Does CIBIL score of 626 and a unused credit card with charges impact home loan application ?

POSTED BY anilkrishna247 ON November 9, 2014 10:08 am COMMENTS (2)

Hi Team.

My recent CIBIL score is 626. I have one unused credit card with overdue amount 900 rupees only and this reflected in my cibil report with written off status. I am currently applying for  home loan, so can I pay this over due and get the NOC from credit card department and get this settled with home loan lender.

Apart from this, I do not have negative words in my cibil report. I have taken earlier two personal loans and all were paid without any issues.

Please suggest me and thank you for your kind help.

2 replies on this article “Does CIBIL score of 626 and a unused credit card with charges impact home loan application ?”

  1. anilkrishna247 says:

    Dear Team.
    Thank you very much for your kind answer and suggestions.

    Regarding my credit card, I checked with customer care and they told that the card was already closed with deactivated status and they asked me to pay the overdue amount for applying NOC. Now I paid my overdue amount and requested for NOC on this. Would this be fine to update my credit status in report and also can I provide this NOC if my home loan lender makes any concern.

    Also regarding the number of enquiries , I have no instance of enquiry from last 4 years but earlier i had 6 enquiries . Would this be any problem.

    Thanks,
    Anil

  2. Credexpert says:

    Dear Sir,

    It would be advisable that you pay the outstanding amount on your credit card and close the card in case you are not using it. Once you have made the necessary payment, you need to wait for 30-45 days for your account to be updated and then check your credit score and ensure that it is up to the mark.

    As an industry practice, a score of 750 and above is considered to be a good score, but having said that lending institutions would also consider their internal credit policies and will have their own credit score cut off.

    We would suggest that you do not make any further applications until there is an improvement in your credit score. The rejection would only increase the number of enquiries appearing on your credit report which indicate a credit hungry behaviour and is viewed negatively by lending institutions.

    Build your score by making all your credit card and EMI payments, if any, towards your loan accounts on time. Overtime your score will improve and lending institutions could consider your applications based on this.

    Regards,
    Credexpert

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