must be used with caution. However, if you face a cash crunch, stemming from temporary cash-flow problems or emergencies,  evaluate your options and choose the right lender. Borrow from reputed financial sources, such as banks or instant cash loan apps such as Fibe, that offer loans at rates as low as ₹9/day. 

2)Diversify your Assets

Get inspired from the hues of the festival and take a step towards portfolio diversification to reduce your risk exposure and increase return potential. Follow the age old saying- don’t put all your eggs in the same basket. 
A well diversified portfolio should have both market-linked assets which have earning potential of above-average returns and fixed income securities such as bonds, fixed deposits, etc. Some instruments for market-linked instruments are index funds, equities, Systematic Investment Plans or SIPs. This will make sure that your financial wealth grows with the variety of financial instruments just like your excitement from that assortment of gujiyas and laddus. Invest more, spend more!

3)Portfolio Monitoring and Evaluation

Wise spending and smart investing are just the tip of the iceberg. The real challenge is in maintaining a good portfolio and churning at the right time to maximise your wealth. Just as you get together with your friends and family to celebrate Holi amid your busy schedule, make sure you sit with your loved ones to discuss future financial goals, evaluate present investments and check if your portfolio is in sync with your goals and market movements. Check if your portfolio returns are beating inflation and if not, then they may need a churn.  

4)Value Investing 

Just like you check the goodness of sweets and quality of colors during Holi, make sure you check fundamentals such as vintage, credit rating in bonds and other funds, dividend history and most importantly the economic moat. Fundamental analysis can take you a long way in value investing and help you create wealth. 

5)Play safe

Market euphoria is a real phenomenon so watch out for the bubbles and hedge your market exposure accordingly. Follow the advice you give your kids on Holi, to play safe and not to be over enthusiastic. Evaluate your risk appetite and take money decisions accordingly. You can also take a financial advisor’s help to build a portfolio and play safe.
We hope this Holi is full of pretty purple, bright blue, and sun-kissed gulaal and so is your finance. Amid the pandemic, hold on to the spirit of the festival and add colors to your boring and morose portfolio with the above tips. 

Explore Fibe, and know how we can help you with financial wellness ideas, credit, or loans to fulfil instant cash needs, by downloading the Fibe app now.

Download the instant loan app here, or log in to our website and be a part of the #OneSmallStep experience.