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8 tips to Improve CIBIL Score !

by Manish Chauhan · 1,103 comments

Is your CIBIL report and Score messed up ? Then the biggest question you must be having is “How to Improve CIBIL Score ?”. “Bad credit score” is really a scary phrase these days. Many people are stuck with a bad credit score/report due to their own or credit card company mistakes, but most of the times I see that it happens due to poor credit behaviour and mis-management of credit officers. Everyone wants to improve cibil score, so that they do not face any issue in getting loans at some point in future. Now in this article, I will highlight few tips/points which will help you understand what makes a great credit report and good credit score. To understand this, just be clear that your credit score is dependent on several things and taking care of each point is very important. Read in detail about CIBIL Score here

1. Late payment / missed payments

The biggest reason for a bad credit score is bad loan repayment history. A lot of people pay their bills late or miss the payment completely. It’s so tempting to pay the minimum balance now and pay the balancing due later. Doing this just saves you from late payment fees, that’s all. The interest is charged and more than that you should be worried because this information is updated by your bank to CIBIL and the next thing is obvious, your credit report and score gets uglier each month because of this. So every time you miss your home loan EMI, car loan EMI, credit card payment or you make a late payment, it affects your score badly. If you have done a lot of late payments or missed payments earlier, its your time to fix it by being more disciplined from now on. Dont worry, if you now promise to pay things on time and do it regularly for next 1-2 yrs, it will surely improve cibil score for you.

Common sense Tip: Don’t pay your bills through cheque just 1 day before the last due date, because it does not mean that your payment is done. Some one will collect it, send it somewhere, then some one will make an entry for it etc, etc… This can take some time and result in delayed payment. Why not drop it 5 days earlier instead of 1 day? Please automate the payments for EMI’s and your bills. If the bills are not fixed each month, at least put a recurring reminder in your phone 5 days before the last date and then make the payment. If I can do this, why can’t you? In last 4 yrs, I have made my FULL credit card payment 48 times exactly 4-10 days earlier than the last date of payment. My CIBIL score is 831. You can also check your CIBIL score online

2. Large Number of credit cards and loans

There was a time when having 6-8 credit cards was a commonly practiced trend and something to show off, now you will pay for it! A lot of credit cards and loans above a “natural” limit is a big negative thing. That shows credit hunger and an extreme dependence on credit in your life. It shows that your life is too much dependent on external credit. Lets say you have two friends Ajay and Robert. Ajay asks for some credit from 2 people in whole year and then asks you for another Rs X and you have good friendship with him, I am sure you will think once and then may be give the money to him. But on the other hand imagine Robert who has taken a credit from 8 people in your office and 2 other people outside office, then when he comes to you and asks for even Rs X/2 amount, you will think 5-10 times before giving it to him. What kind of feelings you will be having in mind? What all doubts will be there in your mind? Some thing same happens in the loan industry, if you have more than “required” or acceptable limit of credits, it badly affects your score. Your score reduces point by point each month.

Common sense tip: If you have a lot of credit cards, better increase the limit of 2-3 of them and close the other credit cards. This way you will have same Credit limit in total and have reduced number of cards. Its better to have 2 cards with 25,000 limit each, than 5 credit cards with 10,000 limit each.

3. Utilizing your full Credit Limit each month

One of the easiest way to improve cibil score is to effectively use your credit card and do not utilize it fully to the limit. If your credit card limit is Rs 50,000 a month and every month you use 40,000 or 45,000, it will affect your score in bad way. Even if you are paying your dues on time, still what it shows is that you are utilizing your limit to fullest, companies don’t know that you might be doing it deliberately to “manage” your credit effectively, but the way it is seen is that your life is dependent on credit. So stop reaching 80% or 90% of your credit limit. A 30%-40% credit utilization is well accepted and seen as “positive” and make sure its the case with all the credit cards you have.

If you have 2 credit cards with limit of Rs 10,000 in first card and Rs 10,000 in second card and you spend Rs 9,000 from first credit card, but Rs 0 from second credit card, then your 1 st credit card utilization is 90% & 0% in second. Which means that you are seen negatively on your first credit card and “positively” on second card, but what you can do is spend 5,000 from first card and Rs 4,000 from second card, so that your credit utilization is 50% and 40% on both the cards and its “positive” on both.

Common sense tip: If you are reaching your limit, either make sure you move to cash/debit card for a part of your expenses and reduce your credit card limit, but in case you can not reduce your expenses on credit card, better call your credit card customer care or write to them that you want your limit to be increased. Most of the companies will do it. Just tell that you have few things lined up in next 2-3 months and you want the limit to be increased.

On the other hand think well before closing a credit card that you are not using. Your over all credit limit will come down if you close a credit card. So make sure you think twice before closing a credit card from credit utilization ratio point of view.

4. Higher percentage of Unsecured credit

A high number/amount of unsecured credit is bad. Unsecured credit here means credit card debt and personal loan debt, which are totally unsecured and you can run away with it. If you have total 1,00,000 worth of debt and out of that 80,000 is because of credit card and personal loan, then 80% of your debt is Unsecured. This is bad. If you had 80% of Secured debt like education/home/auto loan, then it was a different thing. I believe this is very obvious, the more unsecured debt you have, the bad it looks like. It shows that your life has more “emergencies” than a normal person, which makes you hungry for immediate credit. So this makes sure your credit score takes a hit. Remember that having a good mix of credit types is a good idea. So if you have home loan, education loan and credit card, that’s 3 types of loans, which is good. But if you have 5 personal loans and that’s all, it shows too much dependence on one kind of loan.

Common sense tip: Make sure your total unsecured debt, looks small in front of your total debt. You if have 80,000 of unsecured debt out of total debt of 1,00,000, then your unsecured debt ratio is 80%. If you take 5 lacs of secured loan, then your unsecured debt comes down in percentage, that makes things look better. Or make sure you prepay a part of your unsecured debt and bring down the percentage, Its one of the ways to improve cibil score !

5. Being a guarantor without giving a thought

If I take a home loan and ask you to be a guarantor for my home loan because I have helped you with so many things in personal finance, because I have answered so many of your comments and helped in solving your queries, what would you say? Don’t think more on this, you better say “Go to hell”. Because if I default on that home loan, you are held liable and your score will go down. While my score will be affected more, yours will also take a good hit! A lot of people because of various reasons become guarantor for other’s loan and then the primary person runs away or is unable to pay off the loan. Don’t do it, unless you are really sure you want to do it. I can do it for my brother, but not for you.

Common sense tip: Don’t leave your documents here and there, if you don’t agree to become a guarantor, many people try to make you guarantor by forging documents and misusing xerox PAN card or driving licence. Signature is easy to copy these days! Also when your friend who has spent good time with you in last 3 months, asks you to become a guarantor, tell him you were thinking of asking him to be guarantor for your home loan, good way to test the friendship!

6. Duration of your credit history – more is better

Longer the history, better it is. You will trust a 5 yrs old friend more than 3 months old one. That’s true in case of credit history too. If you are paying your payments/EMI’s for all loans on time from last 5 yrs, it’s very much a proof that you pay on time, you have a good history, but if I have a good history from last 5 months, that is not that strong. So higher the duration of good payment history, the better your score will be and will help you to increase cibil score.

Common sense tip: If you do not have a credit card, there is a good reason why you should get one now and do your payments with credit card and pay in full every month, so that your payment history is built.

7. Too many inquiries in short spam of time

Making too many inquiries in a very short time is not looked at positively. Imagine you have made a credit card inquiry, a personal loan inquiry, a car loan inquiry in last 3 months itself. What does it show? It shows credit hunger, it shows that you want to snatch any credit which you can get, you want to get things in life on credit. Hence have a respectable amount of gap between each inquiry you do. Dont apply for home loan with 6 banks. Note that each and every inquiry you do is reported in your credit report and if your report is full of inquiries, your score will stink! Any lender will doubt your payment capacity when you are so much dependent on credit. So the best way to improve cibil score is to keep your enquiries minimum.

Common sense tip: A lot of people just apply for loans even if they really don’t need it, keep this thing in mind and deliberately make sure that there is few months of gap between 2 loan applications (at least 6 months gap would really be good).

8. Settlement of your Loan Or running away

This is the worst mistakes of all. There are people who first take on a lot many loans and then are unable to pay it. So they either ran away (companies mark it as “write-off”) or at best just made some payment and settled the loan (companies mark it as “settled”). And this will make sure you are blacklisted for at least 7 yrs. You will not be given any loan, you can cry your eyes out for that 1 small credit card and you will be treated like you are nothing.

Common sense tip: Cut your debt, when it shows a sign of going out of control. One common ground rule which can be followed it that the overall outstanding credit at any point of time should not be more than 1 month of your take home salary. There is no solution of an out of control credit card debt other than paying it in FULL. Live a life with credit card as if you don’t have one!

Each tip on How to Improve CIBIL Score has its own weightage

Note that different factors which affect your credit score has its own weightage, so one factor can be more stronger than the other, but make sure you follow all the best practices and do not make any wrong decision. Look at your actions from the lender point of you. See what kind of people you would like to give credit if you were the loan provider. Just act like what you had expected

Did you understand how you can improve cibil score ? Can you share some top to increase your credit score , incase its not covered in this article !

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{ 1103 comments… read them below or add one }

1 Ambrish April 2, 2012 at 11:28 am

Hi,

I want to know if I surrender a credit card then in that case what will happen to credit score? Is it advi

Thanks..

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2 Manish Chauhan April 2, 2012 at 5:06 pm

Ambrish

I am not sure if you read the full article . The surrender thing is already covered in the article .

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3 Ramzan Khan February 2, 2013 at 4:13 pm

My cibil score is 524, how can i improve it, i have some outstanding due on me of CITI Bank & HSBC bank for a loan & credit card, please suggest what to do to improve the score & how much time it takes to get the scores improved.

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4 Manish Chauhan February 6, 2013 at 11:50 am

You will have to repay the outstanding back and only then it will start improving !

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5 Subhash Chandra March 19, 2013 at 5:03 pm

My cibil score is 640, how can i improve it, i have some outstanding due HSBC (RS 4977 lone date 29-09-2007) & FULLERTON (RS 1161 lone date 12-07-2007) banks for a personal loan, Can i pay due amount for same banks. After payment clear how much time it will take improve my cibil score , please suggest what to do to improve the score & how much time it takes to get the scores improved.

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6 Manish Chauhan March 21, 2013 at 9:02 am

Just pay off everything and in next 60 days, things should improve

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7 K G MANJUNATH April 2, 2012 at 11:52 am

I was owning HSBC credit card around 5-6 years back with clear history, later due to their cheque collection center negligence, they levied the late fee (approx Rs.150) in the following bill. Later i called them to register my complaint to reverse the late fee, but they least bothered to respond. From then, i stopped using the card ( after few months they also blocked my card) and whenever the collection guys call me i was explained the problem and asked their help. After some time, collection calls also stopped. Even now, often i receive the UPDATED statement, WITH BRILLIANT COMPOUND EFFECT of around Rs.43000. I wish to know, how to register the case against them to claim for the damage for the inconvenience they are causing and damaging my reputation ( IF their “false OUTSTANDING AMOUNT information in the cibil” is reflecting).

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8 Manish Chauhan April 2, 2012 at 5:06 pm

Manjunath

You can file a case using consumer forum : see this article : http://www.jagoinvestor.com/2011/12/consumer-complaints-in-personal-finance.html

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9 K G MANJUNATH April 3, 2012 at 10:43 am

Thank you Mr.Manish, i will approach for the remedy. My past experience with 3-4 credit card companies is they always believe that they are always right !

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10 kuldeep September 2, 2012 at 6:56 pm

Hi Mr KG Manjunath,

You correctly said that they dictate the consumers coz it is fact now they know it is the compulsion of every citizen who r keen to take loan or credit card, that
they have to make payment as levied by them whether it is unfair or fair.
i also suffered due to HSBC credit card, due to interest rate error, i stopped making payment till the matter was resolved, but they didnt do it and in 4 years my hsbc credit card bill was generated from 38000 rs to 168000 rs. now they are saying to make full payment if i want to clear the cbill writeoff
Dear Manish- kindly help and suggest

Reply

11 Manish Chauhan September 2, 2012 at 7:47 pm

Kuldeep

Can you explain what was the interest rate error they were making ? What descrepency did you find in their calculations ? Was it other than what was mentioned in terms and conditions ?

Also now always remember , first settle the matter and then go for any dispute, this is said by even supreme court now , if mistake is from bank side, you will win anyways , but if its from your side, then just because you didnt settle the dispute , the charges will grow like anything.

Manish

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12 kuldeep September 2, 2012 at 8:24 pm

dear manish- i had opted for hsbc credit card in 2006, n i was
26yr old and really dint read and see carefully their t and c. But its for sure
they have charged huge interest since feb’08 when i stopped making payment till 30th dec 2010.. I settled my account with mutual consent with them at rs 24000rs finally from 168k bill amount and when i saw the cbil report. It is updated as ‘post write off settled’

I dont understand for billed amount of nearly 28k, to 168k, how they have charged upon me. And what is post writeoff settled.
Pls suggest way forward.

Thnx

kuldeep

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13 Manish Chauhan September 2, 2012 at 8:31 pm

You paid less money , rest of the money you never paid and it kept increasing , SELTTLEMENT does not mean the closing of case. Its just a temporary solution where they dont run after you and take a small amount atleast. Where did the bank go against their terms and conditions, can you point out ?

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14 kuldeep September 2, 2012 at 8:49 pm

manish,
but is this like the finance institution in india, where they are cheating with the customers specifically mnc’s bank, and i am damnn sure, if it was the case of icici,hdfc or other bank credit card, then in 4years bill amount wouldnt have been increased from 28k to 168k rs.

Could you expect 5times amount of base amount in 4 years.

Kuldeep

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15 Manish Chauhan September 2, 2012 at 8:51 pm

Kuldeep

Your comment shows you dont understand how credit card interest works, Its compounded monthly and its around 3-4% , which means 50% a year , which means 5-6 times in 4 yrs .. See your credit card interest rate . How much is it . Read this article – http://www.jagoinvestor.com/2012/05/myth-of-minimum-balance-in-credit-cards.html

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16 Abhishek Kumar November 27, 2012 at 12:02 am

Hi Manish Chauhan!

I am Abhishek, has 3 credit card, HDFC-50000, HSBS- 50000 and Centurion Bank Of Punjab 10000,

I have used all credit limit for all the cards in 2008, now I have made settlement of HDFC card after paying 31000.

Where i have checked with HDFC guy, the said to pay minimum 78000 to get noc status on cibil, other wise it will always settled on the CIBIL portal.

Now please advice me , what to do how i can improve my score because now it is only 590. in any case i need my score more than 750. kindly advice me the best way to get all these goof-up resolve.

I have nor checked what those(HSBC & Centurion Bank of Punjab.) people, how much i have to pay them.

With Regards,
Abhishek Kumar

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17 Manish Chauhan November 30, 2012 at 1:44 pm

If you had settled in past, then you need to clear all the money , there is no other alternative !

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18 Pramod June 25, 2013 at 5:56 pm

Hi Manish, How the CIBIL score is calculated?

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19 Credexpert June 27, 2013 at 11:58 am

Dear Pramod,

Lending institutions update borrower’s credit information to credit bureaus on a monthly or a quarterly basis. Based on this information the credit score is calculated. The various factors that are considered for calculation of score include repayment history, outstanding balance, no. of secured and unsecured loans, no. of enquiries etc.

Although credit report and score is an important tool considered by lending institutions for evaluation of a credit application, they also consider their internal credit policies for the same.

Regards,
Credexpert

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20 Pramod June 27, 2013 at 12:25 pm

Thanks for the information. How can I see my score? where will we get?

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21 Credexpert June 28, 2013 at 9:54 am

Dear Pramod,

There are two ways you can get your CIBIL Credit Report and Score i.e. Online method and Offline method. Visit http://www.cibil.com for further information on the process, fees and KYC requirements.

Regards,
Credexpert

22 Manish Chauhan July 1, 2013 at 4:25 pm

On cibil website !

23 Manish Chauhan July 1, 2013 at 4:56 pm

Its not public :) . Its a propritary algorthim !

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24 Prabu Raja April 2, 2012 at 12:42 pm

How much money you got from Banks to write this post?

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25 Ajay April 2, 2012 at 2:55 pm

@prabhu – Why would you say that ? Nothing here is “pro-bank”. Every point here makes complete sense, isnt it ?

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26 Prabu Raja April 2, 2012 at 4:58 pm

As people of rich Indian culture, we should understand and inherit the values of our forefathers. Did our parents bought instant chapati/idli flour using their credit cards? We get salary! why dont we just pay the money and buy? If we did this, we dont’ve to beg our banks for credit scores.

And well, do you call this “Common sense tip” as pro-bank or pro-people?:
//
Common sense tip: If you do not have a credit card, there is a good reason why you should get one now and do your payments with credit card and pay in full every month, so that your payment history is built.
//

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27 Manish Chauhan April 2, 2012 at 5:18 pm

Prabhu

I am not sure if you understood the full context here .. a lot of people are not getting a loan just because they dont have a credit score .. so if you dont have a credit card , you dont have a history of payment and hence a lot of home loan / car loans etc are not willing to give you any credit .

So the suggestion is to pay by cards incase you are doing it by cash anyways . A lot of people buy from super markets and pay by debit card anyways . I know you are advocating that one should not use the cards without any reasons and for small things .. I agree with you on that part . But all I am saying is that you can use credit cards to build your credit history, I am not suggesting to get cards so that you can splurge … All I am suggesting is a strategy , nothing else ..

At the end, the decision is on a person and if he sees any value in this or not . many will see and many will not . Its totally on the person to see what actions they want to see.

What do you think on this now ? Or you still disagree ?

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28 Soubhagya Kumar Patra April 2, 2012 at 10:18 pm

Dear Manish,
Nice & quite logical answer. Hope Prabhu got the point..

@Prabhu, if you have any concerns, it should not be the way to put your views.. “How much money you got from Banks to write this post?”.. could have presented in the diff way..

Thank you.

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29 Ankur April 2, 2012 at 5:46 pm

@Prabhu: For many people credit card is not a luxury but it’s a necessity. My business needs require require payments to be made online where merchants would only accept credit cards and not debit cards/netbankings etc.

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30 Manish Chauhan April 2, 2012 at 5:53 pm

Ankur

What kind of payments are those ? I thought now a days debit card is accepted in each and every thing !

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31 Ankur April 2, 2012 at 10:22 pm

@Manish: International payments where subscription using a credit card is required and where Virtual Credit Cards won’t work, Aweber is one such example which you are familiar with. (Since you use Aweber for your list management)

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32 Manish Chauhan April 3, 2012 at 10:37 am

Yea .. got it .. it didnt come to my mind :)

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33 Sekhar April 2, 2012 at 10:21 pm

Dear Prabu Raja,

If people understand the importance of Credit Card, they don’t have poor credit behavior.

Let’s take one example,

3 months before, Mr. XXXXX got the job in a good company and his monthly take home salary is 20K. His monthly savings are 10K and recently bought one Health Insurance, Term Insurance and rest of the money investing in Mutual funds. One day, he met a major accident and joined hospital. But he had to pay 50K in advance. How can he pay that much amount if he doesn’t have? He has to borrowing money from colleagues, relatives or using his Credit Card or selling Gold. What is your best suggestion?

In India, Our parents failed to teach us the importance of Money. But we should not do the same mistake to our next generation.

One must have credit card and use it as Emergency Fund.

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34 Manish Chauhan April 2, 2012 at 4:51 pm

Prabhu

What is your guess :)

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35 Prabu Raja April 3, 2012 at 12:11 pm

By the comments, I can see people taking this post in different context.
It’s my misunderstanding.

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36 Manish Chauhan April 3, 2012 at 4:56 pm

Not an issue Prabu .. happens all the time :) .. keep visiting and share your knowledge with others !

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37 Jai September 7, 2012 at 1:25 am

Hi yaar i jst want to knw i didnt paid my postpaid bills of my phone..is it effct my crdt scre..or i vl face prblm to get loans and crdt crds.

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38 Manish Chauhan September 8, 2012 at 9:34 pm

As of now , it will not affect, but in future it can . Better pay it off !

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39 Rohit Verma April 2, 2012 at 2:37 pm

Great Read, Manish. Thanks a ton.

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40 Manish Chauhan April 2, 2012 at 4:49 pm

Thanks Rohit .. hope you learnt some good points here

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41 Ankur April 2, 2012 at 5:50 pm

@Manish: My favorite was – “On the other hand think well before closing a credit card that you are not using. ” because of the utilization factor you discussed above. It could have been a point in itself.
Thanks. Nice article as always.

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42 Manish Chauhan April 2, 2012 at 5:54 pm

Yea ..

On one hand closing the unused cards seem to be a wise decision , but on the other hand if you go into technicalities, its not a wise decision .. :)

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43 Rye Campbell April 2, 2012 at 8:55 pm

Most people become late because they are mostly unaware of payment timeframes. Even if you pay online through your own bank account to your credit card account there is still a processing timeframe and a cutoff time. I suggest you take the time to discuss the payment method options and posting timeframe for your credit card payments with a customer support representative. Most credit cards have an option to pay over the phone, pay through your credit card account online which by the way could be separate from your actual online banking account so they may have different posting timeframes, and also consider that banks won’t process payments on weekends and holidays but you can always do a payment over the phone.

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44 Manish Chauhan April 3, 2012 at 10:40 am

I hope these are true for India ?

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45 Mohit Kochhar April 7, 2012 at 4:17 pm

There is also option to pay through NEFT by internet banking. In that case your payment credited to credit card account same day or within 1- 2 hours.

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46 Suhas April 2, 2012 at 9:28 pm

Manish,

Thanks for the article……
I think Prabu does not require any credit in his lifetime & he is reading all investment ………..

From my last CIBIL report I have observed one thing that my credit card bank has not reported my card credit limit till now to CIBIL instead they have just reported the highest credit in last 3 yrs and the current outstanding both of which is just 20% and all full payments.
Also I updated from gold card to platinum and got updated my limits 2 times where as they reported the enquiry amount 3 times as Rs 1000/- only….:)

By the way I use only one credit card and have a Home loan & corporate personal loan & my CIBIL score is 830….:))
Thanks for your earlier post which helped me to find all his.

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47 Manish Chauhan April 3, 2012 at 10:39 am

Good to hear that ! .. ask your bank what is their policies on updating the CIBIL on the customers action on monthly basis ?

Manish

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48 Pankaj April 3, 2012 at 11:05 am

Manish,

Another great and well timed article! In fact I was happy with your reply to my earlier query on another article for improving my current score from 822 to best possible.

Although your reply / comment was sufficient but, Voila! you come up with such a detailed and informative article about improving CIBIL Credit Score that I am so thankful to you.

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49 Pankaj April 3, 2012 at 11:39 am

Dear Mr. Prabhu Raja,

Please don’t consider Credit Cards as some “Evil Vice”. As I have been judiciously using Credit cards since June 2005. http://crosswordsguy.blogspot.in/2007/03/winner-icici-airtel-rewards-hpcl-gold.html

I hold 7 Co Branded Credit Cards and till date (Since past 7 years) I have never paid any interest fee, never defaulted on payments. I would say if one pay all the dues in time and never splurge than in my opinion Plastic Money is the best instrument for making payments.

Also, I suggest you to kindly go thru the articles written by Manish; and do read comments of readers. Than only you will come to know that Manish and team http://www.jagoinvestor.com publish totally UNBIASED views. I myself have got lot of help / advice (that too FREE) thru JagoInvestor. I went for Health Insurance, Accidental Insurance, Term Insurance and SIP only after reading the articles, comments and reviews on this website.

Regards,
Pankaj

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50 Taheer April 3, 2012 at 1:52 pm

Hi,

Thanks a lot for all these tips. Coming to the point, 3 years back i closed all my credit cards. i was having a home loan which i closed last year. During my home loan tenure due to negligency i did not pay my EMI’s on time. It has affected my cibil rating like anything. I want to increase my cibil rating but i am not getting any personal loan/Credit card now. Is there any way left for me to improve my cibil score without any credit card and loans.

Kindly advice.

Thanks,
Taheer

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51 Nick August 26, 2012 at 1:48 am

Hi Taheer,

You can go for a prepaid card through which you can improve your CIBIL score. This is the best way to improve cibil score without using any Credit card. You can check it out in the website as well.

Thanks

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52 Manish Chauhan August 26, 2012 at 11:45 am

Nick , can you explain more on this ? What is this prepaid card ?

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53 Krishanu April 3, 2012 at 2:41 pm

Hi Manish,

Nice article.
One query here: Suppose someone applied for a Loan from his LIC/FD/RD (I have seen people doing this) , does that activity reported to CIBIL/Equifax?

Thanks & Regards,
Krishanu

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54 Manish Chauhan April 3, 2012 at 4:46 pm

Krishnan

Yes .. why not .. loan is a loan , secured or unsecured ! . the security is just there incase you run away ..

Manish

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55 Murugesh April 3, 2012 at 10:59 pm

Hi Manish,

Nice article, you explained all the points. people who reads this article they will start managing the credit scores as well. Even i personally recommended to many of friends to read your articles.

regrds,
Murugesh

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56 Manish Chauhan April 6, 2012 at 11:04 am

Thanks Murugesh

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57 Ashish December 18, 2014 at 12:21 am

Hello Manish,

I would like to understand the difference between cibil and equifax score.
I have got both the scores my cibil score is 673 and equifax score id 923.
But bank considers CIBIL scores. I need to understand why there is so much gap in these two scores.
Also, after knowing about the credit scores I have paid my outstanding of my ICICI CREDIT CARD OF 6233 and got closed that account with NDC.
Can you please let me know how much time it would take to improve my CIBIL Score.
ASHISH,

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58 Credexpert December 18, 2014 at 11:28 am

Dear Sir,

CIBIL score is a numerical score which ranges from 300 to 900, whereas Equifax score ranges from 1 to 999. CIBIL was the first credit bureau in India that initiated giving credit scores for individuals. Most banks and lending institutions are members of CIBIL and update the credit details of their respective clients to CIBIL.

The credit score is generated based on the data submitted by the member banks and lending institutions of the credit bureau. Different members contributing different data to different credit bureaus will lead to different credit scores. Also, each credit bureau will have its own specific algorithm for generating the credit scores.

Improvement of credit score is a time consuming process and eventually your score will improve once you have built a good credit history. It is difficult to say how much time this will take and to what extent will it improve. However, it is important that you build and continue to maintain good credit behaviour.

Regards,
Credexpert

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59 Veeraf April 4, 2012 at 10:59 am

Dear Manish,

Getting a credit card against FD is not covered in your article. Does it not increase credit score. Please advise.
Also please suggest any good credit cards with zero annual fees and joining fees.
Even a link to compare credit cards would be helpful.

Best regards,
Veeraf.

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60 Pankaj April 4, 2012 at 12:22 pm

@ Veeraf

Regarding suggestion regarding Credit Cards it would be advisable if you ask the question on Jagoinvestor Forum. As Manish, Nandish and other readers provide their valuable advice on many issues….

http://www.jagoinvestor.com/forum/is-there-any-credit-card-available-at-present-without-annual-charges-if-yes-give-me-the-details-pl/3140/

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61 Veeraf April 4, 2012 at 6:29 pm

Does credit card against FD increase credit score? Please advise.

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62 Manish Chauhan April 6, 2012 at 10:22 am

Yes , all the credit cards are same !

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63 Arun June 19, 2012 at 3:58 pm

Dear Manish,

I’ve few doubts on CIBIL credit score.

I applied fo a personal loan in 2007 and closed on 2011 within the loan duration. But in the middle, I had around 13 cheque bounces which cost me the CIBIL score to 814 out of 900.

I received the loan closure letter and and the letter titled as “SETTLEMENT OF HDFC BANK LOAN – 12887739″. Here I want to ensure that because of settlement which I made is a major issue or due to cheque bounces.

I recently applied personal from ICICI and HDFC. But both got rejected due to cheque bounces.

Should I need to close this loan by normal closure? Would the Settlement stand upto 7years? What to do on this? Please advice me on this and provide me your mail ID.

Regards,

arun

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64 Manish Chauhan June 19, 2012 at 6:43 pm

Arun

If you have done SETTLEMENT (means paying less than the outstanding) , then yes it will be there for atleast 7 yrs . Settlement is reported to CIBIL .

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65 Manish Chauhan April 6, 2012 at 10:54 am

Veeraf

Credit card against FD or any normal credit card does the same thing. so when I say dont delay your payments or make regualar payments , its applicable to all kind of loans

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66 Srinivas April 4, 2012 at 1:14 pm

Good information and discussion.

However, one point defies logic(for me). It is the usage of credit.

Let me take my example. I have single credit card with an ancient limit of Rs 50000. I am maintaining the same and usually go to 70-80 %, but payback in full always. As per the discussion, i deduced that that is an inefficient way of using credit. Ideally i should have one more card and use 30-40 % of each. This difies logic.

Ideally the monthly usage should be seen as a percentage of salary to make a decision on usage of credit by an individual.

May have to get the report and study it.

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67 Manish Chauhan April 6, 2012 at 10:26 am

Srinivas

sadly its not looked like that .. your credit limit is generally way above your average usage .. 70% of the limit is still ok , I think you can reduce it to 50% or max 60%

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68 Ravi April 4, 2012 at 5:37 pm

Hi,
Good information about score of the credit card.
Just needed to know that while filing up information online for the CIBIL report, does one needs to fill the oldest Credit card or the latest.
Like for example, In a span of 5 yrs, one has 3 different credit cards bought at different time intervals, so will the oldest credit card entry needs to be entered, or the latest.
Also if a person holds suppose 5 credit cards, how does he enter the same in online?

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69 Manish Chauhan April 6, 2012 at 10:27 am

ravi

not sure on this , but try the oldest one !

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70 RAMESH April 9, 2012 at 5:47 pm

Hi Manish,
Does all the banks and financial institutions are checking CIBIL Score for sanctioning home loan ?

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71 Manish Chauhan April 10, 2012 at 3:48 pm

Ramesh

YES .. ALL of them

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72 Rahul April 9, 2012 at 11:24 pm

Is educational loan repayment captured in CIBIL?

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73 Manish Chauhan April 10, 2012 at 2:56 pm

Rahul

Yes

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74 Vicky April 11, 2012 at 4:41 pm

Manish,
Thanks for such a wonderful article but things happened to me already. Due to some personal reason I didn’t paid the CC bills timely & I stopped paying bills. Later I thought not to be a defaulter & accepted to pay the settled amount at the 6% of the total bill.
I went for a settlement which I completed without any delay & cleared off last year. It was about 28,000. I got my credit report via CIBIL (online) which shows a score of 833 as of Feb 20, 2012 also status is settled. But as you wrote in the article; I won’t be getting any CC/Loan for the next 7yrs. is that true??
Please advise what can be done?

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75 Vicky April 12, 2012 at 10:08 am

Sorry 6% was the discount offered by bank for the settlement on the total outstanding amount.

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76 Manish Chauhan April 17, 2012 at 8:20 pm

Vicky

that is strange .. your score should have been lower , but its not .. just because your score is 833 , it does not mean you will get a loan, the lender will also see the remarks in your report and if they see “settled” in your report , the chances are very high that they will reject your loan despite a good score !

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77 Nag April 13, 2012 at 7:51 pm

Hi Manish,

Would part payment of Home loan/auto loan improve the CIBIL score ?

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78 Manish Chauhan April 17, 2012 at 3:49 pm

Nag

Not much !

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79 Anirudh April 29, 2012 at 12:32 pm

Hi Manish,

Very informative article. Just wanted to get some suggestions regarding a couple of things from you (I do not have many friends or know many people who I can go to for financial advice).

First of all, I am in a very bad financial situation, lots of late payments on debts and two credit cards, which have been totally utilized, and I am sure my CIBIL score is too bad since I have defaulted on on-time payments many times and have settled a couple of loans too, and no bank is ready to even touch me with a barge pole, so to say (all due to my foolishness and dumb ways of managing my finances, for which I am repenting big time now).

Manish, how do I improve my credit score from here? Would going to somebody like Debt Doctor be helpful? How long does it take for a negative CIBIL score to be made positive? Your suggestions would be very helpful. Thanks in advance.

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80 Manish Chauhan May 1, 2012 at 11:39 am

Anirudh

You dont need to see a debt doctor . All you need to do is some restructuring in your financial life and life too .. If I can directly say , go for our financial coaching program where we work with you on one to one level to give a new direction to your financial life . As of now, the only option if to first clear off all your loans in FULL (even those which were settled) , get a secured credit card against a FD or some existing investments and then repay each month some bill on that . I see that in next 1-2 yrs, you can see some good improvement in your score .

But before that, first check your credit report and score ! . Dont make assumptions .

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81 Himanshu May 4, 2012 at 9:22 pm

Manish a question here does my cibil score with effect my wife’s Cibil history as well? I Know I have a bad cibil score(got the score recently) so Loans are a luxury I don’t have I still have a credit card so I will work on the points to improve it now. But If my wife applies for a loan will my bad credit history affect her as well?

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82 Manish Chauhan May 5, 2012 at 12:09 pm

No , ideally it should not be at all

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83 Kumar May 6, 2012 at 3:39 pm

Manish – good website..

Had a question regarding a couple of late payments on my credit cards..i usually have paid in full and on time..and my home loan / car loan have been paid in full or being paid on time every time..essentially if on auto debit, they are on time, else a couple of occasional late payments..usually settled in full over a 3-4 weeks from due date.

Will my credit score be impacted and if so by how much ? I don’t want to check unless i have to..

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84 Vivek May 8, 2012 at 10:18 am

Credit off-take has become problem for Banks. There are not many good applications coming in. Credit card delinquency is a major problem. However, just because there have been few instances of Late Payments does not mean you will not get a loan. Banks are not stickler for rules, esp. private banks. Minor stuffs will be ignored or at best your interest rate will be a tad higher. Banks don’t want to lose customers for minor stuffs. So, don’t bother, present the facts to the banker as it is. You will surely get loan, if possible, on good terms. As regards, Credit score, its not a manual number. Its a automated generated number based on few factors. Ultimately, its the loan officer who will take a call.

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85 Manish Chauhan May 8, 2012 at 12:45 pm

Yes .. ultimately , loan officer has to take the call , but in general its seen that the response is bad below a specific number in credit score !

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86 Manish Chauhan May 8, 2012 at 2:51 pm

Kumar

I dont think there will be any major impact of this, if this happened just quite a times , then it should not be an issue , but you should check the report anyways, you never know other kind of issues which can happen , what if some loan entry is there which you never took ? That happens !

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87 Girish sahoo May 10, 2012 at 10:28 pm

Hi,
I had a ICICI credit card and i used 16,000 from ocober 2008 to march 2009. Then card was blocked by Bank becoz i did not pay the credit amount. I had paid minimum amount once in November 2008. Then i did settement of credit amount 28,500 ruppes in 3 installment on August, sept, Oct 2009. My credit card outstading amount was 32,000. And also there was a checqu bounce in another saving account for other reason(not related with ICICI credit card). Can you please let me know, if my name would be blacklisted in cibil for above reason. Can i get Bajaj finance loan for two wheeler ? Please advise……

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88 Manish Chauhan May 11, 2012 at 10:12 am

Girish

Mostly your name will have a “written off” status against ICICI Card . This is because you have not paid out some money and it long time , so most probably bank must have marked as “written off” . This must have affected your score . Just check your score !

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89 Partha Guria May 24, 2012 at 3:15 pm

Hi,

Thanks, very informative article.
Have a query.
1. I have blocked one of my credit card (ICICI) because of security reasons. They told me that once blocked they cannot unblock it, rather they ll issue a new credit card. Is this going to hit my Credit Score as my card is blocked in their records.

//Status For the above mentioned ICICI card I have always done the (more than) minimum amount payment before time. There is an EMI going on in this card, i am paying that also in time. Although there is considerable amount of payment is pending from my side (About 18000, my limit is 60000).//

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90 Manish Chauhan May 25, 2012 at 1:47 pm

Partha

The blocking of card will have no impact, however making minimum payments will affect your score . Please make the full payment each month , without fail to make sure you have good score !

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91 ABHISHEK May 27, 2012 at 3:54 pm

I only have credit cards as of now (so only unsecured loans).I want to buy a sports bike and I was thinking of taking a loan even if i can pay all cash as I have no secured loans.I still have good score. I want to know
1) Is a two wheeler loan a good secured loan or its a negative on my CIBIL
2)If I am taking a small loan of 80000 then will it be a negative when i want a car loan of around 20 Lakh.
3) taking the loan all together is positive? or I should pay all cash?

Thank You

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92 Manish Chauhan May 29, 2012 at 11:49 am

Abhishek

If you are clear that you can pay off the loan with out any defualt , then you can take the loan , it will be a positive move , but I m not sure how right this decision is if you can pay it all by cash

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93 Vikram June 8, 2012 at 3:32 pm

Hi,

How do we get the CIBIL report for ourselves to see our rating

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94 Manish Chauhan June 8, 2012 at 6:56 pm
95 suman June 13, 2012 at 3:44 pm

Hi Manish,

Due to my brothers marriage i spent almost 3L in credit card purchasing gold jewellery, my credit is 1.5L i spent 3L in the same billing cycle by paying amount after reaching CC limit. And i payed all dues in time, will this action impact my CIBIL score?

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96 Manish Chauhan June 14, 2012 at 3:30 pm

Not much , but i think you crossed your LIMIT , right ? If not , then dont worry .. if you pay your dues on time, nothing to worry

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97 suman June 14, 2012 at 4:53 pm

Thank you for the quick reply Manish.

I paid the due of 1.5L(before billing date) and had a fresh purchase after crediting the amount into my CC account.

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98 Manish Chauhan June 15, 2012 at 6:54 pm

hmm .. i think it shoudl not affect your score because of this .. may be a very minor effect on temporary basis , but nothing much !

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99 Archana June 14, 2012 at 6:48 pm

Hi Manish

Very well written article indeed. It was very helpful. But 1 thing that i badly neeed to know is how do i reverse my bad CIBIL score. Am sure its bad because i missed a lot of my CC payments not becos lack of funds but purely cos of laziness. And i have learnt my lessons.

