Hi All,
I'm not sure if all of you know, that I'm in process of constructing a new house in Chennai. The completion date is likely to be 6 months from now. For this i have applied housing loans in many banks and i might select the best one that suits me. As per my knowledge all my bank accounts are in clear track and there are no late payments or bounces. However considering 5 years of statement of Accounts, there could be 1 or 2 bounces at the max which is likely to happen; since we all depend on our monthly wages.
Are you all aware of CIBIL. Those who are working for financial sectors, surely might know this term. It is nothing but "Credit Information Bureau". To say in IT technical terms, it is nothing but a large database which has all required information related to a personnel on his financial side. Lets say a person X has three accounts in three different banks and 10 credit cards, all his accounts are streamlined to the CIBIL database. The purpose in doing so is to evaluate if the person X is credit worthier or not. Any bounces, late payments, cheque stoppage due to uncertain reasons will all be accounted in the CIBIL database.
They have a rating score for each one of us. I heard that there must be a minimum of 780 score for an application to pass through the CIBIL's desk with a green signal. Well if it is less than 780, then it is completely banks discretion; whether or not to proceed the applicant's loan papers.
There is one such scenario that happened in my life. I'm not sure exactly sure about the Business logic's on how the CIBIL scoring works. I have been applying for a home loan and a bank's official told that it had a less CIBIL scoring. I asked them why?, when all my payments are up to date for which, i don't see any valid reasons for having my score low. In fact they should be high, since i was maintaining this account for more than 5 years, without any bounces or blah blah blah......
Just look at the reasons, what they gave to me:
I'm not sure if all of you know, that I'm in process of constructing a new house in Chennai. The completion date is likely to be 6 months from now. For this i have applied housing loans in many banks and i might select the best one that suits me. As per my knowledge all my bank accounts are in clear track and there are no late payments or bounces. However considering 5 years of statement of Accounts, there could be 1 or 2 bounces at the max which is likely to happen; since we all depend on our monthly wages.
Are you all aware of CIBIL. Those who are working for financial sectors, surely might know this term. It is nothing but "Credit Information Bureau". To say in IT technical terms, it is nothing but a large database which has all required information related to a personnel on his financial side. Lets say a person X has three accounts in three different banks and 10 credit cards, all his accounts are streamlined to the CIBIL database. The purpose in doing so is to evaluate if the person X is credit worthier or not. Any bounces, late payments, cheque stoppage due to uncertain reasons will all be accounted in the CIBIL database.
They have a rating score for each one of us. I heard that there must be a minimum of 780 score for an application to pass through the CIBIL's desk with a green signal. Well if it is less than 780, then it is completely banks discretion; whether or not to proceed the applicant's loan papers.
There is one such scenario that happened in my life. I'm not sure exactly sure about the Business logic's on how the CIBIL scoring works. I have been applying for a home loan and a bank's official told that it had a less CIBIL scoring. I asked them why?, when all my payments are up to date for which, i don't see any valid reasons for having my score low. In fact they should be high, since i was maintaining this account for more than 5 years, without any bounces or blah blah blah......
Just look at the reasons, what they gave to me:
- It looks like you have enquired about personal loans to many banks. Why did you do that Sir?
- You have availed two personal loans and closed them in 1 year; this is a foreclosure. Why did you do that, if you have sufficient money, what is necessary to take this loan?
- You have a write up on your credit card?
Did you all see the questions, How are these goof up questions to be answered. Answers from my end to the bank:
It is my wish that from which bank i have to avail the loan. I have enquired from various bank, since i see the interest dates differs a lot and i can choose who gives me the best.
Yes, i had two personal loans. I wanted to close them, since i had money at that time. Why the hell i should pay more interest for the rest of three years. What sort of stupid Q? is this.
Now this is really serious. A write up is actually, where a credit card gets closed by the bank, rather than the process of getting it initiated from your end. Though you have made the complete payments and if the card is not used for a longer point of time, the bank has the complete rights to have your account(credit card) freezed. This will give you all a low scoring.
Final conclusion to you all:
I know all of you will be having credit cards, Make sure you at least pay the minimum balance. If you want to go for a closure, please pay the complete payment and call up the customer care to take up the request for the closure of the card and have the card closed. You will have to follow up with the customer care executive, till your card is closed. Failing to do so will result in less CIBIL score, which could be a hindrance in getting loan from banks which can offer you less percent of interest.
That's all, i just wanted to share with you.
Learn and Live
Thanks and Regards,
Srini
It is my wish that from which bank i have to avail the loan. I have enquired from various bank, since i see the interest dates differs a lot and i can choose who gives me the best.
Yes, i had two personal loans. I wanted to close them, since i had money at that time. Why the hell i should pay more interest for the rest of three years. What sort of stupid Q? is this.
Now this is really serious. A write up is actually, where a credit card gets closed by the bank, rather than the process of getting it initiated from your end. Though you have made the complete payments and if the card is not used for a longer point of time, the bank has the complete rights to have your account(credit card) freezed. This will give you all a low scoring.
Final conclusion to you all:
I know all of you will be having credit cards, Make sure you at least pay the minimum balance. If you want to go for a closure, please pay the complete payment and call up the customer care to take up the request for the closure of the card and have the card closed. You will have to follow up with the customer care executive, till your card is closed. Failing to do so will result in less CIBIL score, which could be a hindrance in getting loan from banks which can offer you less percent of interest.
That's all, i just wanted to share with you.
Learn and Live
Thanks and Regards,
Srini
2 comments:
CIBIL Reported Someone Else's Credit Card In My Credit Report!!
What an irresponsible organization it is & how lethargic their services are, 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.
CIBIL & It's Lethargic Services...
Please go through this and share it with all public, however & wherever possible.
Nice one but paying minimum bill may also increase your credit score because the payments need to be done on time. If you pay minimum bill for more than 3 months then principle increases and actually amount that you pay will be considered as interest.
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