On one hand they call us voluntarily for credit cards and pre approved loans, they give us rewards points and all other sort of carrots to spend as much as we can on our credit cards. And on the other hand there are gimmicks like credit score. What is the problem with the banks if I am using my whole credit limit? As long as I am paying all my dues on time it should be none of their business to keep track of how much am I spending.
Re: All these financial instituition are cheating common man.
by Amitabh on Mar 12, 2013 02:05 PM
It is important. Credit score does not only mean how diligent you are now financially but it also takes into account your ability to repay any fresh loans that you take. If you are spending all your disposable income now, it means that you will find it hard to repay any further loan that you take. So banks are justified in looking at this aspect.
I have been using credit cards since 2003.I had a personal loan and a 2 wheeler loan. All the payments were done without any late payments.But the company did not update this info in their accounts. Subsequently CIBIL showed that my payments were not done.As a result I had my home loan application rejected by ICICI, AXIS and HDFC.I also had the settlement statements for both loans but to no success.
Re: CIBIL does not provide the correct score
by siddharth jadhav on Mar 11, 2013 10:35 PM
During the same tenure I tried to apply for a personal loan. It so happened that i applied in 2 different banks and both of them rejected my application.This is taken into consideration will calculating one's CIBIL score.So more negative points wre added to my score.I look forward to have a fool proof scoring system from CIBIL where in the average person should be benefitted.