POSTED BY Sunil Pratap ON December 31, 2012 10:48 pm ONE COMMENT



I’ve settled my Credit card around 5 years back, that was too with a very small amount of around 18K(at that time I was not aware of repercussions of settlement).


I have been paying a home loan EMI of 5000/month for last 7 years and, EMI of around 6000 for car loan for last 3 years without getting delayed and any fail.


Also, I am paying my regular dues on HDFC bank credit card.


Now the problem is that I am looking for a bigger home loan of around 20 Lacs for new property, but most of the banks are refusing to sanction the loan.


Q1: How can I improve my CIBIL score? To get bigger home loan in future.


Q2: How HDFC bank sanctioned me the car loan even if I’ve settled my card and I’ve bad CIBIL score(3 yrs back).

One reply on this article “CIBIL Score”

  1. Credexpert says:

    Dear Mr. Pratap,

    Different banks have different credit policies basis on which they sanction or reject your loan application. Fortunately, your car loan application was sanctioned by HDFC Bank and one of the reasons for the same could be the loan amount. The loan amount in Housing loans is huge and hence the bank is a bit more cautious in sanctioning your application.

    Your Credit score will improve gradually over a period of time. As mentioned, you had settled your credit card 5 years back but other than that you have been repaying regularly. The settlement occurred 5 years ago and hence its affect on your credit score today will be relatively low.

    Continue paying your liabilities on time, do not randomly apply for new credit facilities, do not avail too many unsecured loans; all these steps will help improve your credit scores.


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