CIBIL Credit Score – Negative Factors and Ways to Improve your Score

by Shiv Kukreja on August 14, 2012

in Credit, Featured

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. He can be reached at

Many of you must have checked your CIBIL credit score sometime in the past and for some of you it must have got a surprise either positively or negatively. Some of you might have been caught unaware of a credit card account running in your name with annual charges being levied year after year. Some of you might have undergone for a loan settlement with the lender which could have impacted your score quite negatively.

But to your surprise, some of you could have found your credit score to be quite high, despite defaulting a couple of times. This is due to some unique but scientific methodologies being adopted by CIBIL to calculate your score.

Factors that negatively affect Credit Score:

1. Late payments or defaults in the past: Your payment history has a significant impact on your credit score. So, if you have missed payments on any of the existing loans over the past couple of years, then the credit score would get negatively affected as it indicates you are facing difficulties in servicing the existing obligations.

2. High utilization of credit limits: You must remain quite careful while using the credit limits available on your credit cards. A higher and higher utilization pattern against the available credit limits is an indication of an increased repayment burden and may negatively affect your credit score. Lower outstanding balances getting reflected in your credit card statements improve this score.

3. Higher percentage of Credit Cards or Personal Loans (i.e. Unsecured Loans): A higher number of unsecured loans coupled with a high utilization would also affect the score in a negative way because of the fact that these unsecured loans carry a very high rate of interest as compared to secured loans like home loans or car loans and result in larger payments and higher defaults.

4. Behaving Credit Hungry: If you are behaving “Credit Hungry” (i.e. in an urgent need of money) and have applied for new credit facilities with a large number of lenders, then it is going to affect your score negatively and make the lenders more cautious while evaluating your application for a fresh loan.

Can your CIBIL Credit Score be improved? If yes, how?

As I mentioned in my earlier post, it is like a CAT examination. Like you can always improve your CAT score by appearing for the exam again, your CIBIL credit score can also be improved, but not overnight. If you have taken a 20-year home loan which is just a couple of years old and you’ve defaulted on your EMIs 3-4 times since the beginning, then it will probably take you at least 2-3 years or probably more than that with regular EMI payments to improve your score. You will have to maintain the greatest of financial discipline in order to secure a better credit treatment in the future. Here is how it can be done.

Measures to improve your Credit Score:

1. Pay your loan EMIs regularly in a timely manner to maintain a clean credit history: Try to keep a diligent track of your EMIs in case you are running more than one loan.

2. It is highly advisable to make full payments on your credit card instead of just the minimum payment. In case it becomes very difficult to pay the bill in full, at least make the minimum payment without fail.

It takes you a longer time to build your credit history with a loan as compared to a credit card as these loans are usually for a longer tenure whereas a regular payment of your credit card bills can help you start building a good credit score as you keep on making the regular payments. A credit card debt is categorized as a revolving credit and it helps in building a good credit score faster if the payments are regular.

3. Do not apply for an extra credit card unnecessarily when your bank’s relationship manager approaches you to get one and actually you do not require it. Applying for an extra card or a loan without any requirement would mean more credit exposure and reaching near the card’s credit limit would result in a lower credit score.

4. If you have been issued a credit card but you have not used it very frequently or the utilize credit limit has been very low, then this would affect your credit score in a positive way as unused credit cards actually imply that you are financially secure.

5. You should use special incomes like bonus or a monetary gift or some other source of savings for the prepayment of some of your existing debt. Early repayment of debt also helps in improving your score.

6. Avoid becoming a joint account holder or a guarantor in a loan or a credit card facility as any default would lower the quality of your credit score.

7. Avoid going in for a settlement or “write-off” of your loan accounts as it implies that you have not been able to pay the past dues. Keeping the credit history clean improves your credit score.

8. You should keep reviewing your credit history on a regular basis to ensure that the credit report accurately reflects your current financial status.

At the end of the day, common sense should dictate what you do with your financial life and good financial habits along with awareness of credit scores will help you build a good credit history and a good credit score.

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{ 202 comments… read them below or add one }

Gaurav August 14, 2012 at 6:44 PM

It is evrytime mentioned in most articles about how to improve score,not only here but every other article,that applying for credit facility recently adds one entry in CIR as an Enquiry and that affects your credit score. Even I thought so earlier when I used to read these articles and plan accordingly.But recently my experince was something different.I applied for 2 credit cards recently and retrieved the CIBIL report from Bank that they in turn retrieved while processing my application.Also I asked one another Bank whose Credit Card I was already holding then,to retrieve my report again.This means now I was having 3 different CIBIL reports given by 3 different banks which were generated on 3 different days with a gap of around 4-10 days in between.And most importantly every successive report was showing one additional enquiry in addition to previous enquireies keeping all other particulars same as in older CIRs.By doing this what I actually tried to check — Is it really correct that applying for credit facility recently does really affect score by giving another enquiry in CIR?
The result was very much surprising!!! Though every successive report was showing one additional enquiry keeping all other particulars same,by that way my score should have reduced every time by say 5-25 points when some or other Bank retrieved my CIBIL report recently,BUT ACTUALLY MY SCORE WAS NOT AFFECTED AT ALL.THE SCORE THAT WAS REFLECTING IN EVERY CIBIL REPORT WAS CONSTANT!!!!
The score however reduced by around 24 points only when the one out of 2 credit cards which got approved recently started reflecting under my CIR!!!!By this observation its concluded that its not the recent enquiry which affects your score negatively,its the recent approval of credit facility as reflected in your CIR,which actually affects your score negatively.I can further confirm this fact when at the end of this month my other credit card approved will start reflecting under my CIR.I am expecting my sore to deep further when that credit card starts reflecting in my CIR.Lets see what happens


Shiv Kukreja August 14, 2012 at 11:48 PM

Thanks Gaurav for sharing your experience here. Your observation is a practical example of how it works. You were probably required to have a credit card and for that you approached 2 different banks. These banks must have sent their respective enquiries to CIBIL. Just getting enquiries from banks probably doesnt affect your score.

But suppose you already have a couple of credit cards and a similar no. of personal loans which you have not been able to serve that easily and you have defaulted on your payments a few times. Now if you approach 2 more banks for another personal loan or a credit card, then your behaviour would be considered as “Credit Hungry”. This makes CIBIL process scientific.

Like you mentioned above, getting one more credit facility made your credit score dip by 24 points, it made me think of a company which carries huge debt on its balance sheet. If this company approaches another bank or an investor for one more loan, then it would be natural for the lender to raise suspicion.

Please do share your experience when you get your score checked by the month-end.


Gaurav August 15, 2012 at 3:08 AM

Yes do agree about your points..
I never required a credit card infact.I am financially very strong but kept 5 credit cards in my Folio just to avail great offers on different credit cards.I was researching about the CIBIL and the related stuffs since long and was trying to unfold the untold myths about it.One fact that revealed from my recent experince was what I have stated above.
Having enquiries in your CIBIL report doesnt affect your score.It is indeed addition of recent credit facility that got aproved by the bank as reflected in CIR will actually affect the score and makes it scientific.Will definitely share my experince again later this month


Shiv Kukreja August 15, 2012 at 3:46 PM

Thanks Gaurav!


