Search For Credit Cards

Data released by Reserve Bank of India has showed that the Indian banking industry has had a narrow escape from the effects of global economic slowdown. Banking sector has recorded 17% growth in deposits and a 16.6% growth in loan book in the fiscal last ended that is 2009-10 as compared to the fiscal prior to that.

The industry’s deposits amounted to Rs 47,52,456 crore while advances were R34,97,054 crore in 2009-10.

The major contribution to the growth of the sector in tough conditions has been attributed to the public sector banks. The PSBs recorded a 18.6% growth in deposits amounting to Rs 36,91,802 crore while there was a 19.6% growth in credit offtake which grew to Rs 27,01,300 crore in 2009-10.

On the other hand, deposits of private sector banks saw only 11.7% growth Rs 8,22,801 crore and advances by 9.9 per cent to Rs 6,32,494 crore.

Bank employees have seen a rise in their wages this time.

Read Full Post…

By now, you’ve probably seen or heard that mortgage rates are at or near record lows.

While this is true, it doesn’t mean everyone out there qualifies for a record low mortgage rate.

The low, low mortgage rates you see advertised on television and elsewhere always assume you have an excellent credit score.

In other words, 720 and above, or even 760 and above in some cases.

I recently came across a credit score table from Fico®, the inventors of the Fico score, which illustrates the difference in mortgage rate at different credit scoring levels.

As you can see, a credit score between 760-850 qualifies for the lowest rate, which is a rather arbitrary 3.954% APR (I say arbitrary because a bunch of other factors affect mortgage rates as well).

But we can still pull some value out of this table by looking at the other credit scores and associated mortgage rates.

For example, if your credit score is 620 (what I consider a bad credit score), your mortgage rate shoots up to 5.543%.

That’s more than one-and-a-half percentage points – on a $300,000 loan amount, the difference in monthly payment is nearly $300!

So always be sure to check your credit report months before even thinking of applying for a mortgage to avoid any unexpected surprises and unnecessary rate increases.

Remember, the difference between a good credit score and a bad credit score could be enough to kill your hopes of getting a mortgage altogether!

Tip: How to raise your credit score.

Anyone who has browsed the internet or sat in front of a TV recently has probably seen an advertisement for debt consolidation, debt counseling, credit monitoring, credit repair, or some similar service. This is not surprising, considering the rate at which debt, default, and foreclosures are rising in this troubled economy.

Having a low credit score is an instant disqualification in many important aspects of life, including property or vehicle rentals and even some job applications. For people in serious difficulties, utilizing one of these services may be the only way to repair the credit score. The following is an overview of these services and what they can do to repair credit when used properly.

Professional Planning

The first advantage these services can offer is professional planning, which is provided in the form of an action plan to reduce debt and rehabilitate the credit score.

Read Full Post…

The largest lender of the country, State Bank of India has said that the merger of its associate banks with itself has many strong prospects.

“The remaining associate five banks are not at all hesitating in merger. They are very eager for it,” State Bank Chairman O P Bhatt said.

The banking major has already merged State Bank of Indore and State Bank of Saurashtra.

Bhatt said that the merger of the remaining banks is definite to take place and the a formal permission needs to be taken from the concerned authorities in this regard. It will take four to five years, said Bhatt.

The merger will be beneficial for both employees as well as customers, he said.