Loan Settlement hurts Cibil Report & Score !

POSTED BY Jagoinvestor ON March 14, 2012 COMMENTS (1,111)

Did you do any loan settlement in past ? That will surely affect your CIBIL report and score ! . Before we look at that, look at this data – Over 88% of new home loan borrowers in 2011 had a CIBIL score of 750 and above. Do you have a score of 750+ or not ?

So now by default if your CIBIL Score is less than 750, you stand a very low chance of getting any kind of loan to be approved. Most probably your loan application will be rejected. However, today we are going to talk about “Loan Settlement” aspect of any Loan. Lets see more!

CIBIL has really made life worse for a lot of people. A lot of people have misused their credit cards or other kind of loans , on top of it outstanding loans piled up so much over time, that they could not pay it off completely. Banks suddenly told them- “Hey, Don’t worry if you can’t pay off your Rs 3 lac outstanding loan, just go for loan settlement and all you need to pay Rs 60,000. We will send you loan settlement letter or NOC letter after that”. Are you one of those who went for Loan settlement months or years back ?

Loan settlement impacts your credit report negatively

Settlement of Loan is not a solution

A lot of people feel that Settlement of their loan outstanding in case they cant pay it off is a permanent solution to their worries? However, for one and the last time, understand that SETTLEMENT of Loan is just a temporary solution. It’s just a short cut way to get rid of constant reminders from banks and credit recovery agents. Banks do this because they know you are a waste and mostly you will never be able to pay back your 100% dues, so they settle for whatever you can pay! . Atleast they will get something back from you.

This settlement of loan will NOT clear your name in CIBIL report. In fact its a negative sign. It shows that you took loan, happily used it, ballooned it with late charges/interest by not paying on time and finally bank in frustration said – “Fine… Let’s take whatever we can get out of this guy, if we don’t get some part right now, we will not get even a penny later”.

Mak was worried why his name is appearing on CIBIL report as “settled” and his loan application was rejected.

I want to remove my name from Cibil report, I Used to have 2 CC, from HDFC & another from citi bank, I do had personal loan from citi finance, which I settled long 2yrs back for which I have settlement letter as well. Recently when I applied for a Bajaj finance loan for home electronic, It got declined, reason given to me was as my name reflected as a defaulter of Cibil. Please advice me to clear of my name from Cibil.

What Mak has to understand is that Loan settlement is a negative thing, and banks will report this incident to CIBIL and mind you, your status will be marked as “Settled” for next 7 yrs. So forget about getting any kind of loan from any bank for next 7 yrs at least. Once 7 years passes, then the SETTLED status will be removed , however your credit score by that time will be so low , that you will not get any loan even after that point, unless you work on improving your credit score. Now if your score is low at that point, it will again be very difficult for you to get any kind of loan (because of low score). So ultimately, the final conclusion here is that once you settle your loan, it becomes very very negative thing for you and your future and over the years it will not let you get any kind of loan unless you pay off each and every paisa of your loan.

Loan Settlement is Tempting

Loan Settlement gives you instant gratification. It’s something you really want to go for? Obviously, it gives an impression that all your worries will be taken off by the bank, its shown to people as an “opportunity” by banks. And most of the people fall for it. Swetha is one of those people who is confused about the Settlement of her loan

I have a personal loan and i have defaulted , my loan completes in the month of april the collection guys asked me to settle the loan for half the price of the remaining loan amount which is rs 44000 and he said the NOC will be mailed to within 15-20 days and also can i get a loan again . Please guide should i go for the settlement or payoff the whole amount.

No doubt, once you settle the loan and pay the settlement amount, the banks will not bother you anymore by calling and asking you to pay. They will also send you an NOC that this guy has settled his loan of X amount by paying Y amount (Y<X). But please don’t be mistaken that bank will forget you and is so generous that it will show any mercy on you. Bank will make sure your life is hell after that point. You will not get any kind of loan from that bank plus, they will send this information to CIBIL that this guy was not capable of paying off his full amount and hence we showed mercy on him by settling his loan. Please mark him/her as “SETTLED”.

Unless you pay off each and every penny/paisa of your original loan outstanding, your CIBIL report will show status “Settled” and it’s a very bad sign. Finally let me tell you what CIBIL website has to say about “Written Off” or “Settled” status in CIBIL report.

Given that a CIBIL credit report helps a loan provider ascertain your ability to pay additional debt based on your past performance, a ‘’written off’ or ‘’settled’’ account implies that you have not been able to pay your past dues. Hence, Loan providers may view accounts that are reported as ”written off” or “settled” negatively and this may affect your chances of a future loan approvals. – from cibil website


If you have done any kind of loan settlement in past, first check your credit report and see what is your score. If its low (lower than 750) , you will seriously face getting any kind of loan in future, So the only solution is to pay off the loan outstanding. Talk to your bank and pay it off. This will still not improve your score immediately, over next 1-2 yrs , make sure you pay your existing loan/credit card on time and dont misuse your credit capability. Your score will improve over time. Can you share your Loan settlement Story with us ?

1,111 replies on this article “Loan Settlement hurts Cibil Report & Score !”

  1. Sridharan says:

    Hi Manish,

    I have taken 800000/- personal loan from HDFC on september 2014 and i have paid 26 EMI’s (18040 per EMI). I have still 505108 principal amount need to pay.
    Now my financial possition is not good to pay remaining amount. I am planning to go for settlement

    Please advice

  2. Sk says:

    Hello Sir,

    I have taken personal loan, My 1 ECS has been bounced due to bank’s false commitment.

    1 ECS Bounse will impact on Cibil for life time?


    1. No, its a small mistake and wont impact much !

  3. Hi Manish,

    I am a professional of 13 yrs of experience and currently hold a national profile with a top consumer durable company. During initial days of Job..I was highly irresponsible and very casual with money matters. Few personal loans and two wheeler loans had few EMI bouncing for which i paid in total . One Icici credit card was under dispute fr which I paid complete amount but after 3 years( in between went abroad). Got no due certificate also . This was in 2011. In 2012 got home loan worth 60 lacs and personal loan of 8 lacs from Bajaj finance and normal monthly due of 126000 frm AMEX. One car loan with9 k monthly . Recently I have applied fr auto loan from Icici for a SUV worth 25 lacs , I have salary account thr and my last 3 months inflow is 2 lacs per month. I am a privilege banking with them. I recently made part payment to Bajaj fr 5 lacs and asked fr reduction of EMI. Cleared entire 1.26 lacs of amex within due date. Problem is in housing loan ..for 2 yrs 2014/2015 no bouncing was thr ..but in 2016 have 5 bounces due to extreme personal exigency frm Jan to may 2016. Post that June till date no bouncing or any issue. Car loan foreclosure also done. What are my chances of getting loan ?? Got a call from Icici credit and person was inquiring about my past loans and bounces along with inordinate delay of Icici cc. I explained him n now waiting to hear it from them. What u see chances here??? Current cibil score is 731, and is low as Tata housing has put all wrong entries n disbursement date n informed cibil. Got a letter from them regarding emi , for bouncing ( jan- may) cleared bounce charges n same is mentioned in letter given by Tata. Have also downsize my housing loan from 60 to 45. Sorry fr a long one , but want to buy that SUV n keeping fingers crossed.. what chances u see Manish. Tx n God bless

  4. Raju ailapur says:

    Hi,sir….if we pay off total amount of a loan what we settled earlier,can the status WRITTEN OFF be removed from the cibil against the loan

    1. Yes, but it will be changed , but it will still not be a clean record

      1. Raju ailapur says:

        Will there be any chance to get personal loan in future if WRITTEN OFF removed?

  5. Vikas says:

    My father has a credit cards outstanding of around 25 lacs and not in a situation to pay now so he is opting to settle it. If he does the settlement would it be impacting me or my brother anyways ? Me and my brother both are above 21 and have a good Cibil score. Would it be impacting us in future if my father does so ?

    1. If you apply for any loan with your father, then YES – Else NO

  6. Sivakumar says:

    Hi Manish,

    I had HDFC credit card, on which i have used the full amount, i could not pay the full amount of Rs. 30.000, the bank manager called and said, since you cannot pay the full can you settle for Rs 28,000/. i agreed and paid in terms. i have got the NOC letter. My CIBIL report shows as SETTLED now i want to ‘clear’ my outstanding to make the status as cleared in CIBIL report. but when ever i went to HDFC bank, they are not helping, they are just saying, we will call you. after there is no calls from them. Please advice what to do? and how to clear the settled status.

  7. Vicky says:

    I get a vehicle loan from HDFC bank. N pay my first Emi same time. The representative told me that u can also pay ur Emi to the recovery man.. N u need not to come here in the bank every month.. N I do the same.. I pay him every month.. Bt later on I comes to know that bank has charged me for chq bouncing charges.. I have paid 17 Emi regularly.. Then I go to bank for statement of my loan account.. I shock to c the charges.. I can pay the amount .. Bt I cant pay the charges.. What shud I do.. Plz suggest me..

    1. Hi Vicky

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  8. KAMAL says:



    1. Yes, they have correctly updated it . Its not CLOSED on time, but closed once it went into bad books. They are right !

      1. KAMAL says:

        But Manish , settle means I have paid lesser amount then my dues and POST WO settle means I have settled it by paying lesser amount when the lender is written off the loan in there records, but I have paid all the dues what the lender has asked me to pay.
        I would like to tell you just a glimpse of my case, actually as I got the job transfer that time I have paid my last three installment in advance ( 2200*3=6600/-) in order to close the loan to the recovery agent who has confirmed me that I have no dues to pay and my loan is close now… but after one year i got the call from these ppl that your one last EMI is pending it was shocking for me to know the same after enquiring from customer care service got to know that they offset my one EMI against overdue charges…and makes my one emi pending and didn’t inform me on that……when i got the call I immediately paid the dues but still not getting clean report… clueless what to do…..

        1. Didnt you take a NOC from them when you paid it fully ?

          I think if one EMI is pending as per calculations, then you will have to pay that !

  9. prakash says:

    Hi i am prakash.m.k , sir i have 4 emi pending in Citi financial bank and now i came to know that Citi financial bank is takeover by Kotak Mahindra Bank. through cibil report taken recently , i contacted the persons in kotak mahindra bank he has asked me settle the amount specified in cibil report and he will give me the‘NO DUES CERTIFICATE’ within 20 days and remove my name from cibil in another 20 working days, how should i get this process done soon and get any kind of loan closure acknowledgement at the time of payment

    1. JUst make sure everything is written !

  10. KuldeepKapoor says:

    Hi, Manishji :
    I have settle my one of the credit card in year 2009 in october……after that I have applied for Auto Loan and another CC in year 2015 but got rejected being as a defaulter……As per yours comments, Settled or Written off status will automatically get removed after 7 years…….Is it correct ? or we have to pay off each and every single penny to the concerned bank to have my name removed from Cibil Report.
    Please advise.

    1. Its not like that. 7 yrs is minimum. You never know MAXIMUM 🙂

      1. Swamy says:

        Hi Manish,

        Normally in US we have transunion score in which bad debt impacts the score for 7 years post that it is removed. The same Transunion has been implemented in India under CIBIL, but it seems by taking advantage of some loophole, 7years have been kept as minimum with no MAIXIMUM limit which is totally unfair to the customers. Any thoughts or guidance on this as it seems some sort of malpractice.

        1. Yes thats true . I am not sure how to challenge that. At the end, it must have been written in the BILL which is passed by parliament. You might want to find out by using RTI , I am not sure if that can be done though !

  11. Mahesh says:

    My name is Mahesh. I have personal loan in hdfc for 1lack & other loan of 60k from past 4 months onwards I am not paying dues. Right now my civil score is 668 if I clear the 4 months dues and pay regularly when I can get good score.

  12. venkat says:

    I have cc of axis bank in the year 2008 for rs.15000/ because of financial problems i was unable to the cc amount of rs26000in 2009. one of the employee asked to pay 15000/ and settled the card.After a long time i went for new cc and there it is showing
    settled status and not able to get cc. After this i approched nodal officer of axis bank for statement, he has given me statement for a payment due for rs.166450/. Sir, give me advice as the amount demanded is too heavy for me.And i want to clear the amount reasonable..

    1. Talk to bank only on this. Ask them for the middle route !

  13. thiru says:


    I got a education loan in the year 2012.Still I have not paid any installment for the said amount Rs (1,70000).Two years back Govt has announced a waiver on all education loan. Currently the amount is with interest Rs (230000). It will affect my CIBIL score ??


