CIBIL Score impact on loan eligibility

POSTED BY jnikumbh ON October 23, 2013 10:53 pm COMMENTS (3)

Hi,

If one’s CIBIL score got affected due to a health cover policy given by bank with credit card in this way -> Policy was surrendered but it took 6 months for it to surrender and meanwhile bank charged late fees + S.taxes etc..which was never informed to customer and so customer did not pay for these charges, which eventually affected CIBIL score. Now, Customer has paid these charges after knowing it.

Due to this, Customer’s Housing loan eligibility should get affected?

CIBIL Score is 650.

As customer has paid now charges, will it correct CIBIL score and loan eligibility?

3 replies on this article “CIBIL Score impact on loan eligibility”

  1. Credexpert says:

    Dear Jnikumbh,

    If the payment for the insurance policy was being charged to your credit card and you have not made the payment for the same to the credit card issuer then the delay or non payment will be reported to the credit bureaus and negatively affect your score.

    Now that you say you have paid the dues, the same will be updated by the card issuer in the next reporting cycle and will work at improving your score. You should probably access your report after 2 month cycle to verify this.

    Regards,

    Credexpert.in

  2. Credexpert says:

    Dear Sir,

    The non payment/late payment would reflect on your credit report. This could be viewed negatively by lending institutions and rightly so could be one of the factors that negatively impacted your credit score.

    We understand that you have now cleared all the pending dues against this credit card and want to maintain disciplined credit behaviour. The outstanding balance against this credit card on your credit report would now be updated as “0” but the late payment would still be reflected.

    650 is an average score and this could impact your Home loan application, only if you provide a security which is giving enough comfort to the lending institutions to give the loan. We would suggest that you continue making timely repayment against all your credit cards/loans and postpone your Home loan application until there is an improvement in your score. This will help in minimizing any chances of loan rejection.

    Every lending institution will have its internal parameters to evaluate a credit / loan application. Again, do not make any new credit applications resulting in a high number of enquiries on your credit report.

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

    1. jnikumbh says:

      Thank you sir answering my queries.
      Just wanted to clarify that pending dues were no against credit card but for health cover policy offered along with it.

      And, As customer has already paid dues now, Can you tell me how many days it takes for correction in credit score ?

      Thanks again.

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