Gaurav August 14, 2012 at 6:48 PM

Yes by above view of mine,I am not denying that recent enquiry means nothing to Bank or Loan provider.Yes I do agree that the recent enquiry in your CIR does raise quotion for Bank which is handelling your application of new credit card or loan!!!I do agree this view of writer.


Anonymous Coward October 7, 2012 at 10:48 AM

Gaurav, it’d be great if you could reply to the following:

1. How did you manage to get the CIBIL report from the bank where you applied for the credit card? I have tried that and have been unsuccessful; is there any method which allows an applicant to “demand” the CIBIL report from the bank he’s applying credit card at?

2. Did the score dip a few points when you got your second credit card approved?


Gaurav October 7, 2012 at 12:11 PM

Before giving you the answer,let me know what you exactly did to obtain CIBIL report from Bank.


Swapnil October 15, 2012 at 12:48 PM

I have made settlement of 3-4 credit cards and now my cibil score is very low as recently my personal loan application is rejected.

Please tell me what I have to do now to improve cibil score. Also confirm me that is there any validity for bad cibil score like after some years I will be out of defaulters list.


Gaurav October 15, 2012 at 10:47 PM

First of all send the letters of Settlements you received from Credit Card Providers to CIBIL and ask them to update the status accordingly.Further hereafter,channelise your funds regularly to pay the henceforth debits on your existing credit cards so as to get DPDs reflecting as 000 which will signify that you are out of financial crunches now and and able to withstand financial burden now onwards.
Yes the Defaulter status will remain there for 7 years but with regular payment of your credit card dues hereafter certailnly you can improve your score till then.


Prat October 22, 2012 at 1:44 AM

Hi, I have a couple of credit card and a personal loan default. Though I have a credit card which is being paid regularly. Will I get a home loan?


Shiv Kukreja October 23, 2012 at 12:16 AM

Hi Prat… Sorry, it is not possible for us to tell you whether you are eligible to get a home loan or not, especially based on the info you have provided.


Preet Kumar November 7, 2012 at 9:58 AM

Hi Shiv,

My ICICI RM is saying that my credit limit is high ( total 3 lacs 22 thousand of all credit cards together), this is the reason credit manager was saying to reject my loan application. This is not fair, banks only give the high credit limit credit cards. My HDFC limit was 98k last year but now bank increased it upto 1 lac 98 thousand. First time they asked salary slip to increase credit limit, i denied for that. Then they increased it them self without taking the salary slip.

But my RM is saying high credit limit is not your problem, its banks problem. You didn’t ask to increase it. And he said he will get it done. Let see…with finger crossed.

One more thing, do i need to courier Payment confirmation slip, address proof and Personal Id proof to CIBIL or uploading on CIBIL portal is sufficient?

Thanks & Regards


Shiv Kukreja November 7, 2012 at 10:47 AM

Hi Preet… Ya, lets hope you get the loan with any more problem now. Uploading your docs online will be sufficient to get your credit report.


pankaj singh October 28, 2012 at 12:12 PM

HI, I had one CC from HDFC bank in 2007 and was doing all my payments regularly but in Sept 2007 I lost my CC and blocked the card immediately. At that time my 13000 balance was due and the same time I moved to other location and changed my number. In May 2008 I did final settlement from HDFC bank and paid 14000 Rs(according to them I had to pay 22000) and they sent me Final Settlement letter. Recently I applied for one CC from Standard chartered bank and got successfully(using this from last 6 month). Now I am planning to purchase one flat and will go for home loan soon. May I apply to get my CIBIL score as I already got one CC that’s mean I have good CIBIL score. Please suggest me. I do not want any rejection in my home loan.


Gaurav October 28, 2012 at 11:03 PM

Certainly,you got StanChart Credit Card 6 months back does mean that your CIBIL Score was acceptable as per the policies of Stan Chart Bank to be eligible to extend you credit facility.Moreover your regular payment of Stan Chart credit card bills for last 6 months would have helped your score to improve further.But ultimately you have to remember that the meaning of “ACCEPTABLE CIBIL score” has different meanings as per different loan/credit card provider.For some 650 is acceptable whereas for others 700 is must!!! Hence its prudence to get your CIBIL score before applying for Loan which gives a primordial idea about your credit worthiness at this point of time!!!


pankaj singh October 31, 2012 at 12:35 AM

Thanks Gaurav,

I want to know one more thing like As I mentioned From HDFC bank side payment was due 22000 ( 13000 k Original + 9000 k interest). I payed only 14000 rs and they did settlement so I am defaulter for 8000 Rs. In some thread I read It is good to make full payment and clear your name. I want to know If suppose I contact to bank and willing to pay those 8000 K, will they ask for interest also or after settlement they do not charge any interest on remaining amount.


Gaurav October 31, 2012 at 10:00 AM

After paying Rs 14000 did they gave you any settlement letter?If you have been given any such letter stating the credit cardout standing has been settled then you dont need to do anything further.Your name wont be there as as a Defaulter.Rather it would be as written off


pankaj singh November 4, 2012 at 9:27 PM

thanks gaurav,

Yes one settlement letter had been sent by HDFC bank.
Could you please tell me what is “Written off”.

Will it impact me while applying any home loan. I am planning for one home loan soon.



Gaurav November 4, 2012 at 9:52 PM

Written of per se means you had defaulted somewhere in past but you did some settlement with the loan provider and resolved your issue in past.So Written off in that way,for some new loan provider,means some person better than a defaulter to lend a new credit to!!! Offcourse that means it lies somewhere between defaulter and credit worthy person..But having a Written Off status doesnt actually speak that the person defaulted purposefully or the incidence of defaulting was due to some other reason like mistake or dishonest behaviour of loan provider or just a missed payment of EMI which led to inappropriate penalty or may be due to reason like in your case where you moved your address and later on came to know that you have been charged huge interest on your outstanding.Thus whatever may be the reason,the new loan provider will look your application more carefully and may even ask you explanation for that Written Off stigma in your CIBIL report.Also if they ask so and find your reason for having that Written Off tag acceptable,then will definitely issue you a loan.But yes ,that depends on loan provider at last.


pankaj singh November 16, 2012 at 11:26 PM

Hi Gaurav,

Today I checked my CIBIL score. It is 771.
But the data is showing from last 36 month only and as I mentioned earlier I made settlement with HDFC bank in 2008 and they told me that they will share this information in CIBIL but now nothing is showing regarding HDFC bank. Only my SCB CC information is coming for which I am paying regularly.

I want to know one thing like while applying Home loan may I disclose the NOC given by HDFC bank or no use as no information is coming now.