    1. No, it will not impact your score !

  14. bibhu says:


    This is Bibhudata from Chennai. I have a credit card with Axis bank with a credit limit of Rs 30,000.My current outstanding is 28,000.My current CIBIL score is 735.It was 709 in the month of March 2016.Can you please advise me the score is good enough to apply any credit in future or should I clear the whole amount of my credit card dues. Because when I applied for personal loan in March 2016 it was rejected by Banks(HDFC,AXIS & CITI).


    1. Unless you close your dues in full, I dont suggest you apply for any more loans !

  15. BikashPatnaik says:

    Hello I have settled my credit card and the bank have told me that please settled your credit card your score will improved, and i have bike loan also which i have make payment upto date hence can my civil score got improved ?

    1. Here if “settle” means paying the full outstanding amount, then YES, please go for it

      1. Bikash says:

        The bank will tell me some amount that i have given to bank so can my civil score got improved

        1. Hi Bikash

          I am not clear on what is your question. Please repeat it with more clarity


  16. ASHISHARANE says:

    Hii, sir my name is Ashish .H .Arane my personal loan settlement has been ended with Citi financial bank i.e I paid all my loan dues and interest to this bank on 30 Oct 2007.After repeatedly asking Citi financial for ‘NO DUES CERTIFICATE’ they were refuse to give me.That`s why I called to their Delhi head office.But between this passed time I understood that Citi financial was takeover by Kotak Mahindra Bank.That`why kotak mahindra were asking me to pay all my ramaining amount of loan.But I told them that i have paid and settle my loan.So they asked me my settlement loan documents which I send them through email to one of their person.But today giving my all citi financial loan settlement document proof they are forcing me to pay my loan amount.So I want a suggestionthat how can i get ‘NO DUES CERTIFICATE’from kotak mahindra and how can i remove my name from CIBIL

    1. Hi Ashish

      You need to check now with banking ombudsman on this matter and drag the bank to them !

  17. Janardhan says:

    Is it important to take bike insurance ?

    1. The importance is decided by your requirement. Do you want to run the bike uninsured? Are you ok with taking all expenses yourself ?

  18. Janardhan says:

    there is some emergency so i took a personal loan from AXIS bank. Now i have money what you think should i pay whole amount and close my loan or continue to pay EMI. The rate of interest is 20% per anum. If i pay full amount and close the loan then there is any effect on my CIBIL score

    1. I suggest close the loan by paying the full money !

  19. Subrahmanyam says:

    Sir, I have settled a credit in the year 2003. The said card of SBI was issued to me when I was in New Delhi later in 2002 I’ve transferred to Hyderabad. Though I informed to change my mailing address and office phone numbers, they used to call my Delhi office. When I informed the same to the SBI Card personnel, they suggested to pay all the outstanding amount and apply for a fresh credit card. Since I don’t have sufficient money to pay the all the outstanding at a time, they suggested to pay certain amount and I did so. It has been 13 long years, still the CIBIL is showing the ‘settled’ issue in its report, ruining my chances of getting loans. Kindly help me in the matter.

    Thank you, regards.

    1. Its showing the “settled” status because you “settled” the case. You didnt pay the full amount. This is how its going to be . If you want to clear off the name from CIBIL, you need to pay full amount


  20. VIDYASAGAR says:

    our cibil amount cancellation


      I am not clear on what is your question. Please repeat it with more clarity


  21. rajkumar says:

    i took a bike loan, i didnt pay past 15 months, now im ready to pay and i went finance office for settled but they suggest me that if i settled that will effect my CIBIL score so pls pay all dues, so i decided to pay all dues from their end, my question is how many days to take to update in CIBIL once i paid all dues.

    1. It can take 60-90 days !

  22. Pradeep says:

    I setteled a loan of Fullerten in 2013 and , befor some day i applied for a loan and i came to know that i could not get any loan due to status “settled” provided by FULLERTON to cibil, while they asked me that if i pay settled amt they will not give my name in cibil . I did not know well that time about CIBIL.
    How can i make remove my status as settled?
    After 7 year of settlement date or after 7 year of Loan date after what time passes for remove name itself?

    1. You should check back with them on this and pay the remaining dues !

  23. raju says:

    hi manisheport
    i settled my credit card in 2011,when i recived my cibil report recently i noticed that again it appered date reported and certian u suggest me what to dofied 01-04-2016 again payment start date 01-05-2013 payment end date appered as 01-04-2016 can u suggest me what to do

    1. Talk to bank on this .

  24. raju says:

    i had settled education loan of mine . am i eligioble for sbi job?

    1. It depends on SBI if they want to approve you or not . There is no standard rule for that !

  25. Anu says:

    Hi Manish,

    Need some advice. Somewhere in 2006 I had a card from Standrd Charterd. Apparently made some purchase of about 8000/- During that time my marriage was being fixed against my wishes so I took the step of just leaving my house with my now husband and moved with him to another state. My parents were not a part of my wedding and refused to talk to me for the next 6 years. I had left my job abruptly too. In other words was not in touch with my former life and completely forgot about those dues. Well so now a collection agency is asking falsely for 18000 as principal amount, apparently the bank has sold the debt to them. It is now April 2016. They are not willing to share with me the expense statement .and want me to quietly do an RTGS. So I am not sure what to do. Will this affect my CIBIL score after 10 years now? I have a child with special needs and money has always been tight. What are my options? If possible I will prefer to settle.

    1. Frankly the amount they are telling is much lower than what it should be , you didnt settle your dues and if you add the interest and late payment charges and all. It would be a very very big amount. I suggest settle this asap and close the matter because this is surely going to impact your CIBIL. Infact if you check your report right now, you will see this there.


  26. MOHIT says:

    i applied for CIBIL credit score and report but after filling my personal details and even before i could make a payment,,it says that “we are unable to find ur record in our database “,,,what does that mean??? and if they don’t have my record then they should give “NA or NH”,,,,

    1. No , many a times if someone does not have any credit card or loans, then there is no report as such.

      1. MOHIT says:

        thank u for the reply sir,,,anyways since u dint reply for so long,then i decided to call CIBIL,,,so they told me that i don’t have any credit history that is why it is showing like this,,,,when asked about “NA or NH”,,they said NA means when i never took any credit card or loan but i am guarantor for any bad loan,,,,and “NH” means they don’t have enough credit history of mine to show,,, i am writing this because if anybody with the same case as mine goes through the comment section could get the idea

  27. Rahul says:

    Hi Manish,

    I am in a difficult position, and would appreciate your help. My father borrowed a large amount of money (Several lakhs) using his credit cards ( personal loans, not credit card balance), with interest rates ranging from 15% to 24% + tax, due to a bad financial situation. At that point of time, I was studying, and was not able to help. I started working in May 2015; may father told me about this in December 2015. By that time, he had stopped making EMI payments, and had run up large credit card balances, with penal interest rates up to 3.35% pm. After this, I was able to clear the outstanding on the credit card (but not the personal loans) .

    We have made the EMI payments since December to March, but we are finding it difficult to service the EMI payments now. I have a home loan and education loan ( both at 9.55%), and a reasonably good credit history (790, with no defaults when I last checked). My father had a CIBIL score of 710. The outstanding personal loan balances are about Rs. 75,000 on CitiBank, with and EMI of about Rs. 10,000 P.M; Rs. 270,000 with Standard Chartered, with EMI of Rs. 18,000 (approx), and HDFC, with outstanding of Rs. 130,000 with an EMI of about Rs. 10500, which works to outstanding of Rs. 475,000 and monthly emis of Rs. 39,000. My father has very limited income, and I service the bulk of these EMIs

    I have some money, and can settle 50-60% of the loans, and need some help on that. My father can take a hit in CIBIL score. I would appreciate if you could
    1) Guide me with the steps for settlement
    2) How much time does this process typically take, end-to-end?
    3) What are the chances of harassment from collection agancies?
    4) What letters should be obtained after the settlement of this loan?

    1. Here is what I suggest, first whatever money you have make full payment for the outstanding and then bring down the outstanding.

      After that understand that its a credit card debt, so the EMI would be high , If possible take a personal loan for remaaining amount and from that money clear the cc debt fully. Mainly you should shift to personal loan EMI ! .. That EMI would be affordable ! ..

      1. Rahul says:

        Hi Manish,
        I’m, not sure if I made myself clear. There is no outstanding. Whatever was there has been cleared. My problem is the atrocious rate of interest that they are charging, and the pre-closure penalties (3-4%) that they will charge if I try to close it. It makes no financial sense to take a personal loan (13-18%), with pre-closure fees, when the credit card EMIs themselves are something like 17%.

        My question was – my father can afford to take a hit in his CIBIL score. How do we negotiate with the credit card companies? And what are the receivables from them (Like NOC, etc) ?

        1. If your father can take the hit, then just tell them that you cant pay fully and they will let you know the settlement amount. Take the NOC from them

  28. Vishal says:

    Hi I Have taken Personal Loan from Bajaj Finance of rs. 90000/- in 2010 for 5 yrs. I pay 3 years Emi and due to financial issue I request Bajaj finance to settle the loan, I got NOC also from Bajaj Finance. Can you tell me now what I have to do if I want to get any loan or Credit card in future .

    1. Yogesh says:

      Hi, I Have taken personal loan for Rs.30000 in 2007 for one year from fullerton .I pay 9 installment At time but the 3 installment are dues due to some issues. But last time they was call and talk to me that pay Rs.10000 and the loan was clear. Then I was pay on that time.But in 2016 last month I apply the home loan in bank and they was rejected due to settlement in 2008 and my credit score was very lowlow.please tell me what can I do to clear my issues in cibil report.

      1. Did you take NOC ?

    2. This will get recorded in your CIBIL and you will face issues in future !

  29. Sirisha says:

    Hi Manish,

    I has 3 personal loans/1 vehicle loan and two credit card.

    I have closed HSBC credit card and 1 vehicle loan. Remaining I have settled with ICICI bank. Now I am trying to clear my outstanding amount close to 75K and also using Instant credit card ti improve the credit score. Currently My cibil score is 800+. Presently, my score is good but if I pay all outstanding amount and remove settled tag in cibil report, will I be getting home loan in future. If yes after how many days I have to apply after settlement flag is removed from the cibil.

    Please suggest.

    Sirisha S

    1. Hi Sirisha

      Yes, if you clear off everything, things will get better . But you should apply for home loan only after a few years of that.

  30. dipak joshi says:

    my cibil scor is 820 i apply for home lona but no one is section it after rejection i find out that in cibil report sbi creditcard accounts has shown as a setteled trajection in 2006 and i iquere at sbi office for if any outstandings is there but they and his cibil departments not any repply so what to do to delet this remarks from my cibil pl guide me

    1. Hi dipak joshi

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  31. Manoj says:

    Hi Manish,
    Please suggest to pay full amt of 71k PL loan of 35k from fullerton or to go for settlement in installment after their advocate have issued legal notice and summons on cheque bouncing frogerry case.
    Please help me out.

    1. BEtter hire a lawyer for this ..

  32. ravi says:

    Hi manish,
    I have taken Pl of 35k in 2011 from fullerton.but i could pay 3 installment of amt 4160 due to some financial problem.i could not receive any legal notice and summon send by them at my local address as i have changed that local address due to my change in company.
    Now after 5 yrs their advocate is saying that pay the total outstanding amt of 71000 otherwise the legal case will be registered to the local police stn at my permanent add.
    I haven’t ignore this at all but i want to pay this in 3 installments.
    Please suggest what should i do now.
    Shall i go for settlement or pay full amt in 3 installmnts.
    Whether they can issue any warrent against me.
    I have agreed to pay 25 k on 19 march their nearest branch.
    And rest amt on settlement basisi.
    What should i do now?
    Pls guide me

    1. I think you should pay the full amount, else your CIBIL report/score will get impacted !

  33. Raj says:

    – with reference to your comment, I have one question, I have to take Home loan, may I apply for same after clearing my education loan, and is my CIBIL score has been hampered previously cause of this outstanding amount? I have online applied for SBI home loan they have approved my home loan temporarily I need to submit the document then SBI will proceed for loan process, please let me know whether shall I get loan from SBI.

    Your answer doesn’t satisfy me, you have not given clear answer to my question.


    1. The more loans you take, yes – it will hamper your report/score. So just because you clear the loan it does not mean that your records will get better suddenly . It will take time .. First see if your report has any issues or not by applying for it

  34. Raj says:

    Manish Chauhan

    March 15, 2016 at 2:29 pm

    I don’t suggest that you settle the loan. Pay all the money with interest and have a clean record.

