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POSTED BY ON April 28, 2013 8:59 pm COMMENTS (4)
I got my cibil score recently and it is 640 around. However i found just one card for which has a written off status (Rs.3800). This is not even my personal card, It’s a corporate card which is closed now.
i have 2 other credit card details showing which are in good status and one housing loan which is also in good status. Now my questions is,
1. What can i do about the credit score….it is affecting me a lot. I am not able to apply any loan or credit cards due to this.
2. If i pay off the credit card balance, will it improve my credit score.
3. how long will this show up in my record.
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Dear Unna,
Yes, if you repay the outstanding amount against this credit card and the lending institution agrees to accept and update the status on your credit report then your credit score could improve. However, the late payments against this account would reflect on your credit report even post this payment.
Lending institutions usually update borrower’s credit information in a cycle of 30 – 45 days.
Regards,
Credexpert
Dear Unna,
I’ve worked in the Debt Management teams in my past. Having understood the way cards work I can tell you that your Cibil score improves in cycles. It takes an average of 4-6 years for a revival. But if you are closing the card in full, then take the closure letter and you can furnish it with the loan application you are applying for.
Though the cards would be in the name of a Corporate, its your duty to pay the dues on time. Do revert if you have any clarifications.
Unna,
“This is not even my personal card, It’s a corporate card ” — A common perception towards the Corporate cards.
If you get a chance, next time please read through the terms and conditions. there is a clear mention of the clause that it is employees responsibility to get the payment made by the employer. and if in case the employee fails to do so for whatsoever reason, the onus comes on the employee.
So only option is to pay off the dues as Mr Ashal said. DPD is the term which denotes the delay in the payment (Date past due). now since you have already passed the DPD, this would take atlead 36 months to get rid of that line (Generally CIBIL report is sent for 36 months, if not explicitly asked for a longer duration )
thanks, Syamantak
Dear Unna, please pay off that card balance with all the penalties levied on you. The score ‘ll improve but the DPD ‘ll not improve immediately.
Thanks
Ashal