Pankaj Singh

Pankaj Singh


Gaurav November 16, 2012 at 11:40 PM

You got a jackpot!! Your current score is near to great!!
As said earlier Banks give records upto 3 years to CIBIL for updation in CIBIL.But the incidence of default remains there for 7 years.HDFC being responsible bank unlike ICICI,helped you either knowingly or unknowingly (I dont know,Lolz) by not informing the default you made to CIBIL or it could be a mistake at CIBIL’s end that they forgot to update it.Whatever may be the case,go ahead and apply for the loan you want.It will surely get sanctioned.No need t tell them anything about your NOC or default as CIBIL would have been the source from where they would have known about it but CIBIL doesnt have any record now.


Gaurav November 16, 2012 at 11:43 PM

Provide NOC later to the loan provider only if they find about your past default later while processing your loan application.They will surely consider it with due respect.Dont worry about not providing it at the time of application only


Andy November 9, 2012 at 12:19 PM

Hi Gaurav, I’m in dire need of an answer to my concern, hope you can help?! So here we go, back in ’09 had a cc with citibank with a great credit limit, defaulted on my payments, but finally settled it off for a huge sum. Later the following year, took a personal loan which over the course of 1 year I squared it off without any failures. I have currently applied for a personal loan again with Fullerton India and i have been informed that though their rate of interest is higher but ppl like me can apply for loans and it does get approved. The requirement through them is anywhere around 600+. My question is, how good are my chances of getting this loan approved.

P.S: I currently have 1 cc which i make payments on time for and make more than the min. payment.


Gaurav November 9, 2012 at 7:24 PM

As per the information given by you,I dont find any reason for your loan getting rejected!!
Your application will be looked favorably as-
1) You settled your previous act of default which showed your comittment to take responsibility of what you requested Bank for.
2) By doing that you not only took responsibilty but all did something which reduced harm to Bank which would have happened by your act of not clearing off your dues
3) You took another loan later this which your cleared in just one year which speaks for itself that you are financially stable and able to pay back as well
4) Moreover by paying credit card dues on time you have further added to the fact that you are credit responsible.
Hence I feel your loan will be looked favourably.But ultimately it depends on Bank policies as other factors besides CIBIL does matter something.So I would advice to retrieve your CIBIL score before applying for Loan which will make your more confident for going ahead with your loan.Do check your CIBIL Score and verify if all details are correct in it and if found something incorrect then first correct it and then apply for Loan which will give you a pleasurable consequence


Mahesh November 12, 2012 at 3:37 PM

Hi ,

In My CIBIL report one entry for 2K is showing as due for ICICI CC payment. Actually last payment of 266 Rs and paid it after 2 days of due date…and after that i moved from my address mentioned in ICICI website . Later My Home loan provide informed me that there is due in u r CC. After cross checking with ICICI they told me that they had applied charges of 4000 on late payment by 2 days…in between period i hav not got any info about the dues.

I have two other cards SBI and CITI..with i use frequently any paymetns for these cards are regualary paid by me..Now i had paid the due to ICICI bank…how it ll impact my loan approval process…..


Shiv Kukreja November 14, 2012 at 1:19 PM

Hi Mahesh… It should ideally improve your credit history as well as your credit score in some due course of time.


Siddiq November 13, 2012 at 10:55 AM

HI Folks, I had recently take my CIBIL statement & my current score is showing as 658 just wanted to know is this a good score or bad.. Thanks in advance for your answers


Shiv Kukreja November 14, 2012 at 1:15 PM

Hi Siddiq… Credit Score of 658 is somewhat below average.


Gaurav November 14, 2012 at 1:29 PM

As said earlier 658 score is a good score infact.Please read my earlier statements i revert to previous questions by others as above.Evry Bank or Non Banking Finacial Corp though consider CIBIL score as one factor to take decision on whether to extend you loan or credit card,they decide the definition of that “GOOD” or “BAD” score on their own.That means for Bank A,score of 600 is good score too extend a loan but for Bank B anything above 700 is only requisit.But still on an average a score of 600/650 or above is a Good score.Score around 500 needs to be worked on and Score around or below 450 is definitelly bad


Rajesh R November 19, 2012 at 4:44 PM

My credit card application from SCB got rejected. After citing the RBI regulations and lot of persuasions I got a copy of the CIBIL report obtained by SCB. The TU score is 826. There are no defaults/suits filed.
Payment history for all the loans shows STDSTD….. What could be the reason for rejection? They are not giving a clear explanation. They are telling “we are unable to offer you the credit facility in this point of time since the CIBIL/Credit History -does not meet bank credit norms”

Can I demand a more clear explanation? The RBI guidelines says “banks should convey in writing the main reason/reasons which in the opinion of the bank have led to the rejection of the credit applications”.
Whether just saying “does not meet bank credit norms” without explaining what are the “bank credit norms” enough?
I had taken a home decor loan which is reflecting in the CIR as personal loan


Gaurav November 19, 2012 at 5:36 PM

Certainly,you can!!!
You are very correct about the guideline of RBI and very few people know about it not even Nodal Officer of Stan Chart Bank.
You may send a letter to Nodal Officer of Stan Chart Bank seeking exact answer about rejection of credit card application or reprocessing of application.Do let them know in polite language that as per the guidelines of RBI its mandatory to give the exact reason failing which you will seek compensation for harassment at Banking Ombuds &/or consume court.
I feel they will reopen and reprocess your application.Also do let me know whether you applied for this credit card by Stan Chart’s very famous Instant Approval In Principal way or by offiline application?Also meanwhile you do it ,do check whats your salary is,whats the outstanding amount on your existing loan as reflecting in CIBIL score.High sanctioned/outstanding amount in your loan may be the reason for application being considered CIBIL negative


Pankaj January 9, 2013 at 1:04 PM

Long back Kotak Mahindra rejected my Credit Card application on some flimsy grounds (Permanent Add is that of a small town in Haryana although I was residing in Mumbai) . Later I escalated the issues with their Nodal Officer and after her intervention my card application was re processed and a card was issued to me.

Recently, RBS closed my credit card and I had to approach RBI Banking Ombudsman for card reinstatement.

So, incase your complaint hasn’t been resolved by Nodal Officer of SCB than you may approach RBI Banking Ombudsman.


Dheer December 13, 2012 at 9:03 PM

I have settled my 1 year old(July 08-09) HDFC CC in July 2009, by paying Rs 20K(bank was demanding approx 45K)
Because of bad financial condition during that time. Till then I didn’t borrowed any money from any bank.
Since Oct 2009, I was running a salaried account(Now it is Regular account) in same bank with some good transactions, last week I have applied for a CC in the same bank on the basis of my Regular account details.
I want to know, can HDFC bank Seize my account and withdraw previous balance without my consent. will I never get any CC/Loan from HDFC or any other bank.(If yes what will be the solution), I might need HL in coming 2-3 Years.
Thank, In advance.


Shiv Kukreja January 6, 2013 at 9:10 PM

Hi Dheer,

I dont think HDFC can withdraw the previous balance due from your bank account without your consent. But, they have all the right to raise their demand against you to payback. The settlement you agreed to in 2009 would ideally spoil your credit score and I think it will definitely create some problem for you in your requirement for any kind of loan. The solution would be to fully pay the bank their outstanding demand.