    – with reference to your comment, I have one question, I have to take Home loan, may I apply for same after clearing my education loan, and is my CIBIl score has been hampered previously cause of this outstanding amount? I have online applied for SBI home loan they have approved my home loan temporarily I need to submit the document then SBI will proceed for loan process, please let me know whether shall I get loan from SBI


    1. Its not that your loan eligibility is hampered just because of applying. It gets hampered if you dont pay your dues on time !

  35. Raj says:

    Hi Manish,

    I had took education loan from Maharashtra Bank, of 1 lacs, I was paying payment on regular basis from 2011, but in from 2013 to till Nov 2014 I was unemployed hence unable to repay loan installment, hence they have consider my loan as NPA, now form Dec2014 I was regularly paying installment, of Rs 4000 but in Nov 2015 bank said me to settle loan amount by depositing Rs. 58K, actual amount is 82K, from Nov2015 to till date March 2016 I am regularly paying loan installment, but actually loan is in NPA hence hence I am charging extra interest rate, for regular repayment, I want your suggestion shall I settle loan amount with 58K or pay all amount with interest, now the remaining amount is 20K. I want to apply for Home loan hence I am not getting that what should I do? some of my friend said me that education loan amount settlement is not much considered for CIBIL score please guide me.


    1. I dont suggest that you settle the loan. Pay all the money with interest and have a clean record.

  36. mohan says:


    I am not paying my personal loan emi’s for last 3 months. Is there any chance the bank will take any legal actions like jail kind of things.

    Can , I get 10 days permissions from that guys to pay that emi’s and continue my loan as usual.

    Could you please suggest me on this

    1. They cant jail you , but definately take a legal action like selling your house, but I think you still have room for negotiation with them

  37. Pranav says:

    Hi sir,

    I have a Sbi card in which i have a outstanding balance of rs.100000 so i went for settlement and they offered me a settlement amount of Rs.78000. Can it get it still reduced. Because i am not in a position to pay this amoun.

    1. Then why are you paying at all ? ANy ways if you settle in 78000, you will still be called defaulter !

  38. Ashok says:

    Hello Manish,

    I would like to request you to suggest me in my concern. I have outstanding of 45000 in my hdfc credit card for many months. If, I pay complete amount today and get NOC. Will my personal loan get approve within a month or I need to wait to update on my civil sore after getting NOC from bank. I want to apply personal loan for medical treatment urgently.

    It would be great, if you could suggest me in this regards,

    Thanks & Regards,

    1. Score wont improve immediately.. it takes many months !

  39. Ananth says:


    i had personal loan with bajaj fin i was in financial problem for a days and was not able make payment on time and i had cheque bounce due to it after that i have settled the amount and it was 2 years ago now can i apply for two wheeler loan and i have doubt whether i am eligible for bike loan.

    please advise.


    1. It can only be confirmed by bank

  40. Ashok says:


    I took my CIBIL report on 7/11/2014, my score was 785, and I took another report on 18/02/2016 now it shows CIBIL score shows 539.

    however after deep dive into the report i see there are two entries 1. from PHONEIX ARC, it shows as 23,156 as writeen off principal on a credit card, however i did not have any credit card from this company, looked at more closely i noticed the above said company says it had disbursed this amount 09/06/2005,

    2. from SHAHA, account type is credit card, and it says 6 Lakhs is the credit balance, and the date of open is on 29-08-2005, as i said earlier i did not own a credit card in 2005.

    started recollecting and verifying my financial docuemnts and found that I didn’t have a PAN card untill 2007, so not sure how these companies could lend 6 Lakhs as credit balance on a credit card, in addition to it my Salary during 2005 to 2006 was INR 8,000/- so i am completely taken off due to mis entry on my CIBIL report.

    in addition to this since 2007, I have done multiple transaction with various banks on Credit cards and Loans and I have closed all loans appropriately.

    can someone help to deal with this?

    I have raised a dispute with CIBIL and waiting for their response.

    Thanks, Ashok

    1. Only CIBIL and the banks which has reported this will be able to help you on this .

      1. vinay says:

        sir i taken education loan and there is out standing amount 55,000 so i decided to one time settlement and paid the settlement amount of 88000 now my cibil score in increases or decreases because i want apply personal loan


        1. Its not a great thing . If you settle, then you will not get a clean remark in CIBIL

  41. Ajitesh says:


    I want to get a study loan but my father’s in a cibil defaulter list bcoz of a settlement with bank. would it effect me in getting a study loan for abroad?

    1. It will not affect you if you take the loan without keeping your father as a coborrower

      1. Ajitesh says:

        I can i make my grandfather my coborrower even if he
        doesnot work.

  42. Pradeep says:

    I have taken a personal loan of amount 45000/- in 2006 and I have paid ten EMI of 2600/- then I lost my job and change the address now the bank got my address and phone number they called me about the loan I said tell me the detalis now they want me to pay 175000/- for loan of 45000/- .

    Do can I ask them to one settlement of the loan for wat amount

    Plz suggest waiting for valuable information .


    1. Yes, you can surely ask for it. See what the bank says !

  43. Ajith says:

    Hi, I have taken LED TV worth 35000 i have skipped few payments and now the total amount i should pay is 11000 includes some fine charged by bajaj finance. I am planning to pay in one shot. If I do it can my cibil score will be cleared or I need to pay any fine to apply for a personal loan. Also I have purchased 2 bikes by loan and I have cleared it on time. Any help to improve my CIBIL score to apply for person loan. Thanks

    1. BEtter clear it off. Your cibil will get better

  44. montu says:

    hi dear
    i m holding two cc .one of hdfc bank and one from sbi bank.on both card my due rs76000/- each.due to some personal problame i cant pay dat amount in one i said to bank dat i want some sbi told me they will give me 24 month emi nd my card will block nd also it will not effect in my cibil should i go with it?
    and hdfc bank person not giving time to me for pay.i told them that i will pay every month 10000/- rs with all charges but still they r not listing to me nd harassing me lot.

    plese guide me.
    Montu shah

  45. Dipak says:

    Hello Manish,

    I had education loan which I settled before 3 months, at that time I was not aware about how it will affect my CIBIL and all the thing, Now I got it and I want to clear that whole loan in full. My question is if I am closing it in full and trying to get a home loan then how much time it will take to get home loan. I think my score is very down because of this education loan and it will take time to recover after full payment, but i will get NOC from them, will I get loan with low score and cleared history .

    any suggestion will be really appreciated.


    1. Contact them and make the full payment asap . Thats the only suggestion. Your score will get better over time !

  46. Mohammed says:

    Hello there I have 4 credit cards, Sbi hsbc hdfc and ICICI where I haven’t paid it from 6 months and I have used my balances which may come upto 350000/- so I think I may have to dispute some charges coz the charges are unaffordable to me and then if I go for a closure and pay whatever it is after disputing the charge then will my credit score be normal increased or what’s the best way to pay it off?? If I don’t need any lending from any bank in future and if m Ok to screw up my cibil and I don’t pay them what will the banks do? Will they jail me for it or what are the consequences? can somebody advise me on it because I m confused… The reason I mentioned about not paying my debts back is because or their worst service and the collections threatens… Can somebody advice what I need to do in this case please?????

    1. You can choose to not pay and settle it.But then in future you will face many issues. If you are ready with it, then go ahead

  47. Habeeb says:

    Dear Sir
    What is the best way to deposit 1 lakh.

    1. Hi Habeeb

      I am not clear on what is your question. Please repeat it with more clarity


  48. VikasSharma says:

    Dear Sir,
    I have taken the PL of Rs.1.5 L from HDFC and get settled of amount Rs.15 k in 2013. In March 2015 I checked my CBIL score, it is 813 however loan status is settled. Recently I applied for PL of Rs.5 L in ICICI but it get rejected based on previous settled loan. I dnt get this, when my CBIL score is 813 then how its get rejected. Kindly guide me how could I get PL as its v.urgent for me.

    1. Your score does not matter much. Its the remarks which matters ! , check your remarks !

    2. Ravi M says:

      My Name is Ravi, i taken personal loan 1 lac of 18 tenure , i paid continuously
      from last 10 months after that i taken Rs-70000 Recently & now total amount pending is 1 lac 25 thousand but unforgettably i loss my job
      can you suggest me how to settlement my loan & whom i speak

      1. YOu need to talk to bank on this

  49. manoj says:

    i taken education loan 1.70 lac in 2008 ,still i didn’t get a job so m unable to pay but i started my repayment from last one year and now almost 1.15 lac has been paid..but bank ask m for OTS due to NPA account, outstanding amount is 55 + interest …they offer to pay 80,000
    should i proceed ?? pls guide m…

    1. Its not recommended , because ultimately your CIBIL report will get messed up and in future if you want to get any loans, you will face issues later


      1. manoj says:

        they tell m the outstanding amount is near about 2 lac how is it possible.?they said that the revert interest should also m paid by you 67000 is it right?…

        1. Ask for the explanations and the account statement, they will tell you how its 2 lacs

          1. manoj says:

            thank you

  50. Siva says:


    I have 3 credit cards, i want to close 2 credit cards and keep only one. which one is better from the below

    SBI Irctc Visa platinum Card
    Citi bank Rewards Card
    HDFC Money back card

    1. I would have kept CITI

      1. Siva says:

        Thanks Manish

  51. Habeeb says:

    I have settled my HDFC credit card.I have one more ICICI in pending.
    I dont want anyloans at present.

    Is that compulsory that i take NOC.
    Will they give me NOC immediately.

    What will happen if i dont pay credit dues with any bank.Will they put me in jail.

    Please advise.

    1. Taking NOC is not compulsory , but its good if you have it.

      Also you wont be put in jail for this, but your credit score will be messed up

      1. habeeb says:

        Since I am not in a position to settle with ICICI, what should i do.
        Will they take legal action if i dont pay?

        1. No , generally they dont take legal action, but they can ! .

  52. AbhishekBhargava says:

    I had CC of citibank in 2006 , I paid for the amount incurred till January 2007 but after that i defaulted on the payment as i went out of the country. I returned back in oct 2015, when i went for a personal loan it was rejected.
    I took out CIBIL report in that status was mentioned POST (WO) settled. and DPD is uptil 2007 May after that nothing is there. Please advise how to get rid of the status.

    1. You should contact the lender and clear off the loan

  53. Rajendran says:

    Hello Sir,

    Out of 5 accounts (3 CC’s , 2 PL and one TW Loan ) , the 2 PL Date reported and certified are 31-08-2008. As per Cibil , these records appear for 7 years … After 7 what will happen to these accounts , will it be removed …… My new CIBIL report dtd 29.10.2015 is still showing these accounts … Is there any procudre to remove these or will it be removed automatically … Kindly do confirm

    1. I dont think they will be removed for sure .. 7 yrs is minimum. Not maximum

  54. softaction says:

    I cbil score is 633 , due to my personal cheque bounces and credit card settlement. but later i paid my entire outstanding of personal loan and closed it. i dont have any exsisting loan or credit card currently.

    how can i improve my cbil score ?

  55. mahendra kumar says:

    Dear manish

    We want to remove my name from cibil wa have take a loan in 2007 we are paid all liability towards loan amount

    1. Then check your CIBIL after few motnhs again

  56. Naresh says:


    I’ve my education loan which is due for quite sometime. Bank is approaching me for OTS with partial amount. I’ve checked my Cibil recently, it is 743. I got loan approved from Axis Bank too. Will I be still suffer if I go for settlement with my Edu Loan. I don’t’ve any credit cards as well.

    Please suggest me your inputs,

    Thank you,

    1. As a general rule, you should not go for settlement, it will haunt you some time in future for sure

  57. AjithNarayan says:

    I have a Credit card issue with Axix Bank for 52000 rs which is not paid and it reflects as Written off on CIBIL
    Another PL from HDFC which was settled Shows Settled on CIBIL report

    Now my Score is 600. What should i do to get Rid of those Written Off and settled from My CIBIL report . Can i make the payments for both accounts now with the banks, Also pls advice what all steps to be followed when making the payments with them (If possible)

    Will the banks be ready to collect amounts on those written off (AXIS) and settled (HDFC PL) accounts????

    Thanks in Advance

    1. Yes, they should be ready if you are ready to pay the amount

  58. Jaspal says:

    Hi Manish

    I had two loans, a bike loan and personal loan, with CitiFinancial. I settled both these loans in 2010 which resulted in bad credit score and credit record and I never got a credit card or a personal loan.
    I paid the outstanding balance in full in July 2015.
    Now, I don’t have a credit card or a loan. On what basis, my credit score will be counted or what things are going to impact my credit score.