Any idea if there is anything that i can reverse my CIBIL score. There is no outstanding pending on the CC i hold now (i just have 1 CC) and its been almost 2 yrs since i have used a CC but now i badly need to buy a car and i dont think i will get a loan based on CIBIL score. So please please advice….it will really be appreciated.

Warm Regards

Archana

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100 Manish Chauhan June 15, 2012 at 6:39 pm

Archana

There is nothing like reversing the CIBIL report or score .. but you can improve it .. you will not get the loan because you do not have any recent history of paying back the dues .. so first you need to get it done .. Do one thing .. First apply for the report and see how is it and what it written ,, see if you have a score of more than 700 or not . If its there, then you stand a good chance of getting the loan if your report is also clean . Take that action and come back to me

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101 Prashant Kumar June 22, 2012 at 1:28 pm

Hello Manish,

With respect to my earlier post in which I mentioned that I have raised a dispute on 2 cards i.e., 1) I did not own any SBI card and it was mentioned in CIR. 2) The current balance and overdue amount was not zero 10 months after clearing the dues.

CIBIL replied back saying the below :

1) SBI Card : CIBIL REPLY :The details were inadvertently mixed with another’s individual’s report. We regret the inconvenience caused. Assuring you of the best services.

What an irony !!!! This implies that CIBIL itself does not have any authenticated process to have the proper feed and the lenders believe in the CIR generated by CIBIL for loan approval.

2) SCB card : CIBIL REPLY : CIBIL’s core business is to collect and maintain information about the credit history of consumers. CIBIL obtains this information from Credit Institutions. This information is collated into credit reports and provided to CIBIL’s members and consumers at their request. CIBIL cannot modify any information without confirmation from the relevant Credit Institution. We had written to the relevant Credit Institution to confirm accuracy of information provided in your report. Based on the findings as provided by the Credit Institution, we would like to inform that the following particulars are updated in our records.
=====
====

This implies that users have to chase 2 processes. First, whether the Lending institution provides the transaction and account details to CIBIL within the appropriate timeframe or not. Second, whether the CIBIL report contains the authenticated data or not.

Its a total chaos from consumers perspective and its a one sided affair. Lending Institutions and CIBIL have mutual understanding based on the assumption that they have authentic process and data and this all happens at the cost of costomers’ credentials.

I cannot endorse the fact that CIBIL and lenders are genuine in their figures and facts and its a pain for the users to chase and rectify on the descrepancies every now and then.

Regards,
Prashant

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102 Manish Chauhan June 23, 2012 at 8:10 am

Prashant

1. Yes , CIBIL makes mistakes while preparing the reports , this should have happened due to the data given by the bank , like they might have send the information in a way that make the process mix the report . Not sure whom to blame here

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103 Nitin Gupta June 30, 2012 at 9:53 pm

I settled Two credit cards, 1 from ICICI & 1 from HDFC, as i changed my home, and i have not received any calls from bank. After six months they called me and mentioned your payment is pending and put all the charges and made the payment as double amount,

then i asked them to remove the payment, they mentioned that you can settle your account, but i think it has impacted my score.

Could you please tell me what i can do now. it happened in the time frame of 2007-08.

Please help me, as i am planning to take one home loan.

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104 Manish Chauhan July 1, 2012 at 7:23 pm

Nitin

You have done the same mistake like others , Settlement will be updated in your report and will not help you in taking loan . Now contact the bank and pay back all the outstanding amount

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105 saurabh jain July 2, 2012 at 9:24 pm

i have a write off..i didnt even knew about it till i applied for a personal loan.they say its 3k ..what should i do…will they remove write off if i pay it,its from citi finance.i took this loan 5 yers bak whn m earning 8k.now i am earning 60k per month bt financial agency considering this.

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106 saurabh jain July 2, 2012 at 9:26 pm

sorry i meant no financial agency considering that my salary has risen 8times in last 5 years

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107 Manish Chauhan July 4, 2012 at 9:26 pm

Yes they will remove the remark if you pay in FULL , contact the bank

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108 Bishwanath Sanfui July 7, 2012 at 4:25 pm

Dear Manish jee,
Many many thanks for creating awareness among the people regarding many financial issues.
My crdit score is low and I want to improve it.
What I understood from the above blogs is that I can avail loans against FD/RD etc.
Can you tell me, if I take Gold Loan from some organization like ‘Manpurram’ will it be helpful for the same?

Thanks in advance.

Bishwanath Sanfui

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109 Manish Chauhan July 9, 2012 at 9:11 am

Yes , any kind of loan will be helpful if you take it and repay it every month properly !

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110 Arya July 8, 2012 at 2:21 am

Hi
I have paid all my due of my SBI Credit Card last few years ago. There was no settlement at all. Despite paying all my dues, my name is shown in negative list of CIBIL Report. I have got NOC from the SBI Credit Card also. Please suggest me what action should I to take for clearing my name from negative list of CIBIL Report?
arya

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111 Manish Chauhan July 9, 2012 at 9:02 am

Arya

The Bank has not updated your name in CIBIL properly , follow this article now – http://www.jagoinvestor.com/2012/01/cibil-credit-report-mistakes-correction-steps.html

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112 Mallik July 11, 2012 at 10:51 pm

Hi Manish,
I had applied HDFC credit card last year but I didn’t get it. I did a address proof mistake that time. I had no bank loans arrears so far. I don’t have any bank credit card. I recently came to know that my sibil score is low due to address proof mistake which I did last year.
Please advise

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113 Manish Chauhan July 12, 2012 at 7:20 am

No , it cant happen , your CIBIL report and score cant be bad for this kind of mistake, who told you this fact ? Can you check your report yourself !

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114 Madhu July 12, 2012 at 7:08 pm

Hi Prabhu,
I ‘m paying >90% of my salary as EMI’s home loans, car loan, personal loan, credit cards etc…
I have debts of > 60L with income of >12L p.a, still banks are calling me to take cash on EMIs, personal loasn etc…
What could be the reason?
Sofar my payment history is clean only afaik, could it be the reason?

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115 Saptarshi July 13, 2012 at 4:14 pm

Hi Manish,

Appreciate your effort to explain the internals of Cibil score and it’s significance. My Cibil score is 657.

I had 2 credit cards which are written off during 2008-9, due to some discepancies w/ the bank and missed payments.
Now I tried clearing them off to improve my score and get loan approvals.

But the 3rd party, who are the finance companies for the HSBC & Manhattan credit cards, are demanding a very high figure.

For the HSBC card, where the principal amount I used was 4.5k, they are demanding 40k and for Manhattan, for a real expense of 1.5k, they are demanding 12k.

As I can’t pay them the whole figure and it’s so unreasonable (the extra amount they are claiming as interest towards mispayment), is there a mid-way to solve the problem as I need to take up a home loan now.

Please suggest.
Thanks,
-saptarshi

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116 Manish Chauhan July 14, 2012 at 4:29 pm

There is no mid-way actually . you left an amount with them which has grown over months and years due to non payment penality and interest charges . Now either you pay it off or you can file a complaint with them and prove that it was unfair and against their policies !

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117 Anjan Roy Chowdhury July 13, 2012 at 5:06 pm

Hi Manish,
I had settled 2 credits cards payments at a lower amount thannthe actual outstanding including interests etc and I have 1 credit card outstanding converted to emi at the actual value of outstanding including all interests etc, this is still running and will be live for 1 more year, along with i have a car loan which is now on track and will close by mid next year, even after this i have taken 4 electronics loans from bajaj finance and and all are on track and will get over by october. however, when i apply for personal or car loan or credit card, i dont get that approved from banks. how can i get my current situation corrected. i want to take a home loan in mid 2015, will this be possible by then considering i dont default in any pending payments. how can i correct my cibil ratings.

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118 Manish Chauhan July 14, 2012 at 4:13 pm

Anjan

Because you have too many loans running at same time , it has messed up your report and score . Once you get rid of some of them, then you should be able to get a better score, also you should work on clearing those settled loans .

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119 Anjan Roy Chowdhury July 14, 2012 at 4:26 pm

How can i correct those settled credit cards, even if i pay the discount amount which they gave me while settlement, will it make any difference to my cibil ratings. can i expect any timelines by which cibil ratings of mine will improve which will help me to take a home loan.

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120 Manish Chauhan July 14, 2012 at 4:53 pm

Anjan

You will have to pay it in FULL , not the discounted value . Only then it will make any improvement .

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121 Bharath July 15, 2012 at 11:59 pm

Hi Manish, thank you for the useful article.

I have raked up a fairly big amount as credit card arrears.
To pay off credit card bills, is it wise to get a personal loan and then pay the loan in EMIs?
Will it affect my scores?

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122 Manish Chauhan July 17, 2012 at 10:32 am

I think if you cant do anything , then its wise to take a personal loan and pay off the credit card bills , atleast you will pay just 16% instead of 50% !

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123 sethu July 17, 2012 at 12:35 am

Manish,

I applied for my report after reading all articles on this forum. Thanks for that and got 822!!!

My wife is neither working nor has any credit card/loans against her name.I doubt if she will have any Credit report.

If i get her a add-on credit card(spouse) against one of my credit card and start using it effectively – Will that improve her credit score? or will that be added to my credit history as i m the primary card holder?

Thanks
Sethu

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124 Manish Chauhan July 17, 2012 at 9:45 am

She will get her own credit report and score if you get her a add on account . But note that whatever actions are taken will be counted as your action , i mean because its on your name, whatever happens will drive your and her score and report .

Manish

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125 sethu July 17, 2012 at 12:03 pm

Manish-Much Appreciated!

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126 Tushar July 18, 2012 at 12:24 pm

I applied for HSBC credit card and then it got rejected because they could not verify the details through mobile as my number was changed. Will it affect my credit score?

I am now applying for home loan. I have talked to many banks about home loan but submitted documents to only one bank . Will it reflect in the enquires score ?

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127 Manish Chauhan July 18, 2012 at 10:07 pm

Tushar

It will not affect your score, just because they were not able to verify it .

Now how did you enquire from other banks , did you give all the information to other banks and applied for it , I mean did you put info which they can use and get your cibil score ? If yes, then it will be reflected as ENQUIRY !

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128 Tushar July 19, 2012 at 9:47 am

Thanks sir….
Frankly speaking I didnt expect reply within 1 day .
I gave only my mail id and details required while online enquiry birth date,age,amount ,city etc not PAN number or address….

Sir please let me knw when you have a workshop in Pune ….specially for young people who have just started working ……..

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129 Manish Chauhan July 20, 2012 at 1:17 pm

We will do workshops in future. Kindly register for it at http://www.jagoinvestor.com/workshops

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130 Srinivasa July 18, 2012 at 6:35 pm

Hi Manish, I see this forum today and much appreciated your information and prompt answers to most of the queries.

Here below is my Credit history. I have 746 CIBIL score now. If I would pay my overdue EMI on ICICI loan below, will the credit score improves? if yes how many days it will take?

HDFC CAR LOAN- Clearpayments from last 15 months
HDFC PERSONAL LOAN- Clearpayments from last 3 years and will be end by Aug3 rd 2012
ICICI Personal LOAN- This is the worst credit history. I still have 3 Overdue emi’s and also I am paying to money collector on monthly basis instead of autodebit through Bank. I still have 7 more EMI’s left on the same
ICICI Credit CARD- SETTLED 2 yrs back
HDFC CARD- PAid everything and closed
Another HDFC CARD- Outstanding Due 75K
HSBC Card- Settled

Please suggest me the better way to improve my credit score? I have pallned for applyling Personal loan for 2L to clear by Credit cards but my Load got rejected.

Thanks,
Srinivas

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131 Manish Chauhan July 18, 2012 at 9:57 pm

All your SETTLED (less than outstanding paid and closed the matter) and increasing credit over time are reported . Normal credit which is created on regular basis is ok . First contact all the credit card companies and pay off the loans which you had not paid from long ! . This will clean your report and your score will move up

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132 krishnakaanth July 20, 2012 at 5:02 pm

Dear Sir,

As you said do not apply for loan frequently. Now a days the agent who provides us loan try with one bank and if he fails to get it he passes on our fail to one of his friends who is in to same business and try for loan with the he works so that they can share the income. The sore is reduced hear even thou it is not over mistake. In come cases since the lending bank does not update current status of loan properly our points are less. I you default or do a late payment it is updated instantly, but if you clear a loan it take a long time or some times you have to inform Financing company to update it.

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133 Manish Chauhan July 21, 2012 at 3:27 pm

Yes that will create an issue, what is your bank saying about updating your cleared dues, why are they not updating it , what is the reason given by them , did you raise this issue with CIBIL

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134 Raja July 24, 2012 at 9:56 pm

Hi Manish,
I had 5 credit cards and out of which 3 were settled last year due to irregular payment. I learnt a lession and closed my other 2 CC this year.
My Credit score is 670 now and I need loan desperately.
Requesting you to help me.

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135 Manish Chauhan July 28, 2012 at 7:14 pm

You need to first close off the old loans only then your score will improve and you will get other loans !

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136 RAJA A August 20, 2012 at 9:06 pm

Dear Manish,
Thank you very much. I also have few queries as below.
I had settled the Cards last year. Will the Bankers demand the interest amount from the date of settlement to till date.
Is there any agency who can negotiate on my behalf.

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137 Manish Chauhan August 22, 2012 at 7:30 pm

There is nothing like Negotiation .. its a temporary solution to get rid of it , it ultimately goes to CIBIL if you dont pay 100%

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138 RAJA A August 20, 2012 at 9:27 pm

Dear Manish,
I have no other Loans and no active CC, Will the credit score improve, If I get a new CC and use it Promptly.
Rgrds,
Raja A

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139 Manish Chauhan August 22, 2012 at 7:28 pm

Yes , it will help

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140 RAJA A September 1, 2012 at 8:54 pm

Thanks a ton Manish,
Will the Bankers Charge / demand any interest (settlement date to till date) or other charges like late payment fee for current period after settlement.

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141 Manish Chauhan September 2, 2012 at 8:23 pm

If you do settlement (paying less than outstanding) then then will report the status as “SETTLED” with CIBIL, which is a negative comment

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142 Rajnish Mishra July 25, 2012 at 9:55 am

Hi Manish,

Very first thing I would like to say its extream useful information for youngster,whoever think about future planning and etc..

Manish,I have read article above and many comments and answer as well but still wants your suggestions on my mistakes.

In last 3 month I got 2 credit cards and i used 1 credit card till full limit(60k) one safe untouched(blunder mistake) and I applied for personal loan 2 bank rejected and 2nd told me your CIBIL score is less..then i serched for this term and luckily i got ur article.

Important thing is I am in need of personal loan urgently and now i m planning to pay credit card pay till half amount..I dont thnk it will help in improving CIBIL score..

Please do advise me somthing :)

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143 Manish Chauhan July 25, 2012 at 10:57 am

Rajnish

First think you need to accept is you will not be able to get a personal loan immediately, thats true , you will have to forget it for some time , its because your score is less and no doubt it is less , your credit card is fully utilized and not paid from some time, so what it show , ask your self !

Now first clear off your credit card debt , ask your bank to atleast convert it to EMI , if they want, but first get rid of it , then for next 3-6 months, pay your biills on time in FULL . Only then your score will move up .

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144 Rajnish Mishra July 25, 2012 at 11:07 am

Thank you Manish for such a quick reply..

I agree that there will be delay in personal loan.just one thng forgot to say
I never delayed any payment this is first due date 30th july and I am trying to pay Rs.40000 out of Rs.60000 before 30th july and rest will be 20k that is less than my take home salary.

So again i have to wait 1-2 month for CIBIL score to be updated? or for applying personal loan ?

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145 Manish Chauhan July 25, 2012 at 11:13 am

CIbil gets updated every month only .. So yes you will have to wait for atleast 30 days !

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146 Rajnish Mishra July 25, 2012 at 11:21 am

Thanks a ton for your precious time Manish..

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147 RENJITH July 25, 2012 at 10:03 am

I had applied AXIS BANK credit card this month. but i received a sms from bank showing your application is declined. because of your cibil score. I had no bank loans arrears. I don’t have any bank credit card. I recently came to know that my sibil score is low.

Please advise

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148 Manish Chauhan July 25, 2012 at 10:55 am

Did you ever had any loan or credit card . Just because you do not have any loan outstanding does not mean that your score cant be low , It all depends on your credit behaviour till date .

Manish

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149 dk July 25, 2012 at 1:00 pm

manish plz tell me that i have not paid bank dues from last year till now i have change my add. in that case as u said that atlest 7 yrs. take for clean cibil report???? plz tell me

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150 Manish Chauhan July 27, 2012 at 7:43 am

NO, its MINIMUM , not maximum , so your data might be there for 10-15-20 yrs also

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151 CHETAN July 27, 2012 at 2:05 pm

sir i am going through cibil problem can u help me for the solution to progress my cibil score. just guide me how to clear the cibil record i will be thankful if u replied soon

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152 Manish Chauhan July 28, 2012 at 7:12 pm

Chetan

What exactly is the issue you are facing ? Did you have any loan which you didnt pay in FULL ?

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153 Atul Adhaulya July 27, 2012 at 4:31 pm

Manish, Help!! My CIBIL report says SCB has written off Rs 4 Lacs against my credit card, last payment made by me in 2003. Facts are that due amount was Rs 54000 in March 2002. I settled to pay them Rs 66000 in installments of 6 months. This I paid on time. I came to know of the CIBIL report 6 months ago and got details from my bank and traced old papers and found that I had requested them to take a DD against one PDC (receipt available). They presented that cheque as well next month (I paid 2 installments that month). With the result that they took Rs 11000 more than due. After months of follow up they agree that they have charged 11000 more . Now they are not responding to my mails. I want 1100 back (with interest) and clear CIBIL as ‘cleared’ and not ‘settled’. All proofs are available with me. Please suggest what to do next.
Atul

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154 Atul Adhaulya July 27, 2012 at 9:54 pm

I would like to add that my payments were cleared in Sept 2002. But CIBIL report says that my last payment was made in 2003. I have all proofs including the amount due in March 2002, when my card was blocked. I never made any payment in 2003.
Atul

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155 Manish Chauhan July 28, 2012 at 7:03 pm

Better contact the bank and take clarification.

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156 Manish Chauhan July 28, 2012 at 7:11 pm

Means your credit card payment you made through EMI , and that too in full properly on time , ask them why they have written off the loan which was cleared by you . Did you take the NOC after it was completed ? If not, it was your small mistake .

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157 Atul Adhaulya July 30, 2012 at 2:51 pm

The bank refused at first to accept my claim, although I had submitted all the proofs. After 6 months of follow up the have been able to trace their old records and confirmed to me over phone that the have charged an amount of Rs 11000 in excess and are willing to return that and have my name removed from CIBIL.
But I want them to return Rs 11000 with interest that they were charging me (2.95% per month). Please suggest course of action.

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158 Manish Chauhan July 31, 2012 at 12:59 pm

The next step is going to banking ombudsman and consumer court

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159 Shekar July 30, 2012 at 1:15 am

Hi Manish,

I have defaulted on a couple of credit cards and one personal loans (All this during my unwise days) for the last 4 years no bank has given me a loan or credit card, leave alone this I could not even buy a mobile phone on instalment. Now I earn double than what I used to a few years ago and have become wise with my spending. how long does the default stay on my cibil, do you see the score improving in the future?

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160 shekar July 30, 2012 at 1:18 am

Hi Manish,

I have defaulted on a couple of credit card and one loan about 4-5 years ago (all this during my unwise days). I am a salaried person and make double the money now, however I have been denied any sort of loan or credit card for the obvious reason. How long does the default stay on CIBIL ? any chances of the score improving

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161 Manish Chauhan July 31, 2012 at 1:58 pm

You are in a big problem actually . It will be there for minimum 7 yrs !

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162 Ravi July 30, 2012 at 6:27 pm

Hi Manish,

I want to know your valuable suggestion. regrading credit card issue from SBI. the 30k difference between my due original amount and current outstanding due amount.

Can ask to do a settlement.? OR

I want to clear outstanding due.?, which one you will suggest.?
Kindly Suggest what is the process i have follow.

Thanks in advance.
Ravi.

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163 Manish Chauhan July 30, 2012 at 9:10 pm

The current outstanding amount has gone up because you didnt pay it for long time and the interest & Penalty has added up. Dont do settlement because it will not help you , read this http://www.jagoinvestor.com/2012/03/loan-settlement-hurts-cibil-report.html

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164 Ravi July 31, 2012 at 3:15 pm

Hi Manish,

Thanks a lot for your suggestions. I want know two doubts in my mind
In CIBIL Report ‘Account Status is BLANK’ what is meaning that.
One more is ‘CURRENT BALANCE: 0’

Thanks in advance.
Ravi.

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165 Manish Chauhan July 31, 2012 at 5:12 pm

There is no outstanding loan on your name right now

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166 Ravi July 31, 2012 at 5:36 pm

Manish,
Thanks for your reply,
Yes, there is no outstanding on loans. Only One Credit Card for SBI Which as
OVERDUE: 4k
CURRENT BALANCE: 35k. And my CIBIL Score is 634.
Once I have cleared the SBI Credit Card dues. How many points can I expect get increase.

Thanks a lot for your inputs, to clear all our queries.
-Ravi

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167 Manish Chauhan July 31, 2012 at 5:55 pm

Is this over due for current month or pending from long ?

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168 Ravi August 2, 2012 at 4:48 pm

Yes, It pending form long back.

I want to know once i clear the due amount. How many point get increasing.?

Thanks,
-Ravi

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169 Ravi August 3, 2012 at 2:32 pm

Hi Manish,

Any update on this

Thanks
-Ravi

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170 Manish Chauhan August 4, 2012 at 1:28 pm

Once you pay it your score will increase, but not substantially , but you need to do it anyways !

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171 Kumar July 31, 2012 at 11:08 am

Hi Manish,

My CIBIL score is 594. How much time will it take to reach to 760 point or above.

Regards,

Kumar

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172 Manish Chauhan July 31, 2012 at 12:54 pm

Depends on what you do next ? Mostly your past loan is not paid and your credit behaviour was very bad . Fix it first.

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173 Disha August 1, 2012 at 4:33 pm

Hi Manish,

I have a credit score of 755. Currently, I have one Car loan which will be finished by March 2013, one personal loan that has started 3 months back and will go on till 3 yrs. I have few credit cards – which I using and the outstandings are 60-70% of the limits.

In 2009-2010 I had a financial crunch due to certain unavoidable circumstances and I had to take help of credit cards & loans. The loans are all finished – paid emis regularly. For credit cards, I continued to pay only minimum dues, but you know about interest rates. However, now I am trying to pay off as much as possible for each card, so that the outstanding comes down.
I have concern about 2 cards, where I converted the entire outstanding to RESTRUCTURED LOAN. Both of the RESTRUCTURED LOANS are finished. But the cibil report shows the loans are closed with current outstanding = 0 with status = RESTRUCTURED LOAN.

My existing car loan is about to finish and I was planning to buy one more car. Not sure about the possibility of getting car loan sanctioned. Need your advise about whether 755 score can help me or what should be the score to get the car loan approved by the bank. Thanks in advance.

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174 Disha August 1, 2012 at 4:40 pm

Sorry there is a mistake in my declaration – *I have one Car loan which will be finished by March 2008* – this should be March 2013.

I bought the car during March 2008 and the loan will be finished by March 2013. Sorry again for mis-typing.

Regards

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175 Manish Chauhan August 1, 2012 at 8:35 pm

755 is a decent score , but the problem is your history of payment was not regular (minimum payment means you were not able to pay on time) .. Restructured loans are also reported to CIBIL, and thats what happened with you , its better than a SETTLED or WRITTEN OFF status . As you are paying your dues on time now, your score should move up to 800 soon in next 6 months , then your chances of getting a card loan would be higher (but not guaranteed) :)

Manish

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176 Yusuf Kamran August 2, 2012 at 11:54 pm

Hi Manish,

I see you are helping lot of people that’s really nice.. Please help me too

I had a ICICI bank credit card in 2009 and due to some financial problems I used the whole limit and couldn’t pay, later on I overcome all the problems and decided to make the payment, some collection agents offered me a settlement amount however I didn’t went for settlement instead of that I called the bank directly spoke to there collections desk and paid in full. My total outstanding amt was 43k and bank gave me a wavier of 3k and we closed the a/c in 40k. They promised me that this a/c will go as a cleared a/c and not settled a/c. Since mid 2010 till March 2012 it was full 14 months that I didn’t made the payment I recently applied for few card but they all got rejected. Today I ordered my Cibil report and my score is 641.

This is how my status shows under this a/c

STATUS
SUIT FILED / WILFUL DEFAULT –
WRITTEN-OFF STATUS –
WRITTEN-OFF AMOUNT (TOTAL) –
WRITTEN-OFF AMOUNT (PRINCIPAL) –
SETTLEMENT AMOUNT –

1. My questions is this the correct status they have updated as they promised that my a/c will not show as a settled amount but a full paid amount like they said “all clear” .

2. I also had a auto loan in which all EMIs were paid on time non were bounced however I sold that car and made a foreclosure. Does foreclosure effects our score.

Right now no bank is ready to offer me a card, home or a auto loan.

Please help I really need to get back to normal life before I go crazy i will really appreciate your reply…..

Thanks.

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177 Manish Chauhan August 3, 2012 at 7:37 am

1. Seems like they have not updated the right status . You need to get back to them and ask for clarification.

2. May be yes, because if your outstanding was Rs 100 and you sold the car and forclosed at 60 , who will pay the rest 40 ? It will be treated as the unpaid amount .

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178 Yusuf Kamran August 3, 2012 at 10:36 pm

Thanks Manish however I have made full payments to both of the banks including the intreast then why would they do this to me I didn’t want to be a defaulter thats y I paid evry penny to them. Now what should I do next.

Thanks

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179 Manish Chauhan August 4, 2012 at 12:11 pm

Contact the bank now !

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180 Bikram Gouda August 5, 2012 at 11:00 pm

Hi Manish,
My CIBIL score is 605. How much time will it take to reach 700 point?

which tools are help me out to improve my CIBIL score. Can FD or Gold loans are help me to improve the score?

i had settled my personal loans and credit card with low amount.

Thanks

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181 Manish Chauhan August 7, 2012 at 11:39 am

Bikram

The first thing you need to do is pay off the balance which was there in the settled loan , otherwise it can take a lot of time !

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182 Parikshit Mansukhani August 8, 2012 at 11:10 am

Hi,
I had three credit card which I got settled. this is 5-6 years back..
Simultaneously I had availed two auto loans and out of them one I had finished ontime and second one I am still paying well on time from last four years.
Now My CIBIL score is very low and i want that it should increase…
What should be my actions.
The score is negative due to credit card settlements… Can I change the status from “settlement” to “Paid”. If yes, will is increase my CIBIL score

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183 Manish Chauhan August 8, 2012 at 7:07 pm

Yes it will increase if the status are changed, but you will need to make the payment for that .

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184 Veraj Neb August 9, 2012 at 1:15 am

Manish,
Great info , but I do have a complicated situation to solve.
I have had a very bad patch in 2000-2002 and during this period defaulted on a lot of payments on car loan, mobile bills etc. the saving grace if any was that I had a home loan from 2001 that I didnot default on, subsequently I paid off all my debts having settled only a disputed mobile bill.
I knew that my score would show up as bad and so in 2007 took a loan on my wife’s name and during the slowdown in 2009 had delayed payments of the pre EMI but did not settle and pre closed the loan in 2010 having paid all dues.
Having stabilised my business in 2006 I got a credit card with a limit of 6 L and till date have never defaulted on my dues … I run up a bill of abt 1 L every month and have always paid up on full on time if not a few days earlier.
My first home loan was for 15 L which I paid up and closed in 2011 without a single default and my second home loan ( on my wife’s name) was for 70L and pre closed it in 2010 having paid up every delayed interest that the bank asked for.
Yet our credit score is very poor even though we both file very healthy returns …. How do I improve it now.
Your suggestions would be appreciated .
Thanks

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185 Manish Chauhan August 10, 2012 at 6:37 pm

Veraj

You score depends on your last 24 months credit behaviour , see what have you done in last 24 months .

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186 Anudeep August 9, 2012 at 3:17 pm

Hi,
First of all I would like to thank you for the informative article.
My question is that:
I have maxed my credit limit on credit card twice. (I have repaid before). Now I have missed payment 2 months (paid minimum due between). I want to settle total dues and close the account.

What documents should I get from the bank, in order to know my credit card account is closed (cleared)?

Regards,
Anudeep

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187 Manish Chauhan August 10, 2012 at 6:15 pm

Anudeep

You first close the credit card (pay 100% money) and then take a NOC from the credit card company, just contact CIBIL and get your report after 60 days , it should have a remark as CLOSED

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188 Vandhana Karthick August 11, 2012 at 11:40 pm

How many years credit score is calculated in our credit history? Does IT returns or Central Excise tax payments get counts in CIBIL? Suppose if we have bad credit score after how many days or years it will get changed??

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189 Manish Chauhan August 12, 2012 at 9:43 am

No IT returns are not counted in CIBIL , only loans !

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190 sarathi October 17, 2012 at 11:53 am

Manish, Will they reset our cibil score after some months/years?

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191 Manish Chauhan October 19, 2012 at 9:39 am

Yes, as per last 24 months of data !

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192 Rahul K. August 13, 2012 at 6:53 pm

Hello Manish… A stupid question (you might think)…

I have taken an instant ICICI credit card to rebuild my CIR. What Im doing currently is paying my bills with my CC and transferring the spent amount to CC account the same day. This resulted in 10 transactions for Aug (5 credit and 5 Debit). The statement would be generated with ‘ZERO’ due. Is this a healthy way of building the Score?? or should i wait for the statement first and then pay the due in full?? Im making sure that I dont cross the spend over 3000/- for a month on CC.

Also… approximately how long does it take to increase the credit score by 30 – 40 points if I only have this CC as open and rest of the accounts closed (repayment tenure done)??

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193 Manish Chauhan August 14, 2012 at 2:10 pm

Rahul

You need to pay your dues before the due date , paying it before 10 yrs will not matter , dont do what you are doing ,, just pay 100% bill before the due date . Increase it by 30-40 points will require somewhere around approx 4-5 months

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194 Mani August 13, 2012 at 7:29 pm

If i repay the credit card outstanding through EMIs or choose the option by banks to repay certain high value purchase through EMIs, will that affect the credit ratings ? There are quite a few offers on certain products to avail 0% intrest emis based on the credit card u hold.

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195 Manish Chauhan August 14, 2012 at 2:02 pm

Are far as you are behaving responsibly and paying your bills on time (100%) , its fine !

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196 Deepak August 13, 2012 at 11:41 pm

Hi, Manish

I want to know that will the written off my father’s Card, affect my cibil as my father is no more and my own repayment tracks are good and also due to his critical illness i was unable to know his dues and after 1 year from the death of my father one day i got a call from bank and i had come to know there are dues of him in 2 cards.

And i also want to know that what is the procedure to increase credit points if card has already been written off.

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197 Manish Chauhan August 14, 2012 at 12:38 pm

Deepak

You should not be affected due to it personally , its a bank loss now , but if you want you can pay off the credit , thats your personal call , the only tip to increase the written off credit is to pay it off !

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198 RamKumar August 14, 2012 at 5:52 pm

Hello Manish, Really I am getting good tips/financial information regarding this. Thanks a lot. FROM 2005 to 2009, my life was messy with cards (6) and loans (4). They came into my life when I have no proper financial knowledge/planning. Actually, I really don’t understand why the financial institutions/banks give cards/loans without checking the capacity of customer.they gave on instantly to us. awareness about these products were not available on those days…may be I don’t know..OK. past is past. I settled all the cards/loans. only one is left. I was thinking on improving my score..unexpectedly (even i have a loan to be closed/settled) I got citiabank card (1L limit) and I am using that in a great condition. Happy for that. May I ask you some more details., last week I got my CIBIL score…it was 602. from past 9 months I am using only citibank card. In the report, I think I have to raise dispute with CIBIL to update some closed/settlement details. I’m searching for the closed bills/letter, once received I will raise. DO YOU WANT ME TO CONTACT THE BANKS AND REQUEST FOR CLOSURE OF THE A/C, IF THEY WERE IN POST(WO) SETTLED ON MY CIBIL REPORT? OR as I have a citibank card and with this I should improve my score? Could you please tell, by paying credit card bill on time how many points they improve? If I get a card with fixed deposit from ICICI will my score improve fast? Grateful in getting this reply. Thanks once again.

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199 Manish Chauhan August 17, 2012 at 2:43 pm

First .. i hope when you say settled cards ,you mean you paid FULL money and there was no outstanding, but if you had paid less money than your outstanding , then its an issue ,its actually a negative thing and will hamper your score and report .

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200 DITIRAJ August 16, 2012 at 6:26 pm

Hi Manish

How long information lies with CIBIL regarding defaults/write offs of credit cards dues.

Regards,

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201 Manish Chauhan August 17, 2012 at 12:56 pm

Minimum 7 yrs.. Maximum limit is not defined as of now

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202 Satish August 17, 2012 at 7:55 pm

Hi Manish,

Your patience in answering all these queries is amazing. Hats off.

Now let me add to it by my question:
I have a Home loan from Axis bank for a an apartment which I took 3 years back. Due to some lower interest rate and pre-emi carrots fell to the prey and agreed to bank disbursing 90% of the amount at the beginning. And now the builder has delayed and is short of funds, project almost come to a halt. We have formed an association and many have stopped paying EMIs since even the consumer court also didn’t work (one person for the verdict, but no implementation)

I have another Home loan which is all good and payments are regular since 7 years and also an auto loan which is also up to date good.

My questions:
1–> Is there any way this can be reported to CIBIL so that my score doesn’t get hampered? Have just applied, don’t know the score yet.
2–> Understood CIBIL tracking Home Loan, Personal Loan, Credit Card etc. Are Mobile bills also tracked? usually miss the dates due to negligence.
3–> Regarding my home loan situation, please let me know how I can get advice from you on how to proceed.

Appreciate your reply.
Satish

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203 Manish Chauhan August 20, 2012 at 11:01 am

Satish

1. You loan situation has nothing to do with your BANK EMI , bank has given you loan for home, whats happening on home front, Bank has nothing to do with it , think from bank point of view, it has nothign to do with your personal problems ,this will affect your CIBIL score

2. Not sure if its included as of now , but will happen later

3. Better discuss it here – http://www.jagoinvestor.com/forum

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204 Anish Singh August 18, 2012 at 4:15 am

Hi Manish,
I am having a CitiBank Credit Card. I have used it 90% of my credit limit and it is due on me from last one year. I pay every month minimum amount due without fail on time. Will this lead my credit score to negative side?

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205 Manish Chauhan August 20, 2012 at 10:39 am

Yes , paying minimum balance is nothing but DEFAULT on Credit card , read this – http://www.jagoinvestor.com/2012/05/myth-of-minimum-balance-in-credit-cards.html

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206 NOT PROPER NAME August 18, 2012 at 4:13 pm

Good Information. Useful for people who may need financial credit in future.

I am a regular reader of your topics, but liked this topic the most as many people will come to know about the bad credit score including me also :).

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207 Manish Chauhan August 20, 2012 at 10:23 am

Thanks

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208 Sairam August 19, 2012 at 1:05 am

Dear Manish,

i had a HDFC bank card where I had a pending of Rs250 2 yrs bk.I hd cme to know of this when I took my CIBIL report.It was mentioned as WRITTEN OFF

I have now cleared the entire o/s and received NOC.

I took a revised report and now the status is blank.Should the status be CLEARED or is it ok to be blank

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209 Manish Chauhan August 19, 2012 at 10:36 pm

Sairam

Its ok if its blank .. congratulations !

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210 Sairam August 20, 2012 at 12:04 am

Dear Manish

Thank you very much fr your prompt reply.Your articles are really very interesting

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211 Manish Chauhan August 20, 2012 at 10:01 am

Thanks for appreciation !

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212 Rahul M Rana August 19, 2012 at 7:07 pm

Hello Manish,

First of all Thanks a ton for such a wonderful and balanced article u’ve written really appreciate it, As most of my doubts cleared after reading the article . However just want to verify a couple of things.

1. My cibil score in july 2012 was 721 is it good score to consider if in case i want to apply for a car loan in near future..??

2. I have 2 credit cards from CITI and STANDARD CHARTERED and have been using them for over an year now, making payments on time always however only the minimum due or slightly above that every month on time , so will that be impacting my scores negatively and if so how many points would be reducing each month.??

3. Last however not the least if in case I would be paying the major balance on both of my cards how much time it’ll take for my CIBIL score to cross 800 mark..??

Looking forward for your response
Thanks and Regards
Rahul M Rana

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213 Manish Chauhan August 19, 2012 at 10:24 pm

Rahul

1. The score looked upon by banks is generally over 700 . So 721 is ok , but not a very great score ,some banks might want to talk to you and others might not , depends on bank , better to aim for 800+

2. Yes, obviously .. Paying minimum is same as defaulting on your payment , just that you will not be charged with penalty , just interest will be charged . over time it affects your score badly

3. Yes, it will improve your score, but slowly it improves and not drastically

Manish

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214 Masoom Raza August 20, 2012 at 12:17 am

Hi Manish,

Honestly, it’s an eye opening article ! Thanks a ton for spreading this financial awareness !
Here is my situation, I had a CC from ICICI in 2007; later we had a dispute due to some miscommunication from them, I called them couple of time to get it resolved but they did not bothered. Later I also stopped calling them & did not made the payment. I have another CC running from HDFC which transaction is healthy without a single delay in payment. Now the problem is due to icici credit card issue my credit score is too low ; Hence, I contacted ICICI to resolve the issue now & get this card closed but the outstanding amount has increased immensely. So they have given me 3 options –
a) To pay the whole bloody BIG amount which is unjustified
b) To pay back the principal amount
c) To get it settled @ less than 40% of principal amount

Now from your article I know that paying full outstanding amount is the best option but I CAN’T as the amount which they are asking is too much. Plus even if I go for paying back principal amount or settlement – they are issuing me the same letter “Letter of Settlement” followed by NOC.