Dheer February 6, 2013 at 7:54 AM

Thanks a lot Shiv


Shiv Kukreja February 6, 2013 at 11:47 PM

You are welcome Dheer!


Aavesh Y January 6, 2013 at 4:08 PM

Hi All,
I had a credit card of Standard Chartered and few times i was unable to pay on time. My card got expired in Feb, 2011 but there was outstanding amount of Rs. 1400 at that point of time. I had received a recovery call from them in the month of Sep, 2012 and i paid Rs. 5600 and received a ‘No Due Certificate’ from SC.
Now, whenever i apply for any credit card or personal loan, gets rejected saying your credit score is down.
Can you please let me know what to do now so that i can be eligible for any loan or credit card?
Really need help.


Shiv Kukreja January 6, 2013 at 8:59 PM

Hi Aavesh,

I think you should first buy your credit report from CIBIL and check why your credit score is low. If your report shows that your score is low due to this loan settlement or a long DPD (Days Past Due) and if there is something you can do to improve your score, then you should do that. Also, check the points mentioned in the article above, if any of these helps you improve your score.


Aavesh Y January 6, 2013 at 10:22 PM

Hi Shiv,

First of all, thanks alot for your prompt reply. I applied for my CIBIL report today itself and got the report today only. I had a Credit Card with SCB and a personal loan with CITI. As per the CIBIL report, my credit score is 680 and my both the account got settled now. DPD in my personal loan shows all ‘000’ that means everything is fine with CITI but for my SCB Credit Card entry, it is showing total no. of late days while making payment for that particular month.
As everyone is suggesting the methods to improve credit scores by maintaining ontime payment for our Credit Cards and loans but in my case neither i have any credit card nor any loans then how to improve my credit score in that case?? Is it mandatory to have credit cards or loans to make credit score up??
Please reply.



Shiv Kukreja January 8, 2013 at 1:39 AM

Hi Aavesh… Your credit score is low as both of your accounts (loan and credit card) are ‘settled’. Settlement leaves some outstanding balance in your name and affects your credit score negatively. You need to pay off the outstanding balance with the SCB/Citibank in order to improve your credit score. It is not mandatory to have credit cards or loans running in your name to improve your score, but your credit history needs to be clean to have a good/excellent credit score.


Aavesh Y January 8, 2013 at 10:42 AM

Hi Shiv,
Thanks again.
Sorry but my both account is showing that there is no outstanding pending now.
I have paid each and every installment of my personal loan without fail on time and it got closed successfully in Nov, 2012 and i got a closing letter from CITI bank with no outstanding left. But for my credit card with SCB i couldn’t pay few bills on time but after recovery call i paid the whole amount what they asked for and for that also there is no outstanding pending now. I suspect that the only reason for my poor score card is my DPD for SCB. Awaiting your suggestions??


Shiv Kukreja January 8, 2013 at 11:32 AM

Hi Aavesh,
If you have paid all of your outstanding dues and still your credit score is low, then it will take some time for your score to improve gradually. The reason is simple – CIBIL credit score is based on one’s credit history, which in your case is not good. CIBIL score suggests the lenders what is the probability of you defaulting on a loan based on your credit history.

If there is no loan/credit card payment outstanding on your name, then it is natural that your past credit history will be taken as a hint to provide you fresh loan/credit card. You can probably improve your score by taking smaller loans and repaying them smoothly.


KG RAO January 11, 2013 at 1:50 AM

Hi Shiv,

I have a credit score of around 610-620 and at present don’t have any credit card/ loan account running .. How can i improve my score..? Should I go for a smaller loan amount may be an auto loan of around 5oK and repay the same within a year , will this be of any help?

Thanks in advance


Pankaj January 11, 2013 at 12:38 PM

Quite informative and very useful article!

Would like to put across that presently I am having 10 Credit Cards from 7 banks; many of these I have been using since Mid 2005. Never have I delayed payment and have been making NEFT payment since beginning. Use these cards to avail amazing offers by different card issuing banks or Visa/MasterCard.

My latest CIBIL Transunion score is more than 800 :) so I believe higher number of Credit Cards doesn’t have a negative impact on the CIBIL Score!!! Experts please authenticate if my understanding is correct….


Gaurav January 11, 2013 at 2:20 PM

Yes I agree with your points
Even I am having 10 credit cards from 8 top credit cards issuers in India.Most of them are issued in last one year.But even though my score is more than 800.Hence I also feel having more no of credit cards is not bad.Its the span of credit card payments which affect the score and not number of cards.Longer the card payment history,better is the score!!!


Pankaj January 11, 2013 at 2:51 PM

Gaurav, Would like to know abt the 24 point reduction in your score! as me also noticed a reduction of 24 points in my score.

In May last year I availed Car Loan for which my banker made 2 enquirers to CIBIL in a span of Ten Days . Even after approval and loan disbursal till date bank have not updated this Credit Information with CIBIL as it is not reflecting in my CIR. So, contrary to your case my score got reduced just by multiple enquiries and not by disbursal/approval of loan…


1) Whatz your view on multiple “Enquiry Applications” by member institutions for a single Loan/Credit Card application. Does this have a negative effect on CIBIL Transunion score or reduction in my score by 24 points is due to changes in their scoring model?

2) How Experian and Equifax different from CIBIL as like any other commoner I am worried about collection of my financial data by so many Credit Rating MNC’s.


Gaurav January 11, 2013 at 8:14 PM

Yes Pankaj,
Even I could not find a conclusive answer for how does they reduced my score by 24 points.As said earlier,my score never reduced by multiple enquiries done over a period of 2-3 months.But my score does reduced by around 24 points when the new cards started being reflecting in my account.
One more interesting fact I noticed was—
I have cards from Citi and HDFC which were frequently upgraded or swpped to different card features.Most banks keep card account same and only change the card no under it.For Cibil they report new card no on such swap or upgrade keeping all earlier reported DPDs under earlier cards to be continued to reflect under new card as well.Thus for CITI bank I had DPDs staring from 2009 reflecting under my current card though my card was swapped 4 times in last 3 years.But what HDFC did,they reported my each single card as different card accounts making 4 accounts of HDFC.It gave a false impression that I had 4 cards from HDFC .Further DPDs history was reflecting part by part under respective cards.Thus it gave false impression that I have no card with sufficiently large history!!!
But still my score never changed unless newer cards from other banks approved recently started reflecting in my CIR.My score only reduced by 24 points!!
Another interesting fact is —
I complained HDFC to merge all these cards under single card account and make all DPDs visible under single account.Now what they did,they told CIBIL to remove all cards from my account.Luckily,I was able to get a CIBIL report after removal of all HDFC cards.To my horror,my score reduced by around 100 points and came to 667!!!It gave few highlighte points at the begining of my report as below—
I had no doubt about 1st3rd,4th and 5th points as all remainging 9 cards were reflecting which had balances execept my HDFC card which was the oldest card.But 2nd point was not correct as my HDFC card was more than 3 years old which was not visible currently.
I was not affraid as I was assured as this will be a temporary problem as HDFC is going to report my current card and DPDs starting from my original card issue to CIBIL.They did it and in another 3-4 days time I got a new CIBIL report with all issues with HDFC corrected.Now to my surprise my score increased again to 776 level!!
This experience proves my earlier point that its not the no of cards but the longevity of card payments and interval between cards approved and limits given over them which affects the limit.
Now your 2nd point is somewhat correct where you said that it happened contrary to my experience and your score reduced upon multiple enquiries and not disbursal of loan.
My view on this is all points like card payments longevity,loan approval dates and interval between them,limits issued to each card or oan and lastly as said by you loan disbursal,all these affect score.But all these variations seen by you,me and sevaral others in regards with CIBIL system may be because of following reasons
1)though CIBIL updates data provided by banks in around 4-10 days time every month,the scoring doesnt appear to be a continuous process.Their system make changes to scores at some particular instances prediced by them as per the recent data received by them.In my opinion the so called prediced interval could be every three months or so as I found no change in my reports over a period of 3 months even after multiple enquiries.
2) Their system might be changing the scores even then when a complete account is removed from or added in their data base.This could be in addition to the scoring done on an ongoing basis at a predecided interval like I said earlier.
3) It might be also due to their changes in scoring system recently.But in my opinion this possibility may be very less so as to keep the uniformity in earlier and current data scoring

