CIBIL SCORE

POSTED BY puneet joshi ON September 26, 2012 8:43 pm COMMENTS (20)

Hi Manish,

I am facing difficulties in getting new loans because of CIBIL issue. I had few loans earlier and because of some difficulties I was unable to pay them on time.But now each and every loan is properly closed.My current CIBIL score is 742 but whenever I am applying for a fresh loan the application is getting rejected . My question is now I dont have any running loan so how score can be improved?Also if bank is satisfied with the score then they reject the application by saying that there are DPD in CIBIL report.Can you please suggest what can be done to improve the score?

20 replies on this article “CIBIL SCORE”

  1. Thimmaiah says:

    Sir .my cibil score is 680 .iam haveing credit card on fd and 2 consumer loan in capital first ana bajai .was my score is good to get houseing loan and an msme loan to start factory

  2. saket mishra says:

    Others can also reply 🙂

    Will appreciate your advice.

    Many thanks!

  3. saket mishra says:

    Hello Credit Guru,

    My recent (November 12) CIBIl transunion score totals to 818, but unfortunately have 150 as DPD’s showing up for old personal loan. This loan was closed about two years back.

    Have applied for a personal loan at Fullerton India, after all formalities being done the case has stuck up because of old DPD’s.

    What can i do or say to support my conversation with them, so that the case gets through?

    Please advice.

    I look forward to hearing from you.

    1. You cant do much about DPD if its really your fault . It will keep sliding with each month as last 36 months of DPD status are there !

      1. saket mishra says:

        Hi Manish,

        Thanks for your note, really appreciate it!

        Small clarification, the loans have been closed about 2 years back, so past asset & account status for 36 months will show up no matter what i do as their is no continuation of accounts. am I right?

        Any suggestions, to support my conversations with Fullerton because my current status & score is good.

        Please advice.

        1. surendramca says:

          Hi Saket,

          I am having same issue. current my cibil score is 820. but lot of DPDs. all r done 3 yrs back. In CIBIL Still it’s shwoing DPDS.

          Please suggest.

          Thanks
          Surendra

  4. V R Gokul Kumar says:

    Hi,

    I planning to apply for a credit card with Axis bank. I have a salary account with them.. If i get denied, does it affect my credit or does it have a negative impact on my credit report?

    Thanks,
    Gokul

  5. CreditReport Guru says:

    Sorry Puneet, I had not logged in for few days, sorry for the delayed response.

    CIBIL launched their new score around Sept’12 first week. Please call their help desk to find out what is their launch date for CIBIL Score 2.0 on direct-to-consumer channel (i.e. cibil.com).

    742 is actually an OK score (on older version). In new version, you will score probably close to 670 to 680 which is decent, if not great. With this score, you should be able to get personal loan.

    Try SBI or ICICI first. If you don’t get from them, Fullerton is a good bet as they deal in sub-prime space.

    C G

  6. ConsumerCredit Expert says:

    Hi Puneet,

    CIBIL has now launched a new version of their score. So I advise you to pull the new score to get an idea where you stand now.

    Also please get a copy of your credit report from CIBIL and we can discuss the issue in detail and how to improve your CIBIL score.

    Thanks

    1. puneet joshi says:

      Hi Consumer Credit Expert,

      Thanks for the information. Could you please tell me about the new version of score? Like when they have launched it and how it is different from their previous version.Currently my score in 740+ and i purchased the score and report in month of sptember 2012. CIBIL has introduced the new version in october 2012 or earlier?

      Thanks,
      Puneet Joshi

      1. puneet joshi says:

        Hi Consumer Credit Expert,

        As suggested by you I have purchased my score + CIR on 8/10/2012. Still the score is 742.I am using a secure card from last 5 months and there is no delay in its payment.But unfortunately the score is not getting improved.Any suggestion?Is 742 is a bad score for personal loan?

        Please suggest
        Thanks,
        Puneet Joshi

  7. Yes , In your case DPD status is the issue . Note that DPD status is present for last 36 months and it shows that for how many past month due is pending in any given loan , if you do not pay the EMI for 3 months , then DPD will be 90 , and if you do not pay that for a long time, DPD will be 90 for many months, which will clearly show that for you have defaulted for many months .

    Now the problem is only with each passing month, those DPD info will go out . If there is any past dues you have not paid , please pay it asap.

