POSTED BY February 6, 2013 1:15 pm COMMENTS (10)ON
My cibil rating as on 30-1-2013 is 641 : and i want to avail home loan before March 2013 : I seek your help/guidance on what best can i do to improve the score or to explain the financial institution so that i can get the loan approved.
The reason for my low credit rating is my brother :
(1) My brother added my name as co-applicant for his car loan for eligibility purpose only but the emi’s are paid by him even the car is in his name n he is only using the car. But due to his default in paying emi’s its affecting my creditability. The loan was availed in 2008 and it was settled in 2012.
(2) He has forged my signature n fraudulently added my name as guarantor in housing loan taken in 2008. Even in this loan he has defaulted n after lots of struggle with the bank although the bank not ready to accept this as fraud i have filed FIR for this but somehow the bank has issued me letter stating that they have removed my name as guarantor from the housing loan in july 2012 but my name still appears as guarantor in cibil report dated Jan-2013 of which i have raised dispute with CIBIL.
Other than the above incidents my whole credit history is clean with no defaults in credit cards and timely closure of my previous loans which i have availed in my name for self.
(1) What will be the effect of settled status on my availing of home loan ?
(2) I am informed by one credit-rating rectification agency that settled status will be for 7years and untill that time i cant avail any unsecured loans like personal loan ? Is this true ? What the solution for this ?
(3) Although, i have 5 credit cards with healthy payment history, if i apply for new credit card my application will be rejected and it will again lead to negative marking in my credit score ?
Please help me with your suggestions on what should i do in such unfortunate circumstances.
Many thanks for your immediate and positive response