Now I really need to understand that –
a) Do CIBIL only give the final status to the credit institution or complete details so that a credit officer can get to know the case in details (whether I have paid full principal amount or have paid less than the principal/ outstanding amount ?? )
b) What difference will it create on my cibil score if I go for normal settlement (less than the principal amount) versus paying back the actual principal amount ?

Thanks a ton in advance !

Raza

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215 Manish Chauhan August 20, 2012 at 9:58 am

Raza

First point is that when you left that small outstanding amount with credit card, each month there was penalty and interest added to you as per terms and conditions and the amount has grown big, now thats as per the terms and conditions and if you can prove legally that the mistake which happened was from their side , then you can file a consumer court case against them.

You will have to pay the full amount , only then the status will change to normal , in any other case it will not be . If you pay partial amount, its SETTLEMENT and will be same in your cibil report !

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216 Masoom Raza August 21, 2012 at 10:43 am

Thanks a ton Manish !
I agree that paying back the partial amount is SETTLEMENT, plus now I can’t prove them wrong also as all it was a verbal communication a long time back & I did not documented the same as I was not smart enough at that point of time. Now coming back to the current situation, the bank guys are suggesting me to go for Principal amount settlement (Second best option) & assuring me that it will not create any negative impact on my cibil as in this case I am not availing any waiver on the principal, only i am getting some benefit on the interest part. So my question is how my next credit officer will get to know that I have paid the actual principal amount if the cibil report only shows the status “SETTELED” ?? Also my cibil score will shoot immediately or again will take time if I pay the whole outstanding amount at one go ??

Your advice would be highly appreciated !

Thanks !

Raza

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217 Manish Chauhan August 22, 2012 at 7:07 pm

No written thing , means it never happened . PERIOD

Now coming to your point, ask them that amount which if you pay it will be considered as FULL outstanding clearance and not settlement . Once you do that, it will be changed to “CLEAR” or it will be blank . It will improve the score only to the quantum of amount, if its a small amount ,the imrovement will be marginal , if its very high , then improvement will be good enough !

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218 Masoom Raza August 22, 2012 at 7:56 pm

No. Even if I pay the principal amount, they will issue me a letter of settlement & the data will be sent to RBI accordingly & subsequently the same will be updated to cibil. The total outstanding amount is Rs. 42000 (approx) so what kind of incremental point can I expect if I pay back the whole outstanding

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219 Manish Chauhan August 22, 2012 at 8:14 pm

In that case you better pay in FULL , you cant predict the increase like this, because the algorthim is complex and not known in public domain, but it should increase by a good margin , but thats never guaranteed . Note that paying off the loan is to be done anyways because you should get rid of that remark first from the report !

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220 Devranjan Kumar August 20, 2012 at 4:49 pm

Hi Manish,

Only CC and loan related information are linked with CIBIL?

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221 Manish Chauhan August 22, 2012 at 7:29 pm

Yes

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222 DIGANTA DUARAH August 20, 2012 at 8:33 pm

Hi, my credit rating is below 500. I am a defaulter of credit card and settled my personal loan as well. Please let me know the way to maximize my rating and also let me know about the minimum rating required for any loan approval.

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223 Manish Chauhan August 22, 2012 at 7:30 pm

Minimum score is 700 and the tips are already discussed on this article !

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224 sateesh August 21, 2012 at 7:13 pm

Hi manish,

Thanks for the valuable information provided. I do have a query for you as I have a bad cibil score as of now. I applied for 2 credit cards without aware of my CIBIL score and I came to know that they were rejected because of the CIBIL score.

And do these multiple rejections also add to my bad CIBIL score which is already at a bad stage. . And if so how can I improve it . Can you please suggest on this.

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225 Manish Chauhan August 22, 2012 at 6:52 pm

Yes it adds up , as all the rejections also go there.. so for now calm down and wait .. start using a credit card for next 6 months or 1 yrs and dont take any additional credit !

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226 sateesh August 22, 2012 at 7:13 pm

Thank you so much Manish. I will definitely follow your suggestion. Have a small doubt which needs to be clarified by you. I am planning to apply for a house loan after an year or two. So , if I repay all the outstanding payments then am i eligible to get my loan approved or does my past debts still affect then also. Please do suggest

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227 Manish Chauhan August 22, 2012 at 7:21 pm

Obviously if affects .. What you did matters , not what is your current status . Actually recent activity matters more .. so paying off the outstanding will help ,and your past 3 yrs of history will be there on the report .

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228 sairam August 21, 2012 at 7:37 pm

Dear Manish,

Have a query again.

When I took my CIBIL report with my HDFC Bank card status as
written off, my score was 647.
I got the status changed from Written off to BLANK(as mentioned
in my previous comment) and however,in the interim there have
been 5 inquiries by HDFC bank in my credit card.My credit score
was 639.
I again fought with the bank for removal of inquiries and I took
my report again.The inquiries have been removed but my score
is still 639

To summarise
HDFC Bank card status – written off – 647 (25th July)
HDFC Bank card status – blank – 639 (5th Aug)
(with 5 inquiries on 30 and 31 July)
HDFC Bank card status – blank – 639(21st Aug)
and inquiry removal

My score hasnt improved despite removal of card status and inquiry
removals.Can you please assist me.Do the scores get refreshed only
once a month or so.

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229 Manish Chauhan August 22, 2012 at 6:50 pm

Sairam

It will not increase your score drastically, in a month of so , you can see a change, but dont expect it to go above a 700 or 750 kind of mark , Scores changes due to recent repayment record.

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230 Narayana August 23, 2012 at 6:16 pm

Dear Manish,

I had a credit card outstanding of Rs.12000 in 2007 and it was reported in CIBIL report in Dec.2007. I would like to know if this would be removed after 7 years in the CIBIL report and after 7 years will my credit score improve again ?

I am repaying the present credit card bills on time.

Await your reply. Thanks

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231 Manish Chauhan August 26, 2012 at 1:00 pm

Its a myth . The 7 yrs number is the MINIMUM . The maximum it can be 15-20 yrs also ! and it will not just improve your score, your score is dependent on your last 24 months activity !

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232 Rahul M Rana August 23, 2012 at 9:22 pm

Manish

Thank you much for your reply, appreciate it..!
In context to my query where in I’ve asked you that in the event of paying off my balance on both the cards would help.? To which you suggested it’ll but gradually not rapidly. I wanted to confirm once i’ll pay off the balances on both my cards and if in case i would not use them that too often will that be impacting the growth of my cibil score , alternatively if in case i stop using my both my cards keeping them in active state with zero balance will that slows down my cibil scores progression..?? Moreover Im certainly Aiming at that 800+ mark on my cibil so with this situation wherein i would have nil balance on both my cards will that 6-8 months from now to cross 800+ mark my existing score is 721.

Eagerly waiting for your reply
Thanks and regards
Rahul M Rana

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233 Manish Chauhan August 26, 2012 at 12:47 pm

understand that your score is calculated on your activity in last 24 months, so either you need to have GOOD activity , paying balance on time , or in bad case NO activity , which again would not help imporove your score, and at last BAD Activity which you should avoid in all cases.

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234 Chakraddhar August 25, 2012 at 2:30 am

Hello Manish ,
Thanks for a very informative write up . I had taken a credit card in 2005 and havent used it even once. However the CIBIL shows a default of around 5K and status as account purchased. Will it help if I repay the defaulted amount ? How long will it take for the score to improve ?

Thanking you in advance

Chakraddhar

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235 Manish Chauhan August 26, 2012 at 12:13 pm

that 5k has happened mostly because of yearly charges and interest on it due to non payment . Yes it will help in improving the score if you pay it off !

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236 Thangkho August 26, 2012 at 2:31 am

Hi Manish,
Hope you are well..
I really appreciate the articles you have posted which is really effective and important for a person to understand his/her credit usage, its amazing to find these information in public. Please keep up the good work and lets hope we have a brighter life with all the suggestion and information provided.

I am still in doubt on this “will there be any impact with my credit report since I defaulted with Airtel post paid connection” – not paying the outstanding and it is closed. Is Airtel tied up with CIBIL?

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237 Manish Chauhan August 26, 2012 at 11:38 am

As of now NO , but it will happen in future and your score can be impacted with that previous experience !

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238 preeti sharma August 27, 2012 at 8:26 pm

hi manish,
i have a cibil score of 613 i got to know it while applying for car loan from sbi.i was also told that i have not paid an installment of 748 rs which now has been written off, could you please tell me how to inprove my score and how to pay back the installment or get the ammount cleared from cibil report.
thanks

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239 Manish Chauhan August 28, 2012 at 10:13 pm

Preeti

First apply for your report and score . See which bank is in question , was it a loan or credit card, ask from cibil and contact the bank for it , pay it off soon and things should get better

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240 preeti sharma August 28, 2012 at 10:40 pm

thank you manish

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241 Warun Khanwalkar August 27, 2012 at 12:31 pm

Hi!
My dad was using 5 credit cards and after a while because of some problem in his salary he settled those, But now the banks are refusing the credit card or any loan to me as well. Where I earned more than 4laks a year. My track is very clear i have never took any loan. Why this has happening that the banks are refusing the loan saying you have bad credit report. Is there any solution for that??

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242 Manish Chauhan August 29, 2012 at 8:36 am

Warun

Was there a “add-on” card issued ? Was it a case that your dad address and your address is exactly same ? Because they might have blacklisted due to same adddress. Do one thing , order the credit report of your dad and yours and try to see whats common !

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243 Warun Khanwalkar August 30, 2012 at 8:14 am

Yes My dad’s address and my address is same and there wasn’t any add on credit card on my name.I have already applied for my credit report. I will surely apply it for my dad as well. Thanks

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244 Manish Chauhan August 31, 2012 at 10:40 am

Yes first look at both of them. I suspect that same address is the issue !

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245 Srinivasa August 28, 2012 at 12:37 am

Hello Manish,

Thank you, thank you, thank you so much for this article.

Situation – really bad.
Why – I took a CC way back in 2003, max it out, payed it except for 20k and fell on bad times and did not repay the amount. I have no other loans nor cards

Current – I have ordered by CIR and dreadful as to how it will look.
Question – if I pay the full amount to the institution, can I request the institution to reage my account. Whats the process like to ask them to reage my account.

Any insight would be highly appreciated.

Thanks
Srini

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246 Manish Chauhan August 28, 2012 at 9:58 pm

Srinivasa

The problem is the amount must have become huge now , you can pay it off and things will become normal in few months , whats your score ?

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247 Srinivasa August 29, 2012 at 1:14 am

I do not have the report on my hand as of now but will be getting it by mid next week and I shall share it with you.

No matter what the amount, I am more than glad to make up my mistakes and will try to pay in full. I am pretty sure that I do not want to go for settlement at any cost and ruin any score I might have left! :)

And thank you kindly for your help on this. You have no idea how mcuh this means to me cause this is like a blind galli I am trying to negotiate!

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248 Manish Chauhan August 29, 2012 at 8:18 am

Great .. just take actions and complete it . Actions are everything .

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249 Srinivasa September 4, 2012 at 10:35 pm

Finally got the CIR –

Score – 552

Listing –

(Perils of working in a call center and having a bunch of roomies and having no idea what you are signing and for whom – LOL)

a) As expected – ICICI was a major set back –
Current Balance – 19,995
Amount overdue – 17,650

b) A joint personal loan from HDFC – (not even sure for whom I did this)
Written off – 6066

c) I have a savings bank account with Citi since 2010 and they show up on my CIR? The account number it shows is not even mine and the account type is overdraft. I dont even know what is that.

Question –

a) I pay off the entire bal with ICICI – how soon can I get the credit score up? What is the diff between current bal and amount overdue? Can I have the back, somehow by pleading, requesting to reage the account ASAP?

b) What to do with HDFC?

c) What to do with Citibank

Thank you so much in anticipation.

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250 Manish Chauhan September 5, 2012 at 8:18 pm

Sadly Pleading will not help, at all . There is no emotions here and things will move only as per process.

You need to first pay off your loans and outstanding in full and then keep repaying your monthly credit card bill on time, only then your score will move up .

Manish

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251 Srinivasa September 8, 2012 at 3:24 am

Hmmm – net net – its all Karma – what you do is what does you! LOL…thanks Manish and please keep helping others

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252 Srinivasa September 8, 2012 at 3:29 am

yes – one thing though I forgot – I do not have any cards now – nothing…For HDFC and CITI, I have raised a dispute for I am sure that I have nothing to do with them (hoping).

Say – I clear my ICICI o/s, and the disputes are in my favor, how soon can I have or how is that I can bump up my scores?

The flip side – since the HDFC loan (if proven that I did indeed default for 6066 and since has been written off), what is that I can do to fix it?

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253 Manish Chauhan September 8, 2012 at 9:10 pm

To fix , you need to repay some kind of loan back regularly to build your credit history, now you dont have a loan . So what you can do is procure a secured credit card against a FD of 10k or 20k and then keep using it . this should in improving the score !

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254 Tirtho September 11, 2012 at 4:31 pm

How to get a secured credit card?Which banks provide these?
I have a Credit score of 557 which is really bad..have setlled all my loans now need to rebuild the score..

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255 Manish Chauhan September 12, 2012 at 10:19 am

Tirtho

All the banks do that,. but the problem is unless you get your report clean, even a good score will not help much , before score, banks will look at your reports . Unless you pay off all the past outstandings , you are in a fix !

256 John August 28, 2012 at 3:14 pm

Hi Manish,
Can you please help with this query.
I took PL four years back, Now it has been completed. But in between there was delay in paying two consecutive EMI’s for 25days each. I have checked my CIBIL score now which is of 841 and Now planning to apply for House loan. Will bank consider my previous delay for (25+25)days, In getting my current House loan Approved?? Will I get Loan after applying ? Please Advise !!
Thanks and Regards,
Dinesh

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257 Manish Chauhan August 28, 2012 at 8:59 pm

Ideally they should not consider that delay , while it was there, your score is pretty good, infact really good, So they should give you loan happily . However they will definately have a look at it and consider it only based on their internal guidelines.

But I am very sure you will not face any issue.

Manish

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258 Shankar August 28, 2012 at 6:56 pm

Hi Manish,If my spouse is using add on card will she can able to increase her CIBIL SCORE..

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259 Manish Chauhan August 28, 2012 at 8:29 pm

Shankar

Yes, whatever activity happens on primary card, that same thing will happen to add-on card, atleast for negative part :) .

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260 shashikanth m August 30, 2012 at 11:30 pm

if we use full amount on credit cards and repay the full amount before due date it will decrease our cibil score…….

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261 Manish Chauhan August 31, 2012 at 9:40 am

Yes .. You should not touch your full limit, that shows you are in danger zone ! .. better use only 50% part !

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262 kuldeep joon August 30, 2012 at 10:42 am

hi manish,
i did not take any personal loan ever, now i applied for can loan , banker told me that some personal loan is pending and showing in my cibil. how could i clear my cibil now.?

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263 Manish Chauhan August 31, 2012 at 10:34 am

But you said you never took a loan you said , how is it appearing in your report . order your report first and have a look .

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264 kuldeep joon November 16, 2012 at 11:00 am

Dear Manish,
I received my report today, Score Is 758, But it showing that a personal loan is pending of 2 lakh from SCB bank from 2010 , Also showing Written Off Status – Written off, I did not take any personal loan ever, i raise a dispute at cibil.com .Any other way to make my report clear? Please suggest me.

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265 Manish Chauhan November 20, 2012 at 5:13 pm

Let CIBIL response come, it might happen that your identity was taken by someone and applied for loan on your name !

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266 Guru September 3, 2012 at 5:45 pm

Hi Manish..
In my CIBIL report it shows Status RESTRUCTURED for 2 of my Loans ie:
Housing Loan as well as Car Loan.
I applied a PL for urgent need ..but bankers called me and enquired about it..I don’t have idea why it is in Restructured status..Is there any negativity with Restructured status..I havn’t altered my Loan tenure or Interest rates..Can you plz shed more lights on it

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267 Manish Chauhan September 5, 2012 at 9:05 pm

You must have converted it to EMI! , there is no much effect !

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268 venkatesh j September 7, 2012 at 7:37 pm

Manish,

Your article is good.
my current cibil score is 796 is this fine for future loans

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269 Manish Chauhan September 8, 2012 at 9:17 pm

Yes this is good score for future loans, considering your report does not have bad remarks !

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270 Kapil September 9, 2012 at 2:15 pm

Hi Manish,
Thanks a lot for providing the details on improving the cibil score.
I have a query regarding the cibil report.
I had a std chartered bank credit card. I never use it however as per bank i had withdrawn around INR7500 and now it has becomes INR 134000. As per cibil report the amount is written off by bank. I came to know all that details when i applied for home loan and when it was rejected i came to know about cibil.
I had contacted the bank and they asked me to clear the amount and then they can send the report to cibil accordingly. How come i can pay even if it is not my fault.
I want to resolve this issue somehow by paying the actual amount withdrawn on my card. My query is even though i do settlement, still my cibil score will be improved or it will be same (bank has already written off). Is there any other mean to resolve this issue.

Your quick response will be highly appreciated
regards
kapil

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271 Manish Chauhan September 10, 2012 at 9:13 am

Did you withdraw the money or not ? Or you never used it ? If you never withdrew the money ,the point is it was misused, but the case will be in your favor only if you show that it was done in unauthorised way, if the card was in your possession and it was stolen by someone and used , its your responsbility to share it with bank at that moment, how come bank knows if its withdrawn by you or someone else?

If you settle the debt, still it will appear on your credit report.

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272 Kapil September 10, 2012 at 9:47 am

Hi Manish,
Thanks for the response. I had not withdrawn any money. I would like to know if i settle the case with bank, it will improve my score or not. Bank has already written off the amount.
Regards Kapil

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273 Manish Chauhan September 10, 2012 at 1:30 pm

You need to contact the bank and ask them what is the final outstanding money which if you pay , your remark from CIBIL will be removed !

Manish

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274 p.k.sarkar September 12, 2012 at 2:31 pm

Dr manish I do apreciate of u r healthy tips,since 2002 to 2007, I had abt 4 cr card and was almost using the total credit limit to the fullest. I purchasd my bike 4m countrywide and later on.tv 4m citifinance and paid all the emi time, later on closd all the crds by paying the amnt the persons who guidd me n got the n.o.c even the loans 4m countrywide n citifinance was closed to avail a housing loan with dewanfi.ance and closd it last nov and. Again I have taken a car on loan 4m kotak mahindra and so far I have all the emi. Time. I was not in station and my wife didn’t know how to deposit the amnt in the bank and abt 6 cheques got bou.cd I paid the amount with penalty and later closd th e loan for which a,n.o.c was given by the bank, last week I aplied for acredit cardfor me and my wife, even though we r both central govt employes and don’t have any loans our credit card was declind, can u advice me how to improve my cibil score in order to avail any future loans r aply for credit card?

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275 Manish Chauhan September 14, 2012 at 6:35 am

If there is any loan pending which has been pending form long time, better pay it off first . And grab a secured credit card against a FD and start using it as of now

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276 gulam September 12, 2012 at 9:53 pm

Sir please help me

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277 Manish Chauhan September 13, 2012 at 10:18 pm

Whts your query ?

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278 vamsi September 12, 2012 at 11:23 pm

Hello,
Iam not having good score to get any loan i.e CC,Loan etc
so how can i adjust and how can i score it to get credit from bankers…
is there any solution

thanking you
vamsi

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279 Manish Chauhan September 13, 2012 at 10:14 pm

Vamsi

All the points are already discussed in the article . Did you not get the idea on what to do ?

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280 Deba September 14, 2012 at 12:53 pm

Hi Manish,

Recently I ordered my Cibil Score and its 775. Is it ok or bad? I have two personal loans and two credit cards.
There are no dues showing on my credit card as I paid full amount. Though I never had any default on my credit card but two times I touched almost the credit limit but I paid the min. amt due and later cleared the total amount eventually. Now I dont have any dues in credit card left.
For Personal Loans, Total debt is 4 lacs but there is no default, no bounce till now, all the EMIs have been perfectly deducted from my salary account since last one year. Do you think I can improve my score. is the score good at all?
My query is if I go for Mortgage loan againt my native house (as I stay outside), will they give me?? because If I get the loan, I can close all those PLs and call easily pay the EMIs of mortgage loan and the rest of the money of the loan can be utilised else where for good return. is it possible or my cibil status will hinder me to do so?

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281 Manish Chauhan September 18, 2012 at 1:39 pm

There are 2-3 issues

1. YOu have too much of unsecured loans like personal loans and credit cards , which is seen negatively.
2. You have missed few payments and touched high limits , which shows that “its possible” that it might happen again .

But as you are going to take the mortagage loan against your exisitng house ,you might get a loan , 775 is a decent score, but many times some banks insist on more than 800 .

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282 Trideep Choudhary September 18, 2012 at 9:39 pm

Hi MAnish,

I am facing a peculiar problem and need your guidance.

In 2008 the company where I had joined started delaying salary payments because of which few PDCs of personal loan bounced. I got to know of that only when I recieved a summon from HDFC Bank. I paid the amount in full right away.

Also in 2009, HDFC Bank levied a fee of Rs 90,000 on outstanding due of Rs 500 for a card which I had surrendered in 2005. I took them to the banking ombudsman where the ombudsman granted a favourable judgement. However only now I realize that HDFC Bank had agreed to settle rather than agree their mistake.

Also I had to convert my SBI Card due of Rs 60,000 into EMIs and had paid off the same with applicable interest.

Recently I had tried to apply for an education loan and only then got to know that my credit score is a lowly 254.

Please advise on how best I can rectify the same.

Trideep

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283 Manish Chauhan September 19, 2012 at 5:32 pm

You mean the score is 524 , not 254 , it cant be lower than 300 .

Now whatever is the case, if you have anything which was not paid in FULL , then you need to clear it off fully ! .. Only then the status will get changed !

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284 Salma September 20, 2012 at 4:13 pm

I recently took EMI from bajaj finance for buying a television . Abount 3 yrs back I had closed a loan and hence that was closed now thie finance ppl sent the same old Id for my EMI. So I happen to speak to m bank as to why was this getting bounced when there is surplus amount in my account. So they informed me that to ibnfom the finance team to change the Id number and then on again go for EMI but here these ppl did not go for this and instead every month they collected cash from me and once the final thing was done they stopped calling me now after 3 months of this is over they have started calling me again telling to pay bounce charges so I denied payin them and then they again called me up asking to pay insurance amt for this which I denied. So I wanted to know if this affects my CIBIL score and Di i apply for my cibil score to get information on this if this is affecting my score..Please advise

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285 Manish Chauhan September 22, 2012 at 1:42 pm

Salma

If it was due to your loan , then it will be reported to CIBIL , better apply for your report once and have a look at it

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286 S. Balamurali September 20, 2012 at 4:23 pm

Hi Manish,

Thanks a lot for educating people and it is very helpful.

Last year I have checked my CIBIL score and found it is 549. Just 3 months before I have settled ICICI personal loan and got NOC also from the bank. Kindly let me know what could be the score now approximately.

I have another challenge here. I had HSBC credit card and I have never used it even for 1 rupee. The card date is expired now. Just while checking my Cibil score, I came to that the credit card was with insurance which I had to pay.

Kindly help me to resolve this issue. Really don’t understand why should I pay that when I have not used that card and was not completely aware of that.

Regards
Balamurali

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287 Manish Chauhan September 22, 2012 at 1:40 pm

I hope you have paid full amount and completed the loan , did you pay FULL or partial money because paying partial will not help, it will be reported to CIBIL with SETTLED status .

Now regarding your HSBC credit card, it might happen that there was some yearly charges which you didnt pay ! and it grew over time

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288 Balamurali September 22, 2012 at 3:45 pm

Hi Manish,

I have done only settlement. can you tell me what can be my score now.

Regards
Balamurali

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289 Manish Chauhan September 26, 2012 at 2:00 pm

No one can tell that, better look at your score card

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290 Ranjan September 21, 2012 at 1:16 pm

Dear Manish,
I am applying for a home loan in near future. I am anxious for CIBIL score which may affect the availability of home loan. Here is my story. I had started my job career in 2003/2004. As happened with many youngsters, I availed two credit cards ICICI and Standard chartered as well as personal loan from HDFC. I defaulted both the credits cards. The default amount in ICICI credit card was around 7k in 2003. I was paying the minimum amont till 2007 and I paid the outstanding amount of 35 k in full in the year 2011. Similarly, The default outstanding amount of standard charterd credit account was around 41k and i settled at18 k in 2010. Similarly, I settled the outstanding amount of 91k of HDFC personal loan at 65k in 2010.
In 2011, I manage to get a Credit card of credit limit 75k from American express. Since then I am using the credit card very judiciously, hardly crossing 30% of the credit limit issued to me amd making payment regularly. I have not applied of enquired for any new credit card.
What is the chances of bank accepting my application for home loan?
Does bank take note of recent credit history or they give empahsis to credit history which is 7~8 years old?

Any pointer will be highly appreciated.

Regards,
Ranjan

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291 Manish Chauhan September 22, 2012 at 12:35 pm

Ranjan

they take note of both . While your report will contain your recent 36 months history in DPD format (look at your report), it will also have the status of past loans, in your case your two cards status would be SETTLED , which is negative remark and you will mostly not get any loan due to that . You can safely assume that unless you get it rectified , you will not get a loan . SO better contact the companies and pay off the remaining amount also and ask them to update the CIBIL (they will do that anyways) .

Manish

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292 Pramod Verma September 21, 2012 at 4:02 pm

Hi Manish,
Hope you are well..
I really appreciate the articles you have posted which is really effective and important for a person to understand his/her credit usage.
I was having 1 CC from the HSBC bank which I have settle down in 2010 and after that I again starting getting calls from the HSBC that I have another card as well on my name and after so much of discussion they failed to provide me any kind of proof regarding that but forced me to pay for that so I have paid some amount and got settle down it to get rid from that as they were saying that it is updated in CIBIL.
I was having A Bike loan as well from the ICICI which I was thinking that I have paid the whole amount and when I went to take the NOC from the bank in dec 2011, I got to know that 700 Rupees was due which I paid immediately and got the NOC as well from the bank. Just few days back when I have ordered for my cibil report I was shocked that my score was only 520 and it was showing 3 extra CC against me (1 from Indusland and 2 from the Phoenix ARC). When I have contacted the Indusland bank first they told me that they can’t provide me any document as it was taken in 2007 and after so much calls they send me a bill outstanding of 7 lac and the principle was 29000 rupees. I have checked the whole bill and find it that its not related to me and when I told them they said that all the details are matching to you like name, father name, DOB and forcing me to pay for that. Phoenix ARC amount is 7684 rupees (I am failed to contact them till now). I have raised the dispute against Indusland bank and Phoenix ARC but they revert back to me by saying that they had done an in-depth analysis of the dispute raised by me for the Indusland and Phoenix accounts and it was observed that the information provided in your CIR is correct
Please help me out in that and let me know what should I do and why I need to pay for those CC which I have never used ?.
Please help me
Pramod Verma

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293 Manish Chauhan September 22, 2012 at 12:23 pm

This is very clear . There is someone who used your identity to get those credit cards , did you leave your critical documents somewhere ? Which was misused by someone ?

You will have to pursue this case now and show that the signatures were not yours , etc etc. .

Manish

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294 Pramod Verma September 24, 2012 at 6:28 pm

Thanks Manish for the reply,

I have raised that issue but they are not agree on any of my terms, and even When I asked them to provide me any kind of documents where I have signed while taking those CC, they are saying that its been 5 years so they cant provide me any such documents besides the bill related to that and only given me a option to settledown it.

I used to live in a building which was full of guys so might be some buddy else has taken my documents and missused it. is there any way that I can go and make a complain against these banks by using my rights ?

as suggested by you in your articles, will it be possible for the banks to give me a credit card against any FD without checking CIBIL ?

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295 Manish Chauhan September 26, 2012 at 12:28 pm

yes … a secured credit card might be provided without checking CIBIL , but I am not 100% sure on that, the only point is , as its secured, the risk is less for bank to give you a card against that FD , so better apply for that as of now . Also enquire more from bank on details, raise a banking ombudsman complaint and ask how the hell bank cant provide the details , this is not the way banks are suppose to run !

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296 Nimit Kulshrestha September 22, 2012 at 9:01 pm

Hi Manish,

Nice article there. My problem is that I have a CC from HDFC bank with an overdue amount of Rs.5543 out of which the principle amount is Rs.2500. I wasn’t aware that the interest was getting piled on the principle amount since the bank never contacted me through email or phone calls (both of which are available with the bank). A few days ago I got the mail stating that my overdue is Rs.5543 and that I need to pay it in full in order to get the NOC from the bank. Mt query is that can I just pay the principle amount and consider it done. And also, I am not sure if for such a small amount, the CIBIL score will be affected. And if I do pay the full amount, then how long will it take for my CIBIL score to improve?

Regards,
Nimit K

Reply

297 Manish Chauhan September 26, 2012 at 1:51 pm

Nimit

Take it seriously .. better pay off the full amoutn as of now , because thats what you owe , the interst has got piled up and you are responsible for it , ignorance of rules is not an excuse ! .

Reply

298 Anand September 27, 2012 at 12:46 pm

Were you not getting monthly statements? If not, it’s your duty to call them and ask for it.

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299 Raj September 23, 2012 at 7:41 am

Hi Manish,

My CC and Loans applications were rejected due to Bad history. I have done partial settlement for some of my cards before 2yrs.
Getting an Credit Card via Fixed deposit and using it, will it improve credit history in CIBIL ? or These cards will not be considered in CIBIL ?

Reply

300 Manish Chauhan September 26, 2012 at 1:38 pm

They are considered in to CIBIL and will help

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301 Amit Kumar Dhar September 25, 2012 at 10:35 am

I had closed one PL and one two-wheeler loan in year Nov-2010 and got NOC from financial institutions. But late payment reflect in my CIBIL report and my score is 718. Please let me know how to impreove my score and my name from CIBIL late payment record.

Reply

302 Manish Chauhan September 26, 2012 at 11:46 am

You can not remove the late payment part . Note that past 36 months of history will be there, so each month it will get shifted by one month . It will not be appearing after few months or a year . to improve your score, you need to constantly pay off your dues on time and build your credit history !

Reply

303 pavan Kulkarni September 25, 2012 at 9:51 pm

Hi,

I Have Applied SBI Credit Card but it got rejected stating despite of repeated attempts you did not pick the call before that i got a message stating please give us 21 days to process your SBI card, I just need to know it will effect in cibil, Can I apply again for Credit in same SBI Credit.

Please Advice

Reply

304 Manish Chauhan September 26, 2012 at 11:03 am

The only effect is that your enquiry for credit card will go to CIBIL entry . You can apply for the credit card once more .

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305 Roop September 26, 2012 at 5:36 pm

I want to close my home loan from ICICI bank and transfer it to SBI because of cheaper rate being offered by SBI and no prepayment charges now.
Would it affect by CIBIL score ? If yes, in what manner ?

I have always paid all my EMI in time for my ICICI home loan

Reply

306 Manish Chauhan September 29, 2012 at 11:48 am

No it will not affect CIBIL

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307 Ajay Kumar Nath September 26, 2012 at 10:42 pm

Dear Manish,

Please see the below mail and help me out. Still i have not received my CIR

Regards
Ajay

— On Wed, 9/26/12, Nath, Ajay wrote:

From: Nath, Ajay
Subject: Service Request Number 1112757
To: “info@cibil.com”
Cc: “ajay nath”
Date: Wednesday, September 26, 2012, 9:16 AM

Dear Sir,

As I have already send desired details in below mail for further processing my request. Kindly request you to do the needful in priority.

Regards

10 Years wall paper option 1

Ajay Kumar Nath
Sr. Claims analyst
Tata AIG General Insurance Company Ltd,
My Home Tycoon, 4th Floor, “A” Block,

Kundanbagh, Begumpet, Hyderabad – 500016.

Phone: 09642422012

— On Sat, 9/15/12, ajay nath wrote:

From: ajay nath
Subject: Re: Service Request Number 1112757
To: info@cibil.com
Date: Saturday, September 15, 2012, 3:17 PM

Dear Sir,

Please find my below addresses which is old one at the time of Credit card taken with HSBC credit card, HDFC credit card & HDFC Two wheeler loan.

Old. Address

Ajay Kumar Nath

Flat No.65, Badam Appartment,

Vijaypuri Colony, Tarnaka,

Secunderabad, Hyderabad ,

Pin-500017. (A.P)

As is request you to send my CIR report to my official address or mail me. For address proof i have already sent my telephone bill. from my official email. ajay.nath@tata-aig.com.

Once again heartily request you to do the needful in priority.

My office address

Ajay Kumar Nath

Tata AIG General Insurance Company.

My Home Tycoon, 4th Floor, “A” Block,

Kundan Bagh,Begumpet,

Hyderabad – 500016.

Regards

Ajay Kumar Nath

— On Thu, 9/6/12, info@cibil.com wrote:

From: info@cibil.com
Subject: Service Request Number 1112757
To: ajay_nath_2000@yahoo.com
Date: Thursday, September 6, 2012, 6:17 PM

Dear Sir,

We thank you for your recent request to obtain your CIBIL TransUnion Score (Including CIR).

However, we regret our inability to process your request as the address provided by you does not match with the same on your Credit Report.

We request you to confirm the address/es provided by you to the Credit Institution/s at the time of applying for loan / credit card. We would like to inform you that your Credit Report request will be processed on receipt of the information and subject to the address provided matching with our records.

Kindly quote the above mentioned Service Request Number in your future communication with us.

Thanking you and assuring you of our best services always.

Best Regards,

Consumer Relations.

Reply

308 Manish Chauhan September 29, 2012 at 11:24 am

Ajay

You will have to give the current address only which one is on your cibil report . Now cibil depends on your bank information , so looks like oyu have not updated the info in your banks , CIBIL cant send it , as there can be a fraud on this , they can suspect you as fraud ,which is correct from security point of view .

So what you have to do is , update your contact details in bank and in next 60 days , apply for report . you will get it !

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309 Lokesh Sharma September 28, 2012 at 3:15 am

Hi Manish,

I have applied for the HDFC credit card, but it has been Declined due to – DISAPPROVAL OF THE CREDIT CARD APPLICATION DOES NOT REFLECT IN ANYWAY ON YOUR CREDIT STANDING OR YOUR FINANCIAL STABILITY.

I have met all the Eligiblity criteria and all the verification call was done positively, but with out any reason it has disapproved.

Could you please let me know is there is any problem with CIBIL and please advise how can i get a credit card.

Regards;
Lokesh Sharma

Reply

310 Manish Chauhan September 29, 2012 at 10:45 am

First apply for a report and see what in there !

Reply

311 Chintan Mehta September 28, 2012 at 1:57 pm

Hi Manish,

I just got my CIBIL score and it is 766. I had applied for house loan in 2010 (Govt. Bank) and found that my 2 credit cards have written off status. I lost both cards in past and asked the bank to closed the account. Unfortunately there were small due amount and I did not pay which was increased to huge amount. So Home loan bank executive told me to settle the amount and I did. I got the home laon from Nationalised bank. From 2008 till date I am paying all my credit card dues and EMIs on time.

Now my questions are

1. Do you think 766 is not a good score to get any loan in future?
2. Do you suggest I should go and make full payment as these accounts show settled in Cibil report? If yes then I am not sure if they will also charge interest and late payment post settlement.

Thanks for help.

Regards, CM

Reply

312 Manish Chauhan September 29, 2012 at 10:30 am

1. 766 is a decent score, but now a days some banks might be looking at 800+ score ! .. you can still get a loan if your salary is good and you have a clear report

2. Didnt you pay the FULL amount in past ? If not , then it was a settlement and now the amount might have grown . better pay it off and just get it closed !

Reply

313 Chintan Mehta October 5, 2012 at 4:52 pm

Thanks Manish. Unfortunately one of the banks has sold the credit card business to other bank and new bank is not providing me full info.

Well, I need to manage this.

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314 Manish Chauhan October 9, 2012 at 11:06 am

You better inform the new company and old company , that you are going to complain to banking ombudsman now

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315 Rajesh Bysani September 28, 2012 at 7:04 pm

Hi Manish,

Thank you another wonderful and informative article. I recently got my CIBIL score and found it to be at 791 (which seems to be a good score). I have had few loans and cards in the last 6-7 years but apart from a few months of late payment there hasn’t been any bad behavior. Currently I have 4 credit cards all of which have outstanding closer to zero. I also have a personal loan that I am paying regularly and I might close in the next couple of months.

The only problem I have is that back in 2006 I had a SBI credit card that I somehow maxed out and was not able to manage it then. The only solution I had was to settle it. This account is showing up in the report and shows written off status as “Settled”.

How will this impact my home loan chances? What should I do to fix this? Can I contact the bank and pay them the remaining amount and ask them to change the status? I am really confused about this and would be great-full if you could guide me on this.

Thanks,
Rajesh

Reply

316 Manish Chauhan September 29, 2012 at 10:21 am

This SETTLED remark will prove a blocking point in getting a loan , unless its removed, you might face issue .

Better contact the bank and ask about it, you can pay the remaining money and get rid of that remark in next 60 days . You also have lot of unsecured loans (personal loan + credit card) , its not appreciated by loan givers !

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317 Naveenkumar September 30, 2012 at 12:37 pm

Hello manish,

Thanks for your valuable answer.

I was using the 2 credit card( Citi bank & ICICI) in the year of 2008-2010, moment i was not paid minimum amount for 3 months consecutive, then later one month, i have paid my entire dues and also surrender my both card, same i have received the No dues certificates too, last year i have log on to get a personal loan, unfortunately its was rejected, due to poor cibil records, then for the past 1.5Yrs im not using any loan or credit cards, recently i have received my cibil score its about 620, its that sufficient to get to go for home loan or personal? i heared that the score more than 700 only people can eligible to avail the loan is it so, i have reviewed my cibil summary, its seems that payments was cleared and no outstanding dues with any other banks, please advice me, how to improve my cibil score/range, how long it will take to improve?

With regards
Naveenkumar
9886161651

Reply

318 Credexpert December 5, 2013 at 10:28 am

Dear Mr. Kumar,

Repaying the complete outstanding amount against all credit cards was a good initiative taken by you. But, the fact that you had been late in making payments would stay on your report as these depict your past credit behaviour. We hope that the credit cards which you surrendered were closed normally without any negative remarks (for eg. written – off, settled, etc.).