    Thanks in advance

    1. I think after you have paid off the loan, again check your score. It must have improved a bit, but thats not enough . Take a secured credit card and use it for a period for 8-10 months . Your score will get better

  59. sameer says:

    i want home loan but bad cibil
    my number 9766191861
    i am ready pay 2% on home loan

    1. Hi sameer

      I am not clear on what is your question. Please repeat it with more clarity


  60. KALYAN says:

    Hello Gurus,

    I have opted for a bajaj finance Bike Loan from PUNE in 2011 for two years which got over by 2013. Now, in May 2015 they have called me and told that my account has been WRITTEN-OFF and outstanding balance is 13000/-. Since the amount was not so big I went for FULL PAYMENT and not any kind of settlement. I have also received the NOC and the Loan Statement which shows the Loan as closed.
    Recently, when I went to apply a Home Loan I came to know that I am not eligible since my Bajaj Finance Loan has been updated as “Post (WO) Settled”.
    Please let me know a way through which I can get rid of this situation.


    1. The problem is that your paid it once its SETTLED , I mean you seem to have made them run around for this a lot and hence the remark says that you finally paid, but first it was marked as DEFAULT .

      I think you should talk to the bank manager of the new lender and explain him about your ability to pay now

  61. chinna says:

    I took hdfc loan last 4 years back 9 cheques are bounced collection management says the total amt 94850 rs pending including interest but cbil shows 1.2 laks
    i paid 94850 last weak my name in cbil after 45 days removed are nt

    1. It will take many months to improve

  62. Nithya says:

    Hi Manish,

    I have a query regarding my loan rejection. My CIBIL is 761. It keeps showing my two loans which was alreacy been closed. One is Mahindra Fin, i took car loan, and we give them back as we unable to pay dues in two years. They said car has been sold & my account has been closed.

    Second is Bajaj finserv, I settled down this loan,I got NOC as well. But y its still appearing in CIBIL.

    Kindly advise what needs to be done for these two cases.


    1. I think the first one is the issue, the car was sold, but did it pay the full loan or not ? If not, then you are in a way defaulter for the remaning amount, and it will appear like that.

      Check with your past lender on this.

      I hope for the second loan, you paid in full and not partial !

      1. Nithya says:

        Hi Manish,

        Thanks for your reply.

        For Bajaj – i payed the settlement & got NOC. But y its still appearing in CIBIL. Plz advise.


        1. Means you paid less than the actual amount due ? In that case it will appear in CIBIL

  63. Gautam says:


    I had a card from SBI bank and due to some charges we decided not to continue with, we paid more than the principal amount, but after applying for the limit enhancement of our other card from BOB we found that the SBI people have reported my case with some amount as ” Written off” due to which my limit enhancement was refused.

    In short in case of SBI cards for example they charges me some charges for the late fee and interest which was not paid, though these charges were reversed later, but after 3 months , but the bills between for 2 months were charged with non payment and interest , which was not reversed, but in actual these charges shouldn’t be levied as the charges were reversed later.

    Though i have a card from HDFC bank with good limit and also a business loan. The car loans from PNB and SBI were cleared before time.

    How i can get these SBI people understand that the charges which are not paid were because of the charges which were reversed later. I wrote several times to them but no body wants to see the case and only say they can settle in spite of the fact that i had about 3000 more than the principal amount.

    Please suggest……



    1. Even if its charges, they get added to your main outstanding and now part of you debt

  64. ShyamBoruah says:

    In 2010 I purchased a bajaj pulsar on loan. I paid around 27k as down payment and for the rest of the amount I took a loan from HDFC bank. The bike cost was around 69000.00. After one month, my bike got stolen. Delhi police didn’t give me the FIR copy on time. The showroom people didn’t help with resource to file insurance claim to the insurance company. During that period my wedding was on the card. So I got busy on that and unable to file the case with the insurance company. Later after two months, I went to the insurance company but they refused to accept my case.

    I have also paid a couple of installments to the bank by cash. But as the insurance company denied to pay me the inaured amount. So, I took a wrong way of not paying the installment to bank anymore. After a year, the bank people started calling me as they should. I want to clear this off my head. …what should I do…plz guide me….how much should I pay?

    1. Truly speaking there are two things there. First is your claim with insurance company which didnt happen properly as per terms and condition, so thats first chapter

      Second thing is the EMI payment for your loan. THe bank has no relation to first case and they want their money back. Either pay off the debt you took from them or just leave it , but understand that your credit report will get messed up and in future when you want home loan or car loan etc, its going to be a big trouble for you !

  65. Shyam says:

    Manish, will be it worth the while to settle a defaulted credit card that’s not been paid for since July of 2008?

  66. Janani says:

    I am janani, In 2007 i got the education loan. My total loan amount was 160000. i did’t paid it until July-2015. Last month i had settled the loan amount by OTS. Now only i am aware of the cibil status settled. I don’t know wt to do…Is there any way to remove my name from cibil

    1. You should pay the full amount

  67. Rajkumar says:


    I have settled my credit card amount in 2012. Today itself, paid the remaining/balance amount to the bank after consult in the bank. whether it is updated in CIBIL for granting future loans and how much time will take for next loan. what I have to do for that. Please suggest me.

    Thank you,

    1. It takes around 45 days for that

  68. Sims says:

    Hi manish,

    Recently we got to know while applying for loan that we had some due on our one of the credit card ,according to CIbil amount overdue was some Rs 1839 and current balance is Rs 4127

    We paid immediately Rs 4127 but now when we are asking the bank to send the full payment information to CIBIL they are asking us to pay another Rs 14000

    Can we do anything about this ? We don,t have the credit cars statement or that credit card , this all happened because we moved out of India and came back after 4 years.

    But bank had never send us any reminder or letter on our permanent address otherwise we would have got to know about the balance as my mother was in India on our permanent address

    To be honest we Don’t even know if this is amount due is true or some mistake

    What to do please help. They are not even giving us any credit card statement stating the amount is due for payment.

    1. Ask them for all explanations and how they reached the number first.

  69. DPAL says:

    Dear Manish,
    I have a loan from Barklays Finance .I have failed to repay it .Now few days back they (Fincruise credit systems pvt . ltd.) have contacted me and asked to settle the amount. They agreed to settle at 91750Rs. against outstanding of 160000rs. The settlement letter they have sent me in mail but that this settlement letter is valid till 30th of Aug. 2015, payment due date 18/8/15. They have not written about the noc.
    I have arranged the payments but not paid to them yet. Please advise me what to do .


    1. Roo says:

      Do not settle the loan, If possible close it. Else talk with bank higher authority and make a deal wherein you can pay as much as you can and ask bank to CLOSE the account. It is very important that loan should be closed. In your case i think instead of 91750, you can take some time and pay 1.25 lakh in 3-6 installments. Bank will close the case. they will give you letter on your 1st payment.

    2. Ask them what will be the status in your CIBIL ?

  70. AnandKalluri says:

    Dear Manish,

    I am a HDFC bank’s customer under a personal loan which I had borrowed from the said BANK.
    I am closer to the settlement for the same.
    Due to certain unexpected issues which I have faced over months it would not be possible for me to pay the settlement amount within the said time.

    Is there a way to convert that into EMI’s or installments as I am in a very decent condition to pay it now.
    If yes… how do I proceed.

    Thanks and regards,
    Anand K

    1. Roo says:

      yes you can pay it in EMI’s Contact the collection manager. meet them personally so they will understand that you have intentions to pay .

    2. Hi AnandKalluri

      That only bank can tell you

  71. Louie says:

    Dear Manish,
    Dont know if you are still replying however i thought i will give it a try.
    I had a card from Barclays in 2009 which had a due of Rs,12000/- I had settled it during that period for Rs.8000/- but now in 2015 – six years later, i get a call from Kotak bank saying they have taken over and i have to pay Rs.22000/- Ofcourse they are asking for proof of settlement but who in the right mind will keep a receipt after 5years?? I checked with CIBIL and it shows as not paid. Now i am getting calls from Kotak to settle it. What do I do? How long do i need to keep this receipts? Who knows after 10years someone else will call me saying they have taken over Kotak!! So what do i do? Also will and can they remove my name from CIBIL or will it show as settled?

    1. Vikash says:

      Hi Louie,
      First of all it is very strange to know that a Financial institution like Barclay’s has not kept your Payment record. If you do not have receipt then it’s really very difficult to prove that you have made the payment. you should go for settlement again as there is no option left. Bank will keep you irritating with making calls etc. But This time if you wish to go for settlement, do not forget to take NOC from Bank. and do check the same in your CIBIL report and if you find any discrepancy then you can raise a concern with the bank as you would have NOC as a proof.

      1. Louie says:

        Thanks Vikash, Yes i am trying to go for settlement again but this time like you said i am going to get an NOC which i didnt do earlier.
        Thanks for the advice.

    2. But you settled and not pay the full . Right ?

      So its about the balance payment . It has grown now to a big amount. They will not remove it unless its paid !

      1. Louie says:

        Thanks Manish. It was settled yes but they are not asking for balance amount – they are asking for the whole amount. The Kotak Mahindra bank say that there is no record that i paid on 2009. I had settlement letter from Barclays and had settled in 2009 but didnt get any NOC.
        Now I am again in discussion with Kotak Mahindra to settle it. I just hope that this time they really settle it and show the outstanding balance as zero.
        Also hope that after 5years someone else doesnt come again with another demand.

        1. How did you make payment ? It must be through online or Cheque and should reflect in your account. I hope you didnt pay via cash.

          Always keep NOC !

          1. Louie says:

            Dear Manish,

            Unfortunately I did pay by cash and got the receipt also but that was in 2009 – 5years ago and i had kept the receipt till recently but then i shifted and destroyed all the papers. I thought 5years was more than enough to keep a receipt but now it seems like a branded criminal i will have to keep this receipts lifelong.
            Really CIBIL should do something to help people like us instead of branding us as defaulters.

            1. Hmmm .while thats an issue , still the bank records will show that you have paid your dues on time and fully if you had. NOC is mainly a record copy to show it to some third party if needed

  72. Ramanan says:

    Dear Manish,

    Greetings for the day

    I had taken education loan in 2012 and I couldn’t able to repay that. This is my only loan that I have taken in my life. Now i got a good job with 3.5 lakhs CTC , when I am trying to purchase some electronics through loan bank denied my application as my CIBIL is 560 only. Please guide me how to raise my cibil or else this will screw happiness in future.

  73. Santosh says:

    Hi Manish,

    Need your advise here,

    I have 336000 Personal Loan for 4 years and I just paid 5 to 6 EMIs and not able to pay from last 4 months.
    & 87000 Credit card dues from HDFC which I’m not able to pay from last 4 months.

    How do I settle them and what is the Impact, I’m in a very difficult situation can’t even settle them now…
    If I settle them what is the amount I need to pay.

    Please suggest.


    1. Santosh says:

      waiting for your advise…!

    2. Santosh says:

      Hi any advise on this??

    3. VIkash says:

      Hi Santosh,
      I would suggest you not to go for settlement as this impacts your Credit Score and will show up on CIBIL report which is really not a good sign. you should go for the full payment. but if you are really not able to pay these amounts then go for settlement (But ready to face rejection for any loan in future) and make sure you keep all the receipt safe and never ever forget to take NOC from the Bank.
      Regarding Settlement amount, this is something depends upon the Bank. but i believe Bank usually give 40-60% waive off, again depend upon the Bank.

    4. I Suggest that you do not settle it, because then it will haunt for all life

  74. Sanjeev says:

    Hi Manish,

    I am Sanjeev Gaonkar, I had taken Person Loan from HDFC bank on 2011 for 3 years duration, and my 4 EMI where cleared on time through ECS out of 36 EMI’s from HDFC Bank Salary account at the same time I changed my Job and my salary account also changed to SBI bank. after that i requested HDFC bank many times to get ECS for he EMI amount to my new SBI account, but they have not come forward, and I started giving EMI ever month by cash, but i use to give the cash on same month some time same time some time two to 3 days later. again i told them many times, because my job involves travelling also so some time i may not available in time to give money in time please get ECS done i told, but not done. but Bank was showing almost 28 Numbers as ECS Bounce in Last. I surprised, I asked them when i requested many time to get ECS from my new Bank account if they done my ECS bounce was not even 3 to 4 times, because I was having sufficient money required for the EMI in my bank account almost 95 % of times.
    butI have paid more than the Principal+Interest amount, finally i closed the loan on 2nd June 2015.

    Will this affect to me to get further Loans.

    1. Hi Sanjeev

      YEs it might be a bad remark in your CIBIL report. Because banks must be reporting to CIBIL about it as DEFAULT !

      1. Sanjeev says:

        Hi Manish,

        Can I apply for Loan now and can i get Loan.



