A CIBIL Report is an important document. It is referred by financial institutions and recruiters’ to judge how good or bad you have been in creating a discipline with your credits. Based on it your eligibility to avail any loan is decided. A highly poor CIBIL score can become the reason of your loan application rejection or you might have to pay a higher interest rates . Not only this, now companies are rejecting new candidates who have failed to maintain a discipline in their credit repayment. Thus, many of your life and career situations rest on this one report which organizations /lenders have an easy access. It’s necessary then that you have a good awareness of what lies in your CIBIL report and what measures you have to take to ensure it stays clean.
What Is A CIBIL Score?
A CIBIL is a numerical score which tells you how good or bad is your credit track record. This score is derived by taking into consideration few factors such as your credit behaviour, repayment history, loan availed, type of loans, defaults, etc..The score ranges from 300 to 900. Generally a score of above 800 is considered excellent by the lenders and preferred for granting loan to an individual. Even a 750 score will be considered good. Any score from 600-700 will signify that somewhere you have done mistakes and so lenders will be cautious. But if your score goes below 600 then it’s a sign that you not been discipline enough to manage your debt and so can become a reason of your ineligibility.
What Affects Your CIBIL Score?
There is lot of confusion regarding how CIBIL score gets affected from your various actions. It surely is because deriving a CIBIL score is a complicated affair by the organization and the information is not available to you. But there are few factors, as given below, which are very common and impact your CIBIL score –
1. Default in EMI: There may be a situation when you have defaulted on your EMIs. Although any late payments will have an impact on your CIBIL score, the timings and number is highly important. A CIBIL report shows your last 36 months payment record. Default in recent times will have a larger impact than EMI default more than two years ago.
2.Credit Outstandings– You may not feel the punch but your outstanding loans tell a lot about your hunger for credit. If your total outstanding on credit cards or loans has been growing steadily then it means your repayment burden is increasing which after a stage can impact your score.
3. Type of Loans– What type of loans you avail is an important factor to determine the credit score. If you are heavy on high interest unsecured loans like credit card or personal loan then it will be a negative for your score. But if you have mix of secured loans like home loan and car loans then the negative impact will be less .
4. More Queries– When you have a hunger for credit, you tend to ponder upon different lenders enquiring about loans or credit cards. Too many enquiries will be reflected in credit report negatively and lenders will be suspicious especially when you are already repaying one.
What Does Not Impact Your Score?
There is very less information to masses on calculation of CIBIL score and that’s why lot of myth is built around what can impact it. Below mentioned are some of them:
- Income – Your income has nothing to do with your credit score
- Age – Whether you are young, old or middle age it hardly matters for your credit score
- Too Many Credit Cards – What matters to CIBIL is how you use them. Owning too many cards is not negative but utilization of credit limits for so many may be looked suspiciously.
- Checking Your Report– Many have a myth that checking your credit score yourself brings the score down. You can check it as number of times you want as it is not a factor for consideration.
- Name in CIBIL – It’s also a myth that name in CIBIL means you are defaulter. CIBIL maintains credit record whether good or bad of all individuals and does not have any categorization of defaulters.
Vishesh – A Real Life Case
Vishesh (Name Changed due to Confidentialty) joined his career way back in 2002 and got into habit of utilizing credit cards for his needs. He availed many of them along with personal loans. Unfortunately those years were beginning when Indians were seeing easy availability of credits. Vishesh also saw a lifestyle enhancement through them. He availed many and changed his locations due to career opportunities. Unfortunately it led to default in few of them. Since CIBIL was not in existence during his initial years of career it didn’t worried him much and he was able to avail a home loan along with a car loan in 2007.
His Score
He was unaware of his actions consequences till he was rejected a home loan in 2012. He accessed his CIBIL score and was surprised to see it at 540. This was very low from all perspectives and it showed clearly that how he has messed up on his finances. Most of the defaults on his loans were of the times during his initial career days.There was no recourse for him now but to improve it. He took advice from his friend who was well aware of CIBIL and he advised him few immediate actions to take.
What He Did?
- The first action for him was to clear all outstanding on unsecured loans which were credit cards and PL. So he proceeded to repay most of them. However due to limited resources he went for settling some of them as the amount was a big ask for him.
- Once he repaid his dues he closed all of them.
- He interacted with company and CIBIL to ensure there can be timely updation of the payments he is doing.
- He continued with his car loan and housing loan because he hasn’t defaulted on their EMIs. He repaid his entire car loan in next one year.
- He decided to utilize his debit card for his needs for the next few years.
- He stopped unecessary enquiring about any credit cards or loans.
For next 2 years his credit history does not show any transaction apart from repayment of housing loan. One aspect which he managed very carefully is that he never defaulted in his Mortgaged Loans. Gradually his score start improving. He repaid his entire car loan and after a gap of 2 years Vishesh accessed his credit report. His score has moved up to 750. A fairly good improvement but his friend advised that it will not necessary translates into an easy credit, which was true. His settlements will still be visible in his report. Finally Vishesh was able to achieve following from his friend advise-
- Bring a discipline to his debt management
- Self-Awareness
- Understand what he needs and what he wants
Much like Vishesh many of us would have landed in this situation. Although there are many institutions which promise to improve your credit record by charging fees, you can also improve it yourself by taking few appropriate actions .
Are you aware about your CIBIL score? Have you accessed your report?
Share your views……
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Dear Jitendra;
I am vivek Bharadwaj- let me brief you about my situation- I had 2 settlements on my credit cards and one written off on PL.
During this condition- my Cibil score was 688 (one year back); then I started repairing the score; I paid off all O/S on my CC and PL and now all clear but my score has dropped to 560 (as on 3rd July’14); Now I need a home loan; is it possible to get the loan approved or shall I wait for score to take jump of 200 points.
If required to wait how much time it will take to get upon that figure of 750-760 ?
I have one home loan and 3 credit cards now- all going well.
please let me know.
Vivek
It generally takes a year or two when you see your score starts improving if you have some loan repayment running or some credit repayment happening on time. In your case you have a home loan running which is a good resource for improving the score as it is a secured loan. But your credit cards number, even though you are repaying on time, looks to me on higher side. Consider reducing these also.
How fast score will reach 750-760 difficult to say as it has many factors to consider. I am aware of a situation of one of my friend where the score went from 550 to 750 in two years. But to reach this he stopped using credit cards, repaid most of his outstandings and has only a home loan running. So in his situation on basis of home loan credibility the score got improved with a factor in consideration that in the past he has availed mix of loans like PL, Car Loan etc… which were repaid fully without any default. In your case it may take a bit more time but difficult to give any exact time horizon.
With current score there is a higher probability that your loan may be rejected or at best you will be given loan at a higher interest rates than what is generally paid by other borrowers. But even then how much loan you may be able to avail is a decision which rest with the institution. You can find out with any bank about your loan eligibility or participate in CIBIL market place to see where you are placed. if unable to avail then you have no choice but to wait for few years. But do remember that just a score improvement is no guarantee. Banks look at other factors also to decide whether you can avail a home loan and if yes then at what interest rate.
Hi Jitendra,
I have a situation where my Home Loan got rejected twice after repaying all the debts which i was having 4-5 Years ago. Upon asking CIBIL report which showed 690 Score Banks Rejected my loan second time.
Since i paid my debts i have no transaction or any debts/credit card all has been closed and repaid in a final settlement. I have an NRE status where i dint have any credit cards or any loan in INDIA.
Please advise in this situation how its possible to avail Home Loan in India down the line 6-12 Months.
Regards
Tushar
Tushar,
With a score of 690 you will face difficulty in availing a loan. To improve upon it you need to show a repayment credibility to the institution. This can be done if you are repaying any credit on time which happens through credit card repayment or any loan repayment. Even if you have cleared all your outstandings but do not have any credit repayment running then it will take a good time to see your score improving.
So to improve your score you will have to find ways of showing some timely credit repayment. However, there is no assurance that bank will grant you a home loan only on basis of your score. There are many other factors which institution take in consideration.
There is a CIBIL marketplace where banks and financial institutions participate to grant loans.At times banks do consider loans to individuals with low score but charge a higher interest rate. You can participate there to know your status.
Rest, if your loan is rejected now then its difficult to say whether in next 6-12 months you will be able to avail it. Even Your CIBIL score takes at least a year or two to improve if you are showing a timely credit repayment.
Hi sir,
Myself Subroto, I have taken one PL in 2007 from ICICI, of 45k. After repaying for few months, I lost my job and there was a financial disaster in my life.
I have to struggle a lot to get control over the situation, and in 2013 from myself I approach the bank and pay all the dues with interest and fine i.e 80k. Although the bank offer me for a settlement amt of 21k, I pay four times to make sure everything goes right in future.
After that there was a visible improvement in my credit score, it’s goes from 590 to 716 now a days. Also I have taken two credit cards, as they sanctioned them, I took that as a good sign.
Currently I have one two-wheeler loan, which is just completed this month, also I have another PL which I am regularly paying from last 32 months, only 4 months are pending.
I got shocked, when I apply for a Home loan and its got rejected, then I have applied in some another bank and they also rejected it.
Now a days I have a very good income, a stable job, still bank see me as a defaulter. I am really frustrated and need some kind advice to get out of the mess. Now its seems that my dream home never comes in my life, and one mistake makes everything spoiled.
Kindly suggest.
Subroto,
This is a situation where most of us have landed into. Knowingly or unknowingly the mistakes have happened and you are finding it difficult to realize your dreams now. But there is no immediate solutions for this as you have repaid your liability in 2013. Even though your score have improved it will take time for banks to consider your case for issuing home loans. In general banks sometimes issue home loans to individuals with low credit score but charges them a higher interest rates. But this is entirely banks discretion as they evaluate considering other factors such as how much time elapsed since you defaulted, have you shown some credit behavior since then and many others.
I am not sure whether you can avail a home loan at this stage from any other bank. CIBIL has a market place where you can try once and see your eligibility-
https://www.cibil.com/marketplace/
If you are unable to avail here then you won’t have any recourse but to wait for some period to be eligible for a home loan or will have to find other resources which at times may be difficult considering the high amount involved in purchasing a house.
Hi Jitendra
I m holding a credit card outstanding of rs.1 lakh and paying payments on timely for cc And PL from last 3 years ..mmy scores has started improving. 673 now earier 667 (downed fr non payment fr 2 months) which I chekced in report.just wanted to know that if I repay entire outstanding of cc then how much scores would be improved and is there any bounces in scores post closing any past dues or pre closing the PL??
Please reply asap
closingmmmmm
the PLimprove??
Just want to
Hi Jitendra
I m holding a credit card outstanding of rs.1 lakh and paying payments on timely for cc And PL from last 3 years ..mmy scores has started improving. 673 now earier 667 (downed fr non payment fr 2 months) which I chekced in report.just wanted to know that if I repay entire outstanding of cc then how much scores would be improved and is there any bounces in scores post closing any past dues or pre closing the PL??
Please reply asap
closingmmmmm
the PLimprove??
Just want to
Tarun,
If this credit card outstanding is because of default then yes till it is there it will lower your cibil score. If you can repay it then it will be a wiser move which can help you in regaining your score provided you do not have any default. But it will take some time as the company need to see your credit behavior for a certain period and there are other factors too. But do remember that if you settle it then it will show in your report for next 7 years. So if you have finances available then try to repay the full amount.
I cannot comment on how much score it will improve as difficult to know the calculation of CIBIL but yes if you do not have any default in future and are able to show your credit behavior through repayments of a loan etc…then you can expect your score getting improved sooner. In general need to give time of at least 1- 2 years, without any defaults and outstandings, to see it happening.
Hi Jitendra,
I had one PL from HDFC band in 2010 and I had settled that in 2012.
I applied for the credit card and it got rejected. I checked the cibil score and it says 591. I urgently need Home Loan now. Another thing is, I dont have any credit card or loan pending now. What should I do now, as I dont have any payments to be made, is there a change that the credit score to improve. If I apply for any thing, it is getting rejected.. with out paying anything, how can the score be increased. Can you pls give me suggestion, Is there any bank/Finance Company which will not look into CIBIL to grant home loans. Please let me know Or should I start any LIC insurance, with that insurance can I get a loan from LIC?… Please help me… tell me what to do…
Waiting for your reply. Thank you….
Ramesh,
There are two aspects in your CIBIL report. The first is the settlement of credit card. Its different from the full payment and does affects your CIBIL score. It will be shown in your report for 7 years. The second is the repayment history. To improve upon the score you need to show a good credit repayment history which can happen only through a timely loan repayment or credit card repayment.
Because of these two aspects your score has remained low. Your loan or CC application will get rejected till your CIBIL score is not improved. But even after that there is no assurance that you can get it immediately as it is completely on the banks discretion.
There are companies which promise to work on improving your score. But you need to be careful here as fees will be charged from you. One such company is http://www.creditvidya.com which does offer counselling on debt management. You can contact them and see how things work out for you. But do remember that improvement in score takes time and there is no assurance on home loan approval.
Apart from this i don’t see any bank/comp[any today grant loan without looking CIBIL report. This is a hard fact for you but true. Yes there may be institution which may offer loans for low CIBIL score but at a higher interest rates than general. But this is completely bank discretion and i am not aware of any cutoff in this.
My advise to you is to first work on improving your score by availing counselling from experts and then approach to institution. But this is not an instant solution and will take time.
Hi,
I had an education loan and I did not paid in EMI regularly. 4 Months ago I paid it completely. Recently I have checked my CIBIL score it is 568. and in loan account the status is “Restructured Loan”. Now I have a HDFC bank credit card I am paying the due in time all the time. I need Home loan badly in March or April in year 2015.
1. I would like to improve my credit score. Please help me out how can I improve it.
2. Can I get the Bike loan(like finance) in with this score. If I pay the Bike loan EMI will credit score get increase(If there is possibility to get bike loan).
3. How long it will take to improve it to 750.
I am ready to do anything to improve credit score.. Please help me.
Vijay,
If your loan was restructured by the lender for repayment, then it will figure in your CIBIL for 7 years and will have an impact for your borrowing ability. This is primarily the reason for your CIBIL low score. Your score will improve after a specific period if you keep your credit card repayment going. In general and in my view you can expect good improvement in your score in 1.5-2 years if you do not enquire about any further loans and do not default on your payments.
