Improving credit score for education loans

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Last Comment 2022-10-29

2022-10-26

I'm planning to do masters in 1-2 years. For this I'll might require an education loan. I have read that having a credit score is important for getting education loans. I currently don't have any CIBIL score and want to start building my score using an FD based cards.
So the question is:
1. Does the FD amount matter in this respect? Would just 20-30k FD be enough or should I go for a bigger amount (eg. 1 lakh+)?
2. Once my credit score is generated after 3-4 months and I try to get unsecured cards, will the credit limit of unsecured card depend on my current salary or FD card's credit limit? Will doing a small FD (20-30k) affect my chances of getting bigger unsecured credit limit even if my salary is way higher?

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https://www.desidime.com/discussions/improving-credit-score-for-education-loans?page=1#post_8793947

Ramta_Jogi

2022-10-27

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- Just make 1 secured FD of 1 lakh and use it.

- You can also make 1 secured overdraft (loan against FD) from SBI.

- And 1 loan against FD from Indian Bank.

All 3 are reported under different heads.

https://www.desidime.com/discussions/improving-credit-score-for-education-loans?page=1#post_8795659

crashloop

2022-10-28

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Ramta_Jogi wrote:
- Just make 1 secured FD of 1 lakh and use it.

- You can also make 1 secured overdraft (loan against FD) from SBI.

- And 1 loan against FD from Indian Bank.

All 3 are reported under different heads.

Thanks for the info. Is there any reason you suggested SBI for overdraft and Indian Bank for Loan? Can I get all these from any other bank?

https://www.desidime.com/discussions/improving-credit-score-for-education-loans?page=1#post_8795769

Ramta_Jogi

2022-10-28

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crashloop wrote:
Thanks for the info. Is there any reason you suggested SBI for overdraft and Indian Bank for Loan? Can I get all these from any other bank?

I have tried these banks myself and seen how the loan against fd gets reported differently.

Then there is overdraft against Gold deposit and loan against gold deposit. Both gold loan.

No idea about other banks.

https://www.desidime.com/discussions/improving-credit-score-for-education-loans?page=1#post_8796342

BlueFlash

2022-10-29

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Ramta_Jogi wrote:
- Just make 1 secured FD of 1 lakh and use it.

- You can also make 1 secured overdraft (loan against FD) from SBI.

- And 1 loan against FD from Indian Bank.

All 3 are reported under different heads.

What does "reported under different heads" mean ? They get reported as different category of loans (some sub-category of secured loan) ? Or do you mean that all of these get reported as secured loan which is far better than unsecured like normal CC ?

https://www.desidime.com/discussions/improving-credit-score-for-education-loans?page=1#post_8797509

Ramta_Jogi

2022-10-29

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BlueFlash wrote:
What does "reported under different heads" mean ? They get reported as different category of loans (some sub-category of secured loan) ? Or do you mean that all of these get reported as secured loan which is far better than unsecured like normal CC ?

The same type of loan - let's say loan against fixed deposit is reported as a "secured overdraft" in case of SBI when the facility is availed online and as "loan against securities" in case of Indian bank when the facility is availed offline.