        1. Looks difficult !

  75. Prithvi says:

    Dear Manish,

    I need your help here, please.

    I had an accident and I was in coma for about 7 months. Within that period, my brother due to lack of knowledge settled one of my personal loan of about 2 lakhs rupees.

    I was paying the same since 2 years regularly before accident. I have recovered and have joined my job, back.

    Can I approach the bank to remove the settle status and take the pending amount which they should have taken as full payment with interest and late payment ?

    I had another loan which they neither settle nor paid. What should I do in that case ? I am ready to pay that amount in full with all bank fees, applicable.

    Also, how should I ensure that status on CIBIL also is changed after that in both cases?

    Please help me before I go ahead and make the payment because after making payment banks always come up with new things.

    Best Regards

    1. Yes, I think first you should approach the bank and tell them about your story and then rectify the issue .

      Ask the bank to make sure they update the CIBIL with proper remarks


  76. Ravindra says:

    This is a very negative and bogus article written by you. ONly threatening the people reading it without offering any proper solution to the problem. Not sure what is the real motto behind writing this article.

    1. Hi Ravindra

      I have not put my opinion or view. But the facts . I am not sure why you feel there is an issue here in this article ? Whats so bogus about it ? Can you pinpoint on the line you feel is not right ?

  77. janeesh says:

    My cibil score showing is 829. I settled two credit cards and one loan . Can i get a home loan.

    1. Hi janeesh

      Its not the score, but the remarks in your cibil report which matters most

  78. Rahul says:

    Manish Ji

    I got my Noc from BOB and on that it is mention that Post(WO)Settled in CIBIL Report.What does it mean and may i eligible for any loan in future or not.

    1. Hi Rahul

      that means you have not paid the full amount nad its a bad remark on your report !

  79. naveen says:

    I was holding axis bank credit card in year 2007.
    Credit limit of the card was 26000
    I used the card till 2009 and due to some financial problems i was unable to pay the dues, and my job was transferable job.
    But i got a call from the axis bank 20 days back that your credit card dues are pending of 55890.
    I paid the dues of 55900.
    Now when i had written a mail to the bank to close the account and update the status closed in cibil. they had wriiten me a mailas below

    We refer to your appended email regarding credit card payment and CIBIL updation.

    We observe from our record that, your credit card account is permanently deactivated due to non-receipt of the payment against the outstanding which is same as cancellation.

    We inform you that, we have received the payment of Rs.55,900.00 on May 29th, 2015 in your credit card account.

    Thank you for making the payment.

    As on date, there is no outstanding due is pending towards your credit card account.

    As per our record, your credit card account has been written off.

    To remove the written of status from CIBIL, we request you to make the payment of Rs.Rs.21,1975.70 on or before 14.06.2015 as CIBIL Masking amount.

    I had not setteled or ask the bank to give a suitable amount to pay.
    They only told me that ur outstanding amount is 55890.
    I paid the full amount .

    Then why are they asking more than 2 lakhs

    Sir can u please suggest me

    1. I assume that was not the full amount at that time. You settled it

  80. Sirisha says:

    Hi Manish,, I read the entire article and your replies…

    I have score of 740 and I have two ICICI loans and credit card which I have settled and in report it is showing as written off. I recently spoke to ICICI customer care for closed loan accounts and closed credit card. They said If I repay my outstanding amount for credit card and my loans they will update the cibil.

    My question is will that written off statement will that dispute word got from my cibil report after paying all my dues.

    secondly, I got a call from creditmantri saying that if I pay 9k+ they will coorinate with the bank and try to get the loan on my name. which means they will liason with me and bank to clear the dispute issues on the cibil report. Is that correct?

    I just wanted to take your opinion on this.


    1. Pankaj says:

      Is any one replying,,…i can’t see that happening

      1. Hi Pankaj

        What is your query ? I reply to comments, however only in a gap of few days !

  81. Tejraj says:

    I had home loan from HDFC bank taken on 2002 and closed in 2006, without any EMI defaults/delays. However, it seems that HDFC is not reported this to CIBIL as I am not able to see this my credit report. What do I need to do in order to get this entry in CIBIL report? Will this good home loan closure improve my Credit Score?

    1. ASk HDFC about it, what they have to say about it ?

  82. Sudharshan says:

    Hi Manish,

    First of all, thank you for this great article. Its really informative and an eye-opener. And you are doing a great job in pursuing your dream 🙂 Its really great to see such people still there in our modern country.

    Coming to my problem, i have taken a education loan on Sep 2009. Total amount i have taken is Rs.1,89,562 and with all the interest, it is now Rs.2,98,650. Repayment period started this January and i was able to pay only 10,000 till now. Since i was not able pay my EMI’s, my account went NPL. They have sent me a resolution letter. I went there and negotiated with the manager. He gave me two options, one is to settle a amount of Rs.2,80,000 within a period of 30 days or to pay Rs.1,30,000 and pay normal EMI’s for the course of 54 months with interest 14.10. I have agreed upon settling the loan which now i feel is a very bad idea after reading your article. So, i kindly request to give you a good solution to this problem or a suggestion. Please tell what should i do in this situation ? Shall i cancel the deal and go with repaying the EMI’s or someother option is there ? please enlighten me about this.

    Additionally, i also have a bike loan which i’m paying perfectly for the past year and its gonna get over soon. Hope this information helps.

    Thank you,

  83. Shyam says:

    Dear Sir,
    Right now my CBILL score is 581 and have two written off and 3 settled accounts in my CBILL report. This has happened due to some financial problem during 2008 when my salary was very less. Now i want to come out of this settled status and also want to approach two banks for my written off status. Can you please suggest me the process…

    1. First contact the lender where settled status is there and then pay off the dues. Then wait for 8-10 months .

  84. ramjikannan says:

    I got an Education loan for my MBA on 08/10/2009 with the amount sanctioned Rs.1,91,000/- and utilized till Rs.1,87,000/- after that the course has completed may 2011. I did not pay any amount during the moratorium period and after 2.5 years. From Aug-2013 i started paying the partial amount of Rs.3000/- averagely per month as i did not know the actual EMI amount as my Branch not informed me. Suddenly, they started asking me to pay the EMI of Rs-12,559/month form November 2013. Then i started paying Rs.5000/month as I was not able to pay the 12,559/-. I had a conversation with the branch staff on February 2015, they asked me to pay the whole amount with interest of Rs-2,27,000/- and i have paid Rs.10,000/- on February 2015(2,27,000-10,000=217,000). and i asked 3 months time duration to pay the whole amount (2,17,000) in 3 dues. Bank staff also accepted. But Suddenly on March 2015 they have called me and asked to pay full amount for year end closure. I said, i can arrange and manage with 1,50,000/- before this 31st march 2015 the remaining 67,000/- will pay in one month duration. and i have deposited the Rs.1,50,000/- on 31st March 2015 as i committed. Still it is in my Savings account, they have not taken as they said. But they suddenly marked as “WRITTEN OFF” and the loan balance is “0”. i have checked in CIBIL 2 days before. it shows 622 points only with “WRITTEN-OFF” STATUS. what should i do now? Please guide.

    1. Credexpert says:

      Dear Sir,

      We would suggest you directly contact the branch manager of the bank and discuss the same. Also, discuss about the account update in your credit report.

      Also, try closing the account completely by paying all the dues in total, as the ‘written off’ remark will negatively affect your credit score and report.

      Improving the credit score is slow and gradual process, you need to have a disciplined behaviour in managing your credits – timely repayments, maintaining a balance between secured and unsecured loans, utilizing up to 35-40% of the limit on your credit cards and not making random applications for new credit facilities will help improve your credit score.


    2. BEcause you have not paid the full amount on time, they have considered it as WRITTEN OFF loan . You cant do much , unless you pay it off in full. Talk to them


  85. Pavan says:

    Dear Manish,

    I have settled a credit card of ICICI bank, My score has improved after that from 6xx to 73X, now I got a car loan approved from Axis bank, but Iam not able to get a personal loan, lendors are saying that there are two cilbil reports generated on my name (I am not sure how that is possible), becoz of which my PL are getting rejected, please suggest

    1. Your score might not be enough for a personal loan application. Try to improve it more !


  86. Shashi says:

    Hello Manish,

    I settled a credit card in Jan 2014 due to some financial crisis. I have currently going through 1 home loan and 1 credit card for which I am paying it on time till the time I had taken. Home loan I had taken 1 and half year back and none of my ESI has been bounced and 1 credit card I had taken 5 years back and making payment on time. I have to apply for personal loan, please advice if it is good time to apply or bank will reject my application.

    1. Yes you can apply for one because your overall past record is clean

  87. Sanjay Kumar says:

    Hi manish,
    Previously i settle two cc account and got the NOC from both bank. after 6 month i applied again in one of the settled bank for the cc but bank said due to you have not paid full amount earlier we will not issue new cc but if you give us one letter with sign we will issue it new CC.i was not given any letter to bank. After 1 year i got the call from one reputed bank for cc then i submit all document and finnaly got the cc. i was using the card and paying the amount on time. after that i also got the loan from bajaj finserv without any issue. after some time i was in job crisis and taken 1 (40 + 60) lac amount from cc and convert this into TWO EMI one for 40 and another for 60 thousand. i was regularly paying the emi on time except one or two. finnaly i was paid all EMI on sept 2014 i.e my last emi date. my emi duration was around 2 year for the amount but unfortunetly i was not paid some amount which i was purchase before these emi amount it was around 20 25 thousand it was my mistake Now they are saying still 55 thousand is left DUE TO some conflict between me and bank regarding the i was not paying the full amount. Now they are if you will pay full amount we issue letter zero from bank zero to cibil. if setteled in 36 thousand the zero from bank and setteled sataus in cibil. now i am serious regarding this after reading lots setlle case facing in Bankloan. and i have laso rerquired home loan in coming year. what i will do please suggest me in details.


    1. Credexpert says:

      Dear Sir,

      Settlement is when you don’t pay full outstanding and take some waiver from the financial institution. If you opt for settlement then a “Settled” or “Post (WO) Settled” remark would reflect on your credit report.

      This remark is viewed negatively by banks as it indicates your inability to fully service a credit facility. This could possibly prove to be a significant hindrance for your future loan applications.

      Also, as there were miss in the payments on the account you mentioned, it would reflect and stay on your credit report as ‘DPDs’, as the report reflects the facts related to all credit activities. This will also have a negative impact on your score and is likely to be viewed negatively by lenders. The impact of DPDs will only lessen if there is good repayment history on the ongoing credit account on your report.

      We would suggest you to clear all your dues in total and also take a confirmation from bank that it will be a full and final closure which will reflect the account as closed with no negative remark.


      1. sanjay kumar says:

        Ok thanks for the suggestion, one thing i want to ask you i talk for full and final payment to directly with bank or mediator because i am getting call from mediator for settlement. is there any possibility to payment in two or three part? is there possibility bank will decrease the extra interest amount? if i will pay the full payment how many days it will take improve in score in cibil.


        1. Credexpert says:

          Dear Sir,

          You should not take a settlement and rather close the account completely by discussing the same with Bank.
          Also, you can ask for flexibility in payment if the outstanding is huge. But it is purely the bank’s decision to give you that option.

          Financial Institutions share data with CIBIL on a fortnightly / monthly basis, which is why the updation process takes 45-60 working days. Therefore, we would suggest that you check your CIBIL credit report and score after the said period post the payment.

          Improving the credit score is slow and gradual process, you need to have a disciplined behaviour in managing your credits – timely repayments, maintaining a balance between secured and unsecured loans, utilizing up to 35-40% of the limit on your credit cards and not making random applications for new credit facilities will help improve your credit score.


    2. I suggest you clear your loans if any . Only then your cibil score and report will get better

  88. Prasad says:

    I was 18 when I took education loan. My education completed in 2011 but further I applied for Graduation and I couldn’t pay the loan installments which was supposed to start from 2011. My dad never informed about my further education decision to bank and seriously I did not have any knowledge that bank could have give me further loan for Graduation study. I am from lower-middle class family and in 2015 when I am completing my graduation, I had settlement offer from my bank and I settled it. I knew the consequences of ‘Settled’ account but my parents disagree with me and One relative who works in SBI, told to settle it and not to worry about future loans and convinced that ‘There are many banks who gives loan’. But this is really nice article I came up with many details. Now I worry, I am about to graduate, my career just to start and I stuck in such horrible situation. I have confidence that I can make lot of Money in future, but to kick start my life I will be in need of Loan for purchasing house, vehicle and other needs. Do you think is there any way out, that I was student, not fraud but my parents were unaware about the extension even me at that age, and couldn’t pay the installment genuinely. Is there anything for education loan ‘Settlement’? Thanks.

