- About Coverfox
Living in India is difficult and so is retirement. Therefore, it is better to plan for your retirement at early age for a happily ever after. Just think about the beautiful benefits of a successful retirement plan. You do not need to worry about managing the housing loan or your children’s education, you're free to do whatever you want without any job-related stress. In case there comes a situation where an extra income is required, one can always borrow from a bank. And when you need to borrow money from a bank or a credit institution, a good CIBIL score is an absolute must. Therefore, it is always a good option to have a well maintained CIBIL score during your retirement years as well. It is often easy to maintain a good CIBIL score post-retirement. There is little or no stress as you just need to simply pay your credit card bills on time.
The only way to ensure that your CIBIL score stays high during retirement is via effective maintenance of your debts and liabilities. A credit score is directly affected by the two factors mentioned above. It is better to clear all your debts and liabilities on time and if you don't, then you will have to take money out of your retirement corpus which will again affect your credit score. Another advantage for retirees is that your personal age does not impact the credit score. A credit score can be repaired over a period of six to twelve months, which means that if you’ve managed to pay your credit card debt, at any age, you can almost certainly expect your credit scores to improve.
It is a good habit to monitor and update your credit information report every quarter in a financial year in order to protect yourself from credit errors and identity theft.
Does a good credit score affect insurance premium rate?
Yes, a good credit score can offer you an insurance premium at a suitable rate. Also, you can also bargain for ideal terms and conditions with a high credit score.
What is a loan account?
A loan account is an account which is required to repay the outstanding amount borrowed by an individual. When you apply for a loan from a bank, post approval, the bank will open a loan account in your name which has all the details to the EMI transactions, due date, amount, outstanding, credit balance, rate of interest etc.