Shocked to see low CIBIL Score

POSTED BY rudraksh_777 ON December 1, 2013 10:53 pm COMMENTS (2)

I have just downloaded my CIBIL score and was shocked to see such a low score. Here is a brief history and some facts about me .

– Total Work Experience : 4 Years

– Looking for a joint loan with my wife

– Total Monthly Income : 2 Lakhs

– Total Loan Amount Required : 50 Lakhs


– There is a written off amount of 6700 against me from Phoenix Arc ( ABN AMRO). I used this card 5 years back, however I was totally unaware of this balance since the bank got sold to RBS, I stopped getting statements, the netbanking stopped working and so on.

– I have paid this off and I am waiting for a No Dues Certificate.

– Enquiries : I have 7-8 enquiries all of credit cards, since I had 2 credit cards earlier which are closed now and 2 are open. The other enquiries were made by random banks. I guess everybody commits these mistakes of giving details to bank for credit cards early on in their career

– Mix of Credit : 2 open credit cards, 1 closed education loan, 1 open education loan.

– Credit Utilization : I use my credit card for official purposes and I keep getting it reimbursed, hence I tend to use 90% of my credit limit 🙁 . Little did I know even this would affect my score

The situation :

Waiting for No dues certificate to come, have stopped using credit card and maintaining 10% credit usage from now on. Now, I have paid the booking amount and I would need to apply for a house loan in 1.5 months. I am very sure and very scared that the application will get rejected and I feel very depressed. It will create a lot of problems for me.

Is there any way if I provide all this justification along with the No Dues Certificate any bank would be willing to extend a loan to me ? Since, I have decent enough paying capacity and home loan is a secured one.

Please help me.

2 replies on this article “Shocked to see low CIBIL Score”

  1. ashalanshu says:

    Dear Rudraksh, while you apply for your home loan, declare all the above said facts on your own along with No dues Certificate and your Credit report. Bank ‘ll accept your own declaration in a positive light.



  2. Credexpert says:

    Dear Rudraksh,

    Repaying the complete outstanding amount against the Written off account and utilizing upto 10% of the credit card limit are good steps taken by you. But, fixing credit scores is not a quick process and would require a timely disciplined behaviour over the next few months.

    Negative remarks (Written offs, settled), credit utilization, number of enquiries, good repayment track records etc. builds your credit history and are taken into consideration while computing your credit score. The situations which you have described negative remarks, high utilisation on your credit card could have been the negative factors that can hamper your credit history.

    The lending institution you are planning to apply to would evaluate your credit worthiness based your credit score but would also consider other factors like your income, job stability, co – borrowers etc. So, yes you could consider justifying your case to the bank with the NOC. All the best!

    Have you obtained your credit bureau score? If not then the first thing you should look for is to obtain your credit bureau score. A low credit bureau score could be one of the factors which might lead to the rejection of your future loan application.


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