If this is the situation please approach the credit card company and make the balance payment on your credit card and have a letter stating the normal closure of these credit cards and same should be updated to all the credit bureaus.

Improving the credit score is slow and gradual process, you need to have a disciplined behaviour in managing your credits – timely repayments, maintaining a balance between secured and unsecured loans, utilizing upto 35-40% of the limit on your credit cards and not making random applications for new credit facilities will help improve your credit score.

Regards,
Credexpert
http://www.credexpert.in

Reply

319 Madhu M October 1, 2012 at 6:55 pm

Dear Manish,

I have a question on credit cards. My CIBIL score currently is 770, slightly above 750, which is good score i belive.But i still worry about my credit cards.
Actually i have ICICI bank card and SBI card. SBI card gave me add-on card for my father and i upgraded recently ICICI card to new hpcl card and they gave new credit card number altogether deactivating older one.

1)Add-on cards also considered for CIBIL ? both main card and add-on card shows same transactions in CIBIL.
2)Some EMI’s still reference old credit card number, and i get those references in my new card statement with old card and new card number transactions. So this upgrade of card considered as another Credit card?

I fear, i they consider i am using 4 credit cards where i actually use 2 only. Any comments to improve score will be appreciated.

Reply

320 Manish Chauhan October 2, 2012 at 1:11 pm

Madhu

Dont worry .. credit card numbers are not reported to CIBIL , its just the debt part which gets shared, so bank must be updating your info with CIBIL in right manner. Yes – add on cards are considered for CIBIL , but you dont have to worry on it , its not negative thing .

Reply

321 Chakravarthi October 10, 2012 at 12:20 am

Hi Manish,

I received my cibil credit score as 620 due to a non payment of credit card bill. I have now paid the entire amount and have settled it.

How should I inform CIBIL that I have settled the dues. Will the bank update them or should it be done by me (if it should be done by me, can you please let me know the procedure?)

Reply

322 Manish Chauhan October 12, 2012 at 3:01 pm

Bank will update that with CIBIL , check the score again after 45 days

Reply

323 Chandra October 10, 2012 at 3:05 pm

Hi Manish,

I was using 5 Credit Cards from 5 banks –
1. ABM AMRO Bank
2. HSBC Bank
3. City Bank
4. Standard Chartered Bank
5. Deutsche Bank

In 2008 i lost my job. That time i was stopped paying the credit card payments.
Later after when i got job, i took the final settlement from all the banks & paid that final settlement amount only.

Now my Cibil Score is 518.

Now I want Site or House loan.
Please advise how to increase my Cibil Score to get the loan.
Earlier i don’t know about Cibil Score issues.

Please help me in this.

Thanks
Chandra

Reply

324 Chandra October 11, 2012 at 8:45 pm

I paid the settlement amount as below –

ABM AMRO Bank:
Paid the Settlement amount of Rs. 46,000/- as against the total Outstanding amount of Rs. 1,14,097.29/-
———————–

Standard Chartered Bank:
Paid the Settlement amount of Rs. 14,725/- as against the total Outstanding amount of Rs. 14,723.91/-
———————–

HSBC Bank:
Paid the Settlement amount of Rs. 30,000/- But I donot know the total Outstanding amount.
———————–

Deutsche Bank:
Paid the Settlement amount of Rs. 20,000/- But I donot know the total Outstanding amount.
———————–

Reply

325 Manish Chauhan October 12, 2012 at 10:41 am

Unless you pay the full outstanding amount , your remarks will not be removed from the bank side.

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326 Manish Chauhan October 12, 2012 at 12:23 pm

You will have to make full payment on all your loans and only then the report will get clean and your score will improve !

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327 Sushant October 14, 2012 at 3:38 am

Hello Manish,

It’s very nice article for people who really need to understand how to imporve their score.

I have Score of 671. Will I able to get the Personal Loan ?

Thank you,
Sushant

Reply

328 Manish Chauhan October 16, 2012 at 2:18 pm

I dont think so .. You need better one

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329 S. Anwar Basha October 14, 2012 at 10:20 pm

Good Morning Sir,
Iam Dr. S. Anwar Basha residing at Tirupati. I have taken a personal loan from UTI bank in the past . The loan was written off without intimation. Now this is affecting my CIBIL SCORE and hence I want to revert it. I called the Help Line No. and they asked me to first close the Loan properly. Hence kindly guide and help me to revert my CIBIL SCORE. Also how much time does it take to improve my cibil score.
Citi Loan Date : 15. 04. 2002
Last repayment Cheque of Rs 10,000 dated 21. 10. 2005
Loan written off on 28. 07. 2009
Kindly mail back at the earliest,
Dr. S. Anwar Basha

Reply

330 Manish Chauhan October 16, 2012 at 2:09 pm

First make the payment to Bank , then wait for 60 day in which they will update it to CIBIL and then your score will go up .

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331 Rahul K. October 16, 2012 at 12:46 am

Hi Manish,

I have been following your articles for CIBIL score improvement and it helped a lot. Just today I had a personal loan approved after a very long time. My score currently is 770 :)

Just to be careful in the future, request your help with my questions below. Like always, appreciate your efforts.

Question 1:- Say credit card limit is 30,000. The total due for the a month is 5000 and in the same month a person has made an online purchase with EMI’s worth 10,000. In this case, the due would be 5000, however, the available credit balance would be 15,000 (as the EMIs’ would be charged monthly but the amount would be blocked on CC – 10,000 in this case). Question is – Will the credit utilization for this month show 50% or 16%??

Question 2:- Say credit card limit is 30,000. Statement for the month of Jan received on 1 Feb with total due of 10,000, due date 26th Feb. The card holder used his card to pay his bills worth 10,000 till 25 Feb without paying the earlier due. As a result, the credit balance on his CC is 10,000 on Feb 25. However, on 26th Feb he pays 10,000 towards CC (Jan due in full). Question is – will the ‘High Credit’ (or credit utilization) for month of Feb show 20,000? or will it be 10,000 only?

Reply

332 Manish Chauhan October 16, 2012 at 1:39 pm

Rahul

1. 50%

2. 10,000 only

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333 Gongieni Venkanna October 17, 2012 at 12:30 pm

Very Very useful information to the all the customers who are availing different types of loans from different financial institutions. One can easily develop with the help of the financial institutions, only the bankers will the track history, not the properties how much the customer is having,how much he is wealthy, that is not the question, how the customer is paying debts. thank you.

Reply

334 Manish Chauhan October 19, 2012 at 9:37 am

Thanks for your views on this topic

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335 Rishi October 17, 2012 at 4:47 pm

Hi Manish,
I have a question. I putchased my CIBIL Transunion score in January 2012 and it was 632. With some issues with SBI card, HSBC card and Rs.8 pending of a loan. All issues were because of banks itself.

I managed to close the issue with SBI card and the loan thing, but somehow HSBC is not willing to accept their fault and giving me tough time. SBI was kind enough to accept and rectify and also Citi Financial cleared that Rs.8 issue as well.

The issue with HSBC is that they are not willing to settle.

Now I got my CIBIL report after 9 months and my score is 812 now with only HSBC issue left in it. I only use one ICICI credit card and make regular payments since last 7 years.

The question is HSBC closed by card in November 2008 and written off the amount that was due.

My question is can a bank continue to charge late fees and interest even after they already ‘Write-off’ that amount? Ideally if they have written off, they should not keep on increasing it. Whats your view on this.

Although my score improved alot considering my credit payment history and also closed issue with SBI & loan thing. But Will this HSBC issue still hit me. My score improved from 632 to 812 in 9 months.

Whats your view on this?

Thanks,
Rishi

Reply

336 Manish Chauhan October 19, 2012 at 9:27 am

They should not be charging interest etc on that , because its already closed, but in future if you want to pay it off , then bank might say that they will charge the interest etc because now you want to deal with it .

What exactly was the issue, unless there is some serious problem , the bank will not do like this . with score of 812 , if you are able to give right justification for the written off part to the other bank where you want to apply for loan , you should be able to get it .

Reply

337 Rishi October 19, 2012 at 12:11 pm

Thanks Manish for the answer. Exactly this was my thinking that they should keep on increasing it as it is already closed sometime ago.
The issue is they issues some mysterious repayment insurance on my card and I am sure their sales agent forged my signature on the application form for that policy. Infact in the nominee name they mentioned some annonymous name and marked her as my wife. I have been fighting with them for almost a year now and they don’t seem to agree.
They indeed offered me to settle it with Rs.1500 but, they say they will only put status as ‘Post W/O setteled’. SHOULD I GET THAT DONE? My score has already improved based on my other payment behavior. I never missed any payment and am always punctual in making any dues. Just that this unknown transaction has hit me badly.
What should I do with it? Should I settle it.
And they are increasing the amount even they mentioned ‘Written Off’ in the CIBIL status. Is there a way to check when exactly they written off the amount and what was that amount.

Reply

338 Rishi October 19, 2012 at 1:35 pm

Thanks Manish for the answer.

Exactly this was my thinking that they should keep on increasing it as it is already closed sometime ago.
The issue is they issues some mysterious repayment insurance on my card and I am sure their sales agent forged my signature on the application form for that policy. Infact in the nominee name they mentioned some annonymous name and marked her as my wife. I have been fighting with them for almost a year now and they don’t seem to agree.
They indeed offered me to settle it with Rs.1500 but, they say they will only put status as ‘Post W/O setteled’. SHOULD I GET THAT DONE? My score has already improved based on my other payment behavior. I never missed any payment and am always punctual in making any dues. Just that this unknown transaction has hit me badly.
What should I do with it? Should I settle it.
And they are increasing the amount even they mentioned ‘Written Off’ in the CIBIL status. Is there a way to check when exactly they written off the amount and what was that amount.

Reply

339 Manish Chauhan October 22, 2012 at 12:42 pm

You should do 2 things now

1. Dont SETTLE with paying less money, it will not be of much use now , as the remark of SETTLEMENT will be there anyways !

2. Now put a complaint with consumer court directly and follow up this seriously, as the case is stronger on your side, you shoudl get some kind of compensation.

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340 surendro sahoo October 18, 2012 at 1:03 pm

In Indian jurisprudence there is something like natural justice, where the saying is – no one is guilty till he is proved.

However, it appears, in case of credit rating by CIBIL this does not apply. Does it mean the act under which CIBIL was created is above the common law of the country, or it is there because no one has challenged it?

Reply

341 Manish Chauhan October 19, 2012 at 8:59 am

Surendro

I am not sure what you are pointing too . Actually CIBIL just collects info from banks , nothing else . Now if there is a issue the source is banks.

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342 Naresh October 19, 2012 at 11:39 am

Hello Manish,

I owned a Citibank credit card in the year 2007, So, I had settlemented for RS 8000, out of 35000, and I closed the case that time itself, also I applied for Bike loan in year 2011 it got approved from INDUSIND BANK payments are going good as of now.
My question: Is there any impact for applying home loan now.

Reply

343 Manish Chauhan October 22, 2012 at 12:43 pm

Yes, there are higher chances, look at your credit report , there must be a SETTLED remark for your credit card, that will impact your loan for home . Better pay it off in full .

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344 Kripa S October 20, 2012 at 6:41 pm

Hi Manish,
First of all Thanks for the Article this is very usefull,
I have few important query can you please help me intoi this, so that i can get out of myself from messup or wrong dission,

Question- 1
I had Credit card from SBI in 2006 i used it then payed also but deu to small knowladge. after that i used some rs. 10000.00 and did not pay in the same time i joind another company in other city so the SBI is not able to contact me and i did not pay the money.

it pending till date.
what should i do- i want plan my invesment now in insurance or saving it will effect after if they trace me they will diduct from my saving with interest.

Question -2

Afetr that i taken personal loan in 2010 from HDFC- 2Lacs.
i regulary paid the EMI for 1 year and after of rs 7081/pm
then for 1 year late the payment 5-6 days in every month deu to salary date.
so total approx 15 ECS payment was bounced and late.

then again i regulry started paying my EMI on time.
rigth now i have painding only 3 EMI + interest of 15 cheque bounced charge, late fee ect is 10000 approx.

Its closing time i realized this now befor few day when i pland for a piaggio vespa by finance now they are not given me the loan becouse.

I started recerching all kind of credit and cibil problem.
I realized i was going wrong way.
I was not aware about credit score, bad credit will effect with the littile late EMI and disorder the cheque.

Its closing time so how will i plan for final setelment, i herd from you article never do setelment. so how will i close the account now.
please help the procedure of closing or NOC. I dont know where i go.

Also please help me to improve my Credit Score for my Future.

it will be great help
Thankyou Very Much in advanced

Reply

345 Manish Chauhan October 22, 2012 at 10:12 am

the only option for you now is to pay off the full outstanding amount , then your score and report will improve !

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346 Kripa S October 22, 2012 at 10:35 am

Thanks Manish,
can i pay SBI painding Amount on EMI Also.
and what formilities i have to do for Personal loan closing.
i asked for cibil report also it will come with in a week i will update you for the same.

Please guide.
Thankyou

Reply

347 Manish Chauhan October 22, 2012 at 12:12 pm

You can just meet the bank manager and he will guide you on this, you will just have to make the full payment .

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348 amit October 20, 2012 at 8:30 pm

HI,

i have taken a loan of Rs. 40000 but due to some finencial issue i cont clear my all EMI. thats why my name is in CIBIL. but now few month back i have clear all dues and i took NOC letter from bank but still my name is not remove from CIBIL. i dont know now what shall i do. i need help.

so i request pl guide me…

Reply

349 Manish Chauhan October 22, 2012 at 9:56 am

Did you pay full money or partial ? If you have paid in full, then it will be removed in some weeks !

Reply

350 Mayuresh October 21, 2012 at 11:00 pm

Hi Manish,

This article is very much useful to me. I need your suggestion.
I am working in reputed MNC from last 4.5 Years. Currently I am getting 53,500/- net salary per month. I am having some loans as below.

Home Loan – 18,00,000 (From last 1.5 Years)
Personal Loan – 4,80,000 (2.5 Years Paid Out of 5 Years)
SBI Credit Card Loan – 1,36,000 (1.5 Year paid Out of 3 Years)

I am having 3 Credit cards but no late payment charges and with good tracking report.
Only there was one concern, I took HDFC personal Loan 2.5 Year Back. I was so much busy in family function and due to my mistake my 1st ECS got bounced, that EMI cleared in the same week. I talked with customer care person and explain him about my mistake. In very next month again due to my misunderstanding (as I was having 2 savings account in different banks…) my second EMI was also got bounced :( . Suddenly I write a mail to HDFC personal loan department for my apologies and to explain actual reason for those EMI bounce. From that incident to till date all my EMI’s are on time.
But, last month HDFC person called me and ask me to pay 890 Rs. against those bounces. I asked him that why they have not informed me regarding same in last two years? He didn’t replied on that question. I have paid that charges in this month.
Now I am looking for a Car Loan. Please suggest me that Can I apply to HDFC as I am having quite good relationship with bank except that 2 EMI’s.
I have also applied for my CIBIL report after reading your article.

Need your suggestion. And for my future transactions I will take care of all your tips to built good credit ratings.

Thanks in advanced.
Mayuresh.

Reply

351 Manish Chauhan October 22, 2012 at 9:45 am

Just 2 transactions does not carry so much weight , but those will be there in your CIBIL report in PDP section . First check your credit score and look at it , how much is it .

Reply

352 Rajesh October 22, 2012 at 11:28 am

Hi Manish

I have had a lot of debt through various credit cards and a personal loan. This was more than 6 years back (mistakes when i just started working) and then I settled everything a couple of years ago (paid the negotiated settled amount and not in full). Now i earn a very high package and my take home every month is above a lakh but I applied for a credit card recently just to check if they would give me but quoting credit history, they declined. How do I get this straightened out cause I am gonna try for a home loan. Need your advice on how to correct this or WHAT ARE MY OPTIONS IN GETTING A HOME LOAN.

Reply

353 Manish Chauhan October 22, 2012 at 12:04 pm

the only option right now is to contact all banks and ask them what is the outstanding amount you need to pay them to close the matter. Once thats done, you will get a better report and score.

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354 Rajesh October 22, 2012 at 2:29 pm

Thanks Manish. I have already paid all the outstanding amount. Hope the score gets better. How long does it show a bad score.

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355 Manish Chauhan October 22, 2012 at 3:33 pm

The bank shoudl report to cibil about your payment in 30 days . so your bad score should improve soon .

Reply

356 Neeraj Shukla October 22, 2012 at 5:42 pm

Dear Sir
I had more them five credit cards and a personal loan from various Bank. This was last 10 years ago. The Personal loan A/C no was 511499 From HDFC Bank of Amount Rs.90000/- EMI was Rs 3345 per month, we had paid 29 EMI regularly out of total EMI 36, The rest 7 EMI we had paid at the time of fourecloser.

Then received 6.50 Lac Home loan From HDFC Bank in 2005 A/C No 581459377
Dear during this period some EMI was dishonored ( this was rescission period ) after some time I arrange a huge money through an another property and re payment to bank ) Now I have NOC from HDFC Bank I settled in a reputed Pharma Company Now i earn a very good package. I Bajaj finance And I have an own house in MU-59 C Pitampura New Delhi. but I applied for loan from FULTORN recently just to check the CIBIL they declined. How do I get this straightened out cause I am going try for a home loan. Need your advice on how to correct this or WHAT ARE MY OPTIONS IN GETTING A HOME LOAN.

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357 Manish Chauhan October 25, 2012 at 8:57 am

CIBIL has something which is not good, did you have any amount which was remaininig , even a small amount ? Because thats the main issue mostly ! .

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358 mahesh rajbhar October 22, 2012 at 6:23 pm

My brother has taken a credit card in my name (something called as adon scheme) without informing me.He has spent some money and had not paid.Can u please suggest me what to do in this case to build my CIBIL rating better ?

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359 Manish Chauhan October 25, 2012 at 8:54 am

Mahesh

This credit card being on your name will have a CIBIL entry , now whatever good or bad happens on this , will go your CIBIL account. so just keep a track of what your brother is doing, and I am wondering how can someone open a credit card on your name without informing ? It takes signatures etc !

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360 debashish bhaatacharjee October 23, 2012 at 12:10 pm

i have started using hdfc credit card March 2012 and my credit limit is Rs.80000/- where i have taken a personal loan of Rs.40000/- for which i make a payment of Rs.1300/- per month & the loan ends at 2015 also i have 3 more emi for some household electronic equipments which i bought, together i pay HDFC somewhere around Rs.11000/- per month inclusive of all which includes my personal loan of Rs.1300/- to, december 2012 wil be the time where i will only be left with the variable of Rs.1300/- emi per month till 2015.which is from december 2012.

i never miss or missed a payment of my HDFC credit card generally i make the payment through net-banking within 1 or 2 days from the generation of the credit card bill,so thought of applying for CIBIL will it be helpful for me to enroll myself right now as i have some future plans like to take a auto loan & buy a small car by January/February 2013 and a 2BHK/3BHK house by 2015 in Kolkata…..how should be my financial steps or approach towards this

Debashish Bhattacharjee/Mumbai

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361 Manish Chauhan October 24, 2012 at 8:51 pm

Even though you have not made any delay payment or missed payments, still your score will take a hit , because with your actions oyu are giving a message that you need a lot of loans in life . Not a good sign !

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362 vishal virdi October 23, 2012 at 2:23 pm

Hi
I obtained car loan from IICIC bank and there are few cheque bounces due to my change in job and location during the loan tenure, my cibil score is 640. I approched bank authorities and got it settled. Meanwhile my used car loan is also approved from a bank. Just want to enquire that in future will my loan case be approved if i take another loan say after 3-4 years. And will my current Used car loan improve my credit rating i mean will it shoot up from 640 to 740?

Please guide me what should i do with my ICICI Bank Olc car loan, should i settle or pay full amount.

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363 Manish Chauhan October 24, 2012 at 8:47 pm

Always you have to pay in FULL , else it will be marked as SETTLED . so better pay all the money .

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364 Bishwanath Sanfui October 25, 2012 at 3:44 pm

Hi,
I have paid in full, all of my settled PL & Card A/C according to your suggestion but my CIBIL score remains same even after removing settled / Written off status. now only marked as `-‘ in place of Written Off/ Settled. So pls. suggest what to do next.

Thanks in advance.

Bishwanath

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365 Manish Chauhan October 27, 2012 at 12:04 pm

Your score will improve with each month of repayment to some loan, do you hold a credit card ?

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366 Arun October 25, 2012 at 6:43 pm

Hi Manish,

Now that i understand how this works. I would like to improve my credit score coz i have messed it up. Now say I do walk upto these banks and ready to payoff the disputed amounts.
1. Will I have to pay the outstanding with interest for 2 years since the time i had come to settlement with the bank that was done in 2010 ?
2. If I do that, is there a gaurantee that the bank will remove all negative records that are reflecting on my credit report ?
3. if they do remove, how long will this process take ?
4. what kind of documentation should i take from the bank as confirmation ?

Hope you can shed some light into these doubts that i have.

Arun

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367 Manish Chauhan October 27, 2012 at 11:57 am

1. Yes most probably, its like you didnt pay the rest amount for these 2 yrs, but dont judge it right now , check with bank first

2. Yes, when you make the payment , then they have to update CIBIL with the current status and obviosuly your current status is that you have paid everything , so they will update CIBIL in 30 days, check your report once again in next 45-60 days . This should also bump up your score !

3. overall 60 days

4. Take the NOC saying you dont have any any any outstanding and also take a note where they say they will update CIBIL with clean status now .

Manish

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368 Arunprasath October 29, 2012 at 11:56 am

Hi Manish,

Very recently i checked my Score and it as 614. I found that information pertaining to another individual’s credit report was inadvertently mixed with my report. The information mixed was OWNERSHIP: GUARANTOR.

Then i logged this issued to CIBIL and they told me that it will be removed from report. My doubt is because of this removal is there any chance that my score will increase.

Thanks,
Arunprasath.

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369 Manish Chauhan October 30, 2012 at 10:25 am

Yes, it will be increased if the loan was defaulted. Also I think you should sue CIBIL , check this – http://www.expressindia.com/latest-news/finance-company-to-compensate-consumer-for-wrongly-submitting-name-as-a-defaulter-with-cibil/1023879/

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370 Arunprasath October 30, 2012 at 10:38 am

Thanks Manish for your information.. I love your site and visit often for financial information. Keep up the good work….

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371 Manish Chauhan October 30, 2012 at 10:48 am

Welcome :)

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372 RKBhowmik October 30, 2012 at 12:15 pm

My CIBIL score is 793, i had two settlement case in 2007. Shall i get home loan?
Rinku

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373 Manish Chauhan October 30, 2012 at 12:27 pm

very unlikely . Settlement is not seen as positive thing

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374 Nani October 30, 2012 at 3:31 pm

Hi i have a citi financial loan and had cheque bounces for almost one yea two per month.But i cleared all my loan recently.My cibil score is 735.But my CIR shows the cheque bounces.How badly these cheque bounces will affect me while going for new car loan.Once again i am telling that i cleared the entire amount not settlement.

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375 Manish Chauhan November 2, 2012 at 11:55 am

Nani

Your cheque bounces will affect badly . As its in your CIR report, all the lenders can look at it and you tell me , who wants to lend to someone who defaults ?

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376 Nani November 5, 2012 at 9:05 am

Dude i guess defaulter is somebody who run away from loan and not some body who paid entire amount for repayment.Tell me some thing encouraging to imprve my credit history.If i know the answer why would i ask u .

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377 Manish Chauhan November 6, 2012 at 3:26 pm

NO , in case of CIBIL, even someone who has not paid on time is like a defaulter . Not a “didnt pay” kind of defaulter , but the “later payer” kind of defaulter, I m just usng ther term like that .

The cheque bounce info will get passed in coming years . you cant remove them !

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378 Nani November 7, 2012 at 8:10 am

Hmm thanks i understand that we cant remove them.But is there any way i can imporove my credit history if so gime a suggestion.

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379 Manish Chauhan November 12, 2012 at 9:15 am

It will be removed as time passes, in short term you cant do much other than just paying your dues on time now !

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380 Santosh B October 31, 2012 at 4:16 pm

Hi Manish,

My Cibil score in Jun’12 was 508. After that in Jul’12 I made a pre-payment of 1 or my loans and closed it. However, when I ordered my Cibil score again in Aug’12 it was reduced to 470. I had checked loan eligibility online but never submitted any documents for a loan since Aug’12, but those banks showed it as an loan inquiry on Cibil. Hence, in Oct’12 I raised dispute with Cibil. Below are my questions:
1) Does a Cibil score reduce, if I order it more frequently? (I need to check the change in my score as I am prepaying my debts 1 by 1 every month)
2) Can the banks/financial institutions report an inquiry of loan even if I just check the eligibility online and never submit documents for the loan.
3) How much is the minimum Cibil score required to get a personal loan. (My Cibil score is less, but my current liabilities are very less).
4) Cibil dispute takes around 30 days to process. So can’t I do anything till then to get any credit from any bank, as I am very sure that the reply to the dispute raised by me will come in my favour.

Regards,
Santosh.

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381 Manish Chauhan November 2, 2012 at 11:25 am

Santosh

1. NO , just ordering CIBIL score does not reduce your score

2. It might happen . Its like you are giving away your name, address, salary etc etc and it looks as if “You need credit” . If you do it 5 times, it shows credit hunger, its like that only ! . So it might get reported.

3. Its a bank internal criteria, but 800+ should be an ideal one .

4. Sadly, life does not work like that . All you can do is meet the bank manager, and talk to him by giving your justification and showing him suporting documents . But I doubt with 470 score, he will even entertain you . There has to be some thing seriously wrong .

Manish

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382 Jitender sharma October 31, 2012 at 4:47 pm

Sir
I want to know my cibil score, please help me out to check my credit rating.

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383 Manish Chauhan November 2, 2012 at 11:22 am
384 wasim November 1, 2012 at 11:26 am

Hi i want to know how to improve my cibil score as ut is 684.i was having 2 wheeler loan but it has been closed now i want to take a personal loan plz help me.

Regards,
wasim

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385 Manish Chauhan November 2, 2012 at 11:18 am

Wasim

Is there any settlement or written off remark in your report, did you make payments on time ?

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386 kishore November 1, 2012 at 5:41 pm

i am facing problem with my credit score

in 2006 telephonic policy of tata aig done my account i asked to cancell
but they did’t cancelled and i surrendered the credit to them.

after i left issue i was planningto take personal loan it was reflecting

mean while : i have purchase car,bike,auto for my personal use. at that time they
did’t shown plz help mee regarding this issue.

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387 Manish Chauhan November 2, 2012 at 11:09 am

You will have to first clear it with bank on why they have not cancelled it . If it was bank mistake, you will have to pursue it further at consumer forum

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388 K Harish November 1, 2012 at 7:03 pm

Hi Manish,

I had a credit card from citibank and the same was settled with the bank and the bank has issued a closure letter inspite of that cibil report says that there is a due in the card , how to solve this.

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389 Manish Chauhan November 2, 2012 at 11:06 am

Settlements are always reported for the remaining amount. Now pay the remaining amount to bank !

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390 Bhaskar Reddy G November 2, 2012 at 6:01 pm

Recently I have applied for personnel loan in one bank but it didn’t sanction.
Later I came to know, loan rejected because of CIBIL score. I was not aware of this CIBIL score because, first time i am applied for personnel loan.I was using ICICI credit card I used to pay the minimum balance and pay the balancing due later. that time I was not aware of CIBIL score and all. Now I have closed ICICI credit card account by paying full amount.
I am thinking like once I close credit card account it will get update to CIBIL and my score may get change. is it right, please suggest me.

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391 Manish Chauhan November 6, 2012 at 5:19 pm

Yes, once you pay the full outstanding money , your score will get better !

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392 Rao November 2, 2012 at 6:52 pm

Hi Manish
Great Info.
I have two credit cards. In those there was outstanding amount to pay. Due to my financial reasons I have not paid the amount. I have not paid the amount since last 3 years.
I am planning to pay the amount now.
1) If I clear the amount for the both the credit cards now, will it be possilbe to increase my credit score ? If yes how much time it will take?
Some of my friends told me that if we clear the outstanding also there is no use. credit score wil not be increased.
Kindly let me know.

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393 Manish Chauhan November 6, 2012 at 5:17 pm

Yes your credit score will improve if you make the payment outstanding !

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394 Naresh Kumar November 4, 2012 at 2:15 am

Hi Manish,
Please help me if possible..
wrong update in CIBIL REPORT for my Two wheeler loan because of this wrong update my loans are getting rejected.

I have a Copy of CIBIL REPORT .i have seen that there is wrong update or its not updated further in the CIBIL REPORT IN DPD ACCOUNT that Reported as LSS (loss)instead of (000) in the year March 2008 . However i have made the total payment on 09 March 2008 . i have received NOC and the payment receipt .

I have sent mails to cibil nodal desk and bank but there is no proper response and bank is asking me to pay the amount again to update the status . can you help me in this.

Thanks for your Anticipation
Naresh

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395 Manish Chauhan November 6, 2012 at 4:30 pm

Check with their customer care !

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396 chandra November 5, 2012 at 2:07 pm

Dear manish,
went through all the postings here, wondering if anyone can help with this case of mine.
i had three credit cards
axis cr.limit-20000
barclays – 18000
citi – 12000

it was the time while i was studying & working part time… didn’t really understand how it all will be chaos for whole life. i now have a good paying job & i want to clear everything out to live peacefully.
i called the bank they said total outstanding as on today–
axis 40000
barclay 38000
citi 12000
now i remember before i stopped paying the bills i had converted citi’s payments into 12 EMIs out of which i only could pay 2….
to my understanding there total outstanding should be higher then 12K but they keep telling it is only 12 K
now what shall i do to pay everything all the interests & fees to get me out clear.

will be a big help…..

thanks
Chandra

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397 Manish Chauhan November 6, 2012 at 3:19 pm

Just pay EVERY thing now .. no penny left , take NOC !

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398 chandra November 6, 2012 at 3:45 pm

what happens post NOC???
also would i ever be able to be on track?? if yes then how does it work??
is noc is the only thing i shall receive???

also i wanted to get my cibil score for cibil.com they charged my account & asked for my passport last five digits which i didn’t happen to have remembered at that time so authentication failed……
now the catch is they wanted me to mention the address which was registered to credit card company & of course i don’t live there any more… now they are asking the proof for the same address to mail the cibil score…….

confused i am….. have sent mails number of times to them no reply yet………….
if you have any idea please suggest…..

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399 Manish Chauhan November 6, 2012 at 4:36 pm

Chandra

Where are few things which will help you

1. NOC is no objection certificate which is provided by bank and its a proof saying that now you dont owe anything to the bank and you are clean now . Once you pay the dues , banks will give you NOC , and then update the CIBIL on the latest payment and change your STATUS

2. CIBIL will always look at the address given by bank to them as “source of truth” , so its the final one , incase your current address is a new one and the bank has old one, you should be updating your bank address so that it gets propogated to bank and then CIBIL . After that you need to apply for report

3. When authentication fails, you need to send the physical proofs to them

I hope these 3 points will help you understand things in a better way !

Manish

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400 narayan November 6, 2012 at 6:18 pm

Hi,
i used two credit cards and also took personal loan. i paid personal loan in full but defaulted while paying credit cards due.i went for settlement of two credit cards. recently i applied for a new credit card but it got rejected. later i contacted banks and made the payment of money which was due while making settlement.i made payment to both the banks on 1st of Oct-2012 till when i have to wait to get it reflected in CIBIL?

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401 Manish Chauhan November 12, 2012 at 9:25 am

Wait till 1st Dec now

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402 Sharma Gaurav November 7, 2012 at 12:34 pm

Hi

Thanks for all the advice. It has been an eye opener for me. I just got my CIBIL Credit Rating checked and have a rating of 853.
1) I was trying to understand how would u rate this as credit rating.

2) I have been very poor with my financial discipline early in my life, after going through my rating document i figured that all being okay one card from SBI shows WO… while the truth is that I paid in full for everything to the bank and once the account was zero cut and returned the card to the bank. The bank customer care person agreed that the card will be discontinued. I was okay then 7 years later i get a call from a rep from the bank saying that i have a due of around 5000 as the bank had not cancelled the card and i was to pay annual charges for the same. I spoke to the bank authorities and they agreed that i had stopped using the card after bringing my accounts to zero and ‘must have’ asked for the card to be discontinued but at the back end the card was not stopped so i need to pay. I was against it and they told me if i dont they will report it to CIBIL. I made a mistake and did not try averting the damage it would do… as I had no idea what it could have done…. so now I need your advice on the way ahead….

Also I had around 5 years ago closed all my cards etc and now only use my two ICICI accounts wherein i am a platinum account holder.

thanks and regards

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403 Manish Chauhan November 12, 2012 at 9:01 am

853 is a great score , make sure you take a NOC from bank on your payment done . You should not have that WO remark !

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404 Sharma Gaurav November 12, 2012 at 11:48 am

Thanks for the reply… how do i remove that WO remark… what can I do to achieve it and do you think i can apply for a home loan… ?

thanks a ton again

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405 Manish Chauhan November 15, 2012 at 7:57 pm

You can just pay off the outstanding amount and bank will remove it !

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406 SNEHA SAGAR BEHERA November 7, 2012 at 10:13 pm

Hi,

In past experience I had misutiliesed the two credit cards and also had done a full and final settlement of a Personal loan taken from ICICI Bank. Now though i had cleared all the outstanding, I am not eligible to receive any cards or Loans from any of the Banks.

Is there any source by which I can improve my credit rate after a period of time.

Pls advice.

Thanks and Regards.

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407 Manish Chauhan November 12, 2012 at 8:44 am

What remark you have in your report ? Settled or written off ?

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408 sneha sagar behera November 17, 2012 at 8:22 pm

settled……

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409 sneha sagar behera November 17, 2012 at 8:58 pm

Dear Manish,

I had checked my CIBIL score, it’s showing 578. will you pls assist how bad is my score and how to improve it..

Regards,
Sagar.

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410 Manish Chauhan November 20, 2012 at 4:13 pm

Its a bad score ! . You need to repay your outstanding first and only then it will improve !

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411 Ashish November 8, 2012 at 11:21 pm

Hi Manish,

First of all ,I would like to thank you for providing such a detailed information regarding CIBIL. You are doing an awesome job.
Now my side of story related to CIBIL. I messed up my financial planning few years back because of which I had to go for settlement towards my credit card dues. This was done almost 2 years back and I was under an impression that I am in good shape now:-(. Recently I pulled out my CIBIL report and found that for two of the credit cards status is showing as ‘Settled’ and ‘Written off’. I contacted the bank and they confirmed they will be removing the above said statuses and asked me to check the report after two months. I have everything in written so I think I am good. I have a score of 840.
Now My question is, if the bank removes the ‘settled’ status from CIBIL will there be any issue getting a loan from any bank? In the CIBIL report I found that they also keep a track of payment history which does not look good to me. Will this be a reason for rejection?

Please suggest what can I do now as I am planning to go for Home Loan.

Thanks in advance,
Ashish

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412 Manish Chauhan November 12, 2012 at 8:31 am

Ashish

Did they say they will remove the status without you paying anything ? Good for you then ! .. Yes if they remove the status SETTLED, then it will improve your score and your report will then be “clean” . But your repayment record called as DPD section will still reflect your past 36 months of record . That shows minute level of detail of your payments . Now bank can obviously reject your application if they dont feel its upto their benchmark . Overall credit report is a document lenders refer to before lending to anyone . SO yes, if its messed up , the chance are high that you will be rejected.

Manish

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413 Ashish November 12, 2012 at 9:24 am

Thanks Manish for the reply. Yes somehow I got away without paying anything(lucky me ;-))
So you are saying that DPD section will get completely wiped off after three years of the last transaction with the bank??
I settled my account almost 2 n 1/2 years back that means after 6-8 months there wont be anything in that section? In that case, report will look good and bank will not have any problem in approving any loan.
Please correct me if my understanding is wrong.

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414 Manish Chauhan November 12, 2012 at 9:29 am

Good then , but you are stilling leaving a loophole ! .. I mean take a Letter of NOC from them stating that you dont owe anything to them , not a single paisa , so that you are legally stronger ! . Yes DPD section always contains last 36 months data, so current thing will get wiped out and new thing will enter each month, think of it like a WINDOW sliding !

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415 Sugand November 11, 2012 at 9:45 pm

Hi Manish,

How do I check my CIBIL score and the reason for the low score?

Thanks,
Sugand

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416 Manish Chauhan November 12, 2012 at 7:22 am

Sugand

You can check your CIBIL score like this – http://www.jagoinvestor.com/2011/12/get-cibil-score-online.html , reasons for low score , you must have understood by reading this article itself , didnt you ?

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417 srikanth November 12, 2012 at 10:31 pm

hi,

I took a internet connection from that i payed all the final amount and did the closing for that but now i got the call from delhi high court for non-payment of bill. Recently i applied a loan but they have been rejected the loan because of this CIBIL rating what should i do. Now although I payed the bill but still they telling that I have not, may be the executive took the amount of my bill. Now they are charging the amount of 4000/- with fine and all dont know what to do please reply me to my mail. id srikanth_sri9441@yahoo.com and let me know to improve my CIBIL rating as well with this things.

Thank you
Srikanth

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418 Manish Chauhan November 15, 2012 at 7:47 pm

You mean you paid the bill through credit card ?

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419 vasu November 13, 2012 at 6:01 pm

hi manish,

thanks for ur valuable suggestions.

does late paymets of lic & telephone landline bill impact my cibil score

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420 Manish Chauhan November 15, 2012 at 7:38 pm

No

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421 Anusha November 16, 2012 at 1:42 pm

Hi,

Right now my cibil score is low. If i apply for a loan and if it gets rejected, will it affect my CIBIL score again(I mean will it reduce it further)

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422 Manish Chauhan November 20, 2012 at 4:40 pm

Yes . Any rejections also go into the cibil report !

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423 vasu November 17, 2012 at 6:58 pm

Hi,

will gold loan also count to cibil score

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424 Manish Chauhan November 20, 2012 at 4:14 pm

Yes, any loan !