Whatever may be the causes,one thing is sure that we can onl express over views and possibilities as we have no other way of confirming this at this point of time.Its very well fact that how harassing behaviour CIBIL executives show when we ask such off track questions to them.The only way for this is to wait till RBI makes credit institutions more answerable.


Pankaj January 13, 2013 at 4:48 PM

1) Till date I was wondering why CIBIL lists the cards which I closed long back; now got to know importance of Credit History. 2) In my latest CIR their is no “highlighted points” which you have mentioned above. Where to find these highlights? 3) Just recently got a Credit Card upgrade; let see how it gets listed in CIR – Under old card or as a new account 4) CIBIL advises in Rule 3 to not have more Credit Cards and in Rule 5 they have mentioned “Think twice before closing credit card accounts” So what is better??? []
5) Just like you I use different Credit cards for availing amazing offers; my payment history is blemish free as I make TAD payment on due date thru NEFT so no chance of it affecting my score 6) After reading your above comment I re checked my latest CIR and found that for one card card payments longevity is just 3 months as it was approved recently and for other card although its was issued in 2005, credit history is shown for just 7 months. These might have affected drop in score. Will take up the matter of Missing Credit History with CIBIL. Thanks!

Must say I am still trying to decode the maze of CIBIL CIR and Transunion Score …


Gaurav January 11, 2013 at 8:17 PM

And Pankaj,
regarding to your worry expressed that collection of financial data by so many credit institutions,I would say a word— NOT TO WORRY!!!
Though Equifax and experian started collecting data,my experience is that no loan or card provider is giving much weightage to their reports currently.They do even consider it important to retrieve reports from Equifax and Experian at present as far as credit card applications are concerned


Pankaj January 13, 2013 at 3:47 PM

Its reassuring to hear that… Thanks


Pankaj January 13, 2013 at 6:44 PM

@ Shiv / Manshu

In my case my Auto Loan information hasn’t been provided by Credit Institution to CIBIL.
I am so regular in EMI payments thru SI towards Auto Loan and also been making huge Pre Payments and all this may have resulted in a better score had Credit Institution reported and certified my Auto Loan Account. But, they forgot to do so :(

So does The Credit Information Companies (Regulation) Act, 2005 enables CIBIL to take action against any Credit Institution who do not provide credit information to CIBIL???


Gaurav January 14, 2013 at 12:45 AM

As said earlier,the highlighted points were mentioned in only 1 CIR of mine out of 17 reports I am having right now.I guess it could be mentioned when my score dropped below 700 after removal of HDFC CARD7 temporarily.The highlighted points vanished when my score again crossed 800 after report of correct and COMPLETE data by HDFC.I think it could have also be one reason that different score card version reports retrieved by 2 different banks.
Further,though CIBIL’s 3rd and 5th points,both being correct.Its prudence to apply for new credit only in limit,further once new credit facility is availed pay in due time without making default.You may close unused credit at any time by making full payment or cancel unused credit cards without default.You may also keep the unused card active.BOTH THESE THINGS SHOW THAT YOU ARE FINANCIALLY SECURE AND WONT AFFECT YOUR SCORE NEGATIVELY.


Gaurav January 14, 2013 at 12:54 AM

Even for me its reassuring to find someone else having so many cards just to avail offers..Lolzz!Lolzz
BTW,which are those 10 cards you are holding currently or availed in past?Do enlist if you can.


Pankaj January 14, 2013 at 12:00 PM

17 CIR’s??? It seems you are the one making CIBIL rich :)

Do visit my blog and read my First and only blog entry “The Winner “ICICI AirTel rewards HPCL Gold Card “. I had listed few of the cards which I was holding in March 2007 and would soon write a review about the other cards I am using….

BTW have you taken Cards Insurance Policy from CPP? Its quite necessary for a person having a lots of Plastic Money…


Gaurav January 14, 2013 at 3:27 PM

Yes I have 17 CIRs.But its not true that I am making them rich,because I had retrieved my reports only thrice.Rest of them are from different banks.
Can you post the link of your blog?Or if you can enlist them here..
N yes,I have not yet taken CPP yet,though I am aware of them since long time.


Gaurav January 14, 2013 at 3:34 PM

oh!yes,Read your blog..But I guess the cards mentioned by you there are not being offered anymore.You still hold them?


Pankaj January 14, 2013 at 3:50 PM

Leave a comment on the blog; it will provide me with your mail id and I would mail back my Portfolio of cards…


Gaurav January 14, 2013 at 4:19 PM



Pankaj January 14, 2013 at 4:49 PM

Recheck comment section on blog for my reply…

Actually I thought of not digressing from the topic of this informative article that is why asked you to write on my blog. Don’t want Manshu to block my access to the this blog 😉


Pankaj January 14, 2013 at 3:44 PM

Plz click on my name above my comment; its a link and would lead you to my blog. Not sure whether writing site personal blog url is allowed here! Would like to touch base with you to learn few trick of trade like getting CIR from Financial Institutions 😉

I had subscribed to CPP since 2011 and it gives me peace of mind; as holding many cards have its own perils. So don’t delay buying of Card Protection policy from CPP / OneAssist or other insurer if you are convinced with benefits of Card insurance. Do read the fine prints and exclusions given in the policy.


Nikhil sharma January 30, 2013 at 2:11 PM

Hey shiv, my credit score is 721. Please suggest me , this score is good, average or bad?
and if it is bad, then tell me the minimum average score, which I have to achieve.


Bapun January 31, 2013 at 6:07 PM

i am not getting any of cc or loan due to my less credit point issue. I have a cc outstanding on 3-4 months bank but i closed at the time. Also i have some EMI outstanding in my loan which was delayed 3-4 months. But now i cleared all the dues on month of Dec-12.