For improving your score work on following:
1. Have some patience and just keep repaying your CC dues on time. Thsi si the only means where you can show your good repayment behavior.
2. Keep a check on your CC limit and do not utilize it completely all the time.
3. Avoid enquiring for loans within next 1 year as even enquiries about loans or credit cards also impact your score a bit
4. Every 6 months recheck your CIBIL score.
But i am not sure whether you will be able to avail a home loan in March- April 2015. Much depends on your score and lender discretion.Also, apart from score there are other factors which are taken in consideration for identifying your loan eligibility. You will come to know only when you apply for it. Currently you should focus only on improving your score for which work on the points highlighted above.
Hi Jithendra,
Thanks for your prompt response. I will follow the ways to improve the cibil score. Restructured status will have any impact on loan if I have the enough cibil score after 1 or 2 years.
Vijay,
Settled or restructured loan remains in your CIBIL report for 7 years. It may not affect your score after a while but lenders take it into consideration that you were not able to repay the entire loan. So it will be one of the factors which lender will analyze while assessing your loan eligibility.However,it also depends when you approach to the lender. Since you are planning to apply for a loan within 2 years from the restructuring it may become one of the major factors for the lenders.In such situation it entirely depends on the lender whether not to grant a loan or grant it at a higher rate of interest.
Hi Jithendar,
What are the cases to put the status in “Restructured”. Actually I paid the entire amount and I got the no due certificate also from the bank. Is it possible to change the status if ask the bank.
Thanks in advance.
Vijay,
You need to verify from your lender whether your loan was restructured in any way cause CIBIL gets report from lenders. If it wasn’t restructured and you repaid entire amount along with interest then it may have been reported wrongly.
Hi Jithendra,
Thank you for you help I will contact bank and get back to you.
Thank you so much.
Hi Jitendra,
In the past I had three credit cards. One of the card I had settled 5 years back and now it’s not showing in the cibil. But the other two are showing as written off and I am not in a position to pay all the outstanding dues now. I don’t need any loan or cc now but I want to improve my cibil score which is 620 now. If I settle both the cards will it not show settle status after 7 yrs? Shld I go for settlement now or should I wait till I accumulate entire amount and pay in full? Please advice.
Thanks
Rajesh
Rajesh,
Paying your dues completely than settlement surely have more weightage in your credit report. If you settle it now it will show in your credit report for 7 years. An early payment helps you in improving your score. Accumulating for full payment may lead to paying much more than today as the interest rate will keep on increasing the outstanding amount. And am not sure whether you can really match the interest rate in your accumulation when CC interest rates are beyond any returns on investment. Have you worked out the complete payment? Till when you can accumulate? If you work on these questions probably you will get an answer on accumulating for full payment. In my view settlement may be more preferable if you cannot arrange for entire funds today as the interest rates banks charge on CC is too high.
Thank you Jitendra. No I haven’t exactly planned out yet but as of now I am not in a position to pay in full. Since I was not sure what to do its almost 1year that has passed by think of what to do and how it will affect further. I think it’s better to settle rather wasting more time.
Thank you again for your advice. Keep up the good work 🙂
Thanks Rajesh.
Yes you should not let Interest accumulate in your CC and so should take a corrective action.
Hello Mr. Jitendra,
It was pleasure seeing you helping everyone in resolving their credit score queries, I am Kundan Jaiswal and had availed 4 credit cards in my initial days of career. These credit cards were from ABN Ambro Bank, Barclays Bank, HDFC Bank and ICICI Bank. I have shifted from Delhi to Bangalore in 2008 and informed all the banks about my communication address change for getting statements on time. HDFC and ICICI did the same immediately and still both the cards are working with me for more than 7-8 years without any dispute. But ABN and Barclays did not do the needful and they charged late fee/ interest which I denied to pay. I wrote couple of emails to them about my credit card closure and waive of these extra charges which was not closed from their end. Though the total outstanding is less than 10K. Recently I came to know that both the banks all closed accounts are taken over by Pheonix ARC as ABN and Barclays have closed their operations in India. Currently my credit score is 580 and banks are refusing to give me home loan.
Please suggest the correct way of improving my scores which can help me in future loans etc.
I am given two options by Phionix ARC,
1. To pay full outstanding amount and they will close the account and update the same in CIBIL.
2. To get 30-40% waiver and settle the account with a note in CIBIL that account has been settled.
Please suggest the best option keeping in consideration that fault was from Banks’ end but my credit score is down.
Regards,
Kundan Jaiswal
08451817390
Kundan,
Firstly if you have proof of all those communication when you informed the bank timely then you can certainly write to the concerned company. You may have to take this case to ombudsman or grievance department if not resolved at initial level. However, said that i would like to know the reason of so much delay. Ideally you should have settled your dispute early with banks. If you didn’t receive any communication from banks post your shifting then you have a strong point. So much rely on the two way communication you had with them base don which you can rest your case.
Coming to alternatives, settlement does not hold good as it stays in your record for seven years. Your score may improve after a certain time but it may have an impact on the lenders mind. So you should pay it completely as and when you do it.
My name is INDRAJITH. I have applied for personal loans in all banks , but my application got rejected without any reason , then one of my friend suggested that is due to my cibil score. when i first checked my score was 489 a year before. Now it is 688. Currently i m using credit cards of HDFC and SBI , But paying on time. Can you please suggest me that can i apply for personal loan again . Whether i can get it .
Indrajith,
Your CIBIL score was too low a year before. It is due to your timely payments on your credit cards that your score has improved. However not much time has elapsed in your score improvement and still it is well below a good score. So you will find it difficult to avail it now also considering that a PL is a non-secured loan. Also applying for a Pl at this stage will again impact your credit history. Do remember that even loan enquiries are given some importance in credit report and you have already did it with all banks.
In my view you should avoid any loan for next few years and focus only on enhancing your score. I am not clear why you want to avail a PL? Can you elaborate..
Thanks Jitendra sir,
I need personal loan for some reasons. Please suggest me when can i apply for it. If i apply on mid Jan next year is it possible to get. Please suggest. And what is the good cibil score for PL.
Indrajith,
CIBIL score is not the only criteria for banks to grant any kind of loan. Along with it there are many factors which go in consideration to analyze whether to approve a loan or not. Its difficult to say whether you will be granted a loan. Although banks prefer giving loans to individuals with score 800 and above but if your credit report has gone bad in past then reaching at this score range is also not a guarantee that you will be granted loan as you reach it. It may take time before bank started considering the application. So there is no specific answer to your query and much depends on each bank analysis of your credit behavior.
Sir,
My CIBIL score is 767 Report dated 12.09.2014,
I have two consumer loans availed 3months back worth 1,10,000/- And three Credit cards worth 1,40,000/-in which 2 I have utilized to maximum by converting the amount in to EMI’s and repaying it promptly, I had Two personal loan which were closed on Jul’2014 and May’14 simultaneously. In which one loan has continuous delayed payment history of 9 months from Oct’12 to Jun’13
Recently I started receiving mails from ICICI, HDFC & BAJAJ Finance asking me to apply for a prequalified personal loan, since it was prequalified I thought I can avail the loan and clear my consumer and credit card loans so that I can have a singly EMI.
But to my surprise all of them rejected my application.
Though my score is good and favorable for lenders, why did they reject ? Why CIBIL is giving such score in case they consider my payment history?
In case after few months if I avail any personal loan and clear my debts how far it will benefit, if I want a secured loan?. Kindly suggest.
Regards,
Prabhakar-9538882606
Prabhakar,
I have been explaining earlier also that CIBIL score is not the only criteria for lenders to check your eligibility. In your case availing so many loans, that too loans which are considered to be the costliest, shows a hunger towards living on credit. You have also utilized credit cards to the maximum and due to repayment issue converted it into installments. Simultaneously, one of your loan also had a default history . All of this does not show a good behavior towards using credit and so your applications got rejected.
CIBIL score is a reference to how you have utilized your credit in the past. It has weightage to different elements and based on which the score is determined. Lenders do not look at just the score but more on how you have behaved availing credit. In your case recent default, high number of loans and credit card maximum utilization is going against you. So it will take time before lenders starts considering your application. Till then you will have to look at options for clearing your debt first without any default.
Hi Got NDC from bank for my CL ..now cibil are telling me that it shows as settled in CIBIl record.. can i fight with bank to put closure in my cibil record.
Thanks
Amit,
Did you settled the dues or paid complete amount with interest outstanding? If it was settled with lesser payment then it will reflect in CIBIL score. But if you made complete payment then the notification to CIBIL by institution is incorrect and you can surely ask your bank to correct the information in CIBIL. Simultaneously, check your NDC what it says- settled or complete payment.
As per the confirmation of loan officer in email like u will get NDC after making payment only principal balance amount. so i paid only principal amount & recd NDC where they mentioned full amount including principal…its happen because i make compalint in RBI ombudsman. but now their customer service dept telling me its shows as Settled , after getting ndc for full balance amount.
plan to go with consumer court , if any good lawyer is there for banking norms .
waiting for your suggestion.
Thanks
Amiit gupta
Amit,
Much depends on what is being mentioned in your NDC. It its written specifically that the payment is full and final payment towards outstanding dues then it is complete payment. But anywhere it is written settlement for your dues then it is settled. Any further comment i can make only after going through the communications and NDC. You should look at these both in detail and see whats actually written in NDC and the email communication.
Dear Jitendra , thank you very much to share me your expertise. can you mention your email id so i can fwd you the PDF format NDC letter..where its written clearly –
sub – no due certificate
name, location, amount -X ,product finaced,number of asset & LAN number ,, to whomsoever it may concern , with ref to the above , we hereby confirm that the loan advanced to mr name of location towards his laptop has been completed on 31-aug-2014. there are no dues left in the said account
Amit,
You can email at info@jsfadvisors.com.
Dear Jitendra ,
I am having HDFC credit card,citi bank credit card and PL in HDFC.
For citibank creditcard and PL i am paying correctly in Time, but for HDFC credit card having 1 lacs amount since one year not payed by me,
Due to this my CIBIL score was 530, now i am ready to pay 1 lac, but after payment did HDFC people will update CIBIL score???
can you please tell me some private banks which will give Home Loan without considering CIBIL Score.
please suggest how to get home loan now.
Sankar,
Once you repay the entire out standings on your credit card, the bank will update CIBIL with the status. However, these reporting take time and sometimes get delayed. So once you have made the repayment you will have to wait for few days and then you can check your CIBIL report. If not updated you can always write to the bank to get your CIBIL cleared.
I am afraid there is hardly any bank which is not considering CIBIL report today. Your score is too low and you will have to wait for few years till your score gets improved and considered again by the lenders.
Hi
I missed my default Bike loan EMI before 4 months ..At the time my cibil score was 683..i settled my bike loan now.
Is there any chance my CIBIL score got increased now
Natraj,
CIBIL score does not increase instantly. When you make a full repayment the lender take some time to report it to CIBIL. Even after that if you show a good repayment behavior then your score will get improved sooner than if you do not have any repayment going once you have cleared your existing loan. Having said that improvement of score is a gradual process and takes time in all cases. So wait for sometime and then recheck your CIBIL report to see if the loan repayment has been reported to the institution.
Dear Jitendra,
Please help me for improving the cibil scores:
My case is
I have 3 credit cards where full payment for 2 cards and minimum for 3rd card is going on regular basis without any delay.
Having 2 PLs as well where EMIs are going regular from last 3 years.
I had missed 2 months payment fr cards before 8 months however it was quickly paid pack and going regular from the begning except those Two months.
My credit scores was 673 which was improved from 668 after paying the dues.
Currently having only one card outstanding and running 2 Pls where emis are regular based and one card minimum payment is regular another 2 cards full payment is regular.
Please confirm how much time would be taken to reach on. 750 scores and if I wish to apply fr any PL would it be Approved or nt? As I m paying PL emis regular from 3-4 years.
Hi ,
My credit card application was rejected by Citi and some other banks
reason for rejection is : My CIBIL score is zero
I never had a Loan and never user any credit card before. My Gross salary is 31000/month
Not sure why my CIBIL score is zero and what can I do to improve it.
Please give your inputs
Tarun,
Apart from your outstanding one factor which is going against good credit score is number and type of loans you have availed. Do remember that credit cards and personal loans are unsecured. The more you have in your basket the higher will be the negative impact on your CIBIL score. If there are secured loans like home loan or auto loan they are favorable. Precisely because you have 3 credit cards and 2 PL i.e. all unsecured loans, it shows a hunger for credit which is actually negative for CIBIL score. Also paying the outstanding amount than the minimum due is considered good . This is because paying only minimum dues will still increase your outstanding as interest is levied.
Due to these reasons you are not seeing much improvement in your CIBIL score. In my view you should take following steps:
1. Reduce these loans. 2 pl and 3 credit cards are surely not good. If viable close your PL by repaying the complete outstanding and avoid using your credit cards for sometime. Instead save and pay off your credit card dues completely.
2. Do not pay minimum dues. Instead repay total amount due.
3. If you wish to use credit cards after repaying your loans restrict it to only one which will show your good credit repayment.But utilize only up to the amount which you can repay fully and avoid missing any payment then. Also do not convert it into an EMI.
These are the ways where you can plan to enhance your CIBIL score. If you continue repaying with current situation it will keep impacting your score negatively and you will see improvement only after the full repayments of your loans. Even then it will take time to see that enhancement in your score. One more aspect which you need to consider is that the more you drag this situation the more negatively it will be considered by the lenders in future even when your score is improved. So repay some of the loans completely to reduce your outstandings.
Manish,
In general CIBIL report is only when they have some credit history of yours. If not then there is no CIBIL report as of now. Not sure how zero is given. Have you tried to access your CIBIL score? If there is any score, even zero, you will be able to get your report. So avail CIBIL report and then see why your score is published as zero.
My CIBIL score was 775 in the month of May 2014. I applied for home loan with the bank and got it sanctioned. But I have not yet availed the loan. Oct 15, I again checked my CIBIL score and it was 737. I am wondering why my score dropped suddenly as I have paid all dues timely during this period.
I don’t want to proceed with loan sanctioned by the bank. I would like apply for loan with other bank in near future. How can my score can again raised to previous level.