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425 Deena November 18, 2012 at 12:15 pm

Hi Manish,
I have one question regarding “Utilizing your full Credit Limit each month”,

I am having a “VISA Signature” credit card from HDFC bank. I have heard that VISA Signature doesn’t report the credit usage then it means that it gives an impression that the customer is using his credit limit higher every month.

Just got the information from the url
http://www.differencebetween.net/business/difference-between-visa-signature-and-platinum/

Following is the extract from the above url
————————————————-88—————————————-

Does this affect my CIBIL score considering “Utilizing your full Credit Limit each month” from your post??

Thanks
Deena

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426 Manish Chauhan November 20, 2012 at 4:10 pm

I dont think its true ! .. i Have visa icici card with ICICI , my credit limit and my monthly use I know each month .

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427 Ankur Gupta November 19, 2012 at 12:09 pm

Can anyone tell , whether my CIBIL score will be affected because of following situation:

I have car loan from SBI since 6months. Because of SBI negligence ECS on my account is not yet activated hence they are using PDC cheques, which i have given them intially. from last 4 months , every month they miss my EMI & after 2 months they use PDC cheques. i has happened 2 times. i have again given him my ECS application,..

I just want to know whether this will adversely affect my CIBIL.

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428 Manish Chauhan November 20, 2012 at 3:50 pm

Yes, this will still be reported to CIBIL if bank internally does not inform each other department that its Bank mistake only .

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429 Archana Govind November 19, 2012 at 5:18 pm

Hi Manish,

I was so relieved to see this site and went through each and every queries. But could not find a solution for my issue.
I am currently in a situation where i have got a mail from the customer care to settle the card.I took the card on Jan 2008, and had been making timely payments. I lost the card last September 2011, and had applied for a new one, and had never made any purchases after that. But some how i missed couple of payments, and they also stopped giving me the statement since Nov 11.
I had paid the minimum amount every month till June 12, and then got into some financial trouble, and ended up being a defaulter. The amount to be paid is 55000Rs, and they are asking for settlement. Im not at all in a position to pay up in one instalment and requested them for more instalments. They have not replied yet.
Do i stand a chance to resolve this without getting black listed for next 7 years??
Please do help me. As I have not much of time left to deal with this..

Thanks in advance
Archana

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430 Manish Chauhan November 20, 2012 at 2:22 pm

No Archana

I dont see any fault of bank here , everything is on your side only . so without paying the FULL (not even settlement) , you cant escape them reporting this to CIBIL .and there is no limit of 7 yrs like that, it can go to 15-20 yrs also , this 7 yrs is MINIMUM , not maximum

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431 Sai November 20, 2012 at 5:30 pm

Hi,
I have 4 credit cards, recently i closed my SC titanium card and again applied for New card with same bank (SC Platinum card) with in a week days. Does it affect my credit score? i am maintaining on time payment since begining.

Thanks,
Sai Boyina

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432 Sai November 20, 2012 at 5:35 pm

in 2008, i was having HDFC credit card, i used to pay min amount for almost a year, i paid total intrest and outstanding in 2009, without any settlement. paid total amount. does it affect my credit score.

Regards,
Sai..

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433 Manish Chauhan November 25, 2012 at 12:37 pm

I think you are over doing it , slow down , else it can badly affect your score and do not make minimum payments !

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434 Renji November 21, 2012 at 12:29 am

Hi Manish,

I have 2 credit cards, i am paying minimum due every month for 1 card and other one is sbi card where auto debit options was activated, i was not aware of that. Every month am paying more than minimum due for that sbi card. For example if the amount is 20000, i will pay 15000. like wise i payed for 5 months.

One week back my SBI credit card was deactivated for irregular payment. Now i have payed all the balance amount other than current month bill that needs to be payed on dec 5th. i have a carloan and personal loan, where I am paying emi without fault.

Does my name goes to CIBIL, wat wil be my credit score Any guess?

Now am going to apply for a home loan. Please help

Regards
Renji

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435 Manish Chauhan November 25, 2012 at 12:11 pm

Obviosuly your name goes to CIBIL because you are late in your FULL payments and the DPD section of your CIBIL report will be affected . Dont do it now onwards !

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436 Sai November 21, 2012 at 11:27 am

Hi Manesh,

last month i forgot to pay my SC card bill, after 10 days of due date, i realized that i missed the last payment, immediately i called cusomer care and told them i forgot to make payment, they asked me to pay immediately, i did that, called them again and asked them to return those late fee and and intrest amount back to my account. they agreed upon and credited same amount into my account. does it effect my credit rating. this is first time i did late payment and they also gone through my payment history and transfered latefee and intrest amount back to my account. Everything went smooth.

Does it effect my Credit rating?

Regards,
Sai Boyina

Reply

437 Manish Chauhan November 25, 2012 at 12:09 pm

Hopefully it should not , many times credit card company reverses the charges if they see a genuine case and hence it will not be reported to cibil , because in reality its revered also . So not much to worry i guess.

Reply

438 Chandrakant November 21, 2012 at 3:25 pm

Hi Manish,

Due to some family problem i have some outstanding in My credit card, which was latter Setteled with bank, i have also have one PL and Two vichler Loan which was setteled in last two year.. my cibil report score is 769..

I am Planing to go for Home loan next year ..please help me ..

Can i again pay the remaining amount after settelment to bank..

Reply

439 Manish Chauhan November 25, 2012 at 11:49 am

Yes, do that now

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440 Vinay Singh Chauhan November 21, 2012 at 8:12 pm

Hi Manish,

Currently my CIBIL score is 705 and i have two credit cards with 140000 as outstanding .
If i clear this in november and check my cibil in feb will it get close to 785.

Apart for that i have 3 personal loans one of which is getting closed this month.

I am paying full amount not settling it.

Reply

441 Manish Chauhan November 25, 2012 at 11:40 am

There cant be a guarantee like that, but better you pay it off asap , your score will surely improve !

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442 Biju November 21, 2012 at 11:04 pm

I have an interesting point to add , I have 3 cards and these cards have 1.65 Lakhs , 0.80 lakhs and 0.80 lakhs credit limit , I applied to the banks to reduce the limit to Rs 20000/- , My monthly exp will be 10 to 15 K , I never roll the bill and pay all the time in full and never defaulted even once still the cibil report will shows high card usage , The reason is it is 10000/20000 = 50% that is taken and not 10000/165000 or 10000/80000 that is taken , this is a flaw , the system does not distinguish between bank set limit and customer set credit limit ….

Any comments

Reply

443 Manish Chauhan November 25, 2012 at 11:39 am

What is customer set limit ? There is only a limit ! .. A customer can ask the bank to reduce it, but if its not reduced by bank , then no limit changes. And higher limit is always better ,if you can use it to your advantage , it will help you in credit score imporvement !

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444 basha November 26, 2012 at 5:00 pm

hi my cibil rating is 539. pls advice is that ok.

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445 Manish Chauhan November 30, 2012 at 2:22 pm

No its not good . you need atleast 800 score !

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446 basha November 30, 2012 at 2:29 pm

How can it be increased to score 800 Pls advice

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447 Samrat November 30, 2012 at 1:55 pm

how to get cibil score & how to claear

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448 Manish Chauhan November 30, 2012 at 2:57 pm

You can get it online by applying at cibil website and to clear the loan, contact your bank

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449 Kumar November 30, 2012 at 3:18 pm

Hi
Due to financial crisis I paid min due for 18 months for 3 of my credits cards, and I have not paid 8 EMIs which were left of my personal loan for 1 year. I started clearing the EMIs now as per the agreement made between the bank and me instead of going for settlement. I started clearing the due since 2 months of my credit cards by paying more than min. Today my CIBIL Score is 405 and my credit cards are in active state but i am not using them. Is there anyway that I can increase the score? If yes how long will it take?

–Kumar

Reply

450 Manish Chauhan November 30, 2012 at 3:25 pm

Kumar

Your score is too bad , all you need to do is keep paying your dues on time , It will take some good time to increase it , please dont think that very fast you can improve it . it will take some years now !

Reply

451 Mahesh G Mehta November 30, 2012 at 10:47 pm

II shree II
Dear Manish,
I am new to CIBIL. My first report showed I had a score of 739. I have a loan against LIC from SBI. My eligible limit was Rs. 1, 80, 000/= I opted for Rs. 1,50, 000/= and have kept the limit fully utilised and paid interest on time. When I applied for a credit card the application got rejected due to low CIBIL rating of 625. It was due to unintentional casual credit enquires made. I want to reach the highest score in the shortest possible time. What must I do?

Reply

452 Credexpert December 5, 2012 at 7:33 pm

Dear Mr. Mehta,

The casual enquiries made by you have unfortunately impacted your credit score negatively. The fact that your credit score dropped from 739 to 625 validates this. 625 is not a bad score and improving it is always a good option. But it would be difficult to comment on the time required for this improvement.

Additionally, there could be other factors that could have impacted your credit score negatively.

Regards,
Credexpert

Reply

453 Manish Chauhan December 11, 2012 at 5:01 pm

Mostly your score is low because you are touching your overall limit in all the months, that not good . There is no shortcut in this , but you need to keep paying your dues on time !

Reply

454 Fawwaz Hayat Khan December 1, 2012 at 4:20 am

Hi Manish,

I just checked my CIBIL report and my score is 630. Here i have a problem with one of my HDFC credit card that ive been using. Due to non payment my card was blocked in Dec2011 and i made a partial payment in December and the complete payment in the month of March 2012 and requested to close my credit card account.
Now in the month of October 2012 i got a call from HDFC bank that ive a due of 5k on the same card . After inquiring about it they said its the LPC on LPC on LPC being charged since March and now i can see in my CIBIL that card appears as written off.
1) Although this 5k of LPC is something that ihvnt used still I am even ready to make that payment but do not want to get a hit on my CIBIL report.
2) Also i can see in the Enquiry Information Section there are banks that i don’t even know the names of and ive never applied for any credit card or loan in those banks still they are there in my CIBIL. Does that mean some agent is using my document to reach their target of no. applications?

Please suggest what should i do for both the issues?

Also please tell me if i follow ur tips to improve credit score how much time should it take to increase my score from 630 to 750?

Thanking you in advance!
Fawwaz Hayat Khan

Reply

455 Credexpert December 5, 2012 at 7:38 pm

Dear Mr. Khan,

If you had paid the complete outstanding amount before closing the credit cards in March 2012, then the late payment charges should not be charged on them. Also the written – off remark on your credit report will impact your credit report negatively.

The enquiries appearing on your credit report by banks to whom you had never applied have to be immediately removed from your credit report as they can further impact your credit score negatively.

Regards,
Credexpert

Reply

456 Manish Chauhan December 11, 2012 at 4:54 pm

1. Yes just pay it off then .. banks has charged as per the agreement only

2. Yes, there is a possibility like that !

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457 Sarang December 3, 2012 at 4:23 pm

Hi Manish,
Just in time – I was looking for these details as I recently got my credit score and it is 823!
Now though this score is good, I only have one credit card which I hold for last 7+ years and have always paid in full and on time. About 1.5/2 years back, I missed one payment by just one day (forgot!) but paid penalty and interest right next day of the due date.
I don’t have loan apart from this – have never taken one.
Is it possible to know where exactly the score got ‘deducted’?

In last 6 months, once or twice I have used my credit limit above 50% (but again paid on time).
Can this be a reason? Or based on your article – As 100% of my debt is unsecured(!), can that impact my score?
Does CIBIL consider our bank balance for credit history? I mean I use creditr card just for convenience (all my plastic money goes out only through this one gate – helps me keep check on it!) – should I reduce usage of CC?

As always, great article. Do write sometimes how you decide on “what to write on” :)

– Sarang

Reply

458 Credexpert December 5, 2012 at 7:40 pm

Dear Mr.Sarang,

823 is a good score and your timely repayments over the past 7 years have helped build this score.

Credit scores are calculated based on various factors like the payment history, length of credit history, number of secured and unsecured loans, credit utilisation etc. It would be difficult to point out where your score got deducted, more so in your case as your score is already good.

Our advice would be to maintain this credit score and No, CIBIL does not consider bank balances in calculation of credit scores.

Regards,
Credexpert

Reply

459 Manish Chauhan December 11, 2012 at 4:41 pm

that one time issue will not matter much , also i think the bank didnt reported it to CIBIL as you paid just in next 1 day . You cant say where the score got deducted, but you shoudl nto worry much on this , no one gets 860-870 kind of score generally .. what you have is perfect and it will get stronger with a long history !

And regarding how I decide to write on , it just gets created out of conversations I have with people on comments section

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460 Sarang December 12, 2012 at 12:44 pm

Hi Manish,
Exactly that was my point regarding your topic selection.
It is very much related to real world problems people face :)
Kudoes…

Regards,
Sarang

Reply

461 Manish Chauhan December 19, 2012 at 4:37 pm

Thanks :)

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462 Radhika December 3, 2012 at 11:08 pm

Really very very very good Manish

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463 Rizwan December 4, 2012 at 6:46 am

Hi,

I never took loan or any credit in my life, just in the month of Oct i applied for card from HDFC and got card in Nov 2012 for limit 30,000, In the Nov i swipe that card to purchase a gold of 18,000.

My question is how long should i wait if i want one more card.

Which credit card will be good for me….also which bank

As concern is how much percentage can be used from 1 card (ie if card limit is 30000 how much spending will be good as i know spending 80%- 90% of card affect on score)

In next 2 year i’ll be applying for home loan how much score will be good enough

Reply

464 Credexpert December 7, 2012 at 3:28 pm

Dear Rizwan,

Our advice will be that you apply for another credit card only if you have a genuine need for it. About which credit card will be good for you, it depends a lot on the benefits that you are looking for; like cash back, reward points, balance transfer etc.

Ideally you should not exceed using more than 50% of the credit limit as it can affect your credit score negatively.

Credit score of 700 – 750 is considered to be a good score and as you are planning to apply for housing loan after 2 years, you can build your credit score in this time period.

Regards,
Credexpert

Reply

465 Renuka Prasad December 5, 2012 at 3:21 pm

Hi,

I just checked my score and it’s 752 (a so-so one). I have had 3 credit cards till now. I closed 2 of them this year and currently using only one.

ICICI 76,000 Limit, still using (Current due Rs. -0.75)
HDFC 1,50,000 Limit, closed
SBI 91,000 Limit, closed.

In the past 2 years (2010 and 2011), I paid my bills, a many times on due date and a few times a day before the due date. It was about 4 or 5 times that I paid late. I lost my HDFC Card (limit 1,50,000) and chose to block it and close the account and paid all my dues. SBI Card was deactivated because I paid the dues late consecutively for the 3rd time. I cleared off everything with HDFC and SBI (paid all the interest and fees / penalty).

My CBIL report shows a due Rs 44000 due on my ICICI card. I am guessing that hasn’t been updated in a few weeks or so. It should have been a negative due of Rs. 0.75..

I am planning on not using my card at all for the next several months. How long will it take for CBIL to update the score? Will my score improve significantly? I will be applying for a Home Loan in the next month or so.

Please reply. Thanks in advance :),
Renuka.

Reply

466 Manish Chauhan December 11, 2012 at 4:01 pm

first 752 is a good score.. dont take it as bad :) .

Also banks generally take 30-45 days to update CIBIL .

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467 Renuka Prasad December 5, 2012 at 3:39 pm

Addendum:
Some times, some marketing executive calls and convinces to apply for a card, which later got rejected, for no apparent reason. That happened twice (once with HDFC Card and once with SBI Card. I got both the cards when applied again.) But I never enquired about HSBC bank, but it shows in my CBIL Report. What can I do regarding this? Is there a way, I can improve my score faster?

Reply

468 Credexpert December 7, 2012 at 3:38 pm

Dear Renuka,

752 is not a bad score but it could have been better if you had made timely payments on your credit cards. The reason for ICICI credit card showing a due of Rs.44000 instead of Rs.0.75 could be because the bank has not yet reported the updated information to the credit bureau. Your credit report will reflect the facts once the bank reports the updated information to the credit bureau.

With a credit score of 752 we do not see a reason for your housing loan not being approved in the next month or so. However it is always advisable that you continue making timely repayments and your credit score will improve over a period of time.

The enquiries of HDFC Bank and SBI credit card will reflect on your credit report as they were applied by you, but the HSBC enquiry if has not been made by you has to be removed from your CIBIL report as it can affect your credit score negatively.

Also there could be other factors in your credit score which have affected your credit score negatively.

Regards,
Credexpert

Reply

469 Manish Chauhan December 11, 2012 at 4:00 pm

You applied for it, so it will appear – as simple as that . To improve your score, you just need to keep paying on time !

Reply

470 Ravi December 7, 2012 at 9:30 am

Hello Gurus,
I have recently applied for a creditcard and got rejected saying cibil score is low.
I need a personal loan now urgently and my employer has tie ups with sbi and amount will be deducted from salary every month.

Am i eligible for personal loan from employer’s source? or still they will check for my cibil score and reject?

Thanks in advance,
Ravi

Reply

471 Manish Chauhan December 11, 2012 at 3:36 pm

I think banks will always check for the CIBIL report . You cant escape it !

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472 Credexpert December 12, 2012 at 1:02 pm

Dear Ravi,

Everyone is eligible to “apply” for a loan through any channel; however the approval of the same would depend on the credit score and other factors. As your employer has tie – ups with SBI there could be chances of your loan application being approved in spite of a low score.

The best thing is to apply and check if this channel helps to get your application approved.

Regards,
Credexpert

Reply

473 Susharan Banerjee December 7, 2012 at 12:43 pm

Dear Sir,

My CIBIL score is all messed up with a score of 532 only. I have only one credit card of ICICI which is blocked now. Please let me know how can improve on my CIBIL rating.

Regards

Reply

474 Manish Chauhan December 11, 2012 at 3:34 pm

What is your past ?

Reply

475 Credexpert December 12, 2012 at 1:05 pm

Dear Mr. Banerjee,

532 is a low score and it will be a hindrance for your future loan applications. Your ICICI credit card being blocked may be because you have been irregular in making payments.

Various factors like late payment, outstanding balance etc. impacts an individual’s credit score. What has impacted your credit score could be commented on only after your credit report is analysed.

Regards,
Credexpert

Reply

476 jithesh December 10, 2012 at 1:39 pm

Hi Manish ,
Thanks for your information about CIBIL report , 5 years back i was having 2 loan and 4 Credit card , For some financial i am not paid it till 2011, 2011 Dec i settelled my all loan and credit card , now i checkd my credit score Aug month it was 603 ,i know this score not enough for getting any loan or credit card , 2 month before i got a credit card based on my FD , and for the credit card last month bill i maid full payment , but my cibil score is not yet increased till now, maybe it wil take 1 more month, actually what i want to know is my current month card statement will generate only Dec 14th , so before generating my statment if i pay my full card payment it will high fluctuation will be there in my cibil score ,or score will increase gradually?
before genetating statment i can pay my card payment fully ? this is good not not ? and if i pay full card payment in one time when i can expect my cibil score will be 750 and more ?
i have credit limit of 17000/- in my card , if i utilize fully cibil is treat its negative ?
i am waiting for your valuable reply
Thank you

Reply

477 Manish Chauhan December 10, 2012 at 1:42 pm

Jithesh

First you should understand that credit score will increase gradually , it will take a good amount of time , it will not increase in just 2-3 months . The simple plan is to make the full payment of your dues on time and do not over use your credit .

Reply

478 Credexpert December 13, 2012 at 3:09 pm

Dear Jithesh,

Secured credit card is a good way to improve your credit score. But the improvement in score is not a quick process and paying off the entire amount before generating the statement will not help your score improve significantly.

603 is an average score and your non payments of the outstanding amounts till 2011 have impacted your score. Also there may be other factors that have impacted your score can be commented on only after your credit report is analysed.

Regards,
Credexpert

Reply

479 Sathish December 11, 2012 at 12:39 pm

Dear Sir,

Previously i had not paid used amount to 1 credit card & 1 personal loan due to i had met with severe accident. Please suggest that how can resolve this issue and also suggest that what is the score require for getting Home loan.

Thanks in advance

Reply

480 Manish Chauhan December 11, 2012 at 2:31 pm

Sathish

You need to first pay off the outstanding amount, contact the bank . all banks have their own criteria for score , but it should be atleast 750+ i guess

Reply

481 Credexpert December 13, 2012 at 3:15 pm

Dear Sathish,

Have you obtained your credit report and score? If not, then obtain a credit report from any one of the 3 credit bureaus – CIBIL, Equifax or Experian. Check the outstanding amount against your credit card and personal loan.

As the interest rate on credit cards and personal loan are high, pay off the outstanding amounts immediately before they balloon into a higher amount.

Also when did you stop making these payments? Theses late payment will surely affect your credit score. To comment on the impact of these late payments and how your score can be improved, your credit report needs to be analysed.

Regards,
Credexpert

Reply

482 Ajay December 11, 2012 at 4:08 pm

Hello Manish,

I have recently checked my CIBIL CIR and it is showing 744 score i would like to know whether i am elgible to get new credit card from LIC,ICICI,PNB & from Canara.I am currently holding HDFC card with the limit of 1,00,000rs with no defaults and good payments record since the year of sanction this card i.e 2008 and recently in October month i have applied for 5 credit cards in which 3 out of 5 have been approved my card while rest 2 have declined
To get the things clear i requested for the cibil report and y’day i have received the CIR which is showing 744 score so please guide if i can apply for new one or not i have 2,00,000 with 24 EMI of personal loan from April 12 and good payment records since sanction of this loan.Please help

Reply

483 Manish Chauhan December 11, 2012 at 4:30 pm

Actually each bank has their own parameters to tell if X score is good enough for them to give a loan or not . But if your report is clear, then 744 is good enough I would say !

Reply

484 Ajay December 11, 2012 at 5:08 pm

Thanks manish for your reply.I can send you my report if you say please send test mail on my id ajay.mehta9@gmail.com and i will send the CIR over there so that you can read the report and suggest me to rectify if there is any descrepency.

Reply

485 Manish Chauhan December 11, 2012 at 5:11 pm

Ajay

We actually dont do it one by one discussion like that, you can upload it and start a thread on our forum http://www.jagoinvestor.com/forum/ . We can discuss it there !

Reply

486 Ajay December 11, 2012 at 5:29 pm

Hi Manish

i am unable to upload the same after sign in on the forum please tell how can i start the thread over there

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487 Manish Chauhan December 19, 2012 at 5:26 pm

You will have to upload it somewhere and then give a link on forum

Reply

488 Credexpert December 13, 2012 at 3:19 pm

Dear Ajay,

You already had 1 credit card with a credit limit of Rs.1 lac and in October you have accepted 3 more credit cards. Also you have a personal loan of Rs.2 lac. Is there a need to apply for more credit facilities?

As all of these are unsecured loans with high interest rates, they could affect your servicing capacity. Also the credit cards that were declined by you will appear as enquiries on your credit report. Applying for more credit facilities will only increase these enquiries which are viewed negatively by the lender.

744 is a good score and your timely payments have helped in building this score. However; our advice would be that you apply for credit facilities only if you have a genuine need.

Regards,
Credexpert

Reply

489 Ajay December 20, 2012 at 5:25 pm

Thanks for the reply cred expert

i am just fond of getting credit card i want to avail many facility as offered by other fin. institutions.I am fond to just a collection of credit cards from major banks .Now i have seen there is total 12 enqueries reflecting in my CIBIL CIR. Out of which 8 enquiries in past 12 months

Will there be any issue to not granted me the same from others because i am going to apply for PNB ,ICICI & canara Cr.cards in next month

Enquiries are :

CIBIL TRANSUNION SCORE VERSION 2.0

SCORE 744

Scoring factors :-

1: TOO MANY ACCOUNTS WITH A BALANCE.
2: TOO MANY PERSONAL LOAN INQUIRIES.
3: LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED IS TOO SHORT.
4: NOT ENOUGH DEBT EXPERIENCE

ENQUIRIES:

MEMBER ENQUIRY DATE ENQUIRY PURPOSE ENQUIRY AMOUNT

NOT DISCLOSED 02-11-2012 CREDIT CARD 1,00,000
NOT DISCLOSED 30-10-2012 CREDIT CARD 150
NOT DISCLOSED 26-10-2012 CREDIT CARD 50,000
NOT DISCLOSED 29-09-2012 CREDIT CARD 1,000
NOT DISCLOSED 28-09-2012 CREDIT CARD 1,000
NOT DISCLOSED 27-09-2012 CREDIT CARD 50,000
NOT DISCLOSED 04-04-2012 PERSONAL LOAN 2,00,000
NOT DISCLOSED 30-04-2011 PERSONAL LOAN 1,00,000
NOT DISCLOSED 12-11-2010 CONSUMER LOAN 9,500
NOT DISCLOSED 19-02-2010 CREDIT CARD 40,000
NOT DISCLOSED 09-09-2008 CREDIT CARD 1,00,000

Please help me

Reply

490 Manish Chauhan December 21, 2012 at 10:19 am

This is not healthy .. so many credit cards , that too in such a small span is negative . this will create a lot of issues in future when you go for some big loan . Whats the need for so many credit cars ?

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491 Ajay December 21, 2012 at 1:03 pm

Hi Manish i have only 4 cards while there is 8 enquiries for cr.card showing in my report out of which i had applied after 16th oct 2012 only but i am not able to understand why 3 enquiries are showing to before of these dates is it for that i had applied online on 26 sep-12?? and there is also a enquiry showing Personal loan of 1,00,000 on 30-04-2011 though i have not availed it but still showing in enquiries

About the need of 4 cards i just taken these cards as a part of my collection to getting facilities

Reply

492 Manish Chauhan December 24, 2012 at 10:23 am

Ajay

It might be the case that there is identity theft ! , some one might have applied for loan using your credentials , it happens !

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493 Ajay December 24, 2012 at 12:45 pm

Manish,

What can i do now because i dont have the Member ID to rectify these details in CIBIL

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494 Manish Chauhan December 25, 2012 at 6:27 pm

YOu have the CIBIL report with you right ! .. JUst use the CONTROL number on that cibil report and contact CIBIL and ask them about the banks name , then contact the bank and ask them to explain . This might take some time and energy , but you have been unlucky ! . cant do much here ..

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495 Ajay December 26, 2012 at 4:22 pm

Hi Manish,

I had obtain this report from one of my resource availble in a bank, would there be any issue if i mention this control number to CIBIL for disclosing the other banks enquiry details which is certainly showing in my report ??

Reply

496 Manish Chauhan December 29, 2012 at 8:48 pm

Yes you can apply for it

497 Credexpert December 26, 2012 at 3:49 pm

Dear Ajay,

Too many credit cards will make you come across as a credit shopper. There is a possibility that your genuine application for credit in future may be rejected because of too many enquiries appearing on your credit report. You have made 7 enquiries in the past 12 months! – Which certainly is a high number.

To be honest, “being fond” of collecting cards from major organizations is no reason to apply indiscriminately for credit. Credit is a serious matter and should not be taken lightly.

We strongly recommend that you stop shopping around for credit and limit your “fondness” of collecting credit cards or else the impact would be soon seen on your credit score.

Regards,
Credexpert

Reply

498 Ajay December 26, 2012 at 4:38 pm

Thanks Cr Expert

Please tell shall i go towards close these cards or to go towards shopping from one only

Reply

499 Credexpert December 26, 2012 at 5:59 pm

Dear Ajay,

We recommend that you close the credit cards gradually over the next few months. Prioritize by 1st closing the credit cards that have a lower credit limits and then moving towards the one that have higher credit limits. Retain 1 or 2 credit cards and continue shopping as far as you do it within the credit limit of the card and your repayment capacity.

Also stop making any new applications for credit cards and make timely payments to improve and maintain a good credit score.

Regards,
Credexpert

Reply

500 Man Mohan Goel December 13, 2012 at 5:55 pm

Hi Manish,

At 739 CIBIL Score can I avail Car Loan?

Reply

501 Manish Chauhan December 19, 2012 at 3:58 pm

Depends on the Bank ! .. 739 is a ok score !

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502 NATARAJAN S December 15, 2012 at 12:31 pm

SIR,
i was holding two home loans since 2000. im a well paid professional drawing . however due to frequent transfers my Post dated cheques were not replenished resulting in non-payment for over 6 months. also to signature error a few times cheque bounces happened. but they were repaid and corrected .
i dont posses any credit card. only debit cards were used regularly for any financial transactions.
6 months back a personal loan enquiry got rejected due to very bad credit score ( 450 only). so immediately i wound up all the loans ( 4 months ago). now iam loan free and no credit card holder. how long will it take to recover my credit scores.
thanks and regards,

Reply

503 Credexpert December 17, 2012 at 4:27 pm

Dear Mr. Natarajan,

Unfortunately you have taken a wrong step by closing all your loans. These loans were a channel through which you could have had depicted a good repayment behavior. The lending institution will now build their opinion based on your past repayment behaviour.

450 is a bad score and improving credit scores is not a quick process. Also apart from the late payments for whatever reasons, there could be other reasons that could have affected your credit score. To comment on what factors have impacted your score and how to improve it, we need to analyse your credit report.

We precisely provide a service where we analyse an individual’s credit report and give a detailed description and understanding of the credit report and credit score.

Additionally we also provide a service where we counsel individuals on how to improve their credit score and also execute these steps for them. Please take a look at our website http://www.credexpert.co.in.

We would be happy to provide our services to you.

Regards,
Credexpert

Reply

504 Credexpert December 15, 2012 at 1:43 pm

Dear Mr.Goel,

With a score of 739 – which is a good score, availing a car loan would not be a problem. Having said which, the final decision will depend on the credit policy of the lending institution.

Regards,
Credexpert

Reply

505 Rakesh Singha December 17, 2012 at 6:42 pm

Hi Manish,
As I had 4 credit cards (HDFC, DEUTSCE,CITI and SBI) after a long dispute I had sattled DEUTSCHE,CITI and SBI card where the had mentioned full and final payment received in there settlements letter.
I also want to inform am still using HDFC card and paying regularly where they had offered 1 lac personal loan on that card, I opted the loan and paying regular emi without any delay.
Now please suggest whether those settelment will effect my credit score?????

Thanks..

Reply

506 Manish Chauhan December 19, 2012 at 1:02 pm

If by settlement you mean – “You paid less than outstanding amount” , then YES ,those loans status will be “SETTLED” in your report and you will face rejection ! . JUst check it once to confirm !

Reply

507 Credexpert December 21, 2012 at 7:13 pm

Dear Mr.Singha,

When you settle your debt with your lender for less than what you owe, your lender reports this information to the credit bureaus and it will be reflected on your credit report. Lending institutions will view this settled remark negatively in case you apply for a loan in future, as it shows your inability to service a loan.

Yes, the fact that you opted for a settlement on 3 credit cards will be reported on your credit report and will negatively impact your credit score.

Regards,
Credexpert

Reply

508 Suresh G December 17, 2012 at 9:39 pm

Dear sir greetings!

I received an educational loan in 2007, the expenditure certificate for my study was given as 2 years, but it was actually 4 years, I completed my degree in 2011. I started repaying loan from 2011. The bank started count from 2009 and updated as loss to the bank. Now, I applied for a personal loan, the bank rejected my loan due to the bad credit, I checked my cibil score it is 596. If I pay all the outstanding amount in a month. Will my cibil score improve in a couple of months ? Please help me to understand. Thank you well in advance sir.

Reply

509 Manish Chauhan December 19, 2012 at 1:01 pm

Yes, if you pay the outstanding money , it will bump up your score !

Reply

510 Credexpert December 21, 2012 at 7:15 pm

Dear Suresh,

As per the expenditure certificate issued for 2 years you were obliged to repay the bank from 2009. The bank on not receiving any payments from you for 2 years reported this account as loss.

596 is a bad score and improving credit scores is not a quick fix. Paying the entire outstanding amount in 1 month will not bring any significant change in your credit score immediately but will certainly be a step in the right direction.

Also there could be other factors as well which could have impacted your score negatively. To comment on the factors that have impacted your credit score and on how to improve the same we will need to analyse your credit report.

Regards,
Credexpert

Reply

511 Rajesh Elgum December 25, 2012 at 9:11 am

Hi Manish,

My CIBIL score is 690, I would like to know if I get a personal loan with this score.

Regards

Rajesh E

Reply

512 Manish Chauhan December 25, 2012 at 5:53 pm

Rajesh

It will be tough to get a personal loan with that kind of score. What has been your past record ?

Reply

513 Credexpert December 26, 2012 at 4:23 pm

Dear Mr.Elgum,

690 is an average score and it could be difficult to get a personal loan with this score. Also a lot depends on your credit history and other factors that have affected your credit score. We could comment on it further only after analyzing your credit report.

Regards,
Credexpert

Reply

514 rAJESH eLGUM April 6, 2014 at 11:22 am

Hi All,

Yester day when I checked my CIBIl score it is 795 now, please advise for further action, and also please let me know will i be able to get Pl or credit card?

And one more thing in the report- one of my previous PL is setted.

Thanks in advance.

Regards

Rajesh E

Reply

515 Credexpert April 7, 2014 at 10:34 am

Dear Mr. Elgum,

795 is a good credit score for a personal loan / credit card. Besides the score, the bank would also look for any negative remarks on your report. “Settled” is a negative remark since it indicates your inability to service the loan in the past.

Furthermore, personal loans/credit cards are unsecured loans and since the bank’s risk is uncovered with any security, it would be more cautious in lending you the same.

We would suggest, that you repay the complete outstanding balance against the settled loan and ensure the remark is removed from your report. It would help minimize any possibilities of a rejection.

Regards,
Credexpert
http://www.credexpert.in

Reply

516 Ashwin December 28, 2012 at 10:13 pm

Hi,,
I have a HDFC Credit Card and everytime am paying the bill amount through a Cheque.Once, due to a wrong date mentioned on the cheque,the fee payment was late.But i cleared the amount the same day.Now everything is fine.But now,i need another Credit card.So,i applied for many providers.They call,confirm,pick the documents and finally,they mention that application is rejected.I donno why.what may be the reason.plzz help..

Reply

517 Credexpert December 29, 2012 at 2:18 pm

Dear Ashwin,

Have you availed any other credit facilities? If yes then, are you repaying them on time? If you only have a HDFC Credit Card and have been repaying on time except for that 1 instance then, it is unlikely that your credit card applications are being rejected for this reason.

Lenders evaluate your credit applications based on your credit report and score. There are possibilities that your credit score is low and hence your applications are being rejected. Also, why are you applying randomly to lenders? This will result in high number of enquiries on your credit report which will negatively impact your credit score.

Regards,
Credexpert

Reply

518 Ashwin December 29, 2012 at 8:48 pm

HI,

I think i dont have a CIBIL report of me yet..Then how come lenders are rejecting my CC.??

Reply

519 Manish Chauhan December 29, 2012 at 7:38 pm

Unless you look at your report your self , you cant be sure .. just check it once !

Reply

520 Ashwin December 29, 2012 at 8:33 pm

Hi,,

Juz today i applied for the CIBIL Report.I dint get the score online as they could not get the info of me online.So uploaded the docs and now waiting for it..Will soon update u as soon as u get..

Reply

521 Manish Chauhan December 29, 2012 at 8:46 pm

It should come in 1-2 days !

Reply

522 Ashwin January 1, 2013 at 10:02 pm

Hi,
Juz today i checked my CIBIL report.My score is 694.

SCORING FACTORS :

1: CREDIT CARD BALANCE TOO HIGH.
2: TOO MUCH INCREASE OF INDEBTEDNESS ON NON-MORTGAGE TRADES OVER THE
PAST 12 MONTHS.
3: CREDIT CARD ACCOUNT BALANCES TOO HIGH IN PROPORTION TO CREDIT LIMITS.

Actually,One account was wrongly created by my bank and it has not been closed and the current balance is showing as zero.
Another loan account has a outstanding balance of Rs.11,500 which am paying the EMI regularly.
Lastly,i have a credit card which is showing current bal of 23,500

Now,i wanna know where it has gone wrong.

Plz help..

Reply

523 Manish Chauhan January 3, 2013 at 12:30 pm

You already have mentioned some reasons .. They are all contributing to your score .. now you cant know the exact formula how its created, but all you need to now know is that you need to fix things which are in your control ..

Reply

524 Ashwin January 3, 2013 at 7:33 pm

Hi,

Thankzz for the reply..I already closed the loan account which was wrongly created.So,waiting for my points to shoot up!

Actually am not too much knowledgeble in finance…so juzt wanted to know the actual meaning of 2nd and 3rd points..

Thankss..

Reply

525 Rajesh E December 31, 2012 at 2:47 am

Hi All,

My cibil score is 607 and ig I get a secured credit card how long does it take to improve my CIBIL score?

Please help me out with this.

Regards

Rajesh E

Reply

526 Manish Chauhan January 3, 2013 at 6:38 pm

It should take 1 yr around !

Reply

527 Credexpert January 1, 2013 at 5:17 pm

Dear Rajesh,

607 is a low score but the secured credit card is one of the best ways to improve your credit score. However it is also important to understand that your credit score will improve gradually over the next few months.

Repay on time, do not carry high outstanding balances, borrow within your repaying capacity, don’t apply for new credit facilities until you genuinely need it and monitor your credit report regularly. Your credit score surely will improve.

Regards,
Credexpert

Reply

528 vijay January 2, 2013 at 8:32 pm

Dear Knowledge Sharing Team,

I have taken Educational Sanctioned is 70000 but utilized and paid only 25000 approx with prompt payment of interest and principal

will it hamper my CIBIL Report, because at present i am looking for personal loan.

Reply

529 Manish Chauhan January 3, 2013 at 11:07 am

Did you default on your payment ?

Reply

530 Credexpert January 4, 2013 at 3:52 pm

Dear Vijay,

If you are not delaying in your repayments, then there is no reason to worry.

Timely repayments help in improving credit score. Continue repaying on time and also check your credit report and score before applying for the personal loan. A lot depends on your credit score which according to us would be good given your repayment behaviour and assuming there are no other negative factors on your credit report that can affect your credit score.

Regards,
Credexpert

Reply

531 sacin January 7, 2013 at 9:05 pm

Hi
manish sir,
Recently i have improved my score to 742, i am in need of Housing loan now shall i go for it but i ave almost 8 inquires already reported to cibill in 2012 year. i am not defaulter but made delay in education loan repayment, finally made all payment and dues. what should i do

Reply

532 Credexpert January 11, 2013 at 6:37 pm

Dear Sacin,

742 is a good score to avail a housing loan, but a higher score is always advisable.

