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Old 3rd December 2008, 15:26   #61
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Originally Posted by sam003 View Post
Strange, but check with your bank why they did that. Generally they do this if you are not using your card for long, then only they reduce your credit limit but in in situation like yours where you are regularly using it. It can be mistake too, check with your Bank.
Infact, I received a similar SMS from HDFC as well. They all are playing safe.
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Old 3rd December 2008, 17:35   #62
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I have a query, If a person's name is reflecting in the CIBIL list, won't all banks be rejecting his loan application? Or one bank will lend and other won't.
Two things:

1. Practically everybody's name would be in CIBIL, its not a black list. However, each person has a score from 100 to 900 (higher is better). And this score is part of decision making process. CIBIL also makes ALL loan + payment history available on-demand to banks. This is called a "pull"

2. Banks would use

CIBIL score + internal system ranking + some discretion of employees

To make a decision. So even if someone's CIBIL score is low, banks can give loans / cards if that person has valuable relationship with bank (E.g. salary account / FD / investments )

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Originally Posted by ntomer View Post
I have a Deutsche Bank credit card, which previous had credit limit of 1.75 lakhs.... limit has been reduced to 29K. Looks like banks are playing at very safe right now.
Banks are pruning limits, but this reduction is too sharp. If you have some contact, check your credit report.

Last edited by NetfreakBombay : 3rd December 2008 at 17:38.
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Old 3rd December 2008, 17:51   #63
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As long as one is paying up the dues to the bank on time. I dont think there will be any problem.

I have a banking relationship with Stanchart, DB, ICICI.

They cal me almost every week asking me to increase my credit limit & offering loans.
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Old 3rd December 2008, 18:07   #64
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As this topic is veering towards the Credit Rating kind of a thing, on what position ( better or worse ) is a person who does not own a single credit card and does not have any loans at present?
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Old 3rd December 2008, 18:19   #65
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Originally Posted by manaa45 View Post
A person who does not own a single credit card and does not have any loans at present?
In that case, CIBIL wold have default score for such person.

Basically, anyone with PAN would have such profile even if no loan has been taken in last 7 years.

I so want to be such a person... hope I will pay off my home loan in few years.



PS : Just noticed, Home loan rates are now down to 8.75

Bank of India

Last edited by NetfreakBombay : 3rd December 2008 at 18:21.
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Old 3rd December 2008, 18:24   #66
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Originally Posted by NetfreakBombay View Post
In that case, CIBIL wold have default score for such person.
Is there any way to find out your individual Credit Rating from agency like CIBIL ?


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Originally Posted by NetfreakBombay View Post
I so want to be such a person... hope I will pay off my home loan in few years.
thankfully I am one such person as i have managed to clear off all the loans and I dont have a single Credit Card.
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Old 3rd December 2008, 18:29   #67
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Originally Posted by manaa45 View Post
As this topic is veering towards the Credit Rating kind of a thing, on what position ( better or worse ) is a person who does not own a single credit card and does not have any loans at present?
Mansi - it would be my pleasure to meet such a person and take tips Seriously, I would think its pretty good financial planning if an individual can survive well enough without depending on credit cards and loans in today's world!

They have become 'necessary evils' - much like cellphones in the present scenario.

EDIT - Just curious to know how you manage to book air tickets, movie tickets and such other routine stuff like bill payment etc? Are you still using cash and cheques (or debit card?) for these transactions?

Last edited by nishantgandhi : 3rd December 2008 at 18:31.
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Old 3rd December 2008, 18:40   #68
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Mansi - it would be my pleasure to meet such a person and take tips
Anytime. Always ready to give free tips like banks ready to give free Credit cards.

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Originally Posted by nishantgandhi View Post
EDIT - Just curious to know how you manage to book air tickets, movie tickets and such other routine stuff like bill payment etc? Are you still using cash and cheques (or debit card?) for these transactions?
Air Tickets through the agent or many airlines do have a option of Net Banking too.

Movie tickets - telebooking or go there personally to buy them. Though have faced this problem of online booking for want of a credit card.

I use my net banking extensively so many bills get paid through it. For shopping my debit card comes handy. I strongly beleive in spending only from what I have.

Last edited by manaa45 : 3rd December 2008 at 18:42.
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Old 3rd December 2008, 18:42   #69
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thankfully I am one such person as i have managed to clear off all the loans and I dont have a single Credit Card.
If any of those loans were "alive" in last 7 years, then you should have a pretty healthy score.

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Originally Posted by manaa45 View Post
Is there any way to find out your individual Credit Rating from agency like CIBIL ?
No.

However, your bank can get it on your behalf.

Last edited by NetfreakBombay : 3rd December 2008 at 18:44.
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Old 3rd December 2008, 18:43   #70
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If any of those loans were "alive" in last 7 years, then you should have a pretty healthy score.
Yes, they were very much alive before I managed to kill them one by one.
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Old 3rd December 2008, 18:46   #71
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IMHO you need not worry about CIBIL at all if you closed all your loans and that shows up in your report. It would be near highest scores.