Thanks
If i settled the Personal loans in one go for what bank has asked to get clearance from CIBIL shall i trust the bank for that and will repaying loans in one instance improve my credit score (more than 750 points)
Suvidha,
Few aspects before you take the decision:
1. If you are settling the personal loan i.e. you are repaying less than what is outstanding then it will impact your CIBIL score. The settlement will show in your report for next 7 years. Contrary to this repayment of full amount is more positive.
2. Improvement in CIBIL score will not be instantly. After repayment of your loan the score will enhance gradually. If you continue to show some timely credit repayment the score improves early while if there is no repayment going on then it takes time to build credit history. In such case it will take more time for improvement in your score. There is no fixed period for improvement as it rest on many factors which CIBIL looks at for improving your score.
hello Suvidha, Jitendra is suggesting correct but as per my experience dont go on word from bank..please take email confirmation from them .
& make a complaint to RBI ombudsman in RBI website for this etc charges which they asked you more than principal amount..
bank has intentialy not contact to customer & then charged any huge amount for close the account in the name of CIBIL ,so please be careful.
no harm to make 2-3 times complaint to rbi ombudsman.
my issue with a pvt bank has solved that way only without give any etc money..
Thanks
amiit gupta
9820910944
Hello Mr Jitendra.
I am Raju.I have taken a tw wheeler loan amount of Rs.28500 with 24 emi of Rs.1450 in sep 2009.Intial I paid almost 15 EMI.Then after due to some finacial problem I was not able to pay the remaing EMI in time and stoped paying the EMI.Last month I enquired the loan details and I came to know that the tottal due amount now is Rs.27000.Last month I paid 2 EMI.This month also I paid one EMI.The bank people are asking me to make a one time settlement of Rs.15000.This month I have checked my CIBIL report,where my score is 613 and in my loan status details they mentioned it as Written off.
So I am seeking your advice on this matter .what I should do now..?Shall I clear all the dues or shall I go for settlement.?Which way I can improve my cibil score.?Please advice me.If u need my cibil report then please gv me ur mail ID I will send you that one.
Please help me on this matter.
Raju,
If you go for settlement then it will reflect in your CIBIL report for seven years. A complete payment have much more positive impact on the score then settlement. So in my opinion you should do the complete payment. If you are unable to do it at one go ask from the bank for paying in few installments. Post payment to improve your score follow few steps like avoid making too many Cc or loan enquiries and show good repayment behaviour through some credit payment. If there is no credit repayment going then your score will improve gradually but will take time.
Rest you can send me your report on info@jsfadvisors.com
Hi Jitendra,
Will checking the CIBIL score multiple times reduce my CIBIL score ?
Kartheek,
Checking CIBIL score has no impact on your score. So you can check it multiple times.
Hi Jitendra,
I am a working professorial for the past two years.I took an education loan(2.5 lakhs) in 2008 to support my education costs.Just when I joined my job in 2012, I had a family emergency and I took a personal loan in December 2012 of 2 lakhs from HDFC Bank. I paid all the EMIs for my PL on time.I had a credit card from HDFC Bank as well which I frequently used.Since I had to pay the EMI for Personal Loan , I paid my credit card dues a little above the Minimum Due Amount on time.However , I failed to make timely credit card payment only once.In the mean time interest charges for the Education Loan became applicable and I paid only the interest charges.However there were a few delayed payments for my education loan and some point it was showing NPA status(Non Performing Asset).I made a hefty payment and the status changed to PA (Performing Asset) in March 2014.In May 2014, I got a refusal letter from Citibank and IndusInd bank stating my CIBIL score is low(751). I bought some electronic products and converted it to EMI from Bajaj Finance and then the last updated CIBIL score in August 2014 was 748.Now this month I have cleared my education Loan(4.3 lacs) and the remaining PL outstanding amount(90K).
I will be applying for a bank job next year which prefers candidates with a good CIBIL score (preferably over 780).Now can you answer my below queries.
1.Due to timely payment for my EMIs(PL,EL,CC) I make credit card payments a little above minimum amount due and frequently post interest charges the outstanding amount goes above the Credit limit(30K) and have to pay extra overlimit charges. Does this affect my CIBIL score.I made timely payments(except once).
2. I cleared out both the education loan and personal loan.Will there be any improvement in my CIBIL score.If yes , by what time.
3.When I opted for a Bajaj FinanceEMI facility, my CIBIL score dropped from 751 to 748.Will it increase when the EMI is closed(in two months)
4.I am planning to clear out my credit card dues as well soon enough(in three months maybe).Post that I plan to submit my credit card and might not use it in future.Can you suggest me any other ways to improve my CIBIL score.
P.S. – I want to crack the bank job very badly.Hence I need to improve my score(780-800) within a year.Kindly need your assistance in it.
Dear Sir,
I was using Axis bank credit card and have not paid the EMI’S on time. From the very next month, bank started deducting my salary from my salary account. I have one EMI balance in this month and i need a personal loan urgently.
Can i get a personal loan from the same bank or my request will be rejected??
Please help;
Max,
1. There is a difference when you make only minimum payments due and actual amount due. In case of minimum payment interest is still levied and so the outstanding keeps on increasing. This does impact your score negatively as it is considered that you are not making timely payments. The more time you take for clearing your dues the more negatively it will impact. Also a high outstanding is not taken positively and so its wiser to pay the required due amount and close the account as soon as you can.
2. Yes as and when you clear your outstanding debt it is taken into consideration for your cibil score. However there are other factors which decide the improvement in your score.If there is any factor which is negative to CIBIL then the improvement in score will be impacted.
3. The score dropped because even after a default you availed a loan. Repaying it completely will be considered.
4. You should clear your credit card dues. However for CIBIL score a good repayment history is required. If after closing down all your debts you can show some timely repayments without any default and further inquiries it helps in establishing a good credit history.
5.Its difficult to estimate the time in which you will see improvement. A bad credit history reflect your score for a good time. Also the type of loans you are repaying is an important factor. Secured loans timely repayments like home loans has more positive weightage than PL and Credit cards. I cannot give any time frame as much will depend on in how much time you clear your outstanding debts. It may take longer as improvement happens gradually and with establishment of your good credit history.
Prakash,
Check your CIBIL. In most probability it will be lower due to default and so your application may be rejected.
Hi Sir,
I am Uma Maheswari, I had an education loan and I did not paid in EMI regularly. i Want to know this educational Loan delay payment will affect my Cibil Score..
Uma,
Any kind of loan if delayed payment or defaulted will get reflect in your CIBIL score.
So check your CIBIL and take corrective measures to improve it now.
I recently got SBI credit CARD but i feel cheated by customer care team as the card is with annual fees and there are cards free of cost so if i close the card within first30 days after settling dues on time will it impact my cibil score or whaht is the right time to close such card where i feel cheated
Sam,
Availing a credit card does not impact your CIBIL score. When its too many it can and more importantly the utilization.
If you clear your dues on time and close your card your CIBIL won’t get impacted.But ensure you utilize it within your means and without any default.
Hi,
what will be the status of below mentioned points in my CIBIL(Settled or Closed or written off / and what will be DPD) in my case :
1. I was having HDFC Bank credit card –> Card is permamently blocked–> I have cleared full amount that was asked from bank.
2. I have taken PL from HDFC of 50K and I was supposed to clear this by April 2014 but I cleared it on 10th Nov 2014 in this also I have cleared all the dues whatever was demanded from bank(full due amount including late fees I have cleared) but only thing is I have paid late by 7 Month.
3. I have taken Auto Loan from Bajaj Finance of 50K and I was supposed to clear this by May 2014 but I cleared it on 13th Nov 2014 in this also I have cleared all the dues whatever was demanded from bank(full due amount including late fees I have cleared) but only thing is I have paid late by 6 Month.
If i am applying for Credit Card or PL now will I be able to get ?
Presently I am not having any credit card or PL or any loans.
Thanks in advance 🙂
Regards,
Avinash
Avinash,
1. If you have repaid the entire outstanding then it will be shown as Closed. there will be no mention on settled or written off status.
2. The delay in payment will reflect in the monthly transaction status they show in the CIBIL report and also on the date of repayment. Rest since you have cleared the loan in Full it will be a closed account.
3.Again the delay will reflect in repayment date which is generally mentioned on the respective loan status.
Even though you do not have any CC or PL currently your CIBIL report would have gone down due to your late repayments and it will take time in the improvement. The probability of rejection are higher in your cases. My view is check your CIBIL report first and work on improving it.
Dear Jitendra,
i had availed a personal loan on 74000/- from Fullerton in 2009 & another personal loan of 60000/- from Bajaj Finserve in 2011, after some dishonours of EMI finally complete loan was repayed in Sep’2012 & March’2013.
at present in am having 2 credit cards (ICICI & HDFC) & a two Wheeler loan (TVS Finance) & am paying all the dues on time there is No EMI bounce or late payment for cards.
in July’2014 when i applied for a PL to ICICI it was rejected as my credit Score was 540 only so i have decided not to apply now till my credit score reaches 700. can you please advise that how much time i should wait to repair my Score.
will it be OK if now i apply in April’2015.
Waiting for you Valuable Reply.
Abhijeet,
Few facts which you should know:
1. Credit cards and personal loans are unsecured loans and if your credit have higher weightage to them then that will be negative for CIBIL. So what type of credit you avail has a good weightage in deriving your CIBIL score. Since you have more credit cards even after default its not being considered good by the lender. Moreover even after this you went for asking a PL which was surely not considered by the bank. From banks perspective you are living life heavily on unsecured credit which is a very bad reflection of a credit behavior.
2. Even enquiries impact decision of banks.
3. There is no guarantee that after reaching 700 bank will consider your application that too for a PL.As i have stated that is an unsecured loan and there is more probability of rejection in your case.
4. Considering your situation you should not be enquiring about any loan for next few years. Give time for your score to improve and if you have any requirement try to meet it from your savings. Improvement in CIBIL score can take 2-3 years if you do not enquire and keep repaying your commitments timely. For good just use one credit card and close the other. Keep using it slightly and make timely repayments.
5. In future avoid any unsecured loan. Remember type of loans in your books does matter for CIBIL score.
Hello Jitendra,
I have a score of 625 which is down from 766 last year. Just few month back 3 banks reported my very old credit cards (year 2004) status. 1 of them is having ‘Written off’, 1 as settled and 1 as non-default (zero amount due). I haven’t had a credit card since 2006 and in 2010 I started taking loans (car loan, personal loan, home loan, appliance loan), all got sanctioned and I have repaid fully (except home loan) without missing any emi.
I am strong financially now and wants to improve my score. So my question is can I get the ‘written off’ removed (hsbc bank) from the cibil if I pay them fully (only 12k is the outstanding amount). I talked to the bank and they gave me the phone number of the collection agency. I would like to know if I can trust collection agencies and if they have any authorizations to get the ‘written off’ by sending the update to bank or cibil.
Should I also opt for a small limit credit card and use it and pay fully every month to get the better score quickly. (By the way I got all loans without any problem but have not got be able to get even a small limit credit card 🙂 but I may want to try with some banks by sharing the cibil report )
Hi Jitendra,
I have a educational loan pending in indian bank and am planning to settle it in one shot .. will it be a good idea to go ahead or i can pay the emi regularly and improve the score . Please advice.
Regards
Senthil
Deepak,
The status will change if you repay the full amount. However too many loans and more of credit cards or PL hurt your score. Also too many inquiries is negative.
About collection agency you can confirm from bank while giving then payment or take it in writing from them.
If your housing loan repayment is going on then just continue with it. It will improve your score.Avoid any more inquiries as it will reflect in your CIBIL score.
Senthil,
If there has been default then repay it completely. If not then keep repaying EMIs, it will help in building a good credit score.
Hai sir,
I have taken 18000 rupees durable loan in bajaj finserve on september 2014 and also i have paid the two emi s in time, recently i applied for personal loan in icici they got rejected my loan due to my cibil score is 0, in past that i have not taken any loans and credit cards. I have taken only one durable loan 2 months back… why my cibil score is zero even i paid the two emi intime, plz say that how can i improve my cibil score.
Regards,
Suresh kumar
Suresh,
Not sure how zero is reflected in your CIBIL score. Ideally there is no CIBIL report if you do not have any credit history. Check yourself by applying for a CIBIL score.
Hi Sir,
I have a CIBIL score of 647. I have have 2 Credit cards. One of them i have never used and for another i have never missed a payment and paid much more than minimum amount due always.
1) However, I had a citibank Credit card for which i was asked to pay renewal fees on december 2013. I hod got the card knowing that there would be no fees if i spend more than 30,000 rs in a year which i did and paid off all dues before time. But I did not pay them the fees and told them to close the card. they kept it opened for 120 days past due and closed it in July 2014.
2)Moreover, I took an education loan in 2008 which i paid on time always but for some months it shows XXX in score ?
Are these impacting my score ? I need a home loan in coming months and have been rejected personal loan in last month due to the score. How do I improve my score ?
Hi Jitendra,
I want to apply for a home loan, My Cibil score is 815 and for one of my cards status is “POST (WO) SETTLED”. So Will I get loans from banks or I wll be denied . Please reply.
Dear Jithendra,
I have never applied for a PL neither a credit card. Only as recent as Sep 2014 I took a consumer loan on BFL for which my repayment is on time. I would like to know in how many months a CIBIL is generated? I wanted to apply for a credit card and its been constantly rejected as my CIBIL says NA.
Kaushik,
Few aspects on whey your score is low-
1. Paying the actual amount due to you keeps the score good. Even though you would have paid more than minimum amount due still the interest is levied. This impacts your credit score as your outstanding keeps on rising.
2. XXX means there is no information for that month.
3. You already have a credit cards and inspite of your low score your tried to availed a personal loan. This is not considered good since all these loans are unsecured loans. It gives an impression of credit hungry if you try to avail more of credit cards and personal loans.
4. It will take time to get your score improved.
5. Firstly you should keep one credit card and just close all of the rest. Keep using this and repaying the amount due without any fail. Use it not for your lifestyle but more for showing a good credit behaviour. Do not enquire for any loans for next 1-2 year. You will see improvement in score gradually.Do not expect a sudden improvement as many factors play a role in it.
For home loan if your score is not good then there are more chances of rejection.
Rohit,
There are many factors which banks take in consideration for granting a loan. Yes settled loans do have an impact on the decision but it is not only the reason to reject a loan. So your score is good but difficult to say unless your report can be viewed in totality.