    Manish

    1. puneet joshi says:

      Hi Manish,

      In my CIBIL report all the accounts are closed and the overdue & balance columns have 0.But as i mentioned earlier there were some delay in payments so DPD are there.My CIBIL score in month of June was 567 and after that i paid all the dues(including late payment charges,cheque bouncing charges,remaining installment etc etc) and then in month of August the score is improved to 742.Also i was readin your earlier posts and based on that I have taken one secure credit card in month of June and I am paying the dues on time but the details of this card is not reflecting in my CIBIL report.So my questio is that at present i do not have any running loan so from now onwards how i can improve the score? Also the DPD’s will remain as it is so how to negotiate with rejection because of the DPDs?

      Thanks,

      Puneet Joshi

      1. The DPD’s will be there for each month no matter what you do .

        As each month pass, it will get improved as it is always LATEST 36 months. Regarding the loss you are having due to that, truely , there is no solution with me .

        Banks are free to interpret those DPD’s as they want and they can always say that some one who has defaulted in last 36 months has good chance of defaulting again. So however much so ever you try to convince them , banks are just looking at the chances of delay and default , which even you cant guarantee .. All I would say is keep using that credit card which you have got and wait for some more months and see if your score can move past 800 ,. But that time some DPD info will also get out , and your recent past (thats last 1 yrs) will improve , that time check with some other bank for loan and may be then you can get some loan .

        For immediate loan, there is no solution , better accept this and move on ..

        Manish

        1. puneet joshi says:

          Hi Manish,

          Thanks for the reply and explanations.But it will be good for me if you can explain in more detail about DPD.As you said it will improve as each month pass but I have a doubt here

          .As per my understanding the DPD history shows the past 36 months payment records from the closed date or last payment date of that particular account.Please coorect me if I m wrong.

          So if this understanding is correct then if I have purchased report on 1/06/2012 and if a particular account is closed on 1/06/2011 then it will show DPD history from 1/06/2011 to 1/06/2008 not from 1/06/2012 to 1/06/2009. This information will remain same in my report for 7 years from the date on which that bank has reported to CIBIL.By this way I feel there is no way to get rid of these DPD’s.

          I have all the NOC/Account Statement of every account but banks dont ask for that during application so I am unable to justify that I have paid all the dues.

          Thanks,
          Puneet Joshi

          1. puneet joshi says:

            Hi Manish,

            Have you chance to go through my reply about DPS’s?

        2. Skanthp says:

          Hi Manish,
          I have a small clarification on your Sep 27, 2012 reply.
          I agree with your below comments,
          ” Banks are free to interpret those DPD’s as they want and they can always say that some one who has defaulted in last 36 months has good chance of defaulting again.”

          My question here is, whether banks will consider for home/personal loan with a good score (above 820) for long back (above 3min) closed accounts with bad DPD status like above 365 days or SUB.etc. Because DPD status will never change for the closed accounts (correct me if I am wrong). DPD will remain same like 365 or SUB..etc

          In the above scenario, what are all the possibilities to get the home/personal loan?

  8. Dear Puneet, are you applying for personal loans or home loan or credit cards? A small way to correct your credit history from now onwards is to opt a secure credit card (issued against your bank FD) & start using it regularly. Over the next few months, you ‘ll be able to improve your CIBIL Score.

    Thanks

    Ashal

    1. puneet joshi says:

      Hi Ashal,
      Thanks for the reply. I have applied for personal,home,car loan but all applications were rejected.Personal loan were rejected because of score i think and the other loan were rejected because of DPDs of previous loans.I have one credit card which is a secure card and i am using it and paying the dues on time but still score is stable.Earlier i thought that bank will approve loans if score gets improved but this is not the case i feel.They are looking at history of your previous loans also.I cant change the DPD status of my previous loan accounts so need your suggestion. If my score gets improved to 750 or higher will banks ignore the DPD’S of previous loan account?

      1. Dear Puneet, at the time of applying your home or car, had you also provided the No Dues certificates’ copies for prev. loans to show that you have cleared your past dues?

        if not, please apply for your next loan with copies of No Dues & full repayment of old loans?

        This ‘ll make your case in a different picture & bank may consider your application.

        Please do not think that within a 2-3 month period, your CIBIL score ‘ll improve. It ‘ll improve over the next 15-18 months period. In between, please do not apply again & again for more loans. Yes, make it a habit to go & check your CIBIl score after every 3-4 months.

        Thanks

        Ashal

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