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Instances When Perfect Credit Score Does Not Matter

14-Feb-2018 written by : FSI-Team

Instances When Perfect Credit Score Does Not Matter

Credit score, credit report, credit bureau: These are the 3 words you come across while you are applying or planning to apply for the loans. So in brief, let’s know few basics of credit score.


  • Which are different credit bureaus in India?
  • TransUnion CIBIL, Equifax, Experian, CRIF HighMark

  • What is the range of credit score?
  • 300-900

  • What score is considered good?
  • 750+ is considered a good score

  • How is score calculated?
  • Depending on how regular you are in paying your credits of cards and loans, your outstanding balances, inquiries you make, your total age of the account and types of credit you have are the major factors on how your score is calculated.

  • How often should I check my score?
  • Minimum twice every year on should check the score.

  • What is a credit report?
  • A credit report is the score card of how responsible are you in making your payments.

  • What all details does it has?
  • A Credit report has all the personal details from your name, address, Mobile number, PAN card details, all you current and past accounts of the loan and credit cards you have, the outstanding balances, and the number of times you have made the inquiries.

These are the basic Questions which everyone gets regarding score, report and bureaus. Now, let us take few examples to understand this concept clearly.

Q: My salary is 48000 p.m. from 1 year. I have an auto loan, for which I am paying 8000 EMI per month on regular bases. My avg. credit card bill is 10000. I save 10000 per month as a combination of FD and mutual funds. My credit score is 782. My loan applications are rejected. Please help!

A: Check few of the factors like:

  • If there are any payment dues left from any of the old accounts. If so, Please clear them as soon as you can.
  • Have u signed any guarantor papers and the one who had actually take the loan is not paying the EMI? Talk to the person who has taken the loan, or speak with the bank regarding it.
  • Had the charges which were applied to you for any payment which you have not done and is it still on report inspite of you settling/closing the account? Talk to the bank in such case, and ask them to get those things off your report.

Q: I had filed Bankruptcy in 2007 June. According to my knowledge, it goes off the report in 10 years. Now, I did my CIBIL score check and my current score is 740. Why cant I still not get a loan?

A: Many times the updates are not made properly on the reports. By this, it means that the banks or the NBFCs sometimes fail to update few informations to the bureaus. In that case. Please speak to them and clear off those negative flags.

Also, it sometimes takes 6 months to update any information. As said by you, your bankruptcy was filed in June 2007, so the 10 year completes on June 2017. If you have checked the score in November or December, chances are such that your report might not have been updated with that fact.

Q: My score is 800. While I fetched my report as I was rejected for a normal 4 Lakhs Personal Loan, I came to know about some of the activities in my account which I do not recollect.

A: Identity Theft is the term. If you come across the situation where you do not recollect or recognize the transactions you made with your card or any loan which you have not applied for, make sure you report this first to your bank and then to the bureau. This is known as identity theft. In these type of cases when the credit card is stolen or used as a fraud, or the KYC documents are misused in taking a loan, your report is crashed and you are unable to get any loan. Make sure you raise a complaint/dispute regarding the same.

These are few of the instances when inspite of having a nearly perfect score, you still won’t be able to get a loan! Make sure you do not fall into the category where you have to apply for a loan for low CIBIL score. It is one of the upsetting moments as you would need to pay much higher interest rate than otherwise. The Remedy for this : Please check your credit report twice in every year to not fall in any mishap. Also manage your finance very diligently and responsibly.


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