Rahul,
Your CIBIL report is generated as there is a credit history. But it also depends on the lender when they update to the CIBIL. At times they may take 4-6 months. So you might have to wait for sometime.
Thanks so much Jitendra, Its very helpful. 1 to 2 years is long time but still will see in every six months if there is any improvement in score. I can easily payoff my total amount due on the card as it is not much. Would there be an improvement ? I thought i can show payments on both cards by making payment of one of the cards with aonther and timely payment on both. Would it improve the score faster ?
Kaushik,
Making payments on both cards won’t impact for faster improvement but default will do so. So wisely keep only one and just make timely payments. Also keep the utilization to lower limits as maximum utilization of credits is also a factor in your CIBIL score.
Dear jitendra,
I had 3 cards and a PL settled 4 years back.
Now currently i dont have any card or a loan.
Since last 4 yera i am earning handsomely & has landed in stable job.
My question is how to improve my credit score if i am not running any loan or having credit card. last time i applied for a credit card it was rejected.
Please advice. I really want to improve my score but hot to do it without having any card or laon.
REgards,
Abhinav Tyagi
Abhinav,
The credit score gets improved from host of factors. But the primary one is that there should be a good credit history visible. Unless you are repaying any credit there will be no history and so CIBIL cannot factor if there is any change in your credit behavior apart from settling your current dues. So Your credit score takes a much longer time to improve.
There are companies which work on improving your score .They may give you free counselling but action on your score improvement will be on payment of a fee. Credit Vidya, Disha counselling are few of them. You can get in touch with them and see what assistance they provide in your situation.
Hi sir I am a student and earlier I was working in an organization where my salary was good so I took a personal loan for 170000 and I paid only 7 Emi of 525 but now I am not working so don’t have money so I defaulted this loan and I am not making payment since last 5 months and I will not be able to ppayit until I start working after my studies in this case plz let me know what will happen to my CIBIL and how can I improve it and is true if I don’t pay it than it will be fixed automatically after 3 or 4 years . . . .and will the bank people make law suit . .?? Will I get in the jail . .????
Hi sir, i just want to know, I started working in a privet bank with a bond of 2 years and if i leave the job before 2 years i have to pay a sum of Rs. 30000 to the bank. But due to some reason i left the job before two years without paying the amount. Does the bank make my CIBIL bad for these reason. What will happen to me if my CIBIL score become bad due to these……………
Avi,
CIBIL tracks only your credit history i.e. loans and credit cards you have availed. The bond with a company is not any kind of credit and so it is not a factor to consider in CIBIL.
Thank you sir, you don’t know how much relief i got after reading your message. THANK YOU SIR.
Avi,
Although CIBIL may not factor it now but in today’s environment such step may impact your reference check which is done when you take a new employment.
Rohit,
If you have defaulted your CIBIL score has gone down. In current scenario this will impact new employment since companies are considering CIBIL score. Very soon the bank will run behind you to recover the money. With every month passing by your outstanding loan will increase. This will create huge problem when you will search for an employment.
My credit score 3 month back when i checked was 780 .I have cleared car loan before 3 years and personal loan before 1 year.I am using 4 credit card total outstanding is around 3 lakhs but i am paying credit card bills regularly at least minimum dues now i have applied for personal loan around 3 lakhs due to some personal need in two banks but got rejected in both banks due to bank credit norms. Why bank rejected my application in spite of good credit score?
aaditya,
A Cibil score is not enough. If you have a bad record in the past it also is taken in consideration by the banks. In your case i see an issue of owning 4 credit cards and having unsecured loans like Pl in the past. Above this if you are paying only the minimums you are not repaying completely and interest is being charged. It still a default in payment.This is negative for banks. Do remember more unsecured debt like CC or PL is not considered good. With such a situation you are again applying for a PL which is an unsecured loan. This has resulted in rejection by the bank.
In my view you should avoid PL and reduce number of credit cards. Keep only one. More than that strategize your repayment. By paying only minimum your score may drop.So plan how you will repay to reduce your debt.
Hello Jitendra,
My Name is Manish, i had taken a loan from 2007 – India Bulls and 2006 – CitiFinancials where i defaulted in those loans now i have repaid the entire amount with all the charges which they have applied on me. I’m having a car loan the EMI’s are regular and some consumer loans like mobiles and all from Bajaj Finance their EMIs are also on time. My Cibil Score is very low i don’t have my own house im staying on rent for past 10 years. I had applied for HL in Dec 2014 which got rejected due to low cibil score. I don’t know what to do now. I’m in really need of a House and need home loan for that. Please let me what to do. Is there a way to improve or what should i do.
Manish,
You are in the same situation as many are. But improving score in CIBIL takes time. The car loan you are running will help in improving it if you do not default in any EMI. At present you will be denied for the loan in most of the banks. Do not make further enquiries on any kind of loan for few years else it will impact your score. In my view it may take 2-3 years to get your score improved if its fairly low.
Hi I had a SBI Credit card way back in 2003 and had made a settlement of it by paying 90000 and requested for a waiver of 20,000 and this was approved over the phone but when i made the payment of 90000 they sent an email saying the balance also has to be paid which i refused as it was a settlement, now in 2007 they showed the same amount as 5 lakhs and written off and now after 7 years again in december they have reported the same as written off in 2014 is it possible for banks to keep on reporting the same outstanding everytime even after 7 years also whats the solution for this and this has adversely affected my score to 597 now
Hi Jitendra,
First of all thanks for keeping this forum alive. I have one query that I have one Credit card in which the ownership status is reflecting as Authorized User. I do not have this card. Neither I have given any KYC to the Bank still it reflects in my CIBIL. same was issued by my Aunt and was used by my Uncle and is currently reflecting Overdue. I have Two housing loans and paying the EMIs without any bouncing and Credit card which is being utilized upto 40% and is being paid without delay.
Need to know whether my CIBIL Score will affect due to that Overdue Credit Card showing as Authorized User which is not mine and if yes then what to do either to do nothing or to do settlement or complete payment, Please guide further as both my Aunt and Uncle are no more.
Ravis,
Once the amount is written off by the bank it will show as it is in their records. The outstanding amount will not increase then. However, in CIBIL records settlement or written off carries for the next 7 years.Ideally after it the report should clear it. Coming to your score unless you show some credit history it will be difficult to get an improvement. Understand that CIBIL improves the score if there is improvement in your credit behavior which can only be shown by some timely repayments.
Its difficult to do it yourself as you won’t be able to get any credit now but try to take assistance of some credit agencies which help you in doing so like Disha counselling or credit vidya.
Thanks for your Reply, My actual concern is this was reported in 2007 by the CC company and once it expired in November 2014 they reposted it again with last 36 months payment being shown as 150 days for each month and the outstanding amount is the same but effectively it will stay in my report till 2021 which is complete harassment for a issue dating back to 2003 .
Is there no way that i can rectify this or escalate this as the loophole of reporting date is being misused.
Moreover now i have two home loans, two cc well maintained and one bajaj consumer loan and rest all closed and now car loan which i preclosed in August 2014 has not been updated and have raised dispute also home loans both of them have not been updated by the bank for the last three years.
will these updations improve my score and if so pls help me understand this.
Ravis,
If you have any current loans running without any default then they will help you in improving your score. Yes if they get updated they will improve your score positively. You can write to your lender to update your details and simultaneously raise a dispute with CIBIL on the current status. But try to reduce number of loans as too much credit is also not positive.
Pranav,
Yes any outstanding on your loans if not paid will impact your score in CIBIL. If its not issued to you then you should get matter cleared by the bank and get updated in CIBIL. Also why your aunt credit card is reflecting in your CIBIL you should get it clarified. In general after death liability of borrower pass on to his/her legal heirs. Not sure how your aunt credit card dues is being passed on to you by the bank. In my view write to the bank for clarification and see what they reply. Then based on their response take further actions.
Sir, my mothers CIBIL score is 712. Because of this score I might not get approved for the education loan. One of her home loans has amount overdue of Rs 50,000. If she pays that, will her CIBIL score jump to 750 in next 2 months?Then can I avail an education loan? Or will the CIBIL score take time to increase?
Prajesh,
It will improve but may not jump to 750 suddenly. It might take some time which rest on how you are able to show your mother credit behavior. Ideally if you have some credit repayment going then improvement happens faster else it takes time. But i nay case it will not happen within two months. Even after that its upto the bank how they see the past defaults and take a decision.
Hi,
I had a few discrepencies in the cibil report. There were cards mentioned as settled -which were not mine. Now I have had it rectified – would the score improve immediately since the card would be removed from my report?
Sunil,
Yes the moment CIBIL gets information regarding this your score will improve.
Hello,
My CIBIL score is 805. I have a home loan which i am paying on time since last 3 yrs. In between i took car loan for 7 yrs which i paid in full in 6 months. I have 3-4 credit cards with highest credit limit of 2.1 lakh. Whatever i spend in the month i pay in full. Never defualted even in full payment in last 8 years . Never had any dues on credit card. I use credit card because its easy to use online . Should I stop using credit card at all to increase my CIBIL score ? Is this score all right as i m planning to take auto loan?
Atul,
Although your score is good still you can improve it by reducing your credit card. What is impacting your score is the number of cards you hold. If you use less number of cards your score can improve a bit.
Hi,
My CIBIL score is 558, I have two credit cards payment dues which is around 35K.
I have Car loan which I am paying my EMI’s on time.
How can I correct my CIBIL score? If I pay my credit cards due will I be able to improve my CIBIL? How can I score 750? Will I be eligible to opt for loans in future??
Please advice.
HI,
Recently i checked my CIBIL score, score is 558. Earlier i had a credit cards in that for 2 of the cards i didn’t pay the amount, like one card from Axis bank which in need to pay now 6k and one form HSBC 27K.
My car loan EMI’s are on time and that will get end by dec 2015.
If i clear the CC dues and if i get NOC from the Bank in next week , will that help me to improve the CIBIL score, also how many days it will take to reflect on my CIBIL.
Please advice me i need to apply for home loan..
Thanks
sanjay
Hi sir,
I don’t have any loans or credit card till now. Means that I’ve never took a loan before nor bought a credit card. Now my concern is as follows. I’ve applied for personal loan and got rejected three times consecutively in a year.. My last declined application was before three months… Now when will my credit score come to normal where I can be able to apply for a pl again. Please guide me through this.. Many thanks..
Sanjay,
There are many aspects in calculating CIBIL score. Your loan default is surely the primary but type of loan you have availed, how much high you are going on credit etc.. are also factors to consider.In your situation the credit cards default, number of credit cards and number of loans you availed are the major factor. For improving your score you will have to take the following steps:
* Pay your outstanding to bring them down to zero
* Reduce number of credit cards if you have too many
* Avoid enquiry of loans for some time
* Have a repayment going on either in form of loan or through some credit card repayment
* Keep credit utilization to the minimal
Joshua,
What was the reason for rejecting your loan? If you can specify the right inputs can be given.
Hi,
I am looking for home loan and my CIBIL score is 635. Can I get home loan from LIC with this CIBIL score? Please help me on this.
HI
This is santhosh January 31,2015 I have cleared my education loan, and now I don’t have any loans or credit card outstanding amount in my account. So I have applied for Personal loan. But my CIBL score still showing 622. Will I get the loan. Please suggest me.
K Venkat,
CIBIL score is only a starting point. There are other factors which institution will look into before they make a decision. So what was the reason for a low score, what has been your credit behavior in the past, are there any current outstanding on you to repay and many others. So in my view you may not get any home loan with this score. You should first work towards improving your financial health and then consider.
Hi Nitin ,
its nice to meet you here , i appreciate your advice as i seen so many people asking you .
Here we go i am Akhilesh I Took HDFC credit card in march 2011 and after 6 months had a dispute , at initial stage i paid amount on time however later few delays happened & they charged high interest on late payments . I had a dispute with bank & they suspended my card .
I paid 17k out of 50k total limit .
Later we had a dispute and could not come on the soluiton .
Since it was my early days of career and i was not at all aware about the CIBIL & score . I thought settlement of principal amount and 10k more will work .
I also went with big time loss in my career & lost job & salary .i could not recover my self for long time . During this journey suspended my card at 50k however interest rate was on for total outstanding & they have made it 1lac & continuing etc . I got option of settlement in 35k etc i can do that & some extra 20k as well. You can understand for 35k how would u pay 100000/-
I got good job now & can pay them upto 50k or any relaxed amount but as u know they will set it on CIBIL as settlement & i will get hit on my other requirements with bank . I dont have any card now .
What is your suggestion to repair the damages in short span .I am ready to pay settlement amount & will take care of all payments . Now i am able to understand of better CIBIL .
cant the HDFC bank help me to come out of this as they can take their principal & 10 ~20 k extra to give me less hit on cibil .
Another option to go for settlement & get a credit card & pay smooth .
What would be best to improve here .I want to save my money also want to pay bank as i took their money , it was just a bad phase of my life . I dont intend to do any wrong pracitice , i hot only one card no otther card after that , it was just could not understand the importance of CIBIL . Now i am aware seems its too late .
Help me to come out of this
Thanks in advance , your details answer would be appreciated yeah
Akhilesh
Santosh,
First you need to analyze why your CIBIL score is 622. If it has been due to any default or so then it will take time to see your score improving. If you are able to show some good credit behavior then it can get reflected in score improvement early else it will take time. But banks or any other institution will be reluctant to offer you loan at this score.
i had outstanding of 170000 on my credit card which was not payed for 3 months bank has blocked the card which is a permanent block it seems . they have put up with interest charges i asked to waive it in the costomer care and they have done it too. now i payed my priciple amount totally . i dint go for settlement or what so ever when i ask the costomer care people to process the credit card they were like its in permanent block where we can’t process the card try after 6 months . why is that and will my score improves by 6 months as i payed totally at one shot . and most importantily will it improve in CIBIL immediately as they state by 45 days is it sure ??? or i have to check for the update . i like to get the credit card back from the bank is it possible .
good afternoon sir,
kindly guide me how can i improve my cibil score
as i have 717 as per my current record.HDFC bank has declined my loan application by saying it dosent match our requirement that is 770
Amit,
First know the reason for your lower score then you will be able to take corrective measures. Secondly improvement in score will take some time. If you can show a good credit record by making timely credit payments like CC or any existing loan it will give you benefit early. Else you will have to wait for some time to see the improvement. But by that time avoid making enquiries or applying for any loan.