Have you applied for the Housing loan? Did any of the 8 enquiries made in 2012 convert into a loan? If No, then, were they rejected by you or did the lender reject your applications? If the lender has rejected your applications then, did you try to find the reason for the rejection? We believe the answer to your query lies there.

The late payments on your Education loan could be making the lender view your credit report negatively. Also, stop making any more enquiries, as they impact your score negatively. As mentioned you have improved your score to 742; continue your positive repayment behaviour and wait till your score improves further before applying for the Housing loan.

Regards,
Credexpert

Reply

533 anish sinha January 8, 2013 at 3:45 pm

hi manish,

i have submitted the the detail and made the payment also.
i not received score then i submitted the pancard and passport for all detail..
its been 20day they not responding for my mail as well.
customer care number is not working.
what can i do.

Regards
Anish sinha

Reply

534 Manish Chauhan January 8, 2013 at 4:20 pm

Did you try customer care number 2-3 times ?

Reply

535 anish sinha January 8, 2013 at 5:58 pm

yes i try every day..
its not working,,, call not reached to customer care guys.
stopped at English or Hindi option only.

regards
Anish sinha

Reply

536 Manish Chauhan January 9, 2013 at 9:59 am

I dont think it should be that way. What happens when you reach hindi or english option . What do you do after that ? Does the call cuts on its own ?

Reply

537 anish sinha January 9, 2013 at 11:35 am

And after then option is not working..
1 or 2 , it stay at that option only.
not move to next step.

anish

Reply

538 Ramesh naidu January 9, 2013 at 3:27 pm

Hi

I have Citibank credit card. I have paid more than outstanding balance amount and I paid extra amount (Rs.780/-) after that i didn’t used my credit card. Now Credit card was expired. But in the CIBIL Status showing its SETTLED. How can i remove this SETTLED status from citibank

Thanks.
Ramesh

Reply

539 Ramesh naidu January 9, 2013 at 3:46 pm

Hi,

I have Citibank credit card. I have paid more than outstanding balance amount and I paid extra amount (Rs.780/-) after that i didn’t used my credit card. Now Credit card was expired. But in the CIBIL Status showing its SETTLED. How can i remove this SETTLED status from citibank
Actually its outstanding amount is Rs.47320/-. I paid Rs.48000/-.

Thanks.
Ramesh

Reply

540 Credexpert January 11, 2013 at 6:34 pm

Dear Mr. Naidu,

As mentioned, you stopped using the card, but that does not stop Citibank from charging the annual maintenance fee (if applicable) and also the interest on the same for all those years. However, we assume that the amount any how would not be that high. The clarifications about the specifics can be best given by Citibank.

Also, did you get any communication from the Citibank informing that your credit card has expired and you are supposed to pay the balance due amount if any?

Contact Citibank and check if their credit policy allows them to accept the outstanding amount after a card is settled and whether they will remove the Settled status before reporting your information to the credit bureau.

If Yes, then pay the outstanding amount to remove the settled status – assuming you are willing to pay it.

Regards,
Credexpert

Reply

541 Manjegowda. B. J January 10, 2013 at 12:32 am

Dear sir pls tel me my cibil score.

Reply

542 Credexpert January 11, 2013 at 6:10 pm

Dear Manjegowda,

You will have to apply to any 1 of the 3 credit bureaus i.e. CIBIL, Equifax or Experian to access your Credit report and/ or Credit score. To know further details about the cost, payment mode and other specifics please visit the website of the bureau of your choice.

Regards,
Credexpert

Reply

543 VenkataRamana January 12, 2013 at 12:41 pm

Sir,

I have taken credit card three months before only and paid two months credit card bill successfully. Can i try to take personal loan now.

Reply

544 Credexpert January 13, 2013 at 1:22 am

Dear VenkataRamana,

Do you mean that you have not availed any credit facility till date? If yes, then, your credit history is only 3 months old and hence the score would also reflect the same.

Firstly personal loans are unsecured loans and hence the lender will be more cautious while granting the same. To decrease the possibility of being rejected due to a low credit score or credit history, we would recommend that you wait for few more months and monitor your score increase before you apply for the personal loan.

Also, we would advice that you opt for a personal loan only if you genuinely need it. Read the article Personal Loans are Easy to Get , but come at a High Cost courtesy Economic Times dated Jan 3, 2013 by visiting this link http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRNLzIwMTMvMDEvMDMjQXIwMTEwMA==&Mode=HTML&Locale=english-skin-custom and understand how such loans should be taken only if you are in a crisis.

Regards,
Credexpert

Reply

545 VenkataRamana January 13, 2013 at 10:16 pm

Thank you very much for your guidance.

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546 Manish Chauhan January 14, 2013 at 2:35 pm

Its very soon you are going to do that . Generally I would not advice that , but you can try it !

Reply

547 yogesh January 15, 2013 at 4:14 pm

I had HSBC credit card with the limit of Rs.31,000/- in some where 2006, i used to the limit and now it became very huge amount of Rs.2,30,000/- (obviously score is very low 500+), now its really a pain and wanted to solve this somwhow..please suggest ? is there anyway i can talk to HSBC people or any suggestion would guide me.

Reply

548 Manish Chauhan January 18, 2013 at 2:28 pm

You need to pay the full amount.

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549 Credexpert January 21, 2013 at 2:01 pm

Dear Yogesh,

Using up to 100% of the credit limit and we assume making minimum payments on your card have affected your score. 500+ is a bad score and there is an immediate need to improve your score for maintaining a healthy credit life. Also, other than these 2 factors stated above there could be many other factors that have affected your credit score.

We could comment on the exact factors only after analysing your credit report.

Regards,
Credexpert

Reply

550 Rahul K. January 22, 2013 at 12:16 am

Hello Credexpert,

Do you charge for your consultation and services??

Reply

551 Credexpert January 24, 2013 at 9:56 am

Dear Rahul,

We provide personal counselling services to individuals who need facilitation in matters related to credit – these services are paid services.

Regards,
Credexpert

Reply

552 Yogesh January 16, 2013 at 7:30 pm

Hello, Please Answer !!

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553 Manje Gowda January 17, 2013 at 9:08 am

Dear sir

my cibil score is now 765. but last time i ask personal loan that time my loan reject.

now any chance for loan.

Thanks

Manje gowda

Reply

554 Manish Chauhan January 18, 2013 at 10:09 am

One cant say 100% sure . 765 is decent score. BUt you have applied for personal loan some time back only ,better wait for more time and take your score past 800

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555 Credexpert January 21, 2013 at 1:59 pm

Dear Manje Gowda,

765 is a good score. What was your credit score when your Personal loan was rejected? Are you planning to apply for a Personal loan again? Also we would suggest that you ask the bank the basis for the rejection.

Personal loans are unsecure loans and hence the lender would be more cautious before approving the same to you. The best way to find out your whether you will get a loan would be by applying to the lender.

Regards,
Credexpert

Reply

556 Manish Chauhan January 18, 2013 at 10:17 am

No . Its your mistake only , right ! ..

You will have to make full payment now .

Reply

557 Shonu January 18, 2013 at 8:54 pm

Hi,

I have taken a personal loan of 5 lakhs from HDFC bank, paid all the EMI’s on time with not even a single default. In the second year I had paid all the money in advance(remaining amount) for the next 3 years and cleared off the loan from the bank.

Also after a year I had 4 credit cards, my total outstanding amount is Rs.2.5lakhs. I am paying very minimal amount but the minimum amount.

Unfortunately when I had applied for loan, the score was found to be 570.It was shocking as I thought I am the best customer as I have paid the loan in advance by 3 years in case of HDFC. My income is around 60k. When talked to bank officials they said:

– Difficult for approval as DPD is reflecting, what is DPD?
– Credit Card Outstanding is reflecting.

Manish, request you to please share your knowledge on:
– How do I improve the Cibil at its earliest as I am planning big purchases next year?
– After payment, how much time it would take for the good score.

I want to achieve the best score…

Thanks, please answer it asap.

Reply

558 Shonu January 18, 2013 at 9:04 pm

Manish Sir, please reply. Really look forward for your guidance!

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559 Manish Chauhan January 19, 2013 at 8:00 pm

The problem is your MINIMUM PAYMENT .. when you make Minimum payment it means you are DEFAULTING on the rest of the money , so you didnt pay all the money on time, and you have done this for a very long time .. So DPD section is messed up

DPD means days past dues, which shows that in any given month, how many months of dues are pending to be paid .. and when it keeps on growing , its a RED SIGNAL ..

So now , you cant change the DPD part , it will keep on sliding because its records are kept for 36 months .. pay all the outstanding amount you owe to banks if any and wait for 1-2 yrs now .. There is no short term solution..

Reply

560 Shonu January 19, 2013 at 8:09 pm

Thanks Manish for your instant reply. I really value your inputs.

Adding to what you have said, If I make all the payment within next week for all the outstanding and I also have no loan running, had paid the whole of loan in advance(within 1 year instead of 5 years) as stated. Do you think my score will go beyond 800?
If not what should I do as I am planning Home loan next year.

thanks again for your valuable time.

Reply

561 Manish Chauhan January 19, 2013 at 8:13 pm

Shonu

Yes, paying back all the outstanding amount which you have not paid from long will definately boost your score and clear your report . But you can not say that how much your score will be . there is no guarantee on that .. but it will improve ..

Also if you have any current EMI’s .. then better keep paying that. .because that will help you build your repayment history and show your repayment capability !

Manish

Reply

562 Shonu January 19, 2013 at 8:23 pm

What should I do to touch my score to 800+ till next year(as I have to apply from home loan). I will be paying all the outstanding next week, what do I do apart from that?

Thanks

Reply

563 Rahul K. January 22, 2013 at 12:01 am

1. Do not leave you CIR halted i:e Do not close all your accounts and wait till next year. Make sure that you have active transactions on your credit card.
2. Once you have cleared all your outstanding credit card dues, use it to pay your bills. Make sure you dont exceed the payments by 5 – 10% of the credit limit in each card.
3. Pay your entire credit card bill before due date. 5 – 10% of the credit utilization shouldn’t be a pinch to pay all at once.
4. If you have any outstanding loans, do not foreclose them till next year. Make regular payments till 3-4 months prior to your home loan.
5. *One of the most important thing* – Do not apply for any loan or credit card or any thing that has to do with CIBIL. Enquiries section of your CIR eats up a little score.

Follow this blindly till next year. Once you are ready for home loan, close all your outstanding loans and payment 3-5 months in advance. Make sure you spend these 3 – 5 months chasing the banks to close your loan accounts and update the most recent credit card card payment history. 3-5 months is because CIBIL takes this time to reflect the data into your CIR. you might have to take your CIR copy once a month or 2 during this period to make sure everything is updated correctly without any rough edges.

Once everything is done and set, speak to an accounts Manager and explain him about the DPD issue that you ran into couple of years ago. He would be able to help you with some relaxation (sole discretion).

Frankly, Now-a-days 570 is too less for a considerable score. The above pattern should help you increase the score to a good extent but I cannot say by how much.

If for example the increase is not adequate, you would need to extend the same for another 6 months – 1 yr. Just make sure you get your CIR periodically and that all the information from bank on CIR is correct and latest.

Rahul K.
(A CIBIL Victim)

Reply

564 Manish Chauhan January 22, 2013 at 5:57 pm

All you can do is that only .. reduce your unsecured loans if you can

Reply

565 Karthick January 20, 2013 at 4:15 am

HDFC is a b……d bank and dont trust it.

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566 Arvind Singh January 19, 2013 at 4:41 pm

My CIBIL report shows an unpaid loan that has never been availed by me. This has unnecessarily reduced my credit rating to a low grade and affecting my regular banking for no fault of mine and this was also reported by me to CIBIL for corrections in the same however CIBIL paid no heed to my request.

Reply

567 Manish Chauhan January 19, 2013 at 7:02 pm

You need to contact the bank also which says that you have a loan with them . Take the pointers and ask them to prove that …

Reply

568 Credexpert January 24, 2013 at 10:06 am

Dear Mr. Singh,

Missing information, errors and incomplete information, each can have significant impact on your future borrowings and also on how your current lenders approach any requests for change of terms and conditions, higher loan amounts, etc.

All these and other such “errors”, not only show up in your credit report, but also adversely impact your credit score. It is therefore extremely important that these errors (for whatever reason they may have appeared in your report), need to be immediately corrected.

Regards,
Credexpert

Reply

569 chirag nagpal January 19, 2013 at 8:25 pm

Hi,
I recently got my cibil report and its says cibil transunion score is 763 and few days back i have applied for sbi credit card..and my applicantion shows rejected..what would be the reason?? at the moment iam using citibank credit since JAN 2011 (credit limit:35,000) and just two payments weren’t paid in feb and april 2011..and my main question is i would require a personal loan after 2 months worth 2 lakhs at the score of 763 m i eligible, if not what to do..and there is no outstanding on my current citibank credit card..

Reply

570 Manish Chauhan January 22, 2013 at 5:40 pm

Its not always the outstanding which hurts .. Those 2 payments which you missed might be the reason why it was rejected . BEtter talk to bank manager on this

Reply

571 Credexpert January 24, 2013 at 10:04 am

Dear Chirag,

Do you have any other closed accounts? If Yes then, how was your repayment behaviour on the same. Does your CIBIL credit report show high number of Enquiries?

It would be difficult to comment on whether you will get the Personal loan after 2 months. Different banks have different credit policies basis which they approve or reject loan applications and unfortunately SBI cards has rejected your application.

763 is a good score, but we would recommend you to continue making regular payments over the next few months before you apply for the Personal loan.

Regards,
Credexpert

Reply

572 chirag nagpal January 25, 2013 at 2:36 pm

Hi,

No i never had any other account, you can see my cibil report account info and enquiry info below: cibil score :763..

ACCOUNT DETAILS DATES
MEMBERNAME CITIBANK DATE OPENED/DISBURSED 12-01-2011
ACCOUNT NUMBER ################ DATE CLOSED –
ACCOUNT TYPE CREDIT CARD DATE OF LAST PAYMENT 18-12-2012
OWNERSHIP INDIVIDUAL DATE REPORTED AND CERTIFIED 24-12-2012

ACCOUNT STATUS
CREDIT LIMIT 35,000 RATE OF INTEREST 41.40
HIGH CREDIT 35,183 REPAYMENT TENURE –
CURRENT BALANCE 5,077 EMI AMOUNT –
CASH LIMIT – PAYMENT FREQUENCY MONTHLY
AMOUNT OVERDUE – ACTUAL PAYMENT AMOUNT 1,174
COLLATERAL STATUS
VALUE OF COLLATERAL – SUIT FILED / WILFUL DEFAULT –
TYPE OF COLLATERAL – WRITTEN-OFF STATUS –
WRITTEN-OFF AMOUNT (TOTAL) –
WRITTEN-OFF AMOUNT (PRINCIPAL) –

MEMBER NAME DATE OF ENQUIRY ENQUIRY PURPOSE ENQUIRY AMOUNT
SBI CARDS 08-01-2013 CREDIT CARD 50,000
SBI CARDS 07-01-2013 CREDIT CARD 50,000
HDFC BANK 26-07-2012 CREDIT CARD 1,000
CITIBANK 12-01-2011 CREDIT CARD 50,000

SETTLEMENT AMOUNT –
PAYMENT HISTORY (UP TO 36 MONTHS; LEFT TO RIGHT BEGINNING WITH THE MOST RECENT PAYMENT)
PAYMENT END DATE 01-01-2011 PAYMENT START DATE 01-12-2012
DD-MM-YYYY DD-MM-YYYY
DPD:DAYS PAST DUE AC:ASSET CLASSIFICATION
DPD/AC 000 000 000 000 000 000 000 000 001 000 001 000
MONTH-YEAR 12-12 11-12 10-12 09-12 08-12 07-12 06-12 05-12 04-12 03-12 02-12 01-12
DPD/AC 000 000 000 XXX 000 000 000 000 XXX 000 000 000
MONTH-YEAR 12-11 11-11 10-11 09-11 08-11 07-11 06-11 05-11 04-11 03-11 02-11 01-11

Reply

573 Credexpert January 25, 2013 at 5:30 pm

Dear Chirag,

We do not see any apparent reasons for the rejection of your credit card application. The 2 late payments are of 1 day each which we assume are not the reason for the rejection. As a consumer you are entitled to know the reason for the rejection of your application and we suggest you to know the same from the bank.

We would advise that you apply to some other lender and continue making timely repayments to maximize the chances of your loan getting approved.

Regards,
Credexpert

Reply

574 chirag nagpal January 26, 2013 at 12:26 pm

Thanks Ever So Much..

Reply

575 Rahul K. January 21, 2013 at 7:07 pm

Hello Manish,

In Oct 2012, my score was 764. I was able to get a personal loan from HDFC bank for 2,00,000. Since November my payments are regular (only 3 months though). Apart from this, I have a secured credit card from ICICI from July 2012 and i have always paid my bills in Full.

Very recently (few days back) i applied for a ready credit from CitiBank and also a credit card from the same bank. I was in a hope that with the regular (full) payments on my credit card from last 6 months and PL for 3 months, even if the score doesn’t increase, there are no possibilities of it going down 764 mark. To my surprise, both the requests got rejected from CitiBank. To know the cause, i ordered my CIR again and to my amazement, the score poped up saying ‘720’.

Could you please help and through some light on this. Iam totally confused with the fact that my score actually slipped 44 points with regular payments. There are no open accounts except these two (CC and PL). (Like always) Thank you for all your help.

Rahul K.

Reply

576 Manish Chauhan January 22, 2013 at 11:24 am

Rahul

There can be some reasons for this..

THe biggest one is the you are using 100% UNSECURED LOANS, credit card and Personal loan, both are unsecured and too much use of unsecured credit is bad . BEtter lower it .. And with CIBIL 2.0 .. the score numbers have gone with , but the effect of a lower number is same as +50 score .. so 750 earlier was same as what 700 is now .

Manish

Reply

577 Rahul K. January 22, 2013 at 6:23 pm

Wow…!! thats a good news…!! Havent understood the current CIBIL model and issues throughout and now we have CIBIL 2.0 with +50 decision score. I did not know about CIBIL 2.0 unless you mentioned it. I wonder why something like CIBIL always kept a secret unless people like you (with your own interest) throw some light on it. Im sure more than 30% of the people in India doesnt even know that something called CIBIL exists. Surprisingly, account managers doesnt posses good knowledge on this subject and the risk management team of any bank is always kept isolated from normal people.

Im just going through your article on this and will post comments on that. Thank you for replying on this.

Reply

578 Manish Chauhan January 23, 2013 at 8:55 am

You should look at http://www.jagoinvestor.com/2012/10/cibil-score-next-version-improved.html

Also that 50+ point was just an example .. nothing official about it .. the only point is that higher score earlier is equal to lower score by some points now ..

Reply

579 Credexpert January 24, 2013 at 10:02 am

Dear Rahul,

Did you check if all the data reflected on your credit report is yours? And how many Enquiries does your credit report reflect? What about your closed accounts – were they closed through systematic payments?

The reason for the drop in your credit score lies in many of these answers. We will need to analyse your credit report in order to comment on the exact factors that have impacted your score negatively.

Regards,
Credexpert

Reply

580 Sharath January 22, 2013 at 3:46 pm

Hi,
Sir i had taken educational loan (Rs.2 lakhs) i have not paid it on time…my CIBIL score is 680… can i get the education loan for my further studies if i clear the oustanding amount…? can i get loan in one month after settling the loan amount?pls get back to me on this… advance thanks

Reply

581 Manish Chauhan January 22, 2013 at 4:31 pm

No Sharath

It does not work that way. your credit report is messed up and it needs to be fixed properly .. just giving back the loan amount will not clean everything, but yes it will help !

Reply

582 Credexpert January 24, 2013 at 6:13 pm

Dear Sharath,

We understand your willingness to pay the outstanding loan amount in order to get a loan for your further studies. However, the late payments will be reflected on your credit report in spite of you making the payment.

Also, post the payment your score will improve gradually over a period of time. We would suggest that you wait for a few months after you pay the entire outstanding amount and monitor your score before you apply for the loan. This will minimize the chances of rejection of your application.

Also ensure that you do not make any late payments in future.

Regards,
Credexpert

Reply

583 atin kacker January 24, 2013 at 11:28 am

sir, my cibil score is 605.can i get ahome-loan.

Reply

584 Manish Chauhan January 24, 2013 at 1:50 pm

It would be tough .. please check the article and see what issues you have with your report and score !

Reply

585 Credexpert January 25, 2013 at 5:23 pm

Dear Atin,

605 is an average score. Did you check your credit report to see the factors that have impacted your score negatively? And when are you planning to avail the Home loan?

There could be various factors ranging from late payments to high outstanding that could have impacted your score. We could comment on the exact factors only after analysing your report.

Regards,
Credexpert

Reply

586 bhaavanaa murthy January 27, 2013 at 2:45 am

My bike EMI’s was bounced in 2007 & couldn’t repay. In March 2012 had cleared all arrears including the interest charged by loan provider. Now every application for new loans getting rejected being low score. Please guide how to increase score & get eligibility for new loans.

Reply

587 Manish Chauhan January 30, 2013 at 4:52 pm

All the tips are already discussed here, didnt you understand those option ?

Reply

588 Credexpert February 1, 2013 at 10:07 am

Dear Bhaavanaa,

The late payments for 5 years will be reflected on your credit report and that is the reason for the rejection of your applications. You have taken a wise decision by paying back the complete outstanding against the loan without going for a settlement. However, there is nothing that can be done about the late payments.

Do you have any other open accounts? The only way to minimize the chances of rejection is by making timely payments on your other loans. The timely payments will help lenders validate that you have improved your repayment behaviour.

Regards,
Credexpert

Reply

589 tanmoy panja January 29, 2013 at 11:43 pm

Is non maintenance of Aqb or Amb of savings bank a/c does make any negative impact on CIBIL score ???

Reply

590 Manish Chauhan January 30, 2013 at 1:06 pm

NO !

Reply

591 Nikhil sharma January 30, 2013 at 1:59 pm

Hey Manish,
please suggest me how can I check my credit score and please clear me that, your tips is also be valid in the case of short term period. I mean my credit score is not so good and I want to improve in a short period of time. So, please suggest me, is it possible and not??

Reply

592 Manish Chauhan January 30, 2013 at 2:07 pm

No , it will not be applicable for short term .. these corrections takes time .. you can apply for CIBIL score online .. check this – http://www.jagoinvestor.com/2011/12/get-cibil-score-online.html

Reply

593 Credexpert February 5, 2013 at 11:25 am

Dear Mr.Sharma,

You can obtain your credit report and / or score from the bureau of your choice i.e. CIBIL, Equifax or Experian.

The details of the KYC, payment and process are available on their respective website.

Regards,
Credexpert

Reply

594 Prem Verma January 30, 2013 at 8:24 pm

Hi Manish,

I have 2 question, I was having a bad score (520) so after your suggestion I have taken a Credit Card against the FD and using it to improve my Score just 2 days Back I have done a big Transcation (Around 70 of my limit) and now I want to convert it in to EMI by calling bank so If I am going to convert it in EMI will it leave a negative impact on my Credit Score or it wont impact on my score ?

2: As I was using 2 Credit Cards and I have paid the total outstanding of One CC and another one I have settele down so how much time it will take me to reach till 700 if I continue to make payment on time ?

Reply

595 Credexpert February 5, 2013 at 11:27 am

Dear Mr.Verma,

Have you monitored the increase in your credit score after using the secured credit card? The conversion of your payments into an EMI option will be reflected as a restructured loan on your report and yes that will impact your score.

The settled remark has affected your credit score. We would advise that you repay the outstanding against this settled account (assuming your cash flows allow you to do so). Continue repaying on time and your score will improve gradually.

Regards,
Credexpert

Reply

596 Prem Verma February 6, 2013 at 2:11 am

Thanks for the reply,

so in that case who ever is using his/her Credit card for the big amounts and converting it in to EMI is a bad idea specially who are trying to improve their score ? if so then why Banks are providing EMI facility ?

As I have settledown my Credit card earlier, I got a call from the bank representative and She told me that If I pay a fix amount like 30k, They will remove the “Settled” against my Card and will update the CIBIL as no outstanding so is that possible if I pay that amount ?

Please suggest.

Reply

597 Manish Chauhan February 6, 2013 at 10:02 am

Yes that should be able if the bank has told this.. Go ahead ..

Regarding why banks are giving EMI facility. The simple answer is , they will do what they have to do , you need to do what you have to do .

Those who need EMI facility because they cant pay a big amount, will take those facitlity.

Reply

598 Prem Verma February 6, 2013 at 11:32 pm

Thanks Alot Manish

Reply

599 Credexpert February 9, 2013 at 11:33 am

Dear Mr. Verma,

If the bank provides an EMI option at the initial point of purchase then it would not be reflected as a restructured remark. However if after the purchase the individual opts for an EMI option – which is in your case, then there would be a restructured remark on the report.

If the bank is ready to remove the settled remark post a payment of Rs.30,000; then do make the payment. However ensure that you have a written confirmation of the same from the bank before making the payment.

Regards,
Credexpert

Reply

600 Prem Verma February 12, 2013 at 3:58 pm

Hi Credex,

Thanks for the update so in that case if Reliance, Croma or any other big or small merchant is given me the facility to convert my purchase amount in the EMI option on my Credi Card without any fees, I can go ahead with those and it wont considered as a restructure Loan ?

Reply

601 Manish Chauhan February 7, 2013 at 6:16 pm

1. Yes it will leave a bad remark on your credit score, because at the end, it means that you were not able to pay full and restrucured the loan.

2. There is no formula like that.. the thing is your score will improve, but by how much its tough to say like that !

Reply

602 Pankaj Pandey January 31, 2013 at 6:02 pm

Hi,
My CIBIL score is around 725. While going through the report, I have observed that an amount of around Rs. 18,000 has been written off by some agency/lender very recently. However, name of agency/lender was not disclosed in the report. As far as I am concerned, I make all the credit card payments (almost in full without resorting to any revolving credit). I have also not received any communication from any of the credit card agencies/banks showing the aforesaid amount as outstanding against me. What should I do to improve my CIBIL score in such a scenario.
Thanks.

Reply

603 Credexpert February 5, 2013 at 12:08 pm

Dear Mr.Pandey,

Are you referring to the credit report obtained by the lender to evaluate your credit report? The member / lender name is not disclosed in reports obtained by lenders.

We would suggest you to obtain your credit report and check the lender name against this written off account. 725 is an average score but the removal of this erroneous information could boost your score.

Regards,
Credexpert

Reply

604 ANANDAN February 1, 2013 at 7:34 am

Hi Sir.
I took educational loan of 40K in 2006. after 2 year i am not able to repay beacuse of not getting the job. In 2010 & 2011 i repayed 60K, but still i have to pay 60K the interest amount. I am going to complete the payment by this month.
Will it improve my credit score.
I have credit card EMI & personal loan EMI. But i am paying regularly on time.
i am going to end all this EMI by next month.
I am in need of Home loan, will i able to get?
Please help me on this
thanks

Reply

605 Credexpert February 5, 2013 at 12:15 pm

Dear Anandan,

Repay the entire outstanding against the education loan without going for any settlement. And yes the complete payment will help improve your score but it will be a gradual increase over the next few months.

It will be difficult to comment whether your Home loan will be sanctioned as it depends on your score and the credit policies of the lender.

Regards,
Credexpert

Reply

606 Manish Chauhan February 7, 2013 at 1:59 pm

Yes, if you pay it off, your score will improve

Reply

607 manoj gesulan February 2, 2013 at 10:46 pm

Hi Manish

Thanks for your tips. My CIBIL is 773 Dt:14.01.2013 is it ok for applying home loan? pls advise.

regards
Manoj

Reply

608 Credexpert February 5, 2013 at 12:13 pm

Dear Mr .Gesulan,

773 is a good score to apply for a home loan; however the final decision will be at the discretion of the lender.

Regards,
Credexpert

Reply

609 Manish Chauhan February 6, 2013 at 11:39 am

You can try, but you can not be sure if you will get it .. it also depends on many things like your DPD

Reply

610 srinubabu February 7, 2013 at 11:48 pm

My CIBIL transunion score is 805 I am using 4 Credit cards i am using maximum utilization amout but i am not due in that bank credit card i went to personal loan it is poosible

Reply

611 Manish Chauhan February 11, 2013 at 8:08 pm

Did you have any pending amount ? If no , then your overall credit score + report is good, you should have high probability to get loan

Reply

612 Credexpert February 12, 2013 at 12:40 pm

Dear Srinubabu,

805 is a good score to apply for a personal loan. It is good that you are not making any late payments on all your cards but we would suggest you to avoid using up to 100% of your credit limit as this can impact your score negatively.

Regards,
Credexpert

Reply

613 Jasmin February 8, 2013 at 11:23 pm

Dear Manish
I have following loans. Home loan from ICICI – not a single EMI returned in last 5 years
Car Loan – SBI only for once EMI returned 2 years back.
2 unsecured loan ( From Bajaj Finance) – record is very clean ( 3 yeard back I had loan from Bajaj & paid in time w/o any EMI returned)
At Present one ICICI credit card – paying bill on or before due date.
2 years back, I had despute with SBI credit card & Standard Chartard Credit card & got settled.

6 Months back I had applied for one of above unsecured loan & got approved. 3 months back I had applied for another unsecured loan & got approved. So I do not think that settlement with credit card banker came in way. Now today I saw my name in CIBIL. what could be the probale reason for this? & Now how to remove my name from CIBIL. If once name appears in CIBIL, for how much time it would be there? How can I know the reason for my name in CIBIL? I would be highly oblidge if you can guid me on this.

Reply

614 Manish Chauhan February 11, 2013 at 7:38 pm

What does your report say ? What is the exact status ?

Reply

615 Credexpert February 12, 2013 at 12:37 pm

Dear Jasmin,

All lending institutions report the data of its borrowers to any one or more of the bureaus – CIBIL, Equifax and Experian on a monthly or quarterly basis. This data provided is related to both positive as well as negative payment behaviour of borrowers. So there is no need to worry if your name is appearing in CIBIL; provided your report reflects good payment behaviour.

We would suggest that you obtain your report from the bureau of your choice and check your score.

Regards,
Credexpert

Reply

616 Sandeep Jaiswal February 9, 2013 at 2:38 pm

Hi Manish – Please advice based on the following situations:

1. Car Loan EMI for one of the months didn’t get paid on time. Though I cleared the payment very next month (with penalty charges), will this AFFECT my CIBIL Score?

2. I missed out twice on my credit card payments though I’ve paid in full (with penalty charges). I am a regular payer for my credit card dues though. Will this too AFFECT my CIBIL Score?

Thanks in advance!

Sandeep

Reply

617 Manish Chauhan February 11, 2013 at 5:19 pm

Hi Sandeep

These are both small events where you defaulted, but then paid the money in few days. Now its bank policy if they want to report it to CIBIL as default or not. Most of the banks should not be doing it. Even if they do, its not such a big issue , that you loose your sleep . Just a small remark in DPD section should appear. But thats ok .

Reply

618 Sandeep Jaiswal February 11, 2013 at 5:45 pm

Thanks a lot Manish for your valuable inputs. :-)

Regards
Sandeep

Reply

619 Credexpert February 13, 2013 at 5:20 pm

Dear Mr.Jaiswal,

If these are the only three late payments on your report then their affect on your score would be minimal. However, specific lenders could view this negatively from a credit decision perspective.

Regards,
Credexpert

Reply

620 Sandeep Jaiswal February 13, 2013 at 5:32 pm

Thanks for the information. I’ll request for my CIBIL Score.

Can you advice what is the ideal score to avail home loan (finance upto 80% of the cost of the house).

Regards
Sandeep

Reply

621 Credexpert February 15, 2013 at 11:17 am

Dear Mr. Jaiswal,

A score of 750 and above would be good for a Home loan. However, the final decision would be at the discretion of the lender.

Regards,
Credexpert

Reply

622 Manish Chauhan February 18, 2013 at 2:16 pm

Everything is not dependent on Score alone, your report should also be clean. I would say if you score is above 780-800 and you have a clean report. you should be ok getting a loan

Reply

623 Sandeep Jaiswal February 18, 2013 at 2:21 pm

Hi Manish, by clean report do you mean that there should not be a single miss on the scheduled payments?

There can be miss-outs / default / settlement, etc.

Regards
Sandeep

Reply

624 Manish Chauhan February 18, 2013 at 2:26 pm

Yes .. if there is no default, its great .. but if you have missed some payments it will be recorded in DPD section . If its just once or twice, it should not matter much (again depends on the lender how they want to look at it) .

But if there has been a constant defaults , or defaults for many months or some kind of settlements of loan .. then good score will not help you and that score also will come down in future.

Reply

625 Sandeep Jaiswal February 18, 2013 at 2:31 pm

Thanks a tonne Manish and Credexpert for assisting me with my queries. These are very much handy information and offers a great learning curve for future course.

Regards
Sandeep

Reply

626 Naveen Rawat February 11, 2013 at 9:41 pm

My cibil rating is not good because of cash loan settlement on my HDFC Bank credit card. Can you please advise me. How I can improve my ratings ?

Reply

627 Credexpert February 13, 2013 at 5:21 pm

Dear Mr. Rawat,

What is your credit score? Are there any other negative factors on your report other than this settlement of HDFC Bank credit card? There are many general steps that help to improve your credit score like; timely repayments, balance between the secured and unsecured loans, avoiding too many credit facilities. But the specific steps that need to be taken depend on a case to case basis.

Regards,
Credexpert

Reply

628 Manish Chauhan February 18, 2013 at 3:38 pm

Pay off that settlement outstanding and it will improve

Reply

629 P.Saravanan February 12, 2013 at 4:19 pm

My cibil score is 814, But still i cant apply new credit card in other bank.
Past History i made some late dues in ICICI bank. But i cleared all dues . still the HDFC bank people are telling in CIBIL shows N/A (Not applicable ) . Please suggest what to do to improve & how much time it takes to get other bank credit card.

Reply

630 Credexpert February 14, 2013 at 12:53 pm

Dear Saravanan,

814 is a good score but the late payments on your report are making the lender view your report negatively in spite of a good score. Are there any other negative factors that have affected your score other than these late payments?

Regards,
Credexpert

Reply

631 Manish Chauhan February 18, 2013 at 2:47 pm

Better apply in other companies

Reply

632 Munawwar usmani February 14, 2013 at 8:02 pm

Hi Manish..I have applied for a personal loan from my salary account. They told me that there is a problem in Cibil with your account. they told me that your cibil score is not good. according to them I have 5 loans unpaid. Actually before ten years i have purchased a bike on loan and 3 installments were unpaid. secondly i have settled credit card and not paid the full amount. thirdly i have settled a personal loan with HDFC and paid all the amount. fourthly a personal loan is running currently and 4 installment is pending. And one car loan from icici was pending its is about 90,000/- I want to ask you I wish to clear all this amount..it will be around 1 lac 10,000/- so my question is if i clear all the outstanding the score will be good or not.? plz reply

Reply

633 Manish Chauhan February 18, 2013 at 1:51 pm

You first need to clear everthing .. Ur score should get better, first check your report and go through it

Reply

634 Credexpert February 23, 2013 at 2:49 pm

Dear Munawwar,

Yes, post the payments your score could improve. It also depends on whether the credit institutions accept these outstanding against a settled account.

Regards,
Credexpert

Reply

635 Hi Manish February 16, 2013 at 5:33 pm

Dear Manish,

Recently i had applied for a credit card, but got rejected, upon enquiry i came to know that I dont have any credit history and my cibil score says “NA”, actually i never felt any need for such credits hence i never applied, but now i need cards as i have to frequently travel for my business purpose, plz tell me how to get score on cibil, so that i can be eligible to get cards…
habib

Reply

636 HABIB February 16, 2013 at 6:13 pm

Dear Manish,

Recently i had applied for a HDFC Bank credit card, but my request was rejected, on inquiry i came to know that i dont have any cibil rating and my status shows as NA in cibil report, as earlier i had never applied for cards/loans as i had no requirement, but now as due to business purpose i have to travell frequently where i require these cards, plz advice how to increase score in cibil report so that i can be eligible for cards and such loans / home loans

Reply

637 Manish Chauhan February 18, 2013 at 12:58 pm

Better get a secured credit card against a FD to start with !

Reply

638 Credexpert February 23, 2013 at 2:51 pm

Dear Mr. Habib,

Apply for a secured credit card against your fixed deposit. This would help in building your credit score.

Regards,
Credexpert

Reply

639 Srinivas Murthy February 22, 2013 at 12:23 am

Dear Manish,

i have applyed for Car Loan from HDFC Bank but its rejected due to bad 610 CIBIL Score.
1. Reason they told due to the outstanding of 25000, of Car Loan. but am a guarantor of this loan.
2. i have taken consumer loan for Camera of Rs. 33.940 on Nov 12. total EMI it’s 8 in that i 4 EMI cleared and 4 EMI pending is there. this loan will clear on Jun 13. But In CBIL its showing Outstanding Amount is Rs 28000,

so after knowing the outstanding of 25000, as a guarantor I had made a payment of Rs 30,000 including interest to settle Car Loan, but CIBIL’s records still reflect an outstanding of Rs 25,000. How should I get my name removed from CIBIL? i have received a clearing certificate from Karnataka Bank. again i have applied a car loan producing all Documents & clearing certificate but again it rejected. Kindly let me know what as to be done for this case..
Thank you in advance..\

Rgds,
Srinivas S

Reply

640 Manish Chauhan February 25, 2013 at 6:10 pm

First thing is “guarantor” is equally responsible for default ,thats the meaning of “guarantee” .

Now if you have cleared things, you should have taken a NOC from the bank which says that you you have cleared everything and they will also report the right status to CIBIL . did you do that ?

Bank should update the CIBIL in 40-45 days .