    1. Credexpert says:

      Dear Sir,

      We suggest that you should first obtain your credit report and score (if you have not done so already) and check the status of the education loan that you have mentioned about.

      If there are negative remark for this account the n communicate with the financial institution from who you had taken this loan and get a complete closure done and tell the financial institution to update a close status with the credit bureau(s).

      Though the impact of late / non payment on that account will remain, but it would lessen by timely payments on the active credit lines that you have or will have.


    2. Hi Prasad

      I think just because you were a student back then is not an excuse any bank will listen to in future. Yes, you will be facing issues while taking loans in future if you dont fix this issue asap. When you took the loan I guess it was in small town, where things still are working based on relations .

      But when you are in big city, those things will not matter. Hence I suggestion is to check with bank itself on closing the loan fast or slowly . Only once you clear it fully, you will be getting a new loan.

      To start with try to apply for a credit card and see what reply you get from the banks


  89. Pradeep says:

    Hi Manish,

    I had borrowed education loan some years ago, by the time of borrowing , i didn’t give my PAN card as i didn’t had at that time. Recently i have checked my cibil report and this particular education loan is not reflected in the cibil report. Should i go for settlement or completely close the loan ? Since this account is not reflected in the report, will it reflect in the future if i go for settlement ?


    1. Credexpert says:

      Dear Sir,

      We suggest you to go for complete closure, as CIBIL updates records provided by financial institutions.
      There are chances the loan can get reflected in near future in your credit report if the financial institution updates it.


    2. Completely close it

  90. jesse says:

    Dear Manish,
    I am writing to you in the hope of getting a reply as I earnestly need your advise. I had taken an education loan in 2009 with SBI bank. I was unable to pay few insatallments due to my delayed joining date. Bank had askeb me to get the loan settled. Loan amount was 1, 74000. I repaid this amount and settled it july 2014. Now my CIBIL score is 766. I had applied for a personal loan recently with HDFC bank. It got rejected. I did not see anything written in my CIBIL report(may be i did not understand).I have ac CC and I pay all my EMI’s on tiem since july 2014.Now, my question is: If I repay again the whole amount will I get loan in future? What if i dont pay then will i get loan in future as I am doing a descent job and my CIBIL score is 766.
    I earnestly hope and waiting for your kind advise.

    Thanks in advance!

    1. Yes, you should sell all the money and then wait for few months to get things on track .

  91. Sai Boyina says:

    Hello Manish,

    Few months ago i had purchased TV through Bajaj Fin serv EMI policy. bajaj team gave me customer login details, after i logged in, i found a CIBIL report was attached to my account of Bajaj Fin serv. I have downloaded it and found below comments in the report which was pulled by Bajaj.

    1. Low proportion of satisfactory trade.
    2. Credit cards balances are high in proportion to High credit Amount.

    I didn’t understand what they exactly meant. could you please let me know what’s the meaning of above two comments?

    I believe it’s the simplest way to get your CIBIL score and report too. I haven’t paid any additional amount to bajaj. they took only 200/- as processing fee and for zero interest rate they processed my application. but i got 500/- worth cibil report as a bonus. 🙂

  92. gauti08 says:

    Dehave 2 loan the first loan is for 350000/-three lakhs fifty thousands with 48 emi in which i paid 24 emi , the second loan for 200000/- two lakhs for 36 emi in which i paid 14 emi and i have a hdfc credit card with limit of 35000/- in which i used the maximum limit, since 3months am not paying my emi’s and from nowwards am unable to pay any of the loans, bcoz i had a loss in business now am jobless and no business, now i am searching jobs, if i get the job also i may get salary 10,000 to 12,000/-with in 12000/- how can i live with my family wife and 2 children & how can i settle the loans.

    1).To be frank i am not bothered about my ciebel score, in future also i dont want to go for loans that is fixed, if i want to settle the loans, how much i need to pay the amount if i go for settlement, after settling loans then after some years will they call and send notices again & the recovery people will harras me ??

    2) If am unable to pay the loan what will be the punishment, how many years i need to behind the bars, please let me know

    3) only suicide

    4)The last option, at this situation,can i travel abroad to gulf countries for job purpose and every month i can pay the amount and clear all my loans can??? i mean if i travel abroad now any problems will arise like in airport (india) i will be caught or when i join in job in gulf countries there will be any problem in my job plz kindly advice me sir..

    Manish sir please advice me, i am waiting for your reply sir, you are answering other queries but not answering my query sir i am eagerly waiting for your decision please…….

    1. 1. You can connect with bank for the settlement amount .

      2. I dont think bank can get you arrested for that.

      3. Bank will be able to comment on that.

  93. Shailen says:

    Hi ,
    i got a credit card from SBI , i was paying minimum due amount as a EMI,
    now i lost my job and unable to pay EMI from last two month so bank called me for settlement hence i goes to settlement, will it impact my credit core ..

    or if pay total outstanding once i get the job,….will my score improve…

    so that time i have to pay full outstanding or bank will offer after deducting this settlement amount.

    1. Credexpert says:

      Dear Shailen,

      We would suggest you to payment total outstanding if possible because if you do settlement, then it is a negative remark on your credit report.

      If, paying total amount is not possible, you can ask the bank to take the total amount in EMI or if the bank doesn’t give this facility then it will be better that you atleast settle the account.

      when you later have funds, you can close off the account. Bank will charge you amount that it will be giving you as waiver during settlement.
      Once you pay off the balance amount your account will reflect as closed.

      But the delay that has already happened due to non payment will reflect on your report and will hamper your score.


    2. It will hurt your score. I suggest tell them that you are getting a new job soon and will make payment soon . BUt anyways some impact will be there anyways ! . Do not settle !

  94. gauti08 says:

    Dear Sir,

    Gauti08 again sir,

    The fourth and the last option, at this situation,can i travel abroad to gulf countries for job purpose and every month i can pay the amount and clear all my loans can??? i mean if i travel abroad now any problems will arise like in airport (india) i will be caught or when i join in job in gulf countries there will be any problem in my job plz kindly advice me sir

  95. gauti08 says:

    Dear sir,
    I have 2 loan the first loan is for 350000/-three lakhs fifty thousands with 48 emi in which i paid 24 emi , the second loan for 200000/- two lakhs for 36 emi in which i paid 14 emi and i have a hdfc credit card with limit of 35000/- in which i used the maximum limit, since 3months am not paying my emi’s and from nowwards am unable to pay any of the loans, bcoz i had a loss in business now am jobless and no business, now i am searching jobs, if i get the job also i may get salary 10,000 to 12,000/-with in 12000/- how can i live with my family wife and 2 children, here i found only 3 solutions for this problem

    1).To be frank i am not bothered about my ciebel score, in future also i dont want to go with loans that is fixed, if i want to settle the loans, how much i need to pay the amount to them for settlement, and after settlement after some years will they call and send notices again the recovery people will harras me ??

    2) If am unable to pay the loan what will be the punishment, how many years i need to behind the bars, please let me know

    3) only the way is suicide

  96. Rahul says:

    Hi I had two credit cards- One was from Citibank and the other one from SBI.

    I have paid off the entire outstanding amount on my Citibank credit card and thinking of going in for an settlement on my SBI card and please make a note that both the cards are now permanently blocked and even I pay off the entire amount I i will still not be able to use them.

    So my question is will settling the SBI card account have any impact on my credit rating (i know it will have some impact but will it have a very huge impact in negative sense) keeping in mind I had paid off full outstanding amount on the Citibank credit card. I am thinking if I have paid what ever I owed to Citibank then going in for a settlement on SBI card should not have a very great impact which would have been the case had I gone for a settlement on the Citibank card also. What do you experts have to say?

    Please advise as soon as possible as I need to take care of this soon.

    Anticipating your responses.

    Thank you,

    1. If settlement here means “paying less than you owe” then yes, it will badly affect your credit score

  97. Debjit says:

    Dear Manish,

    I have a CIBIL score of 845 but am unable to secure laons from banks as I had a bad history some years back. Though I have repayed back the entire amount plus interest the reason for rejection is delayed payments.I have not settled with any bank but paid the principal as well as interest.
    Kindly suggest a way out.

    1. Debjit

      Its like a black mark on your history , so bank might not give you further loans for quite some time. I think you should personally talk to bank manager

    2. Credexpert says:

      Dear Sir,

      845 is a good score. As an industry practice, a score of 750 and above is considered to be a good score, but having said that lending institutions would also consider their internal credit policies and will have their own credit score cut off.

      Though you have made payments on the accounts with negative remarks, the late payments that occurred in the past would reflect and stay on your credit report as the report reflects the facts related to all credit activities.
      We suggest you to opt for a secured credit card, make timely repayments against this credit card and over a period of time your credit score could improve.

      Also, do not make any further applications until there is an improvement in your credit score. The rejection would only increase the number of enquiries appearing on your credit report which indicate a credit hungry behaviour and is viewed negatively by lending institutions.


  98. Santosh says:

    I was using two Credit cards. First SBI (Credit Limit Rs 102000) and other HDFC (Credit Limit Rs 38000). I was usning both the cards and paying regurally. But to circumstances beyond my control I used the entire amount and failed to pay. Now the total outstatnding is Rs 140000 including both cards. Now I am not in such a postion to pay the entire amount atonce. Kindly suggest me the best way to clear the outstanding. And month by month interests are being added which is increasing my headache.

    1. Credexpert says:

      Dear Sir,

      It is advisable that you arrange for an interest free borrowings from friends/family and repay the complete outstanding amount. This will ensure that your credit report is not impacted negatively and you maintain a healthy credit life. The interest free loan you can then repay in a more convenient manner.

      Once you clear your dues, please ensure that you use the card judiciously, do not cross 30 – 40% of the credit limit issued to you and make payments regularly. Do not pay only the minimum amount due, as this will negatively affect your CIBIL score. If you pay only the minimum amount, high interest rates will be charged on the outstanding amount and balloon into high dues and result in a debt trap for you. A small amount will balloon at an interest rate of 35% – 40% p.a. (depending on the credit card).


    2. Hi Santosh

      Truly speaking, your circumstances is not their headache. You will have to clear your dues at any cost. Either take a personal loan and pay it off .


  99. Amit Kumar Athghara says:

    Hi Manish

    Actually I am facing issue in taking car loan, as my CIBIL is 802, but still nationalized banks are not giving me loan because I had 2 settlements ICICI, SBI card and a overdraft written off coming which I am not sure. How can I close all these issues. Banks won’t change the status from settled to Close. I have successfully closed my home loan with out being defaulter from HDFC. How I can proceed for the car loan?

    1. Credexpert says:

      Dear Sir,

      802 is a decent credit score. Although credit score is considered to be one of the most important tools used by lending institutions to evaluate an individual’s credit worthiness, it would also consider other factor basis their internal credit policies.

      Also, “Settled” and “Written Off” accounts may be viewed negatively by the lending institutions despite of a good score. A settlement typically indicates your inability to repay and can hinder any of your future loan applications. The only way to remove this remark is by repaying the complete outstanding amount against all your credit accounts.

      On payment of complete outstanding amount, ensure that you obtain the “No Due Certificate” from the lending institutions. Also, lending institutions usually report the updated information to the bureau in a cycle of 30 – 45 days. Once you get the written communication from the bank, you can check your report after a month.


  100. Anuj says:

    Hi Manish,

    Thanks a lot for helping people on credit awareness.
    My query is:
    One of my SCB credit card was settled in February 2008 and the same is shown as SETTLED in my CIBIL report. Request you to kindly confirm if the SETTLED flag will automatically be removed in February 2015 (considering it will be 7 years after settlement done) or still i need to pay off the balance amount.


    1. Anuj

      No , it might not be removed . 7 yrs the minimum time and not MAXIMUM . so it will be there for sure for 7 yrs, but after that it might still be there. I suggest do not reply on that getting removed , because it might never happen . Its final choice by CIBIL only . Getting pay off the balance if there is any

      1. Anuj says:

        Thanks Manish for the advice.
        So, I will wait for another three months and see if removal is done or not.
        If still not done, then i will pay off the balance.
        One more thing, recent I had also paid off fully a written off account of some other bank. They have also confirmed that they have removed the WRITTEN OFF flag from the account. Kindly confirm if the CIBIL score is going to be increased immediately after such WRITTEN OFF and SETTLED accounts are paid and closed.

        1. It will not jump by a big margin the same moment. It will take some time . I think you should aim for all the dues paid off from your plate and also use your debt wisely from now onwards . Keep checking your score in 6 months .