Dear Mr. Jitendra
My CIBIL score is 762. I settled one PL in 2008 and 3 Credit card in 2010. In Jan. 2015 i applied for Car Loan which has rejected by the banker due to CIBIL report shows PC and CC account was settled.
How can i get removed “SETTLE” word from CIBIL report. Please suggest me i need loan ASAP.
I need your help.
Thanks and waiting for your response.
Deepak
Deepak,
When you repay any outstanding loan by a lower amount than what you are liable to then you are actually settling the loan. This settlement will appear in your CIBIL record for next 7 years. If you had paid the entire outstanding the CIBIL report would have carried it accordingly. So it will be a factor which institution will consider strongly as it shows your inability to shoulder debt repayments in such situations.
Try it out at CIBIL market place but do remember too many enquiries also hurt your credit record especially when there have been a default in the past.
Hi All,
I have 2 queries.
1. I had loan with BARCLAYS FINANCE. I was paying all my EMI correctly. Suddenly they closed their division, so that I could not able to pay the amount. BARCLAYS FINANCE sold their Loan account to Fincruise Credit Service Pvt. Ltd. Now, I have paid all my pending due to Fincruise Credit Service Pvt. Ltd. Behalf of BARCLAYS FINANCE. I closed my loan (Feb 2015) and I have NOC letter too. Now I have no due. But when I see my CIBIL report they were updated my status by 2013. There is no new update from them. When I check with Fincruise Credit Service Pvt. Ltd they told that they have updated. How can I correct this.
2. I have closed all my loans there is no due. But my credit score is 737 only. How can I check a loan is closed, because nowhere they have mentioned that a loan status.
KT,
1. Institution generally takes time to update the status to CIBIL at a specified interval. So you may have to wait for sometime as this update happens. If it still is not showing in CIBIL report you can raise a dispute with CIBIL which is a way to raise your query. You can get the details on CIBIL website.
2. In general a loan status is mentioned in the report on specific loans details. For current loan it will reflect only when CIBIL gets the information.
dear Jitendera,
My civil score is 767 as of now where recently I paid one PL fully however they r demanding me penal charges of rs.6060 for emi bounded charges in past years or loan dueation.
They are not providing me NOC without paying these charges. I just wanted to know that would it will be effect negatively in civil if I do not pay these penal charges to them.
I already having a another PL and 3 credit cards which regular payment is going on.
Please suggest should I pay these charges or not as facing bit financial criticism now days.
Tarun,
Yes it will impact your CIBIL if you do not pay these charges as the company will have it as outstanding dues from you. Any loan if not cleared fully will reflect in your CIBIL report so wiser to pay them and get the loan cleared.
Secondly, you own too many unsecured loan and credit cards. This is also one of the factors for CIBIL score so improve upon it. In my view you should reduce your credit cards and avoid too much unsecured loan like PL.
sir,
my cibil score is 761 can i eligible for Personal loan
Yadav,
Within CIBIL score there are many others factors which an institution will look into for checking your eligibility for any kind of loan. These factors will pertain to settlement or full repayment, the amount of default, years since you defaulted in any of the repayments etc. so you will have to analyze your detailed report.
Hi
My Cibil Score is NH and i have applied for few credit card and PL all got rejected due to No history ..last month i have taken a consumer loan from bajaj finance and have stated repayment of the emi…how long will take improve my credit score ???
Aneesh,
The credit history will built as you start repayment of any loan and as your lender report it to CIBIL. You can recheck after 6 months of repayment.
Dear Jitendra,
Reaching out to you as I did mess upwith my Cibil during my early days of employment knowingly or unknowingly. My score as on date is 540. Hence loans are getting rejected. I have 2 Outstanding cc & 1 Consumer Loan. Apart from this there is no other credit relationship that I hold currently. I only get my salary and withdraw it from the banks as per need and hence unable to improve. Could you kindly advise, what is the way out for me as I intend to go for a home loan now. If no one is willing to give me any credit, then what do I do?
Dev,
With such low score you won’t be able to avail a home loan. First work on improving the score fo rwhich you should take following steps:
1. Look at means to arrange funds for repayment. You can borrow from friends, family and relatives. These borrowings are not covered in CIBIL report and gives you some leverage in repayment due to realtionships.
2. Cut down on your spendings and maximize your savings. Aim for some amount which you can accumulate for repayments.
3. Talk to lender if they can take repayments in installments which you can cover from your savings.
4. Try to repay fully and not settlement with lower amount. Any settlement will impact your score and remains there for next seven years.
5. To improve your score you still need some proof of timely repayments. You will have to continue with any loan or cc you are repaying timely or avail services of firms like creditvidhya which can assist you in doing so.
6. Lastly, you might have to delay goal of your house for sometime if you are relying on loan to purchase it. Unfortunately at this score no institution will offer you a housing loan and even on improvement it is their discretion.
Hi,
My sister had taken education loan n completed he B.tech, however she delayed in her repayment and recently she settled and closed her education loan. Now she wants to take up another education loan to do he MS abroad. She has taken no other loans apart from that one education loan. Could you please let me know the following:
1. Will the delayed repayment affect her CIBIL Score.
2. Will the banks reject her Education Loan that she will be applying now
3. How does CIBIL track our scores. Apart from PAN will they use anything else to update our CIBIL score.
Regards
Deepika
Deepika,
Yes the delayed payment will affect her CIBIL score. Whether banks reject the new loan is a decision rest on then so difficult to comment But if the score is too low yes she may face difficulty in availing a loan now. In general banks update CIBIL periodically about the status of the loans availed. So rest no doubt they get regular updates on the loan.
In my view you should check the CIBIL score first and then only you can decide.
My CIBIL Score is 760 but I am not getting any credit card or personal Loan, whenever I applied for anything they just reject that within 5 minutes. Note: I have a RESTRUCTURED LOAN (Study Loan) and only Loan till now, is that the problem.
SK,
Yes it looks like. Your low score considering that you had only one loan in the past is the reason why you are not able to get any loan or CC.
Hi,
I had a citibank credit card in 2008/9. I gave that card to one of my cousins when I moved back to my hometown, in 2009. We were careless bachelors, then and my cousin ended up defaulting on the card, without my information.
The last transaction he’d had on the credit card was in 2010.
I recently got to know about it when I applied for a loan.
My cousin has refused to pay off the bad debt of around 90,000, which is reflecting in my credit score as the card was in my name.
I know for a fact that such bad debts, that are written-off by citibank are sold to third parties for recovery.
I’ve also heard that bad debts are removed from CIBIL score after 7 years.
I can wait for a couple of more years before applying for a loan, and without repaying the loan, as I know that citibank will anyway not get that money.
Please suggest if it will be worth waiting for a couple of more years.
Will the written-off bad debt info be erased from my CIBIL account in the next couple of years?
Best,
Victor
Victor,
Your CIBIL has many factors in consideration which is also assessed by the lenders when you apply for the loan. If your loan is shown as a written off then it will appear in CIBIL record for seven years. But more than that any loan settled or written off is not taken in good consideration by the lenders. So there is no assurance that the improved score will just make you eligible. Its lenders discretion. What matters is your good credit behaviour even after having a default. Lenders will look towards it.
So there is much more than just the score as i have illustrated above.
can you tell me what I need to do because as I know 760 is a good credit score, but in my case as I have only one Loan account How much the credit score should be to get a Credit card.
Hi Jitendra,
I think highly of you for your prompt response and your support.
I would like to reiterate my query.
Would the bad debt, i.e. the written-off credit card, still show in my CIBIL report after 7 years from the date of the last transaction?
If CIBIL removes it off my records after 7 years, which in my case it will be 2017, will the lenders (the banks) still be able to see it in my CIBIL report?
I have contacted several banks and none of them have issues with my current score of -1, however, each of them rejected my application only because of the bottom line that shows the negative remark – “Written Off”.
So, the question again, should I wait for a couple of more years, or should I pay off the debt in full and get the status changed to “paid in full”?
Please suggest.
Best,
Victor
Victor,
Its true that the status of Written off will reflect for seven years after which CIBIL will not carry it as per the company. What exactly it says about the debt i have yet to come across the report content in such situation.
Yes the main issue in your report is written off status as the inference for the bank is that the debt was always beyond your means and you still availed it. Paying off completely does improve your score but the interest on debt would have increased substantially by now.
In my view you need to check with the institution what you will have to repay to get this done. Only then you can make a decision. But difficult to comment how bank will look at it as there are certain other aspects which they consider. Don’t have any surity on banks giving you loan or cc only by removing the status from your report.
SK,
See some more details of your loan status. Is it written off or settled. Any of these status will impact the lenders view on your credit history more than the score. Unless that is improved difficult to improve your score. Otherwise any repayment going on would have helped you to increase your score.
Hi,
My Credit score is 669. I have taken the personal loan in axis bank and due to signature mismatch my ECS is not happening and i am paying amount by cash. Till now i didn’t bother about that. Now i am in need of money and i have applied for personal loan.But my applicaton got rejected from most of the banks due to less CBIL score. May i know how can i improve the CBIL .Please help me to improve from 669 to 700. If i start paying EMI amount regularly may i know how much time will take to reach 700.
Hello Jitendra,
My CIBIL TRANSUNION score and Personnel Loan score are showing -1 . Please tell me what is the reason for this? I had an educational loan and I have closed it last year. Also i have some unused bank accounts.
No, nothing is written except RESTRUCTURED LOAN.
Sravani,
The first aspect of a good credit score is making your repayment son time. If not then your score is bound to get affected. If your CIBIL score is down due to untimely repayments then you should immediately start repaying on time. This will improve your score as you will start establishing a good credit history. But do remember that its not going to happen overnight and will take some time may be year or two to see the improvement in your score.
Hello Jitendra,
Please let me know why my CIBIL score is showing -1. I had an educational loan and i have payed it in one shot without interest as I got a concession from the bank. But this loan details are not showing in the CIBIL report. Please I am waiting for your reply.
Dear Arun,
What do you mean by one shot. Was there any default and what is the concession about? Is it any waiver of interest?.. Let me know these details..
Dear Arun,
Here are some facts regarding 0 or -1 score
A cibil score of 0 is given when the credit history of individual is less than 6 months. In general CIBIL score covers a 36 months period of tracking of the credit history. Since there is very less information in case of history which is only 6 month hold it is given a 0 score. It simply means the credit history is yet to be established.
Contrary to this a -1 score is given when there is no credit history of the individual provided by the lender.
So in your case it means there is no established credit history of yours. But it doesn’t mean that you cannot apply for any loan. It simply signifies that the lender will consider other parameters as there is no CIBIL score available to them.
I hope this clarifies your doubts.
Dear Jitendra,
Thanks for your reply.
I meant by “One Shot” is I payed the entire loan amount in one payment.
The Bank conducted one adalath and cut down my interest.
I payed the loan amount back to bank without the existing interest.
I have took my educational loan on 2006. I have completed my education on 2009. As i don’t have a job i am not able to pay the loan amount on time. I got job on 2013. In 2014 the bank called for an adalat and they said if you pay the loan amount in one shot they will cut down the interest. so I paid the loan amount without interest. But I have paid some amount before 2009 as interest.
It will affect my CIBIL score ?
This is a reason for showing my CIBIL score as -1?
Please reply.
Thanks in advance
Arun
Here are some facts regarding 0 or -1 score
A cibil score of 0 is given when the credit history of individual is less than 6 months. In general CIBIL score covers a 36 months period of tracking of the credit history. Since there is very less information in case of history which is only 6 month hold it is given a 0 score. It simply means the credit history is yet to be established.
Contrary to this a -1 score is given when there is no credit history of the individual provided by the lender.
So in your case it means there is no established credit history of yours. But it doesn’t mean that you cannot apply for any loan. It simply signifies that the lender will consider other parameters as there is no CIBIL score available to them.
But do note that this score of -1 may be due to non-reporting by the lender. If and when they report the case to CIBIL your credit history may get established and based on how your loan has been dealt the score may be derived. As of now it rest on lenders what parameters they consider if you apply for any loan.
Hello,
I have a cbil score of 789 but have a written off status in one of my CC. The account shows closed in the month of March 2010. I have not done any transaction on the cc but dont know how it got defaulted and now cannot repay the amount which comes to 1.5lacs. Is it that after 2 years the written off status will be removed from my CBIL?
Please reply.
hi,
I have a SBI bank loan but, I take 2010 but every 1 & 1/2 year I have paid my all outstanding instalment one time in a year but I have my loan was due on 2015 but I have clear it December 2014 & than I bought credit score in January 2015 its 623 but now I have buy credit score in this months my score was 733, but in my latest reports its saw me my loan of SBI in account information clear then next page same account same loan saw me & its outstanding, and I don’t have loan credit card but I am rejected in January 4 times in a credit card, I have rise a disput to cibil for this on this 1 june, so how can I grove up my score & when my disput resolve my score was grovup or not.if not so tell me how can I reach in 750 score,
thanks,
omkar kharva.
8511987204.
Omkar,
Along with CIBIL you can raise the issue with SBI to report the incident to the institution. Also whenever you close account you get NOC from the lender. That is a good proof for you to show that the account has been cleared. Send it to CIBIL.
And lastly don’t jump to apply for CC as soon as score is improved. Improvement doesn’t means you are eligible. Banks will look at other factors to decide whether to give you CC or not.
Omkar,
Along with CIBIL you can raise the issue with SBI to report the incident to the institution. Also whenever you close account you get NOC from the lender. That is a good proof for you to show that the account has been cleared. Send it to CIBIL.
And lastly don’t jump to apply for CC as soon as score is improved. Improvement doesn’t means you are eligible. Banks will look at other factors to decide whether to give you CC or not.
Deepak,
In CIBIL the written off or settlement status is carried for next seven years and not 2 years. So for next seven years from the month it is reported as close your CIBIL report will show it as Written Off.
hi,
good afternoon Sir,
thanks for giving me such a great advice, you doing great job to help people & its our Indian culture, good job keep it up & all the best may god bless you.
but I have a question if my dispute was clear SBI loan than my score grove up or not & I have apply for PL any bank, and after that how can I reach 800 score I don’t have credit card no loan but I have my own business & I am regular VAT or income tax payer I am paying in this 3 years 52000 income tax. it is increase my score.
thanks,
omkar kharva.