Reply

641 Srinivas Murthy February 25, 2013 at 11:48 pm

Hi Manish,

Thank you for your replay… :)

i have collected clearing certificate from Bank.
the letter say’s
This is to confirm that the loan account No.TL1857 dated 09.09.2005 standing in the name of Sri. Murali A (Principal borrower) and Sri. Srinivas Murthy S, the (guarantor) has been closed on settlement in our book on 09.02.2013.
this letter is issued at the specific request of Sri. Srinivasa murthy S, the guarantor of the above said loan account and without attaching any risk on the part of the Bank or any of its officials.

signature of Senior Branch manager with seal.

manager says that he as already informed & sent a letter to Court.

Let me know if Bank updated to the CIBIL how long it will take to remove
from the list.

Thanks,

Rgds,
Srinivas S.

Reply

642 Manish Chauhan February 27, 2013 at 10:11 am

If the loan is SETTLED (I mean paid less money than the outstanding) , then it will not be removed from the report . The NOC just states the status of the loan and it will not bother from next time by sending goons :)

Reply

643 Credexpert February 28, 2013 at 3:54 pm

Dear Mr. Murthy,

If you have the letter from Karnataka Bank stating that the loan has been repaid and closed then, the same should be reflected in your CIBIL report. However the fact that you remained delinquent on this account would remain on your report. Also the late payments on your consumer loan would affect your score and would be viewed negatively by lenders.

What is your credit score? Other than these 2 loans are there any other credit facilities availed by you?

Regards,
Credexpert

Reply

644 Harshad Matal February 26, 2013 at 1:09 am

Hi Manish,

From where I will get CIBIL report. I need it unrgently. I have completley paid my loan with CITI bank in the year 2008, now I am planning to take home loan from SBI its showing me CIBIL is bad and rejected your loan.

Please suggest me how can I tackle this ASAP.

Thanks in advance.

Regards
Harshad M.

Reply

645 Manish Chauhan February 27, 2013 at 10:09 am

You can get it from CIBIL.com by paying Rs 470 . Here is the link to understand what to do – http://www.jagoinvestor.com/2011/12/get-cibil-score-online.html

Reply

646 Credexpert February 28, 2013 at 3:51 pm

Dear Mr. Matal,

Visit http://www.cibil.com/ and obtain your credit report and score. Did you ask the bank the reason for the rejection of your application? Also as a consumer you are entitled to ask a copy of the report used to evaluate your application.

Regards,
Credexpert

Reply

647 Sunita February 27, 2013 at 4:17 pm

Hi Manish
I applied for a home loan in HDFC and came to know that my CIBIL rating is 539. The report does not give us any reference to which card/loan I defaulted which led to adverse rating. What to do now?
Rgds
Sunita

Reply

648 Credexpert March 2, 2013 at 2:34 pm

Dear Sunita,

We assume you are referring to the credit report that HDFC had obtained to evaluate your application. Certain details are not disclosed in the report obtained by the lenders. You would have to apply for your credit report and score to http://www.cibil.com which would give you details about the lender name, account no., outstanding amount etc.

539 is a low score and there could be various factors that could have affected your score. We would need to analyse your report to comment on the specifics.

Regards,
Credexpert

Reply

649 Sushil kumar February 27, 2013 at 5:10 pm

Dear Manish,

i was purchase a bike in 2008 . with help of bajaj finance company , first six months my EMI paid on time , but due to my road accident i was jobless around 8 to 9 months and that time my cheques bounced , but i made full payment of finance company. and i have settled fine charges around 15,000 and i got NOC also . some days ago i was applied for credit card they are rejected my application , because of cibil report . i want to know if my cibil score is low than how can i improve my cibil score . or its possible or not.

Reply

650 Manish Chauhan March 1, 2013 at 8:50 pm

You will have to pay the full outstanding .. there is no other option

Reply

651 Credexpert March 2, 2013 at 2:29 pm

Dear Mr. Kumar,

You will have to apply for your CIBIL credit report and score at http://www.cibil.com

One possible reason for rejection could be the late payments which would be reflected on your report. Do you have any other loans/credit cards? How are your payments on them?

There could be other factors than the late payments that could have affected your score. We would need to analyse your report to comment on the specifics.

Regards,
Credexpert

Reply

652 Swapnil Yadav March 1, 2013 at 7:44 pm

Dear sir,
I am Swapnil Yadav, I used 4 credit cards in 2008 and 2009.
My amount was due at that time. I was unable to pay that amount.So i did settlement for that card. I have No dues certificate from each bank.Now I am applying for personal loan it is rejected. I closed all cards in 2010. But still it shows in CIBIL. Can u help me out what i will do for availing personal loan in such situation. I need home loan also.
Swapnil Yadav

Reply

653 Manish Chauhan March 1, 2013 at 7:50 pm

You will have to pay off all the outstanding amount . Making settlement is just a temporary solution for that moment .

Reply

654 Swapnil Yadav March 2, 2013 at 11:41 am

If I make full payment will it improve my score in cibil. Because If settlement is done then it will take 7 years to remove name from cibil and after 7 years i will avail loan.Is it correct, some one told me this thing thats why I am askingto you.Actually I dont have any idea about it

Reply

655 Manish Chauhan March 3, 2013 at 10:24 pm

If you completely pay it off, yes , score will improve in few months ! , but you can never be sure how much .

If you dont do anything, it might be there for very long time. 7 yrs is MINIMUM , not maximum , it can go upto 10 yrs, 15 yrs ..

Reply

656 Credexpert March 7, 2013 at 6:37 pm

Dear Mr. Yadav,

Did you settle all 4 credit cards? The only option available to you is to make a payment against these settled accounts, provided your cash flows allow you to do so. However, please note that the late payment would reflect on your report even post these payments as they are a factual representation of your payments.

Regards,
Credexpert

Reply

657 Swapnil Yadav March 8, 2013 at 1:28 am

Dear Sir,
I did settlement for 4 credit cards,i have no dues certificate with me.let me know what i will do.

Reply

658 Manish Chauhan March 8, 2013 at 7:13 pm

The first thing is you should not have done settlements , because that will appear on your cibil report . Now the next action is to contact the bank and talk to them how you can remove it from report . Check how much you will have to pay for it !

Reply

659 Credexpert March 9, 2013 at 3:23 pm

Dear Mr. Yadav,

As already mentioned the only option to remove the settled remark is by making payments against these settled accounts.

Regards,
Credexpert

Reply

660 jony March 3, 2013 at 12:42 pm

Hi Manish,

I have one doubt. After how many late payments of credit card, bankers report to CIBIL? One time i did not pay my HDFC credit card full amount on bill due date. Not even minimum amount also. But i paid full amount after 2 days.I would like to know, up to how many late payments bankers will consider?

Reply

661 Manish Chauhan March 3, 2013 at 9:53 pm

Jony

If its just 2 days late, then they will just apply for the penalty charges, but might not report it to CIBIL .. the best thing is to check in your report itself .

Reply

662 Credexpert March 7, 2013 at 6:33 pm

Dear Jony,

Late payment of even 1 day could be reported by the lender to the credit bureau as 001. However lenders viewing your loan application may not view it negatively as the no. of days by which you were late is low.

Regards,
Credexpert

Reply

663 srinivas.k March 6, 2013 at 11:31 pm

3 years back i have taken TW loan in 36 month tenure only one cheq got bounce they charged me 450 for CBC and EMI cleared in 2nd representation , after tenure i request for waiver they accept my request and waived off that charges and issued NOC . in future i have any problem from this please suggest

Reply

664 srinivas.k March 6, 2013 at 11:45 pm

3 years back i have taken TW loan in 36 month tenure only one cheq got bounce they charged me 450 for CBC and EMI cleared in 2nd representation , after tenure i request for waiver they accept my request and waived off that charges and issued NOC . in future i have any problem from this please suggest

now my credit score is 784 is a good are normal.

Reply

665 Manish Chauhan March 7, 2013 at 9:31 am

Its good overall , but the question is what is your report saying ? Check the DPD section as well !

Reply

666 srinivas.k March 8, 2013 at 9:44 pm

actually cheq bounced on 5 march 2009, i have checked in cibil report on 11 nov in dpd section showing as all month 000,

i want to know another clarification that , i have a taken a gold loan in hdfc that maturity date completed on 5 dec 2012 but i closed that account on feb 2nd 2013 and have clear total out standing i want now that this loan also updated in cibil.

because i enquirer in bank they said gold loan details are not updated in cibil. pls confirm

Reply

667 Credexpert March 9, 2013 at 2:56 pm

Dear Srinivas,

The gold loan availed by you should be reflected in your credit report. Contact the bank for further clarifications.

Regards,
Credexpert

Reply

668 ANIL KUMAR March 9, 2013 at 6:38 pm

hi, my name is anil . recently i came to know my credit score through CIBIL , which is 607 , which i know is very bad score. Now i would like to know how to increase it. As far as i know i can increase it by making payments in time. but i have no loans or credit cards on my name. An d with this score i cannot get further any of them. pls help me in this regard.

Reply

669 Credexpert March 13, 2013 at 11:53 am

Dear Mr. Kumar,

Did you have any loans/ credit cards in the past which are now closed? If yes then how were your repayments on them?

If you have no existing loans / credit cards, the timely repayments on which could have helped in your improving score then, we would suggest that you opt for a secured credit card. This will help in improving your score and is not risky like a credit card.

Also other than the late payments there could be other factors that could have affected your score. What is the no. of enquiries appearing on your report? We would have to analyse your report in order to comment on the specifics.

Regards,
Credexpert

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670 Manish Chauhan March 13, 2013 at 12:25 pm

For your case, you can take a secured loan and pay it on time for next 12 months

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671 chinni March 18, 2013 at 12:48 pm

i have taken a personal loan. and i have setteled it previously..and now i approched the bank and cleared the amount they said..in how many days they will update it on cibil..
thank you

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672 Manish Chauhan March 19, 2013 at 10:49 am

around 45-60 days !

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673 Thishidy March 18, 2013 at 2:11 pm

Hi

I have SCB Credit Card and in Feb 2012 applied for Citi Bank card and got it, presently using the option of EMI for purchases that are made and converted into EMI and paying it promptly without defaulting any EMI’s.

Addition to this I had taken Person Loan from SCB in 2010 and as the rate of interest was high, took Person Loan from HDFC and cleared off SCB Personal Loan, also purchased Vehicle through Vehicle Loan and paying all the above promptly without defaulting any of them.

However in mean time I had applied for HDFC Credit Card and got rejected saying status as “Discarded”, why is this??? and what is the reason behind this???

Because of this rejection how will my Credit Rating affect

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674 Manish Chauhan March 19, 2013 at 10:47 am

Because you are very much credit dependent and I think you are over taking the credit .

Also stop converting those dues to EMI’s , thats get reported to your report as restructured loan .

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675 Credexpert March 19, 2013 at 12:54 pm

Dear Thishidy,

Did you check with the bank as to what does this remark mean? Also as a consumer you are entitled to get a copy of the credit report basis which the bank evaluated your credit worthiness.

This rejection will appear in your report as an Enquiry but more important is to know why the bank rejected your application. Also as you already have 2 credit cards do you really need a 3rd one? Try and suffice your requirements with the existing credit cards itself instead of applying for a new credit card.

As suggested check your CIBIL score and there could be various factors that could have affected your score. We would need to analyse your report in order to comment on the specifics.

Regards,
Credexpert

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676 srinivas March 20, 2013 at 11:03 pm

Dear Manish ,

if we defaulted chit fund companies this also updated in cilbil are not , and they also chek a cibil report while giving chit amt

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677 Manish Chauhan March 21, 2013 at 8:33 am

No Cibil is not related at all to chit fund companies. not atleast right now

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678 Deepak March 21, 2013 at 12:47 am

Hi,

I was having some amount due on one of my credit cards with Standard Chartered bank. I had made the full payment and ask them to update CIBIL report. Also raised a dispute to CIBIL. After 2 months I got information from CIBIL that the dispute is closed. So again I purchase the CIBIL report. In that the amount due was given as “0” but the status was given as written off. I had raised another dispute request for this and send a mail to the bank. But bank didnt respond properly to my questions, also when called up they didnt give proper answers. It is more than 1.5 months after the dispute is raised (CIBIL told that it will take around 1month to close the issue), still it is not closed. When I enquire CIBIL they said that bank is not responding. What Can I do now? Is it OK to complaint this to RBI ombudsman or is there any other way?

Thanks,
Deepak

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679 Manish Chauhan March 21, 2013 at 8:26 am

Yes.. you should now complain to bank ombudsman and then RBI .. and then go to consumer court too

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680 Credexpert March 21, 2013 at 10:48 am

Dear Deepak,

Since you have already lodged a complaint with the bank but have not received any satisfactory response for over 1 month now, you can file a complaint under the Banking Ombudsman Scheme 2006 by visiting this link http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=159

Regards,
Credexpert

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681 Sandip M March 21, 2013 at 2:05 pm

Hi Manish,

I was using several credit cards and there were some late payment issues. so i paid all cards and currently not using any credit card. I am not getting a new card as my CIBIL Score says less. its somwhere around 670-700. I have a personal loan going and its clean. I’ve plans to go for a home loan after an year. please suggest some ideas to improve my credit score. Thanks in advance.

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682 Credexpert March 21, 2013 at 7:18 pm

Dear Sandip,

How many credit cards did you close after paying the outstanding amount? “Several” credit cards and personal loan both are unsecured loan and this could make the lender view your report negatively. Also how recent were the late payments on these cards?

670 – 700 is an average score but since you are planning to apply for the home loan after one year, you could improve your score in this gap of one year. We would suggest that you do not apply for any new unsecured loan / credit card as this could further affect your score negatively.

Other than these late payments there could be various factors that could have affected your score. We will need to analyse your report in order to comment on the specifics.

Regards,
Credexpert

Reply

683 Manish Chauhan March 23, 2013 at 10:26 am

The issue is your last 1-2 yrs history of non payment on time .. Also your current personal loan is also there. so overall you have a high amount of UNSECURED LOANS , which is frightning for debt companies .I would suggest pay off your personal loan in next 1 yrs ., That should help , but your DPD section must be messed up because of your late payments , which cant be rectified very fast .

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684 Abhilash March 22, 2013 at 9:35 am

Hi Manish,
I was using HDFC CCard for almost 1year,I met with accident I lost my card,I was not aware of total balance due but i was having an idea that 20000 is due which I paid.After this there was no communication from HDFC. After 3months they started calling me n threatning me,I told them i don know how much is due first tell me than i will make payment but they never gave any info,after 2months 1lady told me that I have another around 10000 due & I made the payment in 2 installments.They said once I cleare old balance than only I will get my new card.After payment I got my card,apart from those 3-4 months I never defaulted in any payment till today but now where ever I applied for CCard all said my name is in cibil I have to remove that first, I don know wat to do?? pls guide me to remove my name from cibil. My credit score is 750 right now.HSBC ready to give me CCard if my name is removed from Cibil. Pls guide.

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685 Credexpert March 22, 2013 at 12:47 pm

Dear Abhilash,

Firstly, did you report to the bank about the loss and / or block the credit card? If yes, then you should have asked the outstanding balance on the card while doing so.

Secondly, even though you had lost your credit card, the statement of that month would have been received by you. This statement would have reflected the exact outstanding balance. The above points would have saved you from paying an extra amount and most importantly would have not affected your credit report and score.

If you did not report to the bank and block the card then, this could be a case of Identity Theft where your card was used by some other individual to make purchases. Ask for the bill statement which would give details on the swipe made on this card after you lost the card. Since you did not report the loss of card, even if you plan to explain your case to the bank, there is a possibility of your case being weak.

About removing your name from CIBIL – CIBIL is a credit bureau that stores both positive and negative borrower information and you cannot remove your name from CIBIL records since you are a borrower. If you have never defaulted in any of your payments except for this particular incident, then this positive behaviour would also be stored by the bureau and will be reflected on your credit report.

750 is a decent score but these late payments could be the reason for the lender to view your report negatively. Also since you already have an existing HDFC Bank credit card, we suggest that you try to increase the credit limit on this card instead of opting for a new card. Continue with your regular payments and your score would increase.

Regards,
Credexpert

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686 Manish Chauhan March 23, 2013 at 10:06 am

First check your report . Because there was NON PAYMENT for few months, your DPD section is surely impacted and messed up .

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687 Chirag Patel March 22, 2013 at 11:00 am

Dear Manish,
In June 2012 i have purchased home and taking home loan rs 2870000/- and personal loan rs 300000/-, now i want to transfer my loan from Axis bank to SBI Bank so what step required for transfer? it necessry to close my personal loan before applying home loan in SBI bank.

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688 Credexpert March 22, 2013 at 5:25 pm

Dear Mr. Patel,

No, it is not necessary to close the Personal Loan for transferring your home loan to SBI.

What is the interest rate charged by Axis Bank? Consider transferring the loan only if the difference in the interest rate is at least 1 percent. Since you have recently availed the loan in June 2012 and assuming the tenure would be long, this transfer could result in savings for you.

In interest of saving time, it would be best if you get the exact details of the requirements for the transfer from SBI itself.

Regards,
Credexpert

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689 Manish Chauhan March 23, 2013 at 9:43 am

It would help overall , if you can close your loan with one bank on personal loan, because other bank will look upon your overall debt before they sanction the loan .

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690 ashish March 23, 2013 at 6:38 pm

HI,

i had a settlement of 1 credit card once. but know i have 1 credit card and for which i am doing regular payments. i have checked my CIBIL score it is 550. Please tell me how can i improve this score.

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691 Credexpert March 25, 2013 at 4:17 pm

Dear Ashish,

The late payment and the settlement of the credit card have affected your score negatively. When was the settlement done? And how were your payments on the other closed credit cards and loans? Currently do you have any other loans?

550 is a bad score and there could be various factors that could have affected your score. We need to analyse your report in order to comment on the specifics.

Regards,
Credexpert

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692 ram March 28, 2013 at 10:30 pm

hi manish,
i am using hdfc and citibank credit cards and paying the all dues at the right time.I applied cibil score and the rating is 679.i dont have any pl or any home loans.
In the cibil report scoring factors:
1.proportion of delinquent trades too high
2.credit card balance too high
3.too much of increase of indebtness on non-mortage trades over the past 12 months

citibank history:
high credit:31930
credit limit:31000

status:

Actual payment:7000

note:
last month purchased a mobile worth 20000 in emi paid one due at right time and today i paid all the dues
after the report i paid full amount

DPD:upto 36 months

all results showing 000 and one contains 001 and other contains XXX

2nd tranaction:
Account:not disclosed opened 15-8-2011 closed 15-8-2011 current balance:0 staus:blank

Type:over draft
DPD:000

3rd transaction:
hdfc history:
high credit:21600
credit limit:20000

DPD:000 in all tabs

Status:blank

Enquireies:
enquiry date:2-9-11 enquiry purpose:credit card enquiry amount:50000
enquiry date:11-2-11 enquiry purpose:credit card enquiry amount:1000

crossed the over limit hdfc credit limit once due to my father hospitalized

crossed the over limit citibank credit limit once
Right now i dont have dues…
last week hdfc icreased my credit limit 20000-40000

pls suggest me…

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693 Rama Krishna Reddy.M March 29, 2013 at 4:26 pm

Previously I used axis and hsbc credit cards. I am clear all due amount both cards I got CIBIL Score 830. Recently I applied ICICI bank and HDFC credit cards. But they are declined my application because of some problem in CIBIL. Now I want to go to home loan. How much score for getting home loan and credit cards? My score is eligible for getting home loan and credit card.

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694 Credexpert March 30, 2013 at 1:57 pm

Dear Mr. Reddy,

830 is a good score but in which month / year did you have this credit score? Also since you already have 2 credit cards, is there any particular reason for applying for 2 more credit cards? Did you ask the banks the specific problem in your CIBIL credit report?

Generally 750 and above is considered to be a good score to apply for a loan / credit card. But please note that only a good credit score does not guarantee the approval of your credit application. There could be various factors in your credit report that made the lender view your report negatively. We need to analyse your report to comment on the specifics.

Regards,
Credexpert

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695 Manish Chauhan April 3, 2013 at 11:20 am

First check your report once again and see what are the remarks there

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696 ram March 29, 2013 at 6:54 pm

hi manish,
i am using hdfc and citibank credit cards and paying the all dues at the right time.I applied cibil score and the rating is 679.i dont have any pl or any home loans.
In the cibil report scoring factors:

1.proportion of delinquent trades too high
2.credit card balance too high
3.too much of increase of indebtness on non-mortage trades over the past 12 months

citibank history:
high credit:31930
credit limit:31000

status:

Actual payment:7000

note:
last month purchased a mobile worth 20000 in emi paid one due at right time and today i paid all the dues
after the report i paid full amount

DPD:upto 36 months

all results showing 000 and one contains 001 and other contains XXX

2nd tranaction:
Account:not disclosed opened 15-8-2011 closed 15-8-2011 current balance:0 staus:blank

Type:over draft

DPD:000

3rd transaction:

hdfc history:
high credit:21600
credit limit:20000

DPD:000 in all tabs

Status:blank

enquireies:
enquiry date:2-9-11 enquiry purpose:credit card enquiry amount:50000
enquiry date:11-2-11 enquiry purpose:credit card enquiry amount:1000

crossed the over limit hdfc credit limit once

crossed the over limit citibank credit limit once

Rright now i dont have dues…
last week hdfc icreased my credit limit 20000-40000

pls suggest me…

Reply

697 Credexpert March 30, 2013 at 1:55 pm

Dear Ram,

679 is an average score and few factors that could have affected your score are over limit on your credit cards, credit mix imbalance between secured and unsecured loans.

About the Overdraft account – Does this account belong to you? If not then, although the date opened and closed are the same against this account which implies that there were no transactions on this account, it is important that such erroneous account be removed from your report.

One of the CIBIL scoring factors is “proportion of delinquent trades too high”. This is not possible if all the DPDs are 000 except for 1 “001” and “XXX” each.

Regards,
Credexpert

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698 ram March 30, 2013 at 10:51 pm

dear manish,
Thanks a lot for replying.i have only two CC,so there should be only 2 transactions but in the cibel report it showing 3 transactions and i am not aware about the overdraft which opened and closed on the same day. yes i used the credit card by high usage but paid the full amount before the billing date and also i didnt understand “proportion of delinquent trades too high”.I was planned to apply my first loan(home) now i dropped the plan which spoiled my dream.pls suggest me some steps to improve the scores within 6 months so i can get my home loan…is there any chances where cibel entries might be wrong…pls help me manish..awaiting for your reply….

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699 Credexpert April 1, 2013 at 1:15 pm

Dear Ram,

As suggested, the erroneous overdraft account should be removed from your credit report. Using the credit card over the credit limit impacts the credit score whether or not the outstanding is paid on time.

Regards,
Credexpert

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700 Manish Chauhan April 3, 2013 at 10:32 am

Did you make any late payments or let the outstanding amount run for few months ?

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701 Dev March 31, 2013 at 11:34 am

.Hi Manish / Experts,

Greetings!!!

I’d made multiple defaults on CC with three banks cards payments in the past, and due to financial constraints, the amount was restructured for a settlement done & completed. The cards have been cancelled too.
Please guide me on how to build a good score now. Thank You!!!
Dev

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702 Credexpert April 1, 2013 at 1:13 pm

Dear Dev,

What is you current CIBIL score? And in which year did you default on your credit cards and when did you settle them?

Though the credit cards have been settled and cancelled / closed, there would be a “settled” remark in your credit report along with the late payments.
Whilst there are various ways through which you can improve your credit score, we can help you improve your credit score by analysing your credit report.

Regards,
Credexpert

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703 Manish Chauhan April 3, 2013 at 10:18 am

If there is still an outstanding , you will have to clear them first .. do you any loan or credit card now which you can pay ?

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704 Anupam April 6, 2013 at 1:10 am

Hi Manish,
I am using Axis Credit Card,
I am working in a big private company, So many bank has requested to apply for credit card.
I have summited my document many times but every time my aplication got rejected.
Last month CITI Bank has provided me CIBIL Score report.
My score is 0 and total number of request is 14times for Credit card and 3times for Personal Loan in 12 Months.
I am not understanding why my score is o(zero).

In my case reason may be:

7. Too many inquiries in short spam of time

I am repaying in regular time.

Please suggest.

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705 Manish Chauhan April 6, 2013 at 10:55 am

Its because you do not have any history in past . Do not make so many requests, its not good for your future score !

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706 Credexpert April 8, 2013 at 4:11 pm

Dear Anupam,

How long is your payment history on your Axis Bank credit card? A credit score of “NA” or “o” means an individual has credit history of less than 6 months.

The total no. of enquiries appearing on your credit report are 17; this indicates a high number of enquiries for unsecured loans. The lender evaluating your application would view this negatively as it indicates a credit hungry behaviour. Do not apply for any credit facility randomly until you genuinely need it.

We would suggest that you continue with your timely repayments on your credit card to build a credit score.

Regards,
Credexpert

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707 Params April 8, 2013 at 9:56 pm

Hi Manish,
My CIBIL score is 597, I have any issue on getting a personal loan. I have a bad credit history with multiple credit card has been closed / settled. Personal loans are paid after the due date. And currently One Home Loan, Personal Loan and a credit card with 40% used. please help me on improving my cibil score and make my history better to get a loan.

Thanks in advanced

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708 Credexpert April 9, 2013 at 12:23 pm

Dear Params,

Firstly, since you already have one personal loan we would advise that do not opt for another personal loan as it would further increase your debt burden and your past payment track records are already “late”.

Late payments and settlement have impacted your credit score negatively. We offer a service under which we analyse an individual’s credit report and provide counselling to them on how to improve their credit score and steps to be taken to correct discrepancies appearing on credit report.

Additionally we also provide a service where we not only counsel but also handhold individuals and execute the process of correcting discrepancies.

Regards,
Credexpert

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709 Manish Chauhan April 12, 2013 at 12:08 pm

There is no short cut here . Unless you pay off your long pending dues and work on imporving your score, you would not be getting any further loans

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710 Arpit April 10, 2013 at 1:51 am

Interesting read..

You just mentioned that closing your credit card can have bad impact on my cibil score.

I had two credit cards ICICI (60K limit, 1-30 biling cycle) & HSBC (24k limit, 26-25 billing cycle) I always had an idea to have two credit cards with different billing cycles & difference of 15 days so I can use maximum time frame to pay off.

I recently got a SBI CC (106K limit, 16-15 billing cycle) & now i am planning to close HSBC CC bcoz of their pathetic reward programme & low credit limit, Is it a good idea ? Will it give negative impact on my CIBIL score.

Some facts
– I always pays full amount of my all credit cards on time.
– I have used HSBC card for more thn a year now.

Please suggest, Thanks a lot :)

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711 Arpit April 10, 2013 at 2:08 am

Oops, 1 thing I forgot to add,

– My monthly CC bill never exceeds 20k unless I go for some electronic product or air travel with family, which is hardly 1-2 times in a year. So I actually dont need 3 Credit cards & I dats the reason I want to close HSBC card. Thanks again.

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712 Credexpert April 10, 2013 at 7:31 pm

Dear Arpit,

Yes, closing the credit card could negatively impact your credit score as it affects the credit utilisation ratio. But since you have been repaying all your dues on time, we assume that the impact would be minimal.

If you do not need the HSBC credit card then, you should definitely go ahead and close the card. Kindly ensure that you repay the entire outstanding before closing the card and obtain a NOC from the Bank.

Regards,
Credexpert

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713 Maha April 12, 2013 at 4:29 pm

Hi

I cleared outstanding credit cards 1 year back and just have one car loan. Last 5 months I have defaulted, but settled the due in the same month.

There were also 2 cheque returns in last one month in my account.

I am planning for a housing loan. Do you think, the application will be rejected?

Tnx

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714 Credexpert April 13, 2013 at 3:26 pm

Dear Maha,

Did you check your CIBIL score? Also how was your payment history on your credit card? The late payments on your Car loan would reflect on your credit report and would definitely impact your credit score.

We cannot comment on the approval of your Housing Loan as a lot depends on your credit report and score and also on the credit policy of the said bank. We would need to analyse your credit report in order to comment on the specifics and advise and guide you on steps ahead.

Regards,
Credexpert

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715 Manish Chauhan April 19, 2013 at 12:29 pm

This all goes to CIBIL , if the bank you are applying to is sensitive to all this, they might reject !

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716 abhijit April 16, 2013 at 5:57 pm

What is the minimum score required to avail a credit card. I have been paying EMI of 1503/- since past 13 months. Loan(on LCD TV) is almost over one more month to go. never missed an EMI. I get SMS from my loan provider the I am legible for a credit card, I applied but it was declined saying my cibil score is low.

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717 Credexpert April 17, 2013 at 5:26 pm

Dear Abhijit,

A credit score of 700 and above is generally considered good to apply for a credit facility, but the lender could also have their internal cut offs for credit score.

Do you have any other loans / credit cards? In addition to late payments, banks would also consider various other factors to evaluate your credit worthiness. Any such factor could have made the lender view your credit report negatively.

We would be able to comment on the specific factors on a case to case basis only after we analyse your credit report. It will help you understand the exact factors that have affected your application and also help improve your credit score.

Regards,
Credexpert

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718 Manish Chauhan April 19, 2013 at 11:04 am

It would depend on the company to decide what score they are looking for, also they would see the report remarks along with it .

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719 Anjaneya vara Prasad Inavolu April 18, 2013 at 1:53 pm

Dear Manish

I am having HDFC Bank credit card with 55000/- limit. I have two wheeler loan track also with the same bank.Recently i have applied for SBI credit card.It got apporved with 97000/- limit.I have used it around 12500/- suddenly With out any intimation that SBI card blocked.when i called the custmer care people they told me like its worngly approved .Next I raised this issue in banking ombundsmen then i got a mail from the NODEL Officer of SBI Cards.They says my credit history was not good.But till date I dont have any Late payments.and now my CIBIL Score is 743. Its not good score for credit card..? kindly reply me asap.i think i want to raise this issue to the consumer forum .kindly suggest….

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720 Manish Chauhan April 19, 2013 at 10:24 am

Is it good or not , is only the intrepetation of the bank . While I dont see anything wrong in your report/score, but your unsecured credit is high . However bank once issued the card can not say that now they want to cancel it , unless if was mentioned in the agreement if its any party wish to terminate at any point of time .

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721 Anjaneya vara Prasad Inavolu April 22, 2013 at 12:14 pm

Thanks to Replay Manish….I have a one more doubt Actually i was applied for this SBI Card on Feb 2013.After the all kind of verifications i got a card on Feb Month end .Before i recieve my card i got a massage from SBI cards stating that due to some securiti reasions that card blocked.call to the helpline.Then i called that help line they told me due to some security reasions that card closed,you will reacived new card with in 5 working days.As they are pramissed i got my new card from SBI.i have using it around 12500/-.in the first month.With in the two weeks it was blocked with out any intimation.then i called the helpline number they told me it was wrongly approved.Apart from that you have one more credit card from sbi that way this newcard blocked….

Actually as of now i have only one credit card that is from HDFC Bank.I raised this issue to the nodel officer and vissit the local SBI cards office.but there is no use for me.And moreover on 27 th march i got a massage from SBI cards stating that as per your request your credit card was closed .but in my knowledge i have not given such a request.Then i resied this issue to the banking ombundsmen but there is no use.
I got mail with two different statements one is my credit history was not good that way your card closed.But when i check my CBIL score include this creditcard loan my score is 743.I think it is good for any loans, and secound one is as per my request that card closed.But i have not given such a request.when i called the helpline they told me another reasion.I was contacted to the SBI card people in different ways.to activate my card.but no use..

I have read the most immportent terms & conditions in that client have a rides to terminate his card any point of time.and SBI Cards also have a rides to blocke the card with the proper intimation of the client at any point of the time.But i got a massage in diffrent way.

I am totally upset for this issue.Finally i decided to raise this issue to the consumer forum.Kindly suggest it is better or waste of my time.
I am ready to pay my total out standing amonut .

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722 Credexpert April 25, 2013 at 12:03 pm

Dear Anjaneya,

We would suggest that you write to SBI Cards again, but this time layout the entire incident in a sequential manner attaching supportings if any. The next steps depending on the response of SBI Cards would be to write to Banking Ombudsman and the Consumer Court.

Regards,
Credexpert

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723 Manish Chauhan April 26, 2013 at 12:21 pm

At the end , its always the bank decision to give you credit card or not . They can always say , they just dont want to give you . so better apply from another one . .

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724 Mayank April 19, 2013 at 1:33 am

I have a salary account in IndusInd, I applied for a credit card but that was rejected. Already have applied for CIBIL report today, awaiting for the same but I suppose the score should be -1 as I have just started to work and have no credit history. I wanted to take the card to build up credit score as I’d require education loan in 2 to 3 years.
I have thought of taking FD linked credit card from Axis. Could build up the history that way I suppose. But I have few questions. First, would cancelling that card, after receiving a normal card, affects the credit score? as i read on cibil website that cancelling a card affects the history.. something like an unused card is indicative to the fact that you aren’t that credit hungry. Second, does cash withdrawal against the card impacts negativity to cibil score? i plan to get the FD of 20k (limit of 18k), use cash withdrawal to reach the limit of 5k-6k along with phone bills and others swipe and pay up within 15 days. (Axis allows 100% cash withdraw as per the website) and lastly, is 5k-6k per billing cycle enough for me to get into the good graces of cibil and how long, do you think, it’d take to get a good score if i keep on repeating this?
and sorry for the flood of questions but it’s kinda complicated and funny. how is someone suppose to have a credit history unless you are ready to give the credit first! :) plus my friends faced no such issues, same case as mine. this is the second rejection, first being HDFC in mid January, which made me change my salary account for this stupid credit card in hope of getting one from IndusInd and the reason is frankly keeping me on nerves as I would need a good score after some years.
thank you.

Reply

725 Manish Chauhan April 19, 2013 at 10:15 am

Mayank

Yes you can take a secured credit card against FD, that will help . Just make sure your monthly dues do not cross 50% of the limit . Coming to your points ..

1. Cancelling a credit card means you will have a lower limit now , so just make sure your overall dues are still less than 50% .. If that is there, then you can cancel the card .

2. I would not suggest to get cash out of credit card, because cash withdrawal means the interest starts from the next day ! .. Do it as the last thing in your life :)

3. I think you should start using it right now itself, so that you build some good score and payment history !

Manish

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726 Mithun April 21, 2013 at 8:59 am

Hello Manish,

Thanks for that nice article.

I have a few queries and it would be great if you could clear them for me.

I have two credit cards and the total outstanding amount is around Rs. 90,000/-.
My CIBIL score is now around 650 and because of which i have been denied a loan though my income is more-than-high for the loan amount I’ve requested.
All i’m aware of are a few late payments I’ve done towards one of my credit cards and I believe that is the reason behind this low score.

Having said that, I’m now planning to clear the entire outstanding amount on credit cards in one go and i would like to know if that measure would actually boost my credit score.

If it boosts my score, how many days/months would that take to reflect in the CIBIL report?

Also, i heard from a bank person that the CIBIL would be updated once in 3 months only… Is that true?

Is there a way I can force my score to be updated quickly by initiating a dispute case with CIBIL?

Regards,
Mithun

Reply

727 Credexpert April 24, 2013 at 2:47 pm

Dear Mithun,

The late payments would reflect on your credit report even after you pay off the entire outstanding amount against the said credit card. Your CIBIL score would improve gradually in the next few months if you start making timely repayments.

Lending institutions update borrower’s credit information to the bureau either on a monthly or quarterly basis. We offer services under which we analyse individual’s credit report, guide and advise on the next steps for improvement in score and handhold them to rectify any errors appearing on their credit report.

Regards,
Credexpert

Reply

728 Prakash April 25, 2013 at 5:23 pm

Hi Manish, due to my careless and my situation, I couldn’t pay my credit card dues and personal loans in time. After that i settled everything one by one. But my score is 450 only now. I dont have any credit card or loan now. But due to low score i dint get any new card or loan also. How to increase my score to get loan in future if i need. Your advice and suggestion is grateful for me. Thanks in advance.

Reply

729 Manish Chauhan April 26, 2013 at 10:43 am

You are in tough situation .. You should first not expect very fast solution , It will take 1-2 yrs to correct your mistake. First make a FD and take a secured credit card against that card and start using it and pay your dues on time .. This should make your score a bit better.

Next , you need to pay off your outstanding loans (all of them) one by one .. only then the banks will correct the status of the loans , unless that happens , you can imagine no other bank will be interested in lending you looking at other banks remarks .

Manish

Reply

730 Prakash May 8, 2013 at 8:35 pm

Thanks a lot. Will follow your words for sure. But currently I have no dues or cards or loans. But I dont know about the secured credit card. Can you please explain me whats that.

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731 Manish Chauhan May 10, 2013 at 3:45 pm

Make a FD and tell the bank to issue a credit card with FD as security (your limit will be upto FD amount)

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732 Credexpert April 26, 2013 at 11:42 am

Dear Prakash,

450 is a low score and the late payments and settlements have impacted your credit score negatively. Your score could improve if you repay the outstanding amount against these settlements (assuming your present cash flows allow you to do so).

Regards,
Credexpert

Reply

733 shakil April 27, 2013 at 3:45 pm

dear sir mene cridit card ka due he,me cibil me naam he. par mene car finence kara li he s,b,b.j bank se.meri car ki 9 kist chal gayi he aur me kist puri deonga sir. kya mere cridit score badh jayega,,,

Reply

734 Credexpert December 5, 2013 at 10:30 am

Dear Shakil,

If you make timely repayments against all your credit cards / loans, then your credit score would improve over the next few months. Monitor your score over the next few months to check the improvement in the score.

Regards,
Credexpert
http://www.credexpert.in

Reply

735 Alex April 29, 2013 at 1:21 am

Thanks for a good article.
I neither had a credit card nor taken any loan till now. But now I want to buy a flat and I’m planning to apply for home loan.
What will be my credit score? Can I get a loan?

Reply

736 Credexpert April 29, 2013 at 7:37 pm

Dear Alex,

Your credit score could either be “NA” (Not available) or “NH” (No History) which means one of the below:
a) You do not have any payment history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system
b) You do not have any credit activity in the last couple of years
c) You have all add-on credit cards and have no credit exposure

In spite of a NA or NH score, the final decision of lending would depend on the lending institution’s credit policy.

