[Balaji31582]

When I applied for the Car Loan in 2011 November, I was told by ICICI that there is an outstanding loan that I might need to pay for SBI. I have never taken any loan except home loan (this is also from SBI). But ICICI went ahead and sanctioned the loan as the score was 800+ and I have my credit card and salary account with them, which should have helped them to assess my credibility. Later I applied online to get the CIBIL score and saw that many entries were wrong with respect to my address, email address, Phone numbers and bank account. I raised the dispute and got all of them cleared. I think I should thank my stars. But the problem was that I don't get the updated score sheet. I need to again apply it online. Why in the first place it was wrong and to get it corrected why is that I am asked to apply again after dispute resolution?

[SafeDrive]

I had some issues with CIBIL too. My name was clubbed along with my dads name thus making it a very long name . In addition, my car loan with SBI that was closed a few years back was still shown as open. I was able to get the first one cleared but the second one is still pending - over a year after I complained.

[hellmet]

Well, thanks to the OP for bringing this to light. I had never imagined Indian banks had started to take CIBIL credit score seriously. I'm also not happy that all my personal information is out there for employees of all banks to see.

This will be another reason (I now have a huge list of reasons) why I will never in my right mind go and take out a loan ever again (had two loans that are now closed, thankfully).

I will also be cutting away my credit card as soon as I build a stash of equivalent amount.

I just wish we would have in India online lending websites like Zopa or Lending Club that would lend money to people regardless of credit score, and thus bypassing the mainstream banking system.

I don't think Aadhar will fix anything as there have been several lakhs of fake IDs floating around. It will only end up as another card in your wallet (not my wallet, I will not be signing up for that dumb piece of plastic).

Dear OP, may I suggest that if the car isn't an urgent purchase, you put off the purchase until you build enough cash store to buy a used car outright and not waste your precious life roaming around banks and dealing with foolish people? Take this as a sign that the car wasn't meant for you (if you believe in such things).

Or maybe buy a Nano and make Tata happy (not being serious).

[vindrider2626]

The organisation cibil ought to be scrapped in my view.We often here banks being duped of several crores of rupees by people in collusion with bank officials,but they refuse loans to genuine customers because of faulty cibil reports.In my case an amount of 650 rs is shown as not settled which was actually paid by me through their collection agent and which was not updated by the institution which was bajaj auto finance.After six months one of their collection managers called me to repay that again and an altercation followed between him .I refused to pay since i had already paid that and it was six months since that loan got closed.The guy entered that report as not settled in cibil and later on when i went for a car loan it was rejected citing this report .I have not taken pains to clear that because i dont intend to take loans again from these banks which is always a losing proposition for us.

[YVES]

CIBIL is for nailing Honest Income Tax payers , not for corporates like Vijay Mallya and other who have CDR sanctioned by passing buck under table to these bankers

[NMS]

CIBIL has all the information about you, and more ! I remember when I was applying for a home loan, the Bank manager could also find out that I had 20 failed Credit card application <Sheepish Grin> We all make mistakes when we are young And CIBIL catches all of them so that the Banks charge us higher rates of interest.

There is a good article I had read on Rediff about how the CIBIL score is calculated. Hope this can be of help to fellow members:

http://www.rediff.com/getahead/slide...20130417.htm#1

[su1978]

After reading all the posts, here is my take on this. In the year 2009, i had applied for a car loan thru ICICI bank, but my loan was rejected saying that i already have a housing loan of 35 lakhs and 85 Lakhs on me. Was really flabbergasted by this report, wheras, i had never taken a housing loan. I immediately sought a report from CIBIL and found it to be false. After that i again applied for a loan from HDFC bank and it got approved instantly and i was offered the car very next day.

Now my simple question to ICICI bank was that if i have taken a housing loan then, please show me that house, i will be more than happy to dispose it off and buy myself an Audi R8. or else i will start living in that house. Second question was that, how come is it that i do not have any such loan reflecting in my CIBIL report and the same is reflecting in ICICI bank report. Do we have parallel CIBIL organizations running or it was just a gimmick to charge more rate of interest from a customer. Thirdly, how come is it possible that HDFC finances the same loan for the same car and ICICI bank sees issues in it?

Even wrote to Ms chanda kochhar thru the customer service guys but believe that the customer service guys are paid just to hear the abuses from the customers and say "thanks for calling XXXXX bank, Have a nice day" at the end of the call.

My take on this entire episode was that i have started boycotting ICICI bank for even minor transactions and ensure that nobody in my family does so. Secondly, i ensure that at least once every two years, i take a report from CIBIL so that i do not have issues when i really need a loan.

Regarding CIBIL, the way they manage things and reports, gives food for thought that this is run by some reliance group company.

[Raccoon]

So CIBIL screws up regularly, inadvertently or otherwise and gets rewarded for doing it by way customers wanting to frequently buy it's reports at almost 500 bucks each time.

scam!

[nkishore_007]

There is no doubt that CIBIL rating system is controversial ones. IF you ahev 11 Credit cards and decide to do away with few of them, it affects the CIBIL score. Why? Only CIBIL knows and God knows. A CC with no outstanding balance should NOT affect the CIBIL scores in any way.
Apparently, I feel they (RBI) needs a skilled resource to prepare a document on the loose ends to devise the rules that are prevalent today.
For the benefit of those who do not know, any rejection from banks on loands/CC is questionable by the applicant. Banking institutions are supposed to inform why their application got rejected. It had happened to my wife's credit card application (she did not have a CC before). Upon probing, the CC arrived within one week of "the denial" itself.
So the moral of the story is to be aware of the facts (not that I am stating that you did not think about it).
Cheers !

[shivasi]

kingjulian...
I hope you have got the other Credit Cards blocked. Also, CIBIL gives you the history of all the Credit Cards you ever had including expired, upgraded, lost cards. So I hope the other cards are not your old ones that got expired/blocked and new ones were issued.

If not the case, I highly recommend you to investigate how the other 11 credit cards were issued. Go to your local bank branch, speak to the Manager and ask them to show the proof that was submitted to issue you a Credit Card. It seems that your personal information has been compromised (most likely PAN card). This will happen in the future too if you don't take action now. If they fail to help, inform them that you will go to the police and take legal action (I don't think it will be required).
CIBIL is one of the parameters that the banks uses when issuing loans. There are others parameters like mentioned earlier in the thread. A good score ensures that you can bargain for better ROI, waiver/ reduction in processing fees.
I pull my CIBIL score once in a year to ensure things are reported correctly. They even have an online facility wherein the details will be sent over email.

[aniketvu]

Originally Posted by nkishore_007

IF you ahev 11 Credit cards and decide to do away with few of them, it affects the CIBIL score. Why? Only CIBIL knows and God knows. A CC with no outstanding balance should NOT affect the CIBIL scores in any way.

This is something that I read about. Apparently, closing out a credit card reduces the total amount of credit available to you. In doing so, the credit limit in use percentage goes up thus reducing your score. Eg: I have 3 cards with 1L limit each. On two cards, I have 50k balance each. Thus total credit used = 100/300 = 0.33 utilisation. Now I cancel the card with zero balance. Credit Utilisation is now 100/200 = 50%. This leads to negative outlook on your score.

[nkishore_007]

Originally Posted by aniketvu

This is something that I read about. Apparently, closing out a credit card reduces the total amount of credit available to you. In doing so, the credit limit in use percentage goes up thus reducing your score. Eg: I have 3 cards with 1L limit each. On two cards, I have 50k balance each. Thus total credit used = 100/300 = 0.33 utilisation. Now I cancel the card with zero balance. Credit Utilisation is now 100/200 = 50%. This leads to negative outlook on your score.

Thanks. It does make sense.
However things purchased over a CC is "borrowed" money, which the owner of the card must pay within the due dates. "Borrowed" money is what should affect the CIBIL rating. If there is no borrowed money, thing should remain the way it is. After all, if my buying potential is inflated by 8-10 lakhs only because I possess few credit cards, the whole setup seems based on wrong assumptions. Well it is my way of thinking, need not be what it should be. But things simply just do not fall into place (at least for me).

[Raccoon]

^^^Dosen't fall into place for me either. I got my 1st card, and strangely the credit limit given by HDFC is quite low. Now with this low credit limit, the credit utilization is obviously going to be very high. Now does that mean that I am likely to default anytime? In fact, the opposite is true!

The whole thing seems to be based on some really wonky logic. Nuts!

[NetfreakBombay]

Originally Posted by nkishore_007

"Borrowed" money is what should affect the CIBIL rating. If there is no borrowed money, thing should remain the way it is. After all, if my buying potential is inflated by 8-10 lakhs only because I possess few credit cards

Two things:

1. This aspect has a minor impact on score. Unless someone is on a threshold (Say 650) for a particular bank, this would not impact credit decisions.
2. This criteria is not for "potential to default". This is to safeguard the bank if someone does get hit by hard times. If someone has "unsecured" lines of credit (E.g. Credit Cards, OD etc), he/she could drain out that line of credit and might not be able to pay back.

[shivasi]

CIBIL is a reality and here to stay. So we might have complains and all, but it still stays. So the only option is to improve your score. I quote the the below as mentioned on the CIBIL site:
How do you improve your credit history?
Rule 1: Always pay your bills on time. Late payments are viewed negatively by Loan providers and may affect the chances of your loan getting approved.
•Rule 2: Keep your balances low. While the balances on your loans will only reduce over time as payments are made, you must be diligent about making timely payments on your credit cards. Also, you should control your utilization. For example, if you have used Rs. 90,000 out of a credit limit of Rs. 1,00,000, this may be viewed negatively by a Loan provider. It’s always prudent to not use too much credit.
•Rule 3: Maintain a healthy mix of credit. Your credit history should contain a mix of a home loan, auto loan and a couple of credit cards. A high number of just credit cards may affect the chances of a loan approval. Why is it so, you may wonder. Although a credit card offers easy access to finance, it’s also by far the most expensive form of credit. More the number of credit cards with high utilization, larger are the payments resulting from its high rate of interest.
•Rule 4: Apply for new credit in moderation. If you have made many applications for loans, or have recently been sanctioned new credit facilities, a Loan provider is likely to view your application with caution. This ‘Credit Hungry’ behaviour indicates your debt burden is likely to, or has increased and you are less capable of honouring any additional debt.
•Rule 5: Think twice before closing credit card accounts. While, using credit cards may negatively impact your credit history, unused credit cards actually imply that you are financially secure. This makes Loan providers view your application more favourably.
•Rule 6: Monitor your co-signed and joint accounts monthly. In co-signed or jointly held accounts, you are held equally liable for missed payments. This is extremely important because your joint holder’s negligence could affect your ability to access credit when you need it.
•Rule 7: Review your credit history frequently throughout the year. Unpleasant surprises in the form of rejected loan applications can be avoided by ensuring that your CREDIT REPORT accurately reflects your current financial status. So reviewing your credit history 3-4 times each year is imperative.

Though these general rules are important to keep in mind, each loan provider has its own policies to sanction a loan to an applicant.

The last time I checked I had a healthly score. If I check the Rules above I have followed most if not all.