Hi Sir
My bike loan got rejected during 2012 due to address proof problem in HDFC bank. And i applied personal loan in 2013 which got rejected because my name is updated in Banks defaulters list because of that address proof problem and after that 2 loan and one credit card application got rejected by different banks. I applied for CIBIL score report and it show “NH” only. Recently again i applied for a loan in Axis bank and got rejected because my cibil score is around 630’s that is 3 points less than their credit base. please can you advise me how to increase my cibil score. And also please advise me how to avail personal loan or credit card. please sir advise me.
Dilli Babu,
First you need to look at the reason of your low score. Where you had the default and what is the status it is showing i.e. settled or written off or else. Unless you know the reason it is difficult to work on measures. If you can elaborate more on reason of the low score i will be able to guide you appropriately.
Omkar,
Your financial information has low effect on your CIBIL score as it is more about your Credit history. Yes if some credit repayment would have been there you would have been able to improve your score effectively. Even if your dispute is clear settled or written off or fully repaid matters for your score. As of now it will take more time. The other alternative is taking assistance of some agency like creditvidya. They will charge you but may help you in improving your score. Contact them and see if it suits you. But do remember that even if score is improved it is not a guarantee for any loan or credit. Bank will decide based on other parameters also whether they can still give you.
Hi Sir
Thanks for the reply.
Please tel me how should i check the status or the reason for the low score. So that i will do it right away. And i have checked with the HDFC bank they said i cannot take any loan or credit card from HDFC bank alone but i can get from other bank. Even though due my low score all applications got rejected. can you advise me how can I check the reason for low score.
Hi Jitendra
Can you please help me with my problem.
I am holding 5 loans ( 1 pl, 1 product loan, 2 Auto loans, 1 education loan) Because of my medical problem I am unable to pay the loans that’s why my CBIL score is 450 but two three days back I pay my all loans with all dues except 1 Auto loan because their charges are two high I setteled that loan.
1) how much time it will take to improve my CBIL score.?
2) because I setteled one loan how much that affect my CBIL?
3) their is any way to Improve my cbil?
Pravin,
There are many factors for you which has led to such a low score.The primary is the number, second is the kind of loan and third is the default. I understand your medical issues and its sad to know that you have to go through with it.
Now you have repaid all loans recently. It will take time for reflecting in CIBIL. If you would have some repayment going through cc or any loan repayment then improvement have been a bit faster. The settled loan also will have some impact on your CIBIL score.
You can take help of some institution like disha counselling or credit vidya to get your score improvement.
I had a HDFC CC and , i have few dues pending because I lost my mobile and stopped getting alerts for dues ,because of this I did’t pay 2 0r 3 months due ,once it came to my notice I have made a full payment and settled it and got a NOC from Bank. At that time my Score was 643 which was in 2013 , now it’s been more than 2 years .. Would it have increased my CIBIL score or not?I have reduced using my credit card and paid all pending dues without any delay… I have completed one PL in 2013 ..
Please advise
Nawin,
In most probability your score would have improved by now. You should check it as it has been two years since you accessed your score.
Dear Jitendra sir,
My score was 733 if I take Credit card Fixed deposits against & doing regularly & good maintain card payments so my score was going up or not.
Omkar,
If payments are regular your credit score does improve.
Hi Jitendra,
I had sanctioned an education Loan for 3 lakh but only 69550 were disbursed and i got selected in india’s most prestigious engineering college so changed college in 2010 but forgot that loan.
now when i applied for a credit card in 2014 and a PL i came to know my CIBIL score is 658 because 3 EMI were defaulted for that Loan and oustanding amount was 1,21000. I immediately paid all defalut amount and since than continuously paying EMI.
total repayment tenure is 33 months and i have paid almost 8 EMIs. If i repay all my outstanding amount now itslef to close the Loan Account which is 89353 thousand. Is there any possibility my CIBIL will get improved Immidaitely or can i avail any PL from HDFC or other financial institution.
Kindly Reply back.
Azlal,
If you repaid your outstanding and are paying your EMIs on time now then there will be improvement in your score. However, this improvement will be gradually and not instant. So you will have to wait for some time to see your score improving. But even then giving you any kind of loan will be bank decision. Improvement in score is no guarantee that you will be offered a loan. Also, do not make enquiries for loans now else it will impact your score a bit.
Hi Jitendra,
My name is Basav. I have a query. I have two credit cards, one PL and one two wheeler loan at present. My Cc with SBI has an outstanding of Rs 1,10,000 and I have recently settled this card at Rs 81000 in 7 installments of which two are already paid. On the other hand I am paying the emis’ of both the PL and two wheeler loan without fail and also my other CC bill. I recently checked my Cibil score and it shows 748. I wish to know if it will fall radically after I have paid the entire settlement amount even if I keep on repaying the emis’ of my loans and the other credit card bill. Or can I ask SBI to offer me a payment plan and reverse this settlement? Kindly advise. I don’t want to lose on my creditability as I am planning to take home loan in the future. Thanks in advance
Basav,
In general the score will improve of your outstanding are repaid. However it does matter whether you repaid fully or settled it. A settlement will hit your score improvement while a full repayment will have a higher positive impact. Also settlement will be carried in your CIBIL report for next seven years which will be looked at by the lenders.
So its difficult to say about your home loan as the decision rest on the lenders. But keep paying your EMIs on time which will help you in establishing a good credit behaviour and Limit your CC use. Till your repayments do not enquire for any loans. Only after few years you will see your credibility is improved.
Hi,
Plase suggest me in I have taken a two wheeler loan from ICICI bank in 2008 of 40k and due to financial disaster I was unable to repay on time.when I checked my CIBIL report in jan 15.I got to know my cibil score is 600.then I contacted bank and ask for sattelment in 2ok but this will reflect in cibil report as overdue.so I have paid all emi and bouncing charges to bank and closed the loan in May 15.i have also availed credit card on bases of fix deposit in jan 15 and paying dues before due date.also I have taken an consumer durable loan in apr same is been paid regularly.
Can to tel how much time will it take to increase my score to 750>.or any suggestions to do so.
Hi sir ,
I have one education loan , one PL 1,00,000 (pending 45000) , one bike loan (7000 pending) , bike loan ends in October and I am planning to repay my education loan with higher emi s by end of 2015 and settle PL by FEB 2016 and iI have a credit card of 1,50,000 max limit and outstanding 27000 , planning t clear t by 2015 … I have missed one EMI on bike and education loan repayment was delayed several times , my current credit score is 760 … And I am planning t apply for an education. Loan studying in the USA . I have late payments on my credit card several times , I wish t apply for a loan in may 2016 … My sister (married) with a credit score of around 780 will be the guarantor , wish t know if the loan will be approved
Rahul,
Its difficult to give you any time limit for improvement in your score. but in general i have seen if you have cleared your dues and showing a good credit history then expect score improvement in 2-3 years time frame. It may be less also but you should expect this time horizon in my view.
Uday,
There are too many loans in your kitty which is impacting your score. These need to be reduced. However in general 750 plus score is considered by institutions for loan disbursal but granting a loan is completely bank discretion wherein they look at many other factors apart from the CIBIL score.
thank you , i have had delays upto 698 days … all this is due to confusion , all my loans will be cleared by the time i apply and i will have no loans at all and no credit card dues …. and my score will move up a bit as well … i want to understand how delay in payments is going to affect and my loan account has never been written off or defaulted
Uday,
Dealy in payments bring down your score. How much the score comes down depend on the weightage given to this factor but its the main consideration. For institutions granting a loan to you they look at many other factors apart from delay in payments.If you have not defaulted or no settlement then its a healthy sign for your credit score.
Hi Sir,
Can you please help.
I am holding 5 loans ( 1 pl, 4 product loan) when (7 Months Back) i apply for product loan at first time my CBIL score is -001. That time bajaj finserv approved loan on salary basis. After 4 months bajaj given pre approved PL
Recently i checked my cibil score in Credit Sudhar. They said my credit score is 647. Iam paying my emi’s all in in -time.
Please tell me how can I reach in 750 score,
Hello Sir,
My father is holding a house loan of about 21 lakhs. Last month there was an overdue which he paid it on 29th July 2015. So as of now he still has abou 4.5 lakhs to pay back to the bank at emi of 30,000 per month. His Cibil Score is now 660. Will this score improve since he cleared the dues and when and how are the scores updated. Can it be improved to 700 in a months time.
Thank You
hi,
i had educational loan on 2007 and i ddint pay till feb 2015, i applied for the personal loan and it got rejected so i checked the cibil it shows 598 and i repaid ful loan amnt on feb 2015, yesterday i checked the credit score it shows 748, whetehr i will get personal loan now, i checked hdfc bank, some guys told they need 765 and some are ok with 748 score, they told it will approve, my concern is if i approve and if it got rejected my means whetehr my score will drop or it will remain same.
heared something like educational loan should not report in cibil, is it true?
ps: i using credit card for last 2 years and i’m paying the amount correctly without any dues.
can you please advice how to proceed. i am really need personal loan for my sister marriage.
Sreenivas,
Firstly you need to know the reason for your low credit score. It can be due to default, non payment of EMIs or too many loans etc… Unless you have a detailed report in front of you it will be difficult to come out with any solution.
My advise will be that you access your CIBIL report and look at the reason for the low score.
Dear Jitendra,
As many others when I got in to IT field with very good salary in my initial jobs, I took 4 credit cards and PL and Ready Credit loan and landed in irregular payments and settling couple of CC’s and PL however car loan and restructured loan is paid in full.
Though I have average CIBIL score, recently I get Home Loan approved but during process of getting home loan I did inquired many banks at the same time for it and these inquiries are reflected in my cibil report. Once I got approval from one bank, I immediatly stopped applications at all other banks before it gets approved or rejected. will it impact my cibil score and eventually report in future?
Hi, I am Balram Kushwaha from Bhopal
Yesterday i went to buy a laptop on EMI basis but they told me that they would not give loan for me because my cibil score is 721 how much cibil score is required to get finance and how to recover from this problem.
Thanks
Hello Friend
My name is durai from chennai .
I would like to adivce from you for my bad score .
would you please share your mobile number ., i will speak to you
Regards
Durai
Hi,
I’ve been using HDFC credit card for last three years and they have been regularly increasing my card limit and been upgrading the card continuously for last there years. I’ve never defaulted on any instance and all payments are made before due date till date.
But to my surprise when I enquired for PL last month they got rejected telling CIBIL score is NA when I enquired and generated my own report I could see no credit card linked to it.
When I called HDFC bank they are delaying and not showing any efforts to update my card transactions to CIBIL.
Since this was the reason bank rejected my loan. Can something be done to list my card on CIBIL and increase my score on the same.
Hi,
I’ve been using axis card for last three years and once I stopped paying my outstanding amount. This amounted to higher amount and the bank people came and collected the same dues in equated monthly settlements. This Feb the agent said your dues are completed. But in April I got a message telling that you have to pay another 35000 as the amount you have been paying was for only interest. But I had only dues of 18000 and I paid almost 52000 to make sure I don’t default in CIBIL but the bank is now turning the tables. When I talked about the collection agency which was collecting money. They said the guy has left the job we can’t do anything you need to pay. I have so the receipt of the bank to prove my payment on time. Can something be done to help me out.
Arvind,
Yes as your father clear his dues the score will get improved. But do not expect it so early. It will take some time. In no way you can improve it in one months. Its only after seeing a good repayment for certain period that the score get improved.
Shabari,
Giving you personal loan is the sole discretion of the institution. They may or may not consider your application based on your credit history. So its difficult to comment. Only when you apply to any institution that you will get to know. But yes applying and then loan getting rejected have some impact on the score.
Education loan is very well considered in CIBIL.
Milind,
Yes enquiries you have made to banks for home loan will get reflected in your CIBIL report. It may not do a great blow to your CIBIL score but when any institution is looking at your application then it does consider too many enquiries and may take it negatively if your score is not good enough or you hold too many loans.
Balram,
Ideally 750 and above is the consideration for institutions to grant any loan. If your score is below just access your CIBIL score and look for the cause. You can then evaluate some action plan to bring your score ta a good level.
Duraiselvan,
you can speak to me on 9971845454.
Sudarshan,
From the information you have provided it seems the bank has not provided your Credit Card information to CIBIL. You can raise a dispute with CIBIL knowing which they will confirm the status with the bank. Also escalate your grievance in the bank to get the information updated.
Ram,
Take a detailed statement from the bank of your outstanding for the period you entered into settlement. Only a statement from bank can verify what is the amount you need to pay. Once you have the details you can then look at what you have paid.Only then you will be able to know whether you have to pay any additional amount or not.Unless you have any written statement from bank about your outstandings the repayment will always be in question.
I would like to know whether non payment of dues of your internet bills ( reliance broadband and mts mblaze ) affect the cibil score ? please let me know.
Abhijit,
As of now utilities payments are not included in CIBIL. But talks are going on and they will get covered in CIBIL score in near future.
Hi,
I have a Education loan of 1 lakh, i am paying it on a EMI basis from past 6 months.
But there is a due (17k) in past where i did not pay for more then 3 months. Bank manager is saying me that your account has become NP, and asking me to pay the pending amount to get out of the NP. Should i believe him and pay the pending balance? will he get me out of the NP? and send good report to CIBIL department?
And i have credit card, in which i am making only minimum payment every month.
I will clear the credit card bill soon, after that will my score increase?
I assume that my CIBIL score is very less., how do i increase ?
Jeff,
Yes he may be right. You can get a clear picture by asking him the letter from the bank which states that you amount is pending. Unless you have this letter you shouldn’t be repaying.
CIBIL report does not improve instantly. It will take time. Also avoid making minimum repayment. It impacts your CIBIL negatively as the amount due gets reported. Pay the full amount due to you on time.
HI Jitendra,
I had payed all my credit card due payments in Nov 2013. At that time my cibil was 560. after this i closed all credit card except one and i am paying every payment before Time.
But when i verified my cibil score after 20 minths(i mean Today) still my score was 583. i got shocked still my score was not improved eventhough my payments was within time.
could you please help me how to improve my cibil score to 750 to get Home loan and please tell me any nonbanks which will give home loan for less cibil score.