Can you please advice what will be my credit points status, whether i eligible for any loan or i have wait some time. Please advice.


Anonym February 4, 2013 at 11:38 PM

Hi Gaurav,
I’ve applied for a citi bank credit card and got a confirmation that it has been disqualified. later i enquired for my cibil score which is 749 and i found one loan which i’ve closed in dec.2011 is showing in written-off state. I enquired to bank and they told it is closed from our end and i raised request in CIBIL as well. Could you please tel me whether 749 score is good enough to have a personal loan/credit card. I am using SCB credit card for past 5 months and maintaining it regularly.


Gaurav February 5, 2013 at 11:38 AM

As said earlier though 749 is a good score,it actually varies from bank to bank.Some banks prefer any score above 750 to issue credit facility whereas others are fine with even 700.Some banks do not issue any credit facility to someone less than 800!!
In your case ,I suspect,Citi bank would have declined your aplication since your earlier loan repayment was not good and new card is only 5 months old. Besides this there could be some other possibility also like your area not being a serviceable area or a negative area or the income criteria is not matching as per their requirement.
I would suggest you to write a mail to Nodal Officer of Citi Bank asking for exact reason for credit card application rejection.Do not forget,as per RBI Guidelines dated 6th March 2007,its mandatory for every bank or NBFC to provide EXACT reason of credit facility rejection to customer.Oncethey provide you the eact reason as if its due to your CIBIL score being lesser than 750 then you could send them a written request form to reconsider the decision of issuing credit facility.You have to attach the photocopy of the written communication obtained from previous loan provider stating your loan is completely settled.Also attach a copy of confirmation of CIBIL stating the Written Off status of that loan which is causing you trouble. I expect they will reconsider their decision as 749 is a good score indeed.
This all procedure might take one month or more and by the same time even your Standard Chartered card will complete 6 months successfully which might increase your score a little more.YOu may try to re-retrieve your score and attach a copy of the same to the letter to Nodal Officer of Citi Bank


Pawan February 16, 2013 at 11:11 PM

Hi Shiv,

Earlier i used to have some credit cards and personal loans. some of them i have settled. now i want to know about my cibil score as i want to apply for home loan. what is the best way to know my cibil score and if it is negative then how can i improve the same. Please guide me.


Sameer February 20, 2013 at 11:56 PM

Hi Gaurav,

I want to improve my credit score which is currently around 684. My cibil report has no “settled” or “write-offs” at any place.

I hold two credit cards and one educational loan. Dont have any other credit exposure.
I want to improve my score and improve it fast. Have enough cash at my disposal and don’t really need these credit card or the educational loan.
Can i improve my score by
a) using debit card for all payments and staying away from using credit cards?
b) prepaying my educational loan? out of original 6 lacs, only 36k is left now and there is still an year left to pay the entire loan.if i pay these 36 k rightaway, will my credit score improve?
c) get a secured credit card (Against fixed deposit of 1-1.5 lakhs)?

I have enough cash and can do all of the above three, provided they will help me improve my credit score.
Would be very grateful if you can please share your valuable advise.


Shiv Kukreja February 21, 2013 at 12:39 AM

Hi Pawan… Applying for your CIBIL credit report online is the best way to know your CIBIL credit score –

Here is the article to check various ways to improve your CIBIL score:


Sameer February 21, 2013 at 2:10 AM

Hi Shiv ,

I want to improve my credit score which is currently around 684 . My cibil report has no “settled” or “write-offs” at any place.

I hold two credit cards and one educational loan. Dont have any other credit exposure.
I want to improve my score and improve it fast. Have enough cash at my disposal and don’t really need these credit card or the educational loan.
Can i improve my score by
a) using debit card for all payments and staying away from using credit cards?
b) prepaying my educational loan? out of original 6 lacs, only 36k is left now and there is still an year left to pay the entire loan.if i pay these 36 k rightaway, will my credit score improve?(shoul
c) get a secured credit card (Against fixed deposit of 1-1.5 lakhs)?

I have enough cash and can do all of the above three, provided they will help me improve my credit score.
Would be very grateful if you can please share your valuable advise.


Shiv Kukreja February 23, 2013 at 12:38 PM

Hi Sameer,
b) & c) would help you improve your score. a) would help you getting you a loan/credit card easily.


Vikram Pai February 22, 2013 at 2:25 PM

Hi Shiv,

My monthly take home is 48k.
I have a ICICI credit card with 80k limit and a personal loan with Citibank – pending 9k *3 EMI’s so applied for top up at same bank.
I recently apllied for personal loan at Citibank for 7Lacs/36 EMI’s – got rejected
Reason – does not meet our internal credit acceptance parameters
then I applied at Housing Dev bank for 4Lacs/36EMI’s – got rejected
Reason – due to EMI defaults in previous personal loan

During this process I also came to know that, Including Citibank many other banks do not give loan if there is no existing loans!

After this, I downloaded CIBIL report and no bank has reported any defaults in it. And my score is 784. I have closed/cleared all loans/CC outstandings.

My credit history:
I had taken Education loan from SBM in 2004 for an amount of 3Lacs, should have started paying loan by 2008 but I delayed since my salary was about 13K and i was the lone earning person at home. So could not pay emi/payments but I had paid outstanding interest during this period. In 2012 I decided to clear the loan.. and in about 10 months I paid 240000 and closed the Edu loan.
In CIBIL report its mentioned as restructured loan
In 2010 I took personal loan from HDFC for 75k, I was paying EMI’s properly but later when I moved to a new company my salary account changed from Citi to ICICI. EMI date was 4th of every month. As soon I get salary i would transfer it to Citi account but by the time its credited to Citi account ECS would have happened and thus the bounce. same is again debited in 2nd presentation. this EMI bounce happened for about 5-6 times but was paid in 2nd presentation.
I pre-closed this loan later.

Between 2007 to 2011, I had my salary account in Citibank but since they had fined me for EMI bounce 250 rs each time, I got upset and subsequently closed that accuont and moved to ICICI.
I also had a Citibank credit card, I converted the outstanding amount into EMI’s and closed it.

Personal loan was critical for me, and I am deeply upset.
Please suggest how to go about it. I might need home loan by next year starting.


Shiv Kukreja February 23, 2013 at 12:42 PM

Hi Vikram,
Your query involves analysing your credit report/credit history and thus would be time consuming. Please consult a financial advisor for the same.


Sameer February 23, 2013 at 5:52 PM

Dear Shiv,

Thanks a lot for your valuable advise.
You basically advised me to do all the things i had enquired about.

Within 5 minutes of reading you reply today, i paid back my pending education loan and also formally mailed the bank to close my loan account and update status with cibil. that settles point b.

Regarding point a) i have already started using debit card for all online transactions. Will use credit card only at places where there are some discounts like movie-ticket-free, 5% cash back etc. Even then will take care to keep paying back the balance amount every week or so.

Point c, i have some confusion.
Will opening a credit card against FD help me in improving my score? or will it just keep my score neutral? Although i myself asked you this question in the first place, i have some confusion now.