And that would be the case for 7 years since closure of last loan (at least).
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Old 3rd December 2008, 22:30   #72
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Originally Posted by NetfreakBombay View Post
IMHO you need not worry about CIBIL at all if you closed all your loans and that shows up in your report. It would be near highest scores.

And that would be the case for 7 years since closure of last loan (at least).
As far as I know the scores remain for 7 years isn't it?

I have an excellent relationship (Credit card) with DB and have not defaulted any payments/cheques/etc etc or delayed any payments for any other banks in the last 2-3 years. Prior to that I was a student. However, DB refused to give me loan stating that my name is reflecting in the CIBIL list. I am now thinking, when HDFC is giving me the loan why not DB? I am sure both the banks pull the data from CIBIL. Also, how come my score is Low on CIBIL when I haven't defaulted on any of the payments.

I am missing my HSBC top-up loan at this moment
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Old 4th December 2008, 01:08   #73
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I'm another of those who don't believe in using money I don't have, to buy stuff I don't really need. Despite working in the media industry in Bombay for 12 years, I don't have a credit card either. I have two ATM-cum-debit cards though, and even that's more than what I need.

I've been following the LCD TV discussion on this forum, but I shan't be buying one till I feel I can pay for it upfront without hurting my monthly finances. The only loan I've ever taken is a 15-year home loan of Rs 15 lakh from ICICI bank, but I've managed to pay that off in just under five years. I hope this will reflect positively on my CIBIL rating, whatever that is.

My wedding function in 2001 cost Rs 75K, including hall, food, invites, accommodation and transport. It helped that the number of guests from my side totalled to about 30, including immediate family, friends and a few colleagues. My wife and I paid for it ourselves. I was all for a registered marriage, but she had other plans -- it's her first wedding, she said. Anyway, we managed without a loan, though I believe she "broke" a fixed deposit.

I'm amazed and a bit aghast at how people can so easily buy stuff on credit. I can't bring myself to buy even a vehicle on a loan -- I bought a second-hand car last year by paying for it upfront, even if it meant a bit of skimping and saving. I suppose I belong to the old, use-it-till-it's-broke school, so it looks as if I'll have to make do with my 21" CRT TV for a while longer...
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Old 4th December 2008, 08:47   #74
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However, DB refused to give me loan stating that my name is reflecting in the CIBIL list.
You are entitled to a copy of report from DB. Though you might need to raise that demand in written and play "email-trail" game. DB might end up charging 2 - 300 Rs for that.

Quote:
Originally Posted by amtak View Post
I am now thinking, when HDFC is giving me the loan why not DB? I am sure both the banks pull the data from CIBIL.
Two things:

1. In India, HDFC is in a much better liquidity situation as compared to DB. It has bigger deposit base. So, it would be willing to give loan to customers with higher risk profile.

2. CIBIL score is just on of criteria. Banks use other criteria as well. E.g. which area do you stay? What is your profession? Which sector you work for? For example : Now a days, banks would probably stay clear of someone working in Real Estate companies even if there is some iota of doubt.

Quote:
Originally Posted by amtak View Post
Also, how come my score is Low on CIBIL when I haven't defaulted on any of the payments.
I don't think your CIBIL score would be low if you have made all payments on time.




Quote:
Originally Posted by Edsel Rulez! View Post
I don't have a credit card either. I have two ATM-cum-debit cards though, and even that's more than what I need.
IMHO you should stop using debit cards for anything other then as a ATM card. Get a credit card for transactions (online or otherwise). Of course never use credit card to get "credit" and pay in full.

In India, Debit cards are not insured against fraud. So if you use it in some restaurant/hypermarket and waiter decides to make a copy of your debit card then he has access to your bank account.

With credit card, you can raise a chargeback. With debit cards your money would be gone and you will have to fight with banks to get it back.

Last edited by NetfreakBombay : 4th December 2008 at 08:54.
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Old 4th December 2008, 08:52   #75
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Originally Posted by NetfreakBombay View Post
You are entitled to a copy of report from DB. Though you might need to raise that demand in written and play "email-trail" game. DB might end up charging 2 - 300 Rs for that.



Two things:

1. In India, HDFC is in a much better liquidity situation as compared to DB. It has bigger deposit base. So, it would be willing to give loan to customers with higher risk profile.

2. CIBIL score is just on of criteria. Banks use other criteria as well. E.g. which area do you stay? What is your profession? Which sector you work for? For example : Now a days, banks would probably stay clear of someone working in Real Estate companies even if there is some iota of doubt.



I don't think your CIBIL score would be low if you have made all payments on time.
Thanks a lot Netfreak. I am now going to fight a "war" with DB on this. I guess its the area where I live in is the culprit. My area is the negative area but my locality isn't. Still this is happening. Second reason could be the company i work for is relatively unknown and in Financial research domain. The banks are scared to issue any loans to people working for such companies!
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