Thanks
Ravi
Hi Sir,
i am having a business, for that i have taken a loan (300000) for commercial goods vehicle, i had missed some 2 or 3 EMI but i have repaid now i am regular, two more months is pending to close the loan in the mean time i want to extend my business for that i want 2000000 of amount i have applied in KSFC (KARNATAKA STATE FINANCE CORPORATION) they rejected. But the score is 538 they required 650 so how to improve my score shortly. if i settle all the loan amount then with the NOC can i raise my score. or is there any way to raise the score and how much time ti will take to update the repayment in SEBI. PLEASE DO THE NEED FULL….
Ravisankar,
It difficult to comment without looking at your CIBIL report.There are many factors which go in for deriving the score. Also, it will take time till you see a good improvement. I am not sure if any company can give you a loan at such low score. As i said there are many other factors which they tak ein consideration.
Nanjunda,
You need to first access your CIBIL report and see the real reasons for such a low score. There might be other factors which would be impacting your credit report. Unless you address all of them you won’t be able to see a good improvement. Also it takes time for improvement and does not happen instantly. So look at your CIBIL score and see the total issues arising in it.
Hi Sir
I took a loan to apply for huda plots (earnest money) in 2014 from bank in which they took 6 months advanced interest and due to some delay in draw result I myself called them that I want to pay the interest as six months were over…I paid all interests on time..and hence in Feb 2015 I closed the account as interest was already serviced by me in advance and got the no dues from the bank…but now when I checked my cibil I got to know that my cibil score is 664…and that loan shows a overdue of Rs 5 lacs…and apart from this loan i never took any loan or card..I called the bank also for the same but no positive response..now I want to improve my score and want to teach this bank people a lesson as they have no right to spoil my credit score when I am paying every interest amount before time…pls guide sir
Garima,
If you have repaid the amount then surely the bank may be at fault if not reporting it right to CIBIL. Also since you have no dues letter it proves your point. Now what you can do is raise the query with the bank itself. You can write to their grievance cell if it does not get resolved at bank authorities level. Also simultaneously raise a dispute with CIBIL that the information they have received is incorrect. They will seek the details from the bank to verify it. You can send them your letter as a proof of record. When you will raise your grievance at both level you should expect a faster resolution.
Hi
I had two loans, a bike loan and personal loan, with CitiFinancial. I settled both these loans in 2010 which resulted in bad credit score and credit record. After settlement, I never got a credit card or a personal loan.
I paid the outstanding balance in full in July 2015.
Now, I don’t have a credit card or a loan. On what basis, my credit score will be counted or what things are going to impact my credit score.
How can I build my credit score in this scenario?
Thanks
Jaspal Singh,
To improve your credit score any credit repayment running would have helped. In absence of it will take time to see improvement in your credit score. In general your credit repayment record, types and number of loans and some other factors are taken to derive a credit score.
Hi sir,
I had two PL from icici and one credit card from HDFC in 2007. Out of them One PL is showing post settled(in 2011) and one credit card is showing WRitten off (in 2012). Though my cibil score is 853. And currently i am had opt three consumer loans too from bajaj finserv. One Completed and other two r also going well.
Now pls suggest me what should i do to avail personal loan as my application rejected.
Sameer,
There has to be a reason for rejection of your PL. Although your score is good the last PL you avail was not serviced well. Also you are going too high on unsecured loans which are considered to be more risky and which you had in the past. With the kind of loans you have run it is perceived that you are managing your life through credits which is not a good sign for your financial health. In my view It will be difficult for you to avail a PL at this stage.
Dear Sir,
My CIBIL Score is 767, is it good or i need to improve?
Please explain the same.
Regards,
Ajinkya
Ajinkya,
Check your CIBIL score. Remove any issues in it. Make it above 800 which will be really good….
sir,
i had cibil score 747 but my pl was declined because of bad credit score.i have one auto loan 2011-2014…completed fully but i had some 180 and 240 late payments.i dont have settlement,written off any other issue in my cibil report. but when i will get loan…how many months it will take…last month i taken bajaj fin. consumer loan for 9 months..if i will pay on time ..i will get pl loan?how many months it will take to get loan?
Hi Sir,
My CIBIL score is 567.i don’t have any due on my pancard.i paid total outstanding amount on my 2 credit cards with late payment fees.i want to apply personal loan.how many days to take increase my CIBIL score 567 to 750.
Regards,
Sabbasani
Pradeep,
You may need more improvement in your credit score and sign of showing good credit behavior. This can happen when a timely credit payment like CC or a loan runs for few years. Lastly it’s completely a bank discretion to grant you loan or not especially unsecured loans like PL. But at this score you will face difficulty. So you may have to wait for some time. Just make your payments timely and access your cibil report after few months to see that its improving.
Sabbasani,
This improvement will take a good enough time. If you have some secured loan like car loan or home loan running then in 2-3 years with timely payments you will see score improving. But that is no guarantee that even then bank will consider your loan application. It will be bank discretion to grant you loan and they look at other factors to see if they can do so. So you will have to keep patience for some time.
thank you sir.but i paid all payments(including interest+late fee+process fee) on my card.why cibil didn’t consider total payment at a time.banks are getting total amount and customer are facing problem to get improve the score even he paid all extra fees also.this is the worst process i seen from CIBIL.(cibil looks what bank says only)
Sabbasani,
Yes complete payment does have positive impact but for the score there are many factors which are given weightage and then score is derived. So till your other factors show improvement CIBIL score won’t improve much. So you need to work on them and the most important of these is showing some good credit behavior through timely payment of some credit or loans.
Sir, I have PL from SBI. principle amt is Rs.65000 . They are offering Rs.47000 settlement and to clear cibil asking 2,67,000.
Not ready to negotiate. Can you guide me in such case
Kamlesh,
In case of settlement it shows in your cIBIL report for next 7 years and will impact your CIBIL report. Even banks issuing you any loan in future will be taking this in consideration. So options with you are very less and take this factor in consideration.
Hi Sir,
I am having cibil score of 670 , I don’t have any credit cards,EMI’s with me, My delay of educational loan and once cheque bounce lead me to poor cibil . I am planning to take house loan , Is there any way to increase my cibil score ? How much time it will require to increase ?
Hello Sir,
I have a PL from Axis bank. I was unable to pay my EMI’s properly since 1.5 years. However, I paid 75,000 for those 1.5 years on Jan 4th 2015 and now I am going to continue paying my EMI from next month. In the mean while, there is a TV emi which I have been paying since 3 months is also going good. In the month of November when I checked my Cibil, It was 620.
When I asked the Axis person, he said the cibil score will increase from 620 to 680 for now as I had paid 75,000. 3 months later, it will reach to 720. Is the information correct? If not, kindly explain.
Regards,
Jayant
Sir
could you please give me some credible advice because my CIBIL score is really really low at the moment.I have a homeloan,1 creditcard and 2 PLs.In 2014 June I had some issues in my job and was unemployed till Jan2015.This led to many cheque bounces in PLs and home loan defaults.Home loan is outstanding for 4 months as of this month(jan2016).I will get a couple of lakhs this month and my question is should i close off the PLs or bring my home loan to the current month with the money to improve my CIBIL score in the near future.I think once you close off the PLs then those cheque bounces will not affect you much after some time.Please advise.
Sandeep,
Your CIBIL score will improve if you are able to show a good credit behavior. In general if you have some loan or credit payment running then timely repayment of these help you in improving your CIBIL score. In absence of any credit payment the score will still improve but will take a longer time.
With this score the probability is high that banks will not grant you any loan.
Jayant,
Repayment is not the only single factor for CIBIL score. There are others factor too which are taken in consideration for deriving the score. What Axis bank representative has said is not true. It’s difficult to tell by when your score will get improved but in general if timely repayment continues then in year or so you will see this improvement.
Hi sir,
I am settled my loan amount to bank after enquire in court.But now the bank says i want to pay the remaining interest inorder to give NOC for cibil score.I need clarification for my cibil score
hi iam aswath kumar now my cibil score is 760 and iam having credit card in hdfc bank card high credit is 175000 and my current balance is 105000 and pl in bajaj finserve ltd iam uisng credit card by past 2years and pl by past 1year while iam applyied for 2wheeler loan for 110000 that get rejected is there is any problem in my cibil score how to rectifiy this please do need full…..and this may affect me while iam applying new loans?
Pradeep,
You have settled the loan with the bank. This will reflect in your CIBIL score. But for NOC if the bank is agreeing for a settlement then they should be able to give you the letter. The only difference will be that it will carry statement that you have settled the loan. Ask for a settlement letter instead of NOC and check what proof bank is giving to you.
Aswathkumar,
Apart from CIBIL score there are few other factors which your lender will be taking in consideration. Your credit utilization is high and the type of credit you are using is only Unsecured i.e. PL and Credit card which may not have got down well with the lender. Also score of 760 means there is some issue in your CIBIL. Check your CIBIL score as to why it has gone down. With your CIBIl score analysis you will be able to identify the reason behind the rejection.
thank you sir and cibil score 760 is good or bad and also apply for new loan
if there is any issue using credit card and pl in feature and by using this may affect or reject my applying new loans…..
Thank yoy sir
Ideally score of 750 and above is good. But even then a score of 760 means that still you have some issues in your credit history. It’s upto the institution now how they perceive these issues. Any use of credit card may improve your Cibil score if you use it wisely.But adding too many unsecured loans will impact your credit history.
So work on improving your score as the current score may not help you avail any further credit.
So work on improving your score as the current score may not help you avail any further credit.
sit i dont understand above lines so please can u explain it
Aswathkumar,
What I mean is that if there has been a loan rejection even at this score then the institution would have taken in consideration the reason behind it. Ideally, CIBIL score range is up to 900. So if you do not have any issues in past credit then your score should be above 800. So I said you work upon improving this score also. However, giving you any loan or credit is still the institution decision.
i Settled and close the HSBC Credit Card on 2008. in CIBIL Report also shown as POST W/O Settled. while applying CITIBANK and HDFC Credit Card in 2016 it got rejected .how long this Settled status in CIBIL appear? for me already 7 years over but still settled status appearing. moreover plan to apply home loan in future whether it will approve or not? kindly clarify
Balamurugan,
Any settlement in your credit card or loans will appear for 7 years in CIBIL report. Your CIBIL score may improve to highest pint but the settlement will also appear. Regards to loan approval, totally depends on institution how they consider this settlement. In general it affect your application negatively.
hi,
I applied for icici car loan and got rejected saying that you have a cibil score of 599.
What should I do ?
Hi Mr Jitendra.
I have settled my education loan at Indian bank on August 2014 through one time settlement. Paid only 1,50,000/- instead of 2,00,000/-.
Last year Aug 2015 I have applied for credit card from HDFC bank and it got rejected.
I can understand that one time settlement damaged my CIBIL score but at the time I didn’t have any other option.
I didn’t check my current CIBIL score after the settlement. Today I would like to apply for personal loan but worrying about CIBIL.
Is it possible to repay that waived amount 50,000/- to the Bank to increase my CIBIL score ? If yes should I pay the interest for amount for the period ( from the date of settlement to till now)?
After repayment how long it takes to reflect in CIBIL.
I want to resolve this problem in any way. I can’t wait for 7 years
Please help me.
Regards,
Purushothaman
Muhammad,
First thing first access your CIBIL report. It will show you why you have such a low score.Unless you know your issues you won’t be able to resolve them. Once you know areas of improvement in yoru credit report work towards them.
As far as car loan is concerned at this low score hardly any institution will offer you. So you might have to defer your decision.
Purushothaman,
The damage has already been done in your credit score. Even if you repay it fully the default will still reflect and that’s where the institution will raise objections. So in my view even if you repay the full amount it is highly probable that institution may retain their stance towards your credit history for next few years while looking at your loan applications.
For improvement in your score it’s necessary that once you have settled or repaid your dues there is some credit repayment running. That helps in notifying the credit agency that you are making timely repayment. Else it takes a bit longer to see improvement in your score.
Hi sir,
When i applied for personal loan , it was got rejected because of my less Cibil score it was 700 , it should be 750 for personal loans . When i started for searching the reason , it was credit card bill which i forget to pay 300 rupees, for few months. to re build my Cibil score what is the best way to improve , some of my friends are suggesting to use credit card and make payment in time and some are suggesting to take some Bajaj finace in Bajaj electronics and keep auto debit . So please help with best way to improve my Cibil score .
Phani,
If you already own a credit card then that should solve the purpose. Just make timely repayments of your credit card dues and you will see improvement in your score after sometime provided you do not enquire much on loans. But before that repay your dues and clear any outstandings which you have missed out.
Hi Jitendra
This is MIK, I have query — I seem to have Low CIBIL Score — in the recent past I have availed two wheeler Loan and few consumer durable loans and re-paying them through ECS on time– will these helps in improving my CIBIL score — kindly advise.
Dear Sir,
My CIBIL score is 675 and i think score went down because of delayed credit card payments. Even after settling the o/s still my cards were cancelled by the institutes. Now that I applied to an different bank my application is getting rejected due to low score. I am concerned about future since I have plans of buying house by end of next year and my current CIBIL score might be a show stopper for me.
Can you please suggest any fast track method to improve my score (get to 750-800)? I currently have loan on site/plot that I purchased few year back and payments are made without any delay on monthly basis (ECS from bank).
Will increasing the EMI amount improve my score? What are the other options you suggest. Thanks, Sudeep M
MIK,
Yes, timely repayment of your loans will help in improving your score. That’s because it shows a good credit behaviour of yours. But it will take time to see the improvement.
Sudeep,
There is no fast track method of improving your score. Once you show a timely credit payment for certain duration the score will start improving. But even when the score is improved there is no surity about institutions approving your loans. You may fall in any of the below situation:
1. Loans getting rejected
2. Loan approved but with higher interest rates
But remember that the score is not the only criteria. The institution will look at your past default and then will make a decision.
If your score has gone too low you should start considering other means such as loans from relatives and friends. You can claim the same tax benefits on interest payable to them provided you document the loan.
Thanks a lot for your detailed response. However when you mentioned “once I show timely credit payment”; at this moment I have only one outstanding which I had borrowed to buy a plot. So my questions again; will my score improve if I repay the loan at faster pace by increasing the EMI amount? Other than this option; I don’t know how to show my credit payment behavior to CIBIL?!