I have two credit cards and two Atm cum debit cards. For the last 1 week or so i have started using debit card for all online and offline transactions.
Will taking a FD based credit card help improve my score in such a situation?
If yes, then how?
Also, in that case, should i surrender one of my two current credit cards considering that i will have 3 credit cards. (have read at a few places that you shouldnt have more than 2 credit cards)

Eagerly waiting for your reply,



Shiv Kukreja February 23, 2013 at 9:05 PM

Hi Sameer,
c) Taking a credit card against your FD is considered a positive by the lenders, as this shows that your financial position is sound and the lenders are not at risk by extending you this credit facility.

Also, it is better to have lesser number of credit cards, but if you are paying back regularly without defaults then it doesnt make much difference to have 2 cards or 3 cards.


Sameer February 23, 2013 at 6:07 PM

Dear Shiv,

One last question.
Does Cibil score also check one’s salary and outstanding credit against that salary?
I am asking because the ” Employment Information- Income” section of my Cibil report, contains a salary which is 20% of my current salary. Probably Cibil got that figure from a credit card i had taken 7-8 years back. Have no clue but that is what i am guessing. or may be some tax return i had filed 5-6 years back.

Does it play a role in pulling down one’s cibil score? If yes, how do i ask get my current salary updated in the cibil database?



Shiv Kukreja February 23, 2013 at 9:16 PM

Yes, your income definitely affects your credit score. The higher your income is, the higher impact it would have on your credit score. You can get your income updated in the CIBIL records by asking the lender to enhance your credit limit on the basis of your current income. You can also do so by applying for a new credit facility.


Sameer February 23, 2013 at 9:38 PM

thanks a lot Shiv. So current salary does play a role.

But i cant get the lender to enhance my credit limit. the credit card company says that they cant do so with a cibil score of 684.

That is how i came to understand the importance of cibil score in the first place.

How can i make Cibil update my salary in their records? should i mail them directly with my last 3 months salary slip/IT Return form?
Is there any other way?


Shiv Kukreja February 24, 2013 at 12:09 AM

The problem is that CIBIL makes changes in your report only when the lender reports it. So, you will have to route it through any of the lenders, either the existing one or a new.


Sameer February 24, 2013 at 1:50 AM

Got it.
will talk to my current card company and see if they can get it updated

Thanks for the trouble taken in answering all my queries.


Shiv Kukreja February 24, 2013 at 5:47 PM

You are welcome!


Thitherwards February 23, 2013 at 8:50 PM

CIBIL Reported Someone Else’s Credit Card In My Credit Report!!

What an irresponsible organization it is, seriously and how lethargic are their services. They have reported someone else’s credit card default in my report, due to which I had to go through a lot of pain, loan application denials and very much of a loss by taking loans elsewhere with higher interest rates.

The details are provided here, with email exchanges between CIBIL and I.

Please go through this and share it with all public, however & wherever possible.


venkat March 17, 2013 at 11:32 PM


i have HDFC ,HSBC and AXIS bank CC. in 2008 i lost my 3 cards and i have settled for HDFC and HSBC and AXIS not issued card again. so far no one is approached me for these 2 banks. for HSBC i have personal loan and i have cleared it now. looking for HL in next year.. what are the chances


Shiv Kukreja March 18, 2013 at 12:05 PM

Hi Venkat… It is very difficult to comment based on these info. Buy your CIBIL report online, check your credit score and get your report analysed to get answers to your queries.


venkat March 19, 2013 at 12:38 AM

MY CIBIL score is 603 and HSBC CC status closed.. HDFC status settled.. Axis bank CC write off.. showing ou standing 100500, over deu 47K.. rest are looks fine.


Shiv Kukreja March 19, 2013 at 12:45 AM

Based on this info, your chances of getting a home loan are not bright, but you can still try with a low loan-to-value ratio.


venkat March 22, 2013 at 1:07 AM

Thanks shiv.. ihave taken FD from ICICI and applied for CC on FD.. with this if i maintain the CC properly will my score improves? in 2012-04 score is 606 and 2013-03 score 603 .. no change.. what is the chance of getting CC?


Shiv Kukreja March 22, 2013 at 10:12 PM

Hi Venkat… It is like “If I eat food, will it reduce my hunger?” The answer cannot be ‘No’. If you pay your credit card bills on time, it is bound to improve your credit score.

Also, your chances of getting a CC depends on the issuer bank only whether it is comfortable issuing you a card based on your credit history or not.


SAMIR KUKREJA March 18, 2013 at 7:28 PM

hi sir,
7 mnths back my credit score was 779….and i am paying all my emis regularly…
just a couple of months back, i had applied and recieved a credit card and also applied and recvd a housing loan… but i just observed my cibil score and it has fallen to 768….
but my query is that i am paying all the emis regularly.. then y has it fallen down by 11 points.
fyi my credit card limit is 60,000 and my highest credit used was 49,000 ..but i had paid it as soon as i recvd the bill i.e before the due date…(all emis are being paid on time…)
my query is y did it fell down by 11 points? i would be grateful if you can tell me…as i was expecting my cibil to increase…


Shiv Kukreja March 18, 2013 at 11:47 PM

Hi Samir,
Credit score is a reflection of one’s credit usage and loan repayment behaviour. In your case, the loan repayment behaviour is fine but the credit usage has gone up since you last checked your score to be 779 i.e. you have taken a home loan and a credit card since then. That is why it has fallen to 768. You need not worry about it. Just keep paying the EMIs & credit card payments regularly and the score will start rising gradually.


SAMIR KUKREJA March 18, 2013 at 7:32 PM

also one more query, sir my DPD shows mostly 000 and STD at times and also in between once XXX …what does it mean? i would be grateful if u can letmeknow the same


Shiv Kukreja March 18, 2013 at 11:56 PM

Just check this post to understand more about your credit report:

DPD stands for Days Past Due and suggests the number of days a due payment was late, after the due date of payment.
DPD as 000 – Payments made on time.
DPD as XXX – Not reported by the lender(s).
DPD as STD – Payments made within 90 days after the due date.


BHUPESH AHUJA March 20, 2013 at 5:10 PM

Hi Shiv / Gaurav, I have been using a lot CC’s for past couple of years. The oldest of all was CITIBANK. I got the entire outstanding “RESTRUCTURED”. It was converted into EMI’s for 47 months. Last year(2012) I had to stop the payments as I was moving to a different city. Payments were stopped from May 2012. Now, recently I had applied for a Home loan and I had a word with the Credit Manager of the respective Home Loan Bank. They refused the loan. Primary borrower was my wife and I was the secondary or joint borrower. There are few things I want to clarify:
1. My Transunion Score as on 31/03/2011 was 601. Will this loan application have any negative impact on my wife’s track record in CIBIL. I am not sure if this bank has uploaded this enquiry in CIBIL stating that it has been rejected.
2. I have contacted CITIBANK to clear all the dues as soon as possible. So that I can try for a home loan again. What would be your recommendation?
3. I need to apply for a home loan, please suggest some measures which can help me in getting the home loan successfully.