Regards,
Credexpert

Reply

737 Manish Chauhan May 6, 2013 at 6:28 pm

Alex

Unless you order your score, you cant know it :)

Reply

738 Ahemad April 30, 2013 at 6:27 pm

Hi Sir,

I was holding an HDFC Credit Card, in mean while i didn’t paid the amount for three months, after that i got a call from customer care executive he said that pay the balance amount your card will be activated. Then I did the payment after that the card was suspended. Amount value 1o,000/-. I have received the NOC Certificate also.

After 1 year i have applied for the personal loan in the same bank it was rejected due to credit issue. I have applied for the Credit Card also but the response was the same and it was rejected. Recently i was applied for consumer loan they also rejected due to CIBIL Score. My score was less than their approach.

So how could I increase my CIBIL Score or get approve for consumer loan.

Look forward to hear from you soon. & Please do the need full with your suggestions.

Best Regards,
Ahemad

Reply

739 Credexpert May 2, 2013 at 11:59 am

Dear Mr. Ahemad,

Firstly stop making any new applications for credit facility. The rejections would only imply a credit hungry behaviour.

In which year were you late by 3 months to repay your HDFC Bank credit card? Also do you have any other loan or credit cards? If yes, then how are your payments on them? Late payments made in the last 2 years are viewed negatively and this could be one of the reasons for the rejection of your applications.

Also, apart from the late payments there could be various other factors that could have affected your credit score. We could comment on the specifics only after we view your credit report.

Regards,
Credexpert

Reply

740 Manish Chauhan May 6, 2013 at 5:17 pm

I guess we have already mentioned all the things you can do in this article itself . Didnt it help ?

Reply

741 Kim April 30, 2013 at 10:08 pm

Like you mentioned above on a point, I happened to apply for loans from 5 banks in Mar 2012 but I did not go ahead with it since I did not get it.
Recently I happened to get a call from CITI credit card for which I had applied and it got rejected due to CIBIL report. The report shows all the list of loans I had applied.
What can I do to clear this?

Thanks in advance.

Reply

742 Credexpert May 2, 2013 at 12:05 pm

Dear Kim,

Every credit facility that you apply for would reflect on your credit report as an “enquiry” and too many enquires made in a short duration imply a credit hungry behaviour.

You have been rejected by 6 banks in the last 1 year and your credit hungry behaviour can be one of the reasons for the rejections. Check your CIBIL credit report and score which would help identifying the reasons for the rejections by these banks.

Regards,
Credexpert

Reply

743 Kim October 7, 2013 at 1:49 am

Thank you for your reply.

Reply

744 Manish Chauhan May 6, 2013 at 5:15 pm

You cant clear it :)

Reply

745 manju jain May 1, 2013 at 2:24 pm

my name is manju jain . recently i came to know my credit score through CIBIL , my DOB is 29.08.1974 , and Pan n0.is AEWPJ 2665-L As far as i know My credit score.

Reply

746 Manish Chauhan May 6, 2013 at 5:04 pm

Do you know you have to pay Rs 470 for it ?

Reply

747 Ram May 3, 2013 at 1:48 pm

Hi,

My Cibil score shows N/A. Am i eligible to apply for personal Loan?

If not how to improve my score pls advice

Reply

748 Manish Chauhan May 6, 2013 at 4:10 pm

NA means you do not have any history . Some banks dont like it , some dont care .. there is no guarantee that it would help you get a loan !

Reply

749 Credexpert May 7, 2013 at 9:56 am

Dear Ram,

A score of “NA” (not available) or “NH” (no history) means one of the below:
a) You do not have a credit history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system
b) You do not have any credit activity in the last couple of years
c) You have all add-on credit cards and have no credit exposure

Whilst NA or NH is not necessarily viewed negatively, the final lending decision would depend on the credit policies of the lending institution. One of the best ways to build your credit score is by applying for a secured credit card.

Regards,
Credexpert

Reply

750 Ram May 7, 2013 at 6:42 pm

Thanks ..

Reply

751 srikanth May 4, 2013 at 2:15 am

iam using 3 credit cards since 3 yrs , i was paying at least mimimum due amount , now all cards rached miminmum 90% limit &, since 6 months i was unble do mimimum payments due for some cards & i checke my CIBIL score that time it was 670, now since 3 months i am doing all minmium payments in time but put togeather finally the oustanding is remaining same though i do mimimum payments (i.e the payments i am doing is going waste due to their rate of intreset ) and score now dropped 659.
i tryed for PL with bankers to clear this credit cards outanstanding during last months, i tried with 3banks they deined to give me loan

If i have improve my score i think need close this credit cards oustanding , but no banker is giving loan

pls. sugget

Reply

752 Manish Chauhan May 6, 2013 at 3:47 pm

I would say its a situation you created for yourself .. no one will give you loan when you cant pay your credit cards itself :) .. You need to find a way out !

Reply

753 Credexpert May 7, 2013 at 1:07 pm

Dear Srikanth,

Firstly, stop paying only the minimum due amount as this could result in a debt trap for you. Your credit applications are being rejected by lending institutions because of the high outstanding amounts against all your accounts. Yes, repaying these amounts is essential, but it would not improve your score immediately.

Regards,
Credexpert

Reply

754 KARNAV May 7, 2013 at 4:26 pm

I am use HDFC credit card (Limit 450000,starting from Dec 2012) for just update CIBIL record, Now my room mate want to use my credit card for purchase TV with 17000 and 3 months EMI on my card .
May this transaction support my CIBIL report or I refuse to do EMI on my card??
Kindly provide me ans as soon as possible.
And How I use Credit card to update mu CIBIL points

Reply

755 KARNAV May 8, 2013 at 9:12 am

Hi Manish Chauhan,

Please guide me as soon as possible…

Reply

756 Credexpert May 8, 2013 at 12:06 pm

Dear Karnav,

The use of your credit card, and subsequent payment record, will entirely reflect on your report and impact your score. The fact that it’s your room mate who is actually benefiting from the transaction makes no difference. Similarly, the actual responsibility of repaying is yours and only yours – the room mate paying or not paying you, is a personal matter between the two of you. Keep that in mind and decide if you want to allow him the use of the card. CIBIL score is calculated based on various factors – you use your card carefully and make regular payments of all amounts due, also do not delay payments and that is how you use your credit card to increase your score.

Regards,
Credexpert

Reply

757 KARNAV May 8, 2013 at 8:09 pm

Dear Credexpert
You said that “The use of your credit card, and subsequent payment record, will entirely reflect on your report and impact your score.”

That means more I use credit card and more I pay regularly give me more points or no effect on points????

And when I pay 5 day earlier cheque from due date than bank credit after due date but cank can’t charge financial charges of late payment, this factor effect more or non??????

When I drooped cheque dated 28 they credited at 3rd and due date is 2.

Reply

758 Credexpert May 10, 2013 at 7:37 pm

Dear Karnav,

Yes, regular payments would help in building your credit score but kindly use your credit card only when there is a genuine need rather than using it with an intention for increasing your credit score. One way to avoid the delay in payment due to the clearing process at the bank’s end is to opt for an Electronic Clearing System (ECS) facility. Generally, the bank should not charge you finance charges if you have dropped the cheque 5 days before and dated it on the due date. Any delay for whatever reasons would be reported to the bureau(s) – however a 1 day delay would not significantly affect your credit score.

Regards,
Credexpert

Reply

759 Manish Chauhan May 10, 2013 at 4:14 pm

If you are able to pay back on time, then go ahead do the transaction , else not

Reply

760 Balaji May 7, 2013 at 4:48 pm

Hi Manish Chauhan,

Please Help me …..
I Hav not taken any credit card,Loan,EMI,not signed as guarantor .
But when i Applied for credit card They Say my Score is Low.
What i can Do.
Wheather my name got Mapped Wrongly in CIbil Database.

Is there any way i can identify why my Score is low????

Please help me I need Credit card urgently fr my marrage purpose.

Reply

761 Balaji May 8, 2013 at 11:29 am

I got a letter From Citi bank That states my transunion score is -1

Reply

762 Credexpert May 8, 2013 at 12:24 pm

Dear Balaji,

Since you have not borrowed till date your score would be NA (not available) or NH (no history) which mean one of the below:
a) You do not have a credit history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system
b) You do not have any credit activity in the last couple of years
c) You have all add-on credit cards and have no credit exposure

The best way to build your credit score is by applying for a secured credit card. As this seems to be the first credit you are applying for – start your Credit Life Cycle http://www.credexpert.co.in/credit_life_cycle.html judiciously and carefully, spend only when you need to and stay within your capacity to repay… always pay back on time.

Regards,
Credexpert

Reply

763 Balaji May 8, 2013 at 8:43 pm

Thank you very much for ur reply.

1.Could you tell me Which is the best bank to take secure credit card.?
2.how much minimum amount i can deposit for secure credit card.?
3.for how may much i have to use this secure credit card to improve score?

Kindly Reply for above three question.
I am in worst situation i need to improve my score to take credit cards & Loan for my marrage ?

Reply

764 Credexpert May 9, 2013 at 5:56 pm

Dear Balaji,

There are many lending institutions that offer secured credit cards and you can choose from any of them depending on your preferences and the features of the card offered. The minimum amount required to be deposited for the secured credit card would vary for each lending institutions. Do understand, that your credit score would be build gradually over the next few months and hence you would have to monitor your credit score over regular time intervals to track the increase.

Regards,
Credexpert

Reply

765 Manish Chauhan May 10, 2013 at 3:45 pm

1. There is nothing like that .. you can take it from any bank

2. I think Rs 10-20k is minimum

3. For a year

Reply

766 Balaji May 10, 2013 at 4:07 pm

Thank u Very much….
I asked in SBI Minimum i have to deposite 20000
Joining charges 499

Reply

767 Manish Chauhan May 10, 2013 at 3:57 pm

It means you do not have enough credit history

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768 Manish Chauhan May 10, 2013 at 4:12 pm

First apply for cibil report and check what is your score

Reply

769 Nizar May 8, 2013 at 3:13 pm

Hi,

Last week, HDFC bank has rejected my application for a personal loan of 1.3 lakhs due to CIBIL score.

I am using HDFC credit card for the last 3 years. I currently have a cash-on-call loan on the HDFC card with 10 EMIs (4300/month) remaining. I also purchased a product worth 27000 on ebay using the same HDFC card and opted for interest free EMI option. Apart from that, I have a car loan (4.7 lakhs) with SBI since Oct 2012.

I never missed or delayed any EMI or credit card payments except for one instance. It was due to a mistake from HDFC Credit Card section while updating the billing date of my card and I had to pay late payment fee.

Now, could you please advice me on what might be the reason for rejection and how can I fix the situation now.

Thanks.

Reply

770 Credexpert May 9, 2013 at 5:58 pm

Dear Nizar,

Regular repayments alone cannot ensure the approval of your credit application as lending institutions would also consider other factors like outstanding balance, balance between secured and unsecured loans, enquiries etc. as well.

We would advise that you obtain your CIBIL credit report and score as that will help evaluate the exact factors that have affected your credit score and comment on the specifics.

Regards,
Credexpert

Reply

771 Manish Chauhan May 10, 2013 at 3:51 pm

Just because you have not missed a payment does not mean much . In your case, I think a lot of credit usage is the issue . No one would like to give loan to someone who is so much credit dependent . Lower your credit by closing some loans .

Reply

772 sudip banerjee May 9, 2013 at 1:43 pm

Dear Manish JI,

Very recently my persoanl loan has been rejected from AXIS and ICICi bank. I came to about CIBIL rating and don’t understand about that and now while surfing in the website I came to know a little bit through valuable tips.Now I have a credit rating of 590 ,I need to improve it now within very short time.

My Pan No.AIXPB4286G.\\ Please help me ????

Reply

773 Credexpert May 9, 2013 at 7:33 pm

Dear Banerjee,

Firstly stop applying for any new credit facilities as the possibilities of the approval of your credit application is low due to your credit score of 590. Whilst there are various generic steps that are advisable for improving credit score, we would be able to comment on case specific steps only after we analyse your CIBIL credit report and score.

Regards,
Credexpert

Reply

774 Manish Chauhan May 10, 2013 at 3:17 pm

What is your history :) in credit ?

Reply

775 Mani May 10, 2013 at 12:29 pm

Hi Manish,
I borrowed education loan on 2007 for OBC, i paid the interest until 2009. After that i didn’t made any payment for this loan. But recently i tried to check the cibil score at that time my online verification not successful hence i submitted all my doc’s. But still cibil unable to find my details they sent an form to get attested any of the account holding banker. Currently i have 3 credit cards with perfect payment history. Let me know if my address is not in the cibil list means is there no issue on my account or what?

Best,
Mani

Reply

776 Manish Chauhan May 10, 2013 at 2:49 pm

Mani

Your question is not clear. Please put facts and then numbered wise questions

Reply

777 Credexpert May 13, 2013 at 3:03 pm

Dear Mani,

Banks/lending institutions report all the borrower information to the credit bureau either on a monthly or a quarterly basis. Since you had availed the Education loan in 2007 and currently have 3 credit cards, we assume that in all possibilities the details of this account should be present in the database of the credit bureau.

There might be a possibility of a KYC mismatch and thus the bureau has asked you to provide an attested copy. We would suggest that you complete the step of sending the attested copies and wait for the bureau’s response.

Regards,
Credexpert

Reply

778 Ram May 14, 2013 at 7:47 pm

Hi All,
I took couple of credit cards way back in 2007. Later I applied for few more with High value so that decided to surrender 1st set of Credit Cards. I requested through phone for closer, but sooner the fresh statement was generated with late fee. I argued why late fee when I asked to close. Then they accepted and removed late fee and collected rest of the outstanding amount as a process of closure or surrender. That time no one is matured enough about CIBIL and it’s importance, I was shocked by seeing those two Credit Cards Status as SETTLED. Can any one help me how to approach CIBIL to remove it. Actually I came to know through Dispute form, we can do the same but then CIBIL updates dispute information correction only after prior permission or verification from the Banker.

Reply

779 Credexpert May 15, 2013 at 12:02 pm

Dear Ram,

Since the late payment fee was waived off, there are possibilities that this was considered as a settlement by the lending institution.

Yes, a credit bureau cannot make any changes directly to an individual’s credit report unless the change is authorised and provided by the concerned Bank/lending institution. One way to remove the “settled” remark from these 2 credit card accounts is by repaying the outstanding amount.

Regards,
Credexpert

Reply

780 Manish Chauhan May 18, 2013 at 1:08 pm

Now you need to check bank with the bank and fix it !

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781 Jayalakshmi May 15, 2013 at 10:47 pm

Hi Manish,

I need your help.

I had 5 credit cards from 2005 to 2010, In 2008 I had very bad fall in my financial life due to death in the family. I lost job and some how I closed all credit cards by 2010. From 2010 I had taken only Bajaj finance consumer goods loan and it is cleared this month. (12 months tenure). I work with a MNC as manager and company had applied for a credit card from ICICI bank on my behalf 4 months back it got rejected but the reason given was not CIBIL report. (they didn’t give any reason) I applied for a 2 wheeler loan this month and it got rejected today stating CIBIL issue. Now I do not have any credit cards, neither any open loans, I do not own a house (no electric bill or telephone bill in my name). I am planning to go for a home loan, but I am afraid that it will also get rejected due to CIBIL. I understand that if I am regular on my payment now, CIBIL score will automatically increase. But I do not have a credit card, nor any loans to pay (no bank will sanction loan for me. How can I increase my credit score?

Thanks
Jaya

Reply

782 Credexpert May 17, 2013 at 7:23 pm

Dear Jayalakshmi,

Whilst lending institutions consider credit scores for evaluating an individual’s credit application, many other factors like outstanding balances, no. of secured and unsecured loans etc. also form a part of their lending decision.

As an immediate step we would suggest that you opt for a secured credit card to build your credit score. As these cards are generally secured against a Fixed Deposit, we assume that your credit score would not hinder this application.

We offer a service “Credit Report Analysis” under which we analyse each section of an individual’s credit report, list out the factors that have impacted individuals score and point on the next steps to be taken to improve his score.

Regards,
Credexpert

Reply

783 Jayalakshmi May 20, 2013 at 1:54 pm

Hi,

Thanks for the response. I will surely go ahead and apply for a secured credit card. I have applied for the credit report from CIBIL. how can avail the credit report analysis service? and how much will you charge?

Thanks
Jaya

Reply

784 Manish Chauhan May 18, 2013 at 12:31 pm

It will surely be rejected . what is your score exactly ? Its not the right time to apply for loans, but to make it better. Take a Secured card and use it for next 1 yr without failing on payments.

Reply

785 Jayalakshmi May 20, 2013 at 1:48 pm

Manish,

I have applied for the Credit report from CIBIL. I will let you know the exact status once I receive the report. Meanwhile, I will also go for the secured card from ICICI bank.

Thanks
Jaya

Reply

786 Hari May 20, 2013 at 11:29 am

Hello Manish
I have my credit rating report from CIBIL and the score is 820. I plan to apply for a home loan however I am concerned of some of the past late payments and one of the loan status mentioned “Settled”

Regards,
Hari

Reply

787 Manish Chauhan May 25, 2013 at 6:36 pm

Yes, its a concern . Just a score of 820 is nothing . the status and DPD section is checked out by banks and your case will be weak then .

Reply

788 Pavan Kumar G May 21, 2013 at 11:07 am

Hi Manish,

I like to know how the CIBIL calculation happense, When i checked with CIBIL CCare they said they will not be able to releave the calculation steps, It is not fair to get the score without logic, I know the reasons which will affect my CIBIL score but how can belive that the CIBIL team is calculating my scores correctly.

For Ex: In my CIBIL i am able to find Duplicate entries, which i have raised as dispute,seeing this and the way the CIBIL team answers(They are not the owners, they are only maintaing the reports) i am not confident about this report, how ever knowing this step, we will be able to improve the CIBIL Score too

Reply

789 Manish Chauhan May 25, 2013 at 6:00 pm

Its calculalated based on the transunion algorithim and its pretty standard one worldwise, you cant argue on the methodology :) and its always secret thing .

Reply

790 Saurabh Goyal May 21, 2013 at 4:19 pm

Hi Manish,

I recently applied for my CIBIL transUnion score. I have a score of 61 5. I have got a detailed report with me. If you can help me in understanding that report and also how to improve it, I can scan it send it to your mail id.

Please help.

Thanks,
Saurabh

Reply

791 Manish Chauhan May 25, 2013 at 5:47 pm

Saurabh

Cibil has tutorials on understanding the reports , have you looked at them ?

Reply

792 Sachin S. May 21, 2013 at 7:56 pm

Just yesterday I checked my CIBIL score is 622, would I be able to get housing loan. I had neither any settlement nor any default in my account, just had some payments got late.

Can I apply for a housing loan now?
I get 70k monthly. would this give any advantage getting the housing loan?

Thanks in advance.

Reply

793 Manish Chauhan May 25, 2013 at 5:36 pm

Your late payments would be reflected in DPD section of that loan , some banks do not tolerate it .

Reply

794 Sankar May 27, 2013 at 10:04 am

Hi All,

I earlier had a ICICI credit card and didn’t made on time payment. Which i thought of doing negotiation and closed the cards… Now after 3year i am planning to apply any loans getting rejected due to my credit score is low….

I need help in advice to increase my credit score to avail loans.

Reply

795 Manish Chauhan June 1, 2013 at 9:54 am

Yes, its not a good thing . Better close the dues now

Reply

796 amit pal June 16, 2013 at 10:39 pm

In last year I had paid some of my home loan emi after due date , now in april 2013 I applied for a personal loan and it was rejected as my cibil score is 702, if I will make my emi regularly in next 6 month will the cibil score will cross the cibil score720 ?

Reply

797 Credexpert June 18, 2013 at 11:27 am

Dear Mr.Pal,

The late payments have negatively impacted your credit score and have also caused a hindrance in the approval of your credit application as they are viewed negatively by lending institutions.

702 is a decent score for a Personal Loan (unsecured), but other than the credit score, lending institution also consider their internal credit policies for evaluating a credit application.

Regular repayments of your Home loan would definitely help in improving your CIBIL score over a period of time. We would not be able to comment on the increase in your score as the score is based on various other factors as well.

Regards,
Credexpert

Reply

798 Manish Chauhan June 22, 2013 at 9:48 am

You cant guarantee that , first check your report and see what remarks are there

Reply

799 Ashish June 17, 2013 at 11:08 pm

Hi Manish,

I had a little shaky patch in past for approx an year, quite some time[9-10 years] back and since then worked towards betterment of my score. Though had some late payments during that phase, but didn’t go for settlement. Instead paid all dues in full with all applicable interests. Now have reached a much more stable and better score of >850. Now i have just a single secured loan running which has been consistently paid for past 4 years. no other liability as of today. last CC closed with full payment in 2010 as had an official CC for dire emergencies.

I have two queries.

1>How does the Employment Information gets updated in the report? I see currently the info is very old and not updated though the value is pretty recently updated by my loan A/C. Is there any way this can be made more current? Or is there any need to get it updated at all?

2>My Address and income also seems to be updated by my Credit Card in may 2013. This CC was closed in early 2010 and shows CURRENT BALANCE -475 [negative 475]. is that the reason the account is constantly updating the details still and with old info? is that a concern?

regards
Ashish

Reply

800 Manish Chauhan June 21, 2013 at 3:47 pm

Its not a big concern, but still its better if you work on it . Ask your recent bank (from which you have loan) , why the address and employment is not updated with CIBIL , if they say they have done it, then open a Dispute resolution with CIBIL and ask them when bank is updating it , why its not reflecting in your report ? – http://www.jagoinvestor.com/2012/01/cibil-credit-report-mistakes-correction-steps.html

Let me know once you do this much

Reply

801 Credexpert June 18, 2013 at 11:37 am

Dear Ashish,

The address and employment information provided by you to the lending institution when you last availed a credit facility is updated by the lending institution to the credit bureaus. Thus these informations reflecting on your credit report is of the time when you had last applied for a credit facility.

Your current address and employment information would reflect on your credit report as and when you apply for a new credit facility.

Regards,
Credexpert

Reply

802 Ram Prasad July 1, 2013 at 6:20 pm

Dear Manish,

1. I had taken a personal loan from HDFC with tenure 36 months. Already i had done 18 months payments which comprises 11 check bounces(paid all check bounces and penalty charges upto date). Plannnig to complete the loan with full tenure.

2.And I had taken axis bank credit card with credit limit 25000. Where i had 20,000 outstanding eight months before only i had paid minimum amount for two months later I not paid anything now my outstanding is around 40000. Axis added lien amount of 30,000 to my account. Day before day i had paid 20000 out of that total outstanding. And gonna to pay balance 2ok in one or two days.

Now i need to know the effects on CIBIL record due to these two scenarios of mine and this will affect my future loan? because I am just 25 having lot of responsibilities over on me. Kindly help me to get a good credit history. Already requested for my cibil score on cibil.com.

I could have read this before. Done a mistake manish.

Regards,
Ram Prasad.

Reply

803 Credexpert July 2, 2013 at 7:53 pm

Dear Ram Prasad,

The late payments against your HDFC Bank personal loan and Axis bank credit card would reflect on your credit report even after you repay and close these loans/credit cards. Also, these late payments would have impacted your credit score negatively.

Yes, any of your loan applications could be hindered due to your credit score which we assume would be low.

The next step that you have already done is to obtain your CIBIL credit report and score. We would need to analyse your report in order to comment on the specifics that have impacted your score.

Regards,
Credexpert

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804 Manish Chauhan July 5, 2013 at 10:51 am

First check your report . and see the status of each loan . Then come back and let me know .

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805 Ram Prasad July 3, 2013 at 3:40 pm

My CIBIL score is 549. How to improve this score.

Kindly help me.

Regards,
Ram Prasad.

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806 Credexpert July 3, 2013 at 7:51 pm

Dear Ram Prasad,

549 is a low score and there could be various factors that have impacted your credit score. Whilst there are various generic steps that help in improving credit score, these steps are also case specific depending on the credit report.

Regards,
Credexpert

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807 Manish Chauhan July 5, 2013 at 10:08 am

Its already discussed in article. What point are you not clear !

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808 Ram Prasad July 15, 2013 at 2:35 pm

I closed my total outstanding of credit card including intrest and going to get NOC from axis bank.

How much my score will increase.

HDFC loan intrest paid upto date, no dues currently.

My real concern is am going to apply for home loan after 6 six months. Kindly tell me i will get homeloan are not.

Regards,
Ram Prasad.

Reply

809 Credexpert July 15, 2013 at 7:29 pm

Dear Ram Prasad,

Firstly as mentioned earlier, 549 is a low score and there could be various factors that have impacted your credit score.

Yes, systematic closure of your Axis Bank Credit card will boost your credit score but we would not be able to comment on the increase since the score is calculated based on various factors like the outstanding balance, balance between secured and unsecured credit, no. of enquiries etc.

Your credit score could hinder your home loan application but since you have planned to apply for home loan after 6 months, there are possibilities to improve your credit score during this gap.

Regards,
Credexpert

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810 Manish Chauhan July 18, 2013 at 3:52 pm

What is your score at the moment . It should get better after you do this, but dont expect it to do magic !

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811 vigneshwari July 16, 2013 at 10:55 am

hello sir
I have got an educational loan for my undergraduate engineering studies and i have repaid the loan only after completing my Post graduate by settling full payment until we have paid only the interest to the bank… now i have applied for personal loan but the loan application gets rejected and they says that your CIR score is very low…. because of that educational loan…… but I have re payed the loan six months before i.e in the year 2012 itself i have re payed the loan and i have got NOC …… why i am not having eligibility sir……. for how may years this Score will be very low????
Regards
Vigneshwari

Reply

812 Credexpert July 16, 2013 at 8:08 pm

Dear Vigneshwari,

Educational loans have a moratorium period under which the student (i.e. borrower) starts repaying the loan either 1 year/6 months after the course period or after he starts earning whichever is earlier.

If your repayment schedule was structured such that you only had to repay the interest amount then we do not see a reason for your credit score being affected.
But if the repayment schedule was different from what you were repaying then this could have resulted in late payments and could have affected your credit score.

Late payments are viewed negatively by lending institutions since it indicates your servicing inability.

We would suggest that you avail a secured credit card and rebuild your credit score by making regular payments. Your credit score would improve gradually.

Regards,
Credexpert

Reply

813 Vigneshwari July 19, 2013 at 9:51 am

hello sir,
actually the moratorium period is only 6 months after completing my undergraduate course sir…….. but we have re payed the interest only and that interest was also not regularly paid….. we have given one letter to the bank manager that we will repay the loan after completing my post graduate course and we have settled that full amount with interest to the bank within a year….. i have one doubt that this CIBIL score is very low after repayment of loan…. this will continue ah sir???? for how many years this CIBIL score will be low and one thing that i am not having any credit cards…… and this is the only loan for me sir…….. and my last question is what shall i do to improve my CIBIL score?
Thank you for your reply sir and i am waiting for your suggestion regarding my question?
Thank you
Regards
Vigneshwari

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814 Manish Chauhan July 20, 2013 at 1:55 pm

In that case you have an issue .If you have not repaid the money on time, its natural that your history will be messed up .

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815 Credexpert July 20, 2013 at 3:57 pm

Dear Vigneshwari,

Did the bank consider your request for repaying the loan after completion of your post graduation? If yes then, what were the terms and conditions included? Also, what is your CIBIL credit score?

The late payments for whatever reasons could have affected your credit score and would be reflected on your credit report even after the closure of the loan.

Whilst there are various generic steps that can be followed for improving credit scores, case specifics steps need to actioned in order to your improve credit score.

Regards,
Credexpert

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816 Vigneshwari July 29, 2013 at 6:59 pm

Dear sir,
yes the bank accepted sir. but i don’t know the terms and conditions given by them….. my dad was also not sure about that terms and conditions sir…. i will do one thing sir…. i will apply to get CIBIL credit score report sir…. and I will send it to you…. please give me some suggestions to improve my CIBIL score after seeing that report. I was very thankful for your suggestions and for your kind and immediate reply to my queries that i posted.
Thank You sir
with Regards
M.Vigneshwari

Reply

817 Manish Chauhan July 31, 2013 at 5:56 pm

k

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818 Credexpert August 1, 2013 at 10:45 am

Dear Vigneshwari,

We offer services wherein we handhold individuals through out their credit life cycle by analysing their credit report, resolving discrepancies appearing on their credit report, developing action plans for score improvement.

Regards,
Credexpert

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819 Manish Chauhan July 18, 2013 at 3:32 pm

Did you default on the payments as scheduled ? I mean did you miss any payments ? Because if thats the case, then your score would be low and now you will have to take it up !

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820 Ram Prasad July 23, 2013 at 3:19 pm

Hi,

Secured credit card against FD will raise my credit score.

Regards,
Ram Prasad.

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821 Sekhar July 27, 2013 at 11:20 pm

Hi Manish,
At this moment I have CIBIL score 541.
In 2006 I had 4 credit cards and 2 personal loans.With my latest CIBIL report (10-July 2013) says the dues amount as given below:
1. SBI credit card – 1,29,000.Very recently I spoke with SBI people and they are ready to close(not the settlement) the account with Rs 60,000.
2. ABN AMRO credit card(Rs 29,000) and personal loan (Rs 41,000) against the same card – Recently I paid the full amounts.
3. CITI Bank Credit Card – Rs 54,000 (Planned to pay in a week)
4. SCB credit card ( Sold this account to SHAHA Finlease) – These people are charging Rs 79,000 which is too high amount for closing the account but still I on the way to resolve the issue and close the account.

Questions:
1. Can I restore my CIBIL score once closed all the accounts ? If it will increase then how much?
2. If I go for House Loan will it be impact for loan approval since I would have cleaned report.?
3. Does reputed builder is also one of the factor in loan approval?

Regards,
Sekhar

Reply

822 Credexpert July 28, 2013 at 3:49 pm

Dear Sekhar,

1. Yes, complete payment and closure of your credit cards/loans would boost your credit score but we would not be able to comment on the increase as scores are based on various factors like the no. of secured and unsecured loans, no. of enquiries etc. Kindly confirm with SBI that the waiver of Rs. 69,000 is not a settlement and insist on a written confirmation of the same.

2. As per industry practice, lending institutions generally look for a credit score of 750 and above, but besides the score they would consider their internal credit policies as well.

3. Lending institutions would conduct a technical and legal verification and builder’s reputation could be one of the factors considered by in it. Again, this would differ as per lending institutions credit policies.

4. The ICICI Bank secured credit card should ideally reflect on your credit report as your disciplined credit behaviour against this credit card would help in boosting your credit score.

Regards,
Credexpert

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823 Manish Chauhan July 29, 2013 at 6:00 pm

YEs, it can

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824 Sekhar July 27, 2013 at 11:46 pm

4. Three Months back also took one secure credit card through ICICI bank credit building program.But still that is not reflected in the CIBIL report.So will it be improve the score ?

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825 Manish Chauhan July 29, 2013 at 5:28 pm

Yes if you are paying the dues on time, it makes sense that it should appear

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826 praveen July 28, 2013 at 6:07 pm

Dear Manish,

My score is 753. But in the report, there are many enquiries listed (two year old).
1. How does these inquiries affect my score and will buying credit score oftently also affect the score. 2. what is the general cycle of reporting of banks to CIBIL.

The credit market place offering credit card, i just have one with less limit. Generally i end up using 80% of its limit since the limit is too less. do u suggest i shall i apply for another card and share my credit expenditure in these two.

sorry i asked too many questions, i read all previous questions. Your language is very simple and easy for laymen like me to understand. Great job you are doing, god bless…

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827 Manish Chauhan July 29, 2013 at 5:24 pm

1. NO , you ordering your score will have no effect on your score

2. All the banks and lending institutions report to CIBIL on monthly basis

I think you should talk to your current credit card and ask them to raise your limits . thats a better option

Manish

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828 Sekhar July 28, 2013 at 10:35 pm

Hi Manish,

Thank you very much for valuable suggestions and quick reply.

As you pointed out my SBI credit card issue, Initially they asked me for settlement with the offering amount Rs 39,000 but I requested to them for closing the account (Including CIBIL clean up) and later they came up towards closing amount of Rs 60,000.If I say YES then they will start the closing process and give a formal mail and later hard copy of NOC. After your answer now I am uncertain will they be dishonor with their earlier promises after the payment? But I have the written mail from SBI Nodal towards the closing the account of 60,000. Requesting please suggest for this matter.

Also is there any time frame of reporting to CIBIL about my secure ICICI credit card ? Because I took the credit card just 3 months back and on 10th July 13 obtained my CIBIL report in which I couldn’t find my credit card entry.

Regards,
Sekhar

Reply

829 Manish Chauhan July 29, 2013 at 5:12 pm

I think the official mail is enough, but its always a good idea to take a written letter from them along with NOC that they are going to update things with CIBIL .

Generally it can take 45-60 days for changes to get reflected, not more than that

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830 Sekhar July 29, 2013 at 6:00 pm

Thank you very much Manish for sharing the knowledge and quick reply.

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831 pratap August 2, 2013 at 1:29 pm

Hi Manish,

My Score is 673. I am planning to apply Personal Loan.

Currently I am holding 2 credit cards with the limit of 160000 (citi bank) and 75000 (HDFC bank).
I have cleared both cards last month.

when its reflecting in my CIBIL report. when I am eligible to get Peronsal Loan

can you please assist me.

thanks
Pratap

Reply

832 Credexpert August 2, 2013 at 6:31 pm

Dear Pratap,

673 is an average score to apply for a Personal loan (i.e. unsecured loan) and as per industry practice a score of 750 and above is considered to be a good score. Along with your credit score, based on their internal credit policies the lending institution would evaluate your credit worthiness.

Lending institutions report borrower’s credit information to credit bureaus either on a monthly or quarterly basis. We would suggest that you apply for your credit report after 30-45 days to check the updation of the said information.

Regards,
Credexpert

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833 PRAVEEN KUMAR August 12, 2013 at 8:06 pm

Hi sir I have a small doubt, there is a credit card on my name which was taken on my name without my knowledge by one of my cousin who used to work with Barclays Credit Card Company at that time& was also a freelancer for some other banks. So at that time (2008) I signed few personal loan forms with him & which I took it for my personal purpose, but I was not aware that I also signed a form which was for Barclays Credit card and which was used by my cousin. All this matter came to lime light recently only when I re applied for credit card & home loan, both got rejected because of poor credit score (573), we had a big fight in our family, finally he agreed to return the actual amount of the credit card which was Rs.23000 at that time, but now in my cibil report it showing as Rs.42000 amount due. Now it’s my headache to clear my cibil report, so I’m ready to pay remaining amount due from my pocket. Now the problem is that Barclays CC company got shut down. When I google it I came to know that they have sold all the account to 3rd party collections & the name of the company is PHOENIX ARC (which belongs to kotek Mahindra bank).
Now in my cibil report 1st PAGE showing as-
MEMBERN NAME- PHOENIX ARC, DATE OPENED- 22-01-2008, CREDIT LIMIT-Rs,23,000, CURRENT BALANCE- Rs,44,604, AMOUNT OVER DUE- Rs,44,604. STATUS- NO SUIT FILED ACCOUNT PURCHASED.
ON 2nd PAGE
MEMBERN NAME- BARCLAYS BANK, DATE OPENED- 22-01-2008, CREDIT LIMIT-Rs,23,000,CURRENT BALANCE- Rs,0, AMOUNT OVER DUE- Rs,0. STATUS- WRITTEN OFF & ACCOUNT SOLD. BUT Both the account numbers are different.
Are they different accounts or both are one account, bit confuse about it. now when I am ready to pay off the balance, what precautions I need to take before making the payment and what documents should I ask them in written that there is no due with them. I also came to know that if there is written off or suit filed I won’t be eligible to get a loan, is that true? If it’s true what letter should I ask them keep my cibil report clean. Please help me because recently one person approached me that he would clear the cibil report & also help me in settling the credit card amount for lesser amount, for which he also took Rs,5,000 as advance to pay the lawyer fee. It seems i’m getting cheated in every step. Kindly please help no one there to guide me.

Reply

834 Credexpert August 18, 2013 at 12:48 pm

Dear Mr. Kumar,
Basis our understanding although the account is shown as two separate accounts entries, it appears to be the same. Since it was taken over by another company, the account number would have changed accordingly.

If you wish to close your account with Phoenix ARC, you can do so by paying the entire outstanding amount. Before you do so, enquire as to what will be the status of your account after you repay the entire outstanding. Also, make sure to get a “No dues certificate” from Phoenix ARC once you closed your account.

Also, if any person claims to clear your report in a suspicious manner, please be careful when proceeding with the same. No lawyer can “clean” up your report.
There is an established procedure for raising disputes with credit bureaus and lending institutions. And ‘Settling’ the account is worst and it will further impact your score in a negative manner.

We, at Credexpert, provide services were we help individuals through the above mentioned process by coordinating with credit bureaus and the lending institutions through the right channels. Along with this, we also analyse credit reports to give a detailed yet a simple and comprehensive view of the same. To know more about us, please visit http://www.credexpert.in

Regards,
Credexpert
http://www.credexpert.in

Reply

835 Credexpert August 15, 2013 at 2:32 pm

Dear Mr. Kumar,

Basis our understanding although the account is shown as two separate accounts entries, it appears to be the same. Since it was taken over by another company, the account number would have changed accordingly.

If you wish to close your account with Phoenix ARC, you can do so by paying the entire outstanding amount. Before you do so, enquire as to what will be the status of your account after you repay the entire outstanding. Also, make sure to get a “No dues certificate” from Phoenix ARC once you closed your account.

Also, if any person claims to clear your report in a suspicious manner, please be careful when proceeding with the same. No lawyer can “clean” up your report.

There is an established procedure for raising disputes with credit bureaus and lending institutions. And ‘Settling’ the account is worst and it will further impact
your score in a negative manner.

Regards,
Credexpert

Reply

836 RAVINDAR REDDY August 17, 2013 at 12:12 pm

Dear sir,

Recently i had completed my car loan due to late payments my cibil score had decresed i need house loan urgently, how should i can INCREASE CBI SCORE pls help me.

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837 Manish Chauhan August 21, 2013 at 1:28 pm

There is no shortcut to increase it . You need to follow the article tips !

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838 vikas laad August 17, 2013 at 4:06 pm

Good Information. Useful for people who may n