          1. Anuj says:

            Thanks Manish.

            1. Ashish says:

              Hi Anuj,

              Did you check if your SCB card account still appear or your CIBIL report?


  101. Rajendran says:

    Dear Manish,

    Thanks in Advance. There are lots of inquiries in last three years appearing in my statement, most of them rechecked by Institutions , without my knowledge. How to go about this , Can I raise a dispute on this , What action I can expect from Cibil on this case . Will they be removed in case Cibil finds inappropriate …

    1. Credexpert says:

      Dear Sir,

      CIBIL is an informative database of all customers having any kind of financial liabilities (past/current and good/bad) with all the financial institutions. This database is updated by all the financial institutions on a periodic basis with regards to the payment track of customer.

      CIBIL cannot remove any credit details from the database. In case you have not applied for any credit facility and there is an enquiry reflecting on your credit report, you can raise a dispute for the same. However, CIBIL will confirm regarding the same with the lending institution. The information will be removed from your database only if the lending institution updates the database with the correct information.


    2. Are you saying that some bank just checked your requirement without you asking for it ? How is that possible ?

  102. anilmegur says:


    Someone stole my purse in 2009 & I had 2 credit cards in it(SBI & ICICI).
    I called the customer care of both banks & asked them to cancel these cards.While ICICI cancelled my card immediately. But SBI card didn’t cancelled immediately due to which around Rs.16,000 was misused. After that SBI customer care asked me to provide police complaint of the lost card , which I have provided them.I sent several mails to SBI customer & called their customer care about status but there was no reply from their side. After 4 years their legal team called me saying I have a due of Rs.30,000 , when I explained them the case & they are asking me to pay Rs 12,000 for settlement & they provide NOC to me. Kindly guide me what I need to to in this case


    1. Credexpert says:

      Dear Sir,

      With reference to the lost card complaint lodged earlier, ask the bank for a permanent closure of this account.

      The non payments against this credit card would have impacted your credit score and report. Also, a settlement now will still impact your score as s credit report with a negative remark of “Settled” would be viewed negatively by the lending institutions. Settlement indicates your inability to repay and can hinder any of your future loan applications.

      We would suggest that you first write an official email to the bank raising this issue and mentioning each and every statement of facts, as verbal communications cannot be used to validate the facts in future. Await their response as the further course of action would depend on their reply. Also since this issue has resurfaced after 4 years, continuos follow up with the bank would be required.

      In case of no response or unsatisfactory response, you could also consider filing a complaint with Banking Ombudsman by visiting the link


  103. anilmegur says:


    Someone stole my purse in 2009 & I had 2 credit cards in it(SBI & ICICI).
    I called the customer care of both banks & asked them to cancel these cards.While ICICI cancelled my card immediately. But SBI card didn’t cancelled immediately due to which around Rs.16,000 was misused. After that SBI customer care asked me to provide police complaint of the lost card , which I have provided them.I sent several mails to SBI customer & called their customer care about status but there was no reply from their side. After 4 years their legal team called me saying I have a due of Rs.30,000 , when I explained them the case & they are asking me to pay Rs 12,000 for settlement & they provide NOC to me. Kindly guide me what I need to to in this case?


  104. anilmegur says:


    Someone stole my purse in 2009 & I had 2 credit cards in it(SBI & ICICI).
    I called the customer care of both banks & asked them to cancel these cards.While ICICI cancelled my card immediately. But SBI card didn’t cancelled immediately due to which around Rs.16,000 was misused. After that SBI customer care asked me to provide police complaint of the lost card , which I have provided them.I sent several mails to SBI customer & called their customer care about status but there was no reply from their side. After 4 years their legal team called me saying I have a due of Rs.30,000 , when I explained them the case & they are asking me to pay Rs 12,000 for settlement & they provide NOC to me. Kindly guide me what I need to to in this case?


  105. jay patel says:

    Hi all,

    I have taken a loan of 4.5 lakhs with HDFC.
    A friend told me that i can get a lawyer to file hardship and pay settlement.
    I wont worry if my CIBIL score takes a hit but i want to know will it affect me from going abroad at any time. Will they block me from going abroad?
    Will i be able to get a Police Clearance Certificate? to apply visa?

    1. Credexpert says:

      Dear Sir,

      We would suggest that you contact your lending institution and inform them about your financial situation and your willingness to settle the account. However, the “Settled” remark in your CIBIL report may be viewed negatively by lending institutions if you wish to avail any credit facility in future.

      Also, please get written documentation for all communication with the lending institutions. For a “Settlement” procedure for which the lending institution has agreed upon and no suit is filed, the Police Clearance Certificate will not be affected. However, if you have defaulted in the past and a suit is filed for non-payments it may affect your Police Clearance Certificate.


      1. Can you explain more on “Police Clearance Part” ?

  106. Anand says:

    Hi Manish
    I’m Anand .during year 2010 i settled 1 personal loan and 2 CC and at present i am using 2 bank cradit card and my current Cibil Score 778 in cibil report the settle account is mentioning 1 loan and 1 CC as ‘Settled’ and 1 barclay card as ‘POST (WO) Settled. Now when i tried to get Loans it got rejected. how it can be resolved.

    pls help me for this & best way for this……..


    1. Credexpert says:

      Dear Sir,

      778 is a decent credit score. Although credit score is considered to be one of the most important tools used by lending institutions to evaluate an individual’s credit worthiness, it would also consider other factor basis their internal credit policies.

      Also, “Settled” and “POST (WO) Settled” accounts may be viewed negatively by the lending institutions despite of a good score. A settlement typically indicates your inability to repay and can hinder any of your future loan applications. The only way to remove this remark is by repaying the complete outstanding amount against all your credit accounts, provided your cash flows allow you to do so.

      On payment of complete outstanding amount, ensure that you obtain the “No Due Certificate” from the lending institutions. Also, lending institutions usually report the updated information to the bureau in a cycle of 30 – 45 days. Once you get the written communication from the bank, you can check your report after a month.


  107. Gaurav Saxena says:

    Hi Manish,
    Thanks for writing one of the best articles, I have read on CIBIL.
    Here is my story, I had 3 CC, 2 PL and 1 loan on card in 2008 with ICICI, I was paying timely for all of them until 2009 end, when I had some major financial issues. I wasnt able to pay the EMIs for a year or so, the bank kept following up, and in 2010 i started settling the accounts one by one, by 2011 I had settled all the accounts, and my CIBIL score had dipped to ~600, But I kept 1 CC from Citi with me all the time since 2008 and have been using is after 2012 and making timely payments.
    I checked my CIBIL today, its 768 however I do see 6 settled accounts with ICICI.
    I plan to take a Home Loan in a years time, Do you think I would get it as within a year my score should go a bit more high.
    But i am worried because of the settled accounts.

    Please suggest.


    1. Credexpert says:

      Dear Sir,

      768 is a decent credit score. Although credit score is considered to be one of the most important tools used by lending institutions to evaluate an individual’s credit worthiness, it would also consider other factor basis their internal credit policies.

      Also, “Settled” accounts may be viewed negatively by the lending institutions despite of a good score. A settlement typically indicates your inability to repay and can hinder any of your future loan applications. The only way to remove this remark is by repaying the complete outstanding amount against all your credit accounts, provided your cash flows allow you to do so.

      However, having said so, if the negative remarks are old, and your credit history after that has been good, with no record of late payments or any negative remarks, lenders may go ahead with your loan application. The same may need to be discussed with the lender at the time of application.


      1. Gaurav Saxena says:

        Thanks for you valuable input.
        My record in last 2.5 years has been pretty neat, however i would try to get rid of the “settled” accounts which do not require a big amount to be spent ,before applying for a loan.


        1. Credexpert says:

          Dear Sir,

          We are happy to help you.

          As mentioned earlier, in order to avoid unnecessary rejections it will always be good to clear all your past negative remarks to the extent possible.


    2. Hi Gaurav

      More than your score , your remarks matters . So forget score, banks will look at the matter . Its like you have 95% marks , but you on your report card its written that you cheat ! .. So marks are of no use .

      Try to close all open matters now itself and it will take some time to get things corrected , also dont forget to take NOC for all closed loans

  108. Pravin says:

    Hi Manish – My score is 555 and I would like to increase my score down the line and can you pleas help me in this case and I don’t have any Credit Card and live loan running currently but one overdraft loan is currently running on time with Citi bank. All the past loans and cards says CURRENT BALANCE and AMOUNT OVERDUE is “0”. But 2 cards says SETTLED” and 1 loan says “Post – WO- Settled”. Please advise to overcome this situation and I would like to reach at least a good score down the line further.

    1. Credexpert says:

      Dear Sir,

      Your credit score is probably low due to late payments in the past. Also, comments like “Settled” and “Post WO Settled” has negative impact on the score. In order to remove such negative comments from your report, you need to pay the complete outstanding amount for all your credit accounts.

      Improvement of credit score is a time consuming process and eventually your score will improve once you have built a good credit history. It is difficult to say how much time this will take and to what extent will it improve. However, it is important that you build and maintain good credit behaviour.


  109. Rahul says:

    Dear Sir,

    I had about 5 credit cards and around 2010-2011 I settled all of them. I had two personal loans which i paid completely. Today’s date I do not have any loan or credit card. My Cibil score is 615 now. And for obvious reasons I am being denied even a small loan or a Credit card. I have an instant credit card for the past 1 year on which i am paying regularly My Question is “If I pay the remaining amount on my settled credit cards, will this increase my Cibil score in any way?” Can you suggest me any more ways to improve my Cibil score. Please help!!

    1. Credexpert says:

      Dear Rahul,

      Ideally you should pay the entire outstanding amount on all your credit cards. Removal of negative remarks such as “Written Off” and “Settled” will have a positive impact on your report and score. Also, in future ensure timely and complete payment against all your credit accounts.

      Also, we would suggest that you do not make any further applications until there is an improvement in your credit score. The rejection would only increase the number of enquiries appearing on your credit report which indicate a credit hungry behaviour and is viewed negatively by lending institutions.

      Using a secured credit card is one option you could look at to build your credit history and score. You could opt for a “secured” credit card. Since these credit cards are secured against “Fixed deposits”, you would possibly get one without any hindrance. Make timely repayments against it to improve your score. Monitor the increase in your score before applying for any credit facility.

      Improvement of credit score is a time consuming process and eventually your score will improve once you have built a good credit history. It is difficult to say how much time this will take and to what extent will it improve. However, it is important that you continue to maintain good credit behaviour.


    2. Yes, first you should pay back all your dues and then wait for some months .. your score and report will get better over time !

  110. Chiranjib says:

    Hi Manish,

    I have a query and seeking your help on that.please suggest me what can be done on that.
    the query is regarding my SBI Credit Card. I have requested SBI Card customer care to close the card after the payment of all the out standings (before due date) on July 2013 and they assured that the card will be closed.but I didnt recieved any written confirmation from there side on mails.butafter that I have not received any statement further and I have not checked the online portal also thinking that there would not be any statement and as well not used the card from then too. But When I pulled the CIBIL report on July 2014 to check the status of my credit health ,I found that there is an overdue of 1734 rupees and along with that the DPD showing 180 days, After viewing this I immediately contacted the SBI card people and to my surprise I found that on July they have charged an annual fee of Rs 499 and every month they have charged late fee for nonpayment of the dues. when I asked them this they told me verbally that this is their internal issue and they are taking a request make my account “CS zeroisation” on 27th July 2014, on 11 of July 2014 they have made the account “Zeroisation” and all the outstanding amount were revert back and along with that they provided me the NOC (Closure Letter) with no outstanding. but or this instance my CIBIL score got very low to 600 and that was a fault from banks side itself ,

    So I just want to know what can be done on that to sue the bank. Apart from that I just want to know whether they have settled this amount or anything else and will there be a negative effect on credit score in CIBIL. I got my NOC , but bit worried if they report shows writeoff or settled as I was not in favour of settlement or writeoff..

    please suggest

    1. Credexpert says:

      Dear Chiranjib

      You could ask the bank for a written communication stating that it was an internal error and that the amount has been reverted. Since it was the bank’s internal error, this will not be shown as “Written off” or “Settled” in your Credit Report.

      Also, lending institutions usually report the updated information to the bureau in a cycle of 30 – 45 days. Once you get the written communication from the bank, you can check your report after a month.


    2. Truely speaking you will face some issues due to it . As it was done on phone, you have no proof . You should have done email comminication . I suggest take this matter now over email and keep the conversation with you. Then file a case on bank (if you have that patience)

  111. Shabina says:


    I have one doubt. Even in CIBIL website it says the Bank will be reporting about the account till 7 years, but in my report I could see the banks still reporting after 7 years.

    I had few loans settled off 8 years back. Yes, I accept what you mentioned in your post that the banks consider that the customer is waste and will never be able to pay back, but why they ruin my credit score even after 7 years.

    If the CIBIL has a procedure of reporting till 7 years why it is reported for more than that. At least I can increase my score now i.e., after 9 years if those are not reported. I guess i cannot raise a dispute also for this case. Please comment if anything can be done for this.

    1. Its minimum 7 yrs , not maximum 7 yrs

    2. Credexpert says:

      Dear Shabina,

      As confirmed by Manish, the credit account details are reported on the credit report for minimum of 7 years and may be seen on your report after that as well.

      However, if your concerned about this affecting your credit score, you can always take a secured loan or credit card and build a good credit history. Good credit behaviour in recent past will always help you in improving your credit score.


  112. ramgopal says:

    dear manishji,
    how will prepayment or foreclosure of a loan affect our cibil score?

    1. Credexpert says:

      Dear Mr. Ramgopal,

      It is difficult to judge the exact impact of foreclosure. Foreclosure of a loan will reduce the possibility of a longer credit history, but this will not be a concern if your payment history is good. Also, it will also reduce your total outstanding balance. All these factors will be taken into consideration for arriving at your score.


    2. It will not affect because you are closing the loan only

  113. Hemant says:

    Hi Manish,

    I had taken a loan from Fullteron way back in the year 2007 16,000 (EMI-990). I had paid some EMI and later it got boounced which I use to pay it to the collection agents. Now I am getting a call from the agents stating my outstanding payment is 22000 and if I pay in one day it will 15000 rs. I am willing to settle but do not have so much cash. Please suggest a less settlement amount.


  114. tarkeshwar prasad says:

    dear manish,
    i having the education loan from bank of baroda. after take the loan tha bank has not informed me to when the emi will start. after 3 month they called me for pay the
    installment.then i was started to pay emi regularly.and now i found that my cibil score . is approx 650.and problem has been created for the job.
    plz suggest me for this problem.

    tarkeshwar prasad

    1. Credexpert says:

      Dear Mr. Prasad,

      Post the 3 month delay, if you have been paying your EMIs regularly and you continue to do the same, then your CIBIL score will improve overtime.

      However, please check if there are other factors on your credit report, such as any negative remarks and DPDs on other accounts which may be affecting your score.


  115. Shailander says:

    I have a HDFC card settlement as paid 50% and my account for that particular account is showing as setteled, My score is 748, If i pay the full amount, Can that status be removed and can improve score?

    1. Yes, it will improve, but it will not be instant .. it will take few months for sure to correct !

  116. bharat says:

    I have used a credit card in 2008 & not paid 10,000 till now, I got a call from Phoenix (collection company for Barclay) they said if i will pay 10,000 then they will put the status “settled” in CIBIL, I want to pay the total dues till now with Barclay , Phoenix people are saying that if i am paying 23500 then they will put the status “CLOSURE” in CIBIL , Please guide me what should i do, Should i pay them 23500 , as Barclay Bank is closed now in INDIA.

    1. Credexpert says:

      Dear Bharat,

      Having a ‘settled’ status on you credit report will be considered as a negative remark. Hence, you should pay the outstanding amount which is Rs 23,500 to Phoenix ARC. Once the payment is done, ask them to report the same to the credit bureau and also request for a NOC.


  117. abhijit says:

    Dear manish
    I am working for pharma company in R&D and using two credit cards from hdfc and sbi from last four years and paid all dues in time without any late payments , take two electronic apliances on finance and closed without anlate payments , two wheelar from hdfc finance and closed it on time in year 2013 i have taken second hand car from a private dealer and financed for rupees 3.69 lakhs from kotak bank now here the problem start while taking car i have checked it outside and taken i dont have much idea regarding same but thta stupid fellow car dealer has cheated me replacing all genuine parts with faulty one and now after just 4 months of taking car its sucking me like anything … now what can i do i cant sell the car due to its bad condition to anyone and cant afford to spend on it much i am thinking to stop making the loan payments otherwise i will be in big loss can u suggets me the good option so that my cibil should not affect much and i should be out of this trap pls urgent help required

    1. Credexpert says:

      Dear Abhijit,

      Not repaying the bank because you are unable to sell or use the car given its bad conditions is definitely a bad idea since you are liable to repay the bank to the extent borrowed plus interest.

      Besides, the non repayment would reflect on your credit report and it will impact your score as well.

      From the facts stated above, we understand that you have always repaid all your loans on time. Based on it, we assume that you would have a good credit score too. Your non repayment on this auto loan could impact your future borrowings.

      You could look at these options:
      1) Prepay the loan and then sell it to some other party (prepay either through own funds or interest free borrowings from friends/family)
      2) Contact the bank for releasing the charge of hypothecation for the purpose of sale (This differs as per bank and hence should be confirmed with your bank specifically)


    2. What happened to your case has no relation with bank .. They need their EMI , either pay the EMI properly or pay off the whole loan in one go .. but if you miss the payments your CIBIL will get affected !

  118. Halappa says:

    Hi Manish,

    Once again i am in seek of your help.

    In Feb 2011 my ICICI credit card balance was 86942/- (Eighty Six Thousand Nine Hundred and Fourty Two), i was not able to make full payment due to some financial problems, i made some partial amount of 2000. In March 2011 i called customer care and i told i will make the full payment on my card and asked to reverse the interest charged on this a/c. In March Bank has done COLLECTION INTEREST REVERSAL of 37,601/-, Service tax reversal of 3,872/- and COLLECTION PRINCIPLE REVERSAL of 3,219/- and i made a payment of 42250 by cash in ICICI branch. These reversal charges they have shown in the march month statement as credit amount. They clearly said they will not mention as Settled in the CIBIL, and they have updated as NUL in CIBIL also. I checked my CIBIL report of August 2012, Sep 2013, Dec 2013, status was blank. Suddenly when i checked my Feb 2014 CIBIL report it was showing as Settled. Then i checked with ICICI customer care, now they are saying its SETTLED account, you took settlement in March 2011, by mistake we have not updated CIBIL as SETTLED, now you need to make payment of balance 44692 to update the CIBIL as NUL.

    As i am clear, i have not taken the SETTLEMENT, and even they have not updated CIBIL from MArch 2011 to Jan 2014 as SETTLED, suddenly they are saying like this.
    Please help me to resolve this issue.

    Thanks for your help,

    Best Regards,

    1. Credexpert says:

      Dear Hallapa,

      Technically, you were liable to repay the complete outstanding amount i.e Rs.86,942. The reversal of principal, interest and service tax was a waiver which is regarded as a “settlement”.

      Clearly, there was a miss communication from the customer care’s end. Do you have any written letter confirming that this was not a settlement and that it be reported to the bureau without any negative remarks? Only that could help to prove your case.

      The fact remains that outstanding amount ballooned due to non payment of the dues and if the bank waives any part of this outstanding, it would be a settlement.


    2. Did you pay the full outstanding money ?

      1. Halappa says:

        Hi Manish,

        Thanks for your reply.

        I don’t have any letter for non settlement. As you suggest i will pay the remaing balance and update my CIBIL report. It will avoid future problems.

        Thanks for your guidance.

        Best Regards,

        1. Yea .. go for it for now !

          1. Halappa says:

            Hi Manish,

            I have paid entire balance in ICICI credit card (44700/-) followed up with Bank to update my CIBIL. They have updated on priority, now in my CIBIL report there is no SETTLED remarks and there is no written off status except one SCB Restructured Loan status. (Earlier i discussed with you on this issue, i had converted all due in SCB credit card into EMI, they have mentioned as Restructured, and they are not ready to remove this status). My current CIBIL score is 725. I am planning to apply for some personal loan, am i eligible to get the personal loan now?

            Please advice me.

            Thanks for your moral and technical support.

            Best Regards,

            1. Credexpert says:

              Dear Mr. Halappa,

              Congratulations on getting your ICICI credit card account resolved!

              725 as per industry standards, is a decent credit score for a personal loan. However, the approval of the same would be at the discretion of the bank you are planning to approach.

              Also, whilst the fact remains that credit reports and scores are one of the most important tools used by banks to evaluate credit worthiness, it is not the only tool. The bank would consider your income, job stability etc. before approving or rejecting your loan application.

              The best way to find out is by applying to a bank of your choice. In case of rejection, take action on the negative factors indicated by the bank.


            2. Halappa says:

              Thanks a lot for your advice. I will apprach one bank to get personal loan. I will let you know the status.

              Thanks Manish once again.

              Best Regards,

            3. That status of restructured will not be removed . Because thats the remark you get on converting to EMI .. Its a bad thing in CIBIL

  119. Partha Bhowmik says:

    I have done a balance transfer from HDFC PL to ICICI PL# LPCAL00027083212(August/September 2013.)

    During the balance transfer I was told that in ICICI bank I will get 14% Rate of Interest and there wont be any pre foreclosure charge, which later on I came to know that the ROI is 14.25% and there is 5% Prefore closure also.
    Now till date I have used only INR 30,000 approx form ICICI bank and the balance transfer did not happened.(as the ICICI sales person kept the HDFC cheque with him saying that there is some mistake in the amount in the cheque and he will correct it and give to me again, this cheque I have not received till date. He gave me the cheque in december by the time it expired. He said again with in 2 days he will give it back and took it but they gave me a call on january end and asking me to take the cheque.)

    I had to pay the EMI for HDFC bank till date and 3 EMI’s for ICICI bank also I have paid already.
    I have already paid 3 EMI’s(each approx 8K) from the 30K I have used from ICICI Bank, I have not received the other Cheque till date. So I want to close this Loan by paying remaining amount of 30K but the bank persons are not listening to me and threatening me that they will file a case in CIBIL cour against my name.
    The fault is of the Banks employee who processed me the Loan. He gave me the Loan by fraud and now they are not closing the Loan also
    Please do me a favour by helping in this regard.

    1. Credexpert says:

      Dear Mr. Bhowmik,

      The rate of interest and the pre closure fees charged by ICICI Bank would be mentioned in the agreement. Kindly go through the same and if the agreement states 14.25% ROI and 5% Pre closure fee then you would have to pay the same.

      Since you have ended up paying EMI to both the banks for no fault of yours, you should be filing a complaint with ICICI bank. This link should help Based on their response you could then take your next step of action.

      CIBIL is not a court but a credit bureau which acts as central repository system of data of all borrowers. It maintains a record of no. of loans/credit cards, outstanding balances, late payments etc. Based on these records a credit score is provided by the bureau. You should obtain your CIBIL credit report to check the affect of this Balance Transfer loan on your report. This link should help


      1. partha bhowmik says:

        Thank you for your response.

        Now the banking persons are calling me to foreclose the Loan by paying 30000 INR. (I am also willing to close this ASAP. I can not take this tension any more.)

        They are telling that if i do the same then it wont effect my CIBIL report in future. After reading your blog I am in no mood to believe these guys.

        What shall I do now.
        Looking forward to your suggestions.

        Partha Bhowmik.

        1. Credexpert says:

          Dear Partha,

          In principle, you should not be paying any additional amount for no fault of yours and unless the matter has been resolved after thorough investigation.

          Did you try escalating the complaint by opting for option “Step 3” and “Step 4” in this link

          As mentioned by Manish, coordinating for such matters can be time consuming and you would have to be patient.


    2. Hi Partha

      I would say that this needs to be escalated to the banking ombudsman and even ICICI bank grievance cell

      1. ParPartha Bhowmik says:

        Hi Manish,

        I have tried to escalate the same but no one is replying from ICICI side as now.
        I have raised a request in banking ombudsman but no response from there also.
        Can you please suggest me n How to escalate the same in Banking Ombudsman.

        Thank you in advance.

        1. These things are going to take a lot of time, so keep patience. Use RTI to banking ombudsman to ask for status !

          1. partha bhowmik says:

            Thank you for your response.

            Now the banking persons are calling me to foreclose the Loan by paying 30000 INR. (I am also willing to close this ASAP. I can not take this tension any more.)

            They are telling that if i do the same then it wont effect my CIBIL report in future. After reading your blog I am in no mood to believe these guys.

            What shall I do now.
            Looking forward to your suggestions.

            Partha Bhowmik.

            1. If you are paying less than what you owe them, then its SETTLEMENT . But at times bank agrees to really change the status as CLEAR . So take a written note from them that after paying the 30k , the loan is really closed and the status they will update in CIBIL will be XYZ .. So that