BHUPESH AHUJA March 22, 2013 at 9:17 PM

Hi Shiv,

Your reply will be highly appreciable..


Shiv Kukreja March 22, 2013 at 9:54 PM

Hi Bhupesh,

1) I dont think it will have any major negative impact on your wife’s credit history, but an enquiry for a loan will definitely get captured in her credit report.
2) It is always better to get your credit report clean as soon as possible. It will help you improve your credit score gradually.
3) If your wife is earning and her credit history is clean, then apply for a home loan in her name. You may consult a financial advisor to analyse your case.


suman March 21, 2013 at 10:26 PM

Hi Shiv/Gaurav.

I have a cibil trans union score of 797

I have improved it over last 2 yrs and I had a “writen off” status with a citi bank CC where I couldnt pay them in time coz of financial issues that time..But I myself contacted them and paid fully all the dues…I mean all single paise.
Still they are using “writenn off” status.
can we do something here? can we ask citi or cibil to take it off to show my report more clean!
would it create an issue while applying a home loan?
pl advice me…many thanks.


Shiv Kukreja March 28, 2013 at 12:15 AM

Hi Suman,

Please check this post:

You can get your CIBIL report rectified by Citibank by following the procedure mentioned in the article. You have all the rights to get your report rectified and it will not create any issue while applying for a home loan.


Vikash agarwal March 25, 2013 at 4:54 PM

I had taken a cibil report and found that when i applied for personal loan from ICICI Bank online.No one ever contacted me for collecting any document but an inquiry in CIBIL was carried out by ICICI Bank. Is it justified act from Bank’s end ? or shall i initiate legal proceedings against bank.


Shiv Kukreja March 28, 2013 at 12:30 AM

Hi Vikash,
If ICICI Bank has any genuine proof that you only applied for a personal loan online, then they are justified in raising the enquiry and you have no case to initiate any kind of legal proceedings against the bank. It is just an initial check point. Physical documentation is required once the bank is satisfied about your credit history and wants you to go ahead for the loan application.


Jaya March 28, 2013 at 1:49 PM

Hi Credit Score is 624 as of today earlier it was 595. I had a written off status on my CIBIL report which I had cleared off by paying the total amount due. I have received the NOC from the bank. Please let me know the banks in chennai which will be able to offer my personal loans. Also let me know if I can use the NOC to further increase the points or if I can use the NOC to get loans from banks.


Shiv Kukreja April 15, 2013 at 3:00 PM

Hi Jaya… Please buy your CIBIL credit report online and check whether it still carries the written-off status. If yes, you can get it rectified by raising CIBIL dispute resolution request with NOC as the proof. Please check this post:

You will have to check it yourself which banks in Chennai would offer you personal loans based on your profile and credit history.


arjun sharda April 12, 2013 at 11:16 PM

Dear shiv I took two wheeler loan from icici bank dated 19/10/2006 which I have settled on 28/2/2013 & bank has given me NOC . now in my cibil report it show settled , DPD also reflect ooo with 36 months report ,I contecte icici bank coustomer care regarding the matter they suggested me that pay waiver amount to remove ‘settled ‘ tag but they can’t remove DPD portion of report, they also suggest me go for theircredit builder programme. my cibil score is 613 I do not have any Loan at present. Now suggest me how I can improve cibil score.


Shiv Kukreja April 15, 2013 at 3:08 PM

Hi Arjun… DPD is a factual information of your credit report and no lender can get it removed from the report. You can improve your score by paying off the whole of the outstanding balance ICICI Bank is demanding. Also, a good credit history itself is the best way to improve your CIBIL score.


arjun sharda April 18, 2013 at 12:47 AM

dear sir if i pay waiver amount to bank is my cibil score improve ? suggest me other way to improve cibil score.


Shiv Kukreja April 18, 2013 at 10:25 AM

Yes, paying the whole of the outstanding balance will gradually improve your CIBIL score. Please check this post to find ways to improve your score:


Gopal Saran Srivastava April 25, 2013 at 1:13 PM

I hv come to know tht my name is included in cibil(negative list) but I hv no information on which company’s / Bank oustanding at me , pl confirm.


Shiv Kukreja April 25, 2013 at 7:31 PM

Hi Mr. Gopal… Please buy your CIBIL credit report online and you’ll get to know yourself what all is there in your report.


Navin Kumar May 6, 2013 at 12:32 AM

Dear Shiv,

we all know of various agencies like CIBIL, TransUnion etc. where every individual’s records is kept that whether that individual is a defaulter or a person with healthy credit.

My question to you and all people on this blog is that is there a place where people or some 3rd party website which maintains a record of the lender ?

Say comments like these and ratings are recorded for the lenders. For e.g. : Citibank is a good lender and has fair practices, ICICI and Bajaj Finserv have goon armies to recover debts irrespective of your personal problems they will threaten to recover their dues.

The reason I am asking that is that a person looking for loans could review such a report before applying to get a loan/financial aid !

Your enlightenment and response shall be much appreciated !



Navin Kumar May 6, 2013 at 11:52 AM

Hence, by asking this question I mean to ask in layman’s terms that is there a 3rd party organization which maintains the scores of Lenders/Banks/NBFIs etc. A history and score and the fair practices code which could give an insight view to a loan-seeker that to whom to approach to get loans/financial aid or assistance. As, the sort of trend which is prevailing, seems to be a one-sided way. That irrespective of any reason, any lender/banker or financial institution can blacklist a person and hence, can render a person helpless incase of real time emergency situation wherein a person might be looking out for a loan or financial help for home for family or for medical emergencies and NOBODY would extend a supportive hand, just because some banker has had marked him/her down on CIBIL score for any XYZ reason. The reason I have asked this is that I have faced this situation for none of my fault and that the concerned bank does NOT want to correct/rectify it’s report sent to CIBIL, despite the fact that I have cleared all the dues with that bank’s credit cards honestly. Moreover, I have been caught up with family emergencies and hence have not been able to take out time to approach Consumer Court or the Civil law-suite for their reluctance to get this addressed altogether.


Shiv Kukreja May 15, 2013 at 12:31 AM

Hi Navin… I can understand your concerns here and I’m afraid I dont know any such agency to the best of my knowledge, which maintains such data for the lenders. I dont know what reasoning your lender has in not rectifying its reporting to CIBIL in your case and whether you’ve tried the CIBIL’s Dispute Resolution process or not, but I think & hope that approaching the Banking Ombudsman or a consumer court should help you out. I know this is not a world for people like us, but we cant change the whole system and can only pray to the God to improve things around.


Suresh May 6, 2013 at 2:01 PM

Looking for Home loan. How much i can get?
My CIBIL score is 500 and my monthly EMI is 20,000. My monthly earning is 80,000.
My credit card due across cards is 250,000.


Shiv Kukreja May 15, 2013 at 12:35 AM

Please check your home loan eligibilty with the lenders Mr. Suresh, we are not competent enough to do that. Thanks!


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