Sudeep,
No, increasing EMI won’t speed up improvement in your CIBIL score. It is timely payment which matters more.So continue with it and ensure you do not miss any EMI. Since it is a mortgage base loan it will help you in your score enhancement.
Hi,I have taken two credit card and one PL ,and i have settled one credit card and PL as per settlement amout.And now i need the home loan but its rejected due to my cibil score is 550.Can u please suggest what should i do,i m receving the call from creditsudhar and other institution for improve the score and they demand for fees like 15000 but i think they all are fraud.So Can you please suggest what should I do.
Ritesh,
The score is quite low. This cannot be improved in a hurry. It will take some time before you see your score improved. However to achieve this you will have to stop any further loan queries and if viable continue with any existing credit card or a loan. You will have to forego any further loan need by that time. But do remember that even if the score is improved its completely the lender discretion to approve any loan after looking at your past record.
please help me in finding the way as I have low score on CIBIL of 572, which is due to default n credit card payment in the year 2009 , but I forget the credit card no, custumer ID no. I only know the bank name , but bank is not giving any details, I have to pay just 4000 but how could I do this
Hi,
First of all, thanks for much for all the support through your answers for such a long time to all the questions posted. Really appreciate it.
I have a question too, would be really grateful if you kindly render me your valuable inputs.
I had 2 cards, one each from StanC and Amex through 2010 to 2014, and due to long pending defaults, both of them had gone to Written-Off status (from the last time I checked CIBIL in May’15). Earlier to that, in Nov’14 I had paid StanC in full (after enquiring total amount from bank) and Amex in full (enquiring amount from bank).
My CIBIL score was 663 then.
It has been an year now, and I am wondering if the Written-off status be still present in my report? Note that it has been more than a year that I have paid both the cards in full, no outstanding or bad debt remains. (I have paid over a lakh and not settled or negotiated any amount). The bank folks said they will update CIBIL. Does that mean the bad-debt will go away, since the bank no more holds it anyway?
Please help me understand this scenario. I am planning to check my CIBIL later this year.
Thanks,
Tanmoy
Amit,
Unless you have credit cards details you won’t be able to know. Your CIBIL report will carry the details of the credit card on which you have defaulted. So purchase your detailed CIBIL report.
Hi
I am planning to take a mobile phone on emi however I also want to apply for a two wheeler loan so me taking the cell phone on emi would affect the two wheeler loan or it will go smooth
Gurpreet,
Adding loan liability will impact your credit score and so will impact your future probabilities of loan approval. However what’s important is timely repayment of your EMIs. If you are repaying them timely your credit score will remain healthy.
Hi,
Due some reasons I couldn’t pay PL regularly, now I cleared all my EMIs , check bounces and closed my PL. In the CIBIL report, the PL status showing written – off. I called customer care and told the situation and requested for clearing the written-off status earlier, but the representative declined as I couldn’t pay for over 90 days, Please let me know how to clear the written-off status in the CIBIL report
Hi Jitendra,
I have had a payment due for X amount on my name since 2013. I have been in a financial crunch and also been absolute reckless in prioritising my payments. I have been contacted by bank couple of times and offered settlement. Could you please advice if I should go for a settlement or not? I have been told that the settlement does have a significant impact on the CIBIL. My current score is 540.
I have to take a student loan in the coming one year and also do not have any other credit to my name.
Krishna,
Ideally, once you have cleared the loan with complete required payment the written off status should be removed. Raise a dispute with CIBIL to clear the status form your report.
And may I know sir why only my question was not answered?
Tanmoy,
If you have paid the complete balance then the written off status should get removed from bank records and so with CIBIL. The bank need to update your credit card status to CIBIL. However, the record of default and late payment will remain in the CIBIL record. You can check in your CIBIL report and if the status is not updated then you can raise the issue with CIBIL through their Dispute section.
Thanks so much. The banks just confirmed last weel having done so. Sir, in such a scenario of written-off status removal, will it help me improve my score (as against having the score affected for 7 yrs in case of a written-off or settled account?)
Meanwhile, I also have an HDFC card which I have been using all this while, with a very good repayment, credit utilization and credit limit. Will that account also would have added to my score?
I am planning to ask for a CIR later this year.
Thanks,
Tanmoy
Dear Jitendera
I have borrowed a consumer durable loan behalf of my friend in Bajaj Finserve but he was not made the payments on time and after i have cleared all the dues my cibil score came to 675 and the Bajaj Finserve has canceled my card for lifetime i dont know how to improve my cibil score
Kindly suggest me.
Srinivas,
That was a mistake which you did. Your friend default is hurting your credit history. Unfortunately, the easy way to improve your credit score is to repay all your outstandings and rebuilt a credit history with some timely repayment. But in your case this may not be a solution since you will find it difficult to avail any credit now. In that case, your score will improve gradually but will take a longer time.
Hi All,
I am in need of wise suggestion for my Credit which I once used back on 2012 and used up 45K and didn’t pay at all and now the total outstanding is 1Lakh and my cibil score is 590. Question: If I pay off the total outstanding amount how soon my score will be improve to >750, “its confusing” settlement or pay off total due which one is better. There is no point paying off total due if my score will not improve, Please advise or write me @ atom.boney@hotmail.com
Hi Jitendra
I am planning to apply for a home loan. My CIBIL score is 739. As the score is nearby 750 but not 750, will the banks still consider my application on grace basis as the score is nearing the good credit score range?
Vikas,
It’s difficult to say what stand will the bank take. The bank will look at the detailed report and will figure out defaults or delayed payment in the past. Only after analyzing the detailed report they will decide whether to grant the loan or not. However, at a score of 739 there is more probability of bank not considering the application. There is no such grace in loan approvals.
Boney,
Paying off is always a better solution then settlement. If you settle your loan then it’s going to reflect in your CIBIL report for next seven years whereas paying off completely will clear your name from that default. Your score does get improve when you repay but not to this extent. To get over 750 you need to build a good repayment history with any institution.
Hi,
1. I have defaults with a Personal loan and few credit cards 7-8 years back. The PL and few credit cards are settled and rest are written off by banks. I am a salaried person and have maintained good balance in my saving account since many years. So, Can you kindly advise me which NBFC will give car loan fo buy an old/new car ?
2. I just read in Nitin Bhatia blog that Car loan is a depreciated asset and it impacts our cibil score Negatively. Can you kindly confirm if it’s really true?
Thanks,
SK
SK,
Yes, car is a depreciable asset. Any loan will impact your CIBIL score since you have added a liability. However car and housing loan are mortgage loan and so the impact by just adding them is not that high. Also, much depends on the kind and number of loan you have availed previously. All these factors combined evaluate your CIBIL score. Now since you have default previously by adding a car loan will impact your score more. Which NBFC will give you car loan it’s difficult to tell when you have default in the past. Check with CIBIL Market place which may tell you who may give loan to you.
Hi Jitendra,
I should thanks a lot for your patience and your time to solve each one of our problems.
I have two problems, one is my beloved brother’s and other one is mine.
My brother problem:
my brother taken an education loan in 2010 he paid 50% till 2014 and kept in a hold and this month completely paid out standing amount 2.7Lakh.
Now he try to apply for a credit card, bank got rejected because of less score. Now worries started.
now he dont have any credit cards and bank loans. how can improve his CIBIL score and how much time it takes approximately.
Monthly i spent 40k on my two credit cards and a car loan of 13000/-on my name can i transfer to on my brother’s name any one of them?
if not possible, how to increase my brother credit score. ?
Coming to my problem:
I have two credit cards(HDFC & SBI) and an Car loan.
HDFC credicard i am using from last 6years and i never slipped the date fully regular.
Car loan – From three years its running smoothly no issues at all.
But coming to SBI credit card, Someone from UK hacked my credit card details and made an 8k transaction, i fought with SBI fraud team and they spend around 2months for investigation on this transaction. i spent so much time with customer care people. during 3months i didn’t use my credit card and i didnt pay outstanding amount as i am waiting for verdict. Finally i was frustated and afraid of that and paid it. this story happened 2years back. is this effect to my cibil score? i need to raise a request for CIR to check my score ?
once i paid the outstanding amount, my two credit cards and car loan going smoothly with any slip till date.
i am fully scared and I want to came out of it from both the problems. your pervious answers are shower some happiness in my mind.
Thanks,
Hemanth.
Hello sir,
my name is Sushruth and I am from Bangalore. I recently got my cibil score checked and it was 0. The weak points are that I haven’t maintained minimum balance properly in my account. But there is transaction of atleast 1.5 – 2.5 lacs every year. I dont have any sort of loans in my name. Please guide me on how to increase my cibil score from 0 to 750 and what is the time span required to attain cibil score of 750 from 0.
Hi,, I had HDFC credit card which is closed now. I had payment in settlement amount. will it affect my cibil score. And if its does. What i must do to increase it.
Hi Jitendra Please note i have a low credit score due to credit card settlement. Presently i got a add on credit card which i got through from my wife primary card. Is it will help to increase my credit score. Kindly advise.
Sushruth,
As of now the CIBIL score is built only when you have a credit history. So any credit card, loans etc will get your CIBIL score created. 0 mean that there is no credit history of yours.
Lateef,
Any settlement on loan or credit cards does impact your CIBIL score negatively. Your score will come down.
Hi Jitendar,
I checked my score and it is 776. Below is my query :
1. I had a gold loan which was completed with timely payments but in the payment fields it is showing as STD. What does STD means and how does it impact my score ?
2. I had a credit card with Standard Chartered. I dint pay for 90 days and they disabled my card however on 95th day i paid the complete amount with interest and all the charges. The Bank offered me to re-activate the card but i refused. But in the CIBIL report , it not showing either Closed or any status ? Why is that ? and i can see that Stanc has updated the status in CIBIL after 1 month of my complete payment.
Hi Jitender
My Cibil score is 670 , have got approved for consumer loan with out giving PAN number, now my question is will my Cibil go up without PAN details, as I have heard that if your Cibil is gone down try to continue the EMI at least for 6 months where automatically it will go up
Regards
Nitesh
Nitesh,
CIBIL score goes up when you have settled your dues and you show a good credit behaviour. Ideally, when you are repaying your EMI on time then that reflects this behaviour and so your cibil score does improve.Now consumer loan without PAN number may not help you in CIBIL score improvement.
Hello Sir,
I am a medical doctor who was living abroad since 1999. I returned to india in 2013. I have self assessed and filed my ITR since 2013. In March 2016 i took a credit card and a auto loan from HDFC bank. My bills and EMIs are regularly debited to my account with HDFC and there is a healthy balance. I applied for a doctor’s professional loan and the same was approved for 15 lacs, but my CIBIL score continues to be zero. Why is this ?
Dr.Suresh,
Probably the institution have not reported to CIBIL about your credit card and loans. You can raise a dispute with CIBIL and simultaneously ask the institution to update your status to CIBIL.
Hi
I had recently applied for a loan from HDFC bank for 2 lakh rupees, I have a credit card but have outstanding amount to be paid and I have another credit card from ICICI bank with that also I have Outstanding amount to be paid. Apart from these I have taken auto loan whose EMI needs to be paid.SO when I called the bank they told me that my CIBIL score is zero. I have an medical emergency how do I avail Personal loan ? How to increase my cibil score? can it be done within one or two month time. Guidance with this is appreciated.
Rajni,
Ideally, you should be having a credit score since you have availed credit cards and auto loan.In my view you should access your CIBIL score by purchasing it through CIBIL.com. It will give you details as to why no credit history is built up in spite of availing them. Once you have these details then you can work upon them.
Hi Jitendra,
Currently my CIBIL score is 728, and I have a PL of 2lakhs from HDFC and 2 credit cards only due of 10k and 10k each, , I am repaying the credit card regularly. and have HSBC bank personal loan of 60k. I am thinking to apply for a home loan in February 2016. IS there is a chance of getting home loan with this figure CIBIL 728. in 2 months I am thinking to close 60k personal loan. is there a chance can I get loan from LIC. I have enquired to HDFC bank as I have 728 can I get Home loan, they said I absolutely will get up to 40 lakhs of loan. But I need loan from LIC.
Hi Sir,
I have applied for SBI credit Card a year back. I didnt received the card in my hands, but CPP was activated on my card and minimum bill was keep on generating and inturn CIBIL score was down. I spoke to SBI and now I have NOC with me right now. I have to clear my medical bills and am in need to loan. My cibil score is 606. Please help me on this sir.
RAVI,
Difficult to answer. It rest on the bank to approve you a loan. Having said that 728 is a low score where most banks will resist offering you a loan. Whether LIC give you a loan or not rest completely on the company decision. So it may happen that one bank is willing to give while other not. If you go for score improvement it will take some time once you have settled all dues.
Nagaraju,
It will be difficult to avail a loan at this score and any improvement will take time. If you have got the NOC you should take up with CIBIL and Bank simultaneously to bring rectification in your score which got hampered not from your fault. Once your score is improved you can then look at availing a loan from any institution. But with a score of 606 in my view financial institution will be hesitant to offer you a loan.
Hi Sir,
i have one HDFC credir card which is suspended and still 15ooo is reamining to pay. I will pay these in next month. also closed one PL account by paying all EMI on time. today my CIBIL score is 704.
what i should do to improve CIBIL score?
Regards,
Anil
Anil,
Ideally any regular repayment on time enhances your CIBIL score casue it establishes your credit behaviour with the organization.In absence of this it will take a longer time to see the improvement.
hi..i got card from icici bank 2008…it was used by my friend …payment not done by him…so it got so late due to dispute between me and him…..finlly in order to correct things in cibil….i paid off all dues including everythin…no sattlement….now my cibil report showing nothing ..0 dues…my cibil score is 765…now i want to go for bike loan..so i can make new fresh track for life long…can i get a bike loan from any bank or non banking …y im asking you coz my cibil report will definity show late payment……can i get or not…i have heard som non banking can give me bike loan…
Shah,
It’s a decision completely rest on the financial institution. You may get the loan probably at a higher interest than general. But yes bank may be more be reluctant than NBFcs.
Sir,
I have icici credit card which was blocked by bank due to no payment from my side from last 8 years.
Now I want to pay full amount, but if I paid at a time, the 36 months DPD still present in my cibil report.
Is restructuring credit card amount remove the past DPDs from cibil report as I can pay in installments as per restructure.
Basu,
since thE payment Is already delayed you cannot get DPD remove from the CIBIL report.