My Question is related to CIBIL score which is a mystery for so many of us till date. I have been chasing my CIBIL Score since 4 years now and understands the technique of CIBIL and significance of Score to Financial Institutions while taking decisions.
The problem I am facing is that i had delayed few EMIs from 2009 and the DPD went to 365 days in 2 personal loans and in few credit cards also. I realized later that my CIBIL score came down to 354 due to this mess. Though this was not intentional and I had some genuine financial issues hence it was bound to happen.
Things got stabled in a year however by that time my CIBIL score was badly damaged. In 2012 and 2013 i paid full amount to respective lenders (without asking for any waiver or settlement) and received NOCs of full payment made including their late fees, Interest etc. Most of the people think that it is default however none of the penny was written off and I made full payments.
Since then I have been trying to improve my CIBIL score by keeping one of my Credit card active and making timely payments to that. Now till 2014 Dec, my CIBIL Score reached to 627 and I opted for Housing loan from Can Fin Homes of Rs. 36 Lakh. They approved considering the fact that the payments were delayed by me in previous years however I did not do any settlement which they found as positive.
Correct me if I am wrong : Your CIBIL report should be a mix of secured and unsecured loans to have a healthy credit portfolio. Hence, I thought once my secured loan will be reported to CIBIL my score will automatically improve. But I failed because Can FIN did not report my account to CIBIL despite I am paying regular EMIs to them. It took me 7 months of efforts to ensure they report it to CIBIL and get this updated. They have done it but as per them, CIBIL has got huge work backlog and they updated the payment history till Feb only. Waiting for them to update the complete payment track of last 7 months.
After the home loan was reported, my score reached to 706.
Now the issue is that the score is stucked on 706 since 2 months and don’t understand how should i take to 800+. I am making regular EMI payment to home loan lender and one of my credit card lender since so many months but still its stucked.
Look forward for your suggestion, how the score can go to 800+ level. The reason i am desperately looking for this to improve is that I need a PL and unable to get a Personal loan on 706 score.
Looking forward for your suggestions.
Smarth-Great to know about your sharing and the struggle you did for improving your score. Please let me know what reasons they quoted as a rejection when you applied for PL. There are many reasons for loan rejections. Few of them may be your Debt to Income ratio or even not updating the past credit history by CIBIL. The only thing that is in your hand is to pay the existing EMIs regularly and wait for next update of CIBIL. Also, you almost near to reach the mark of 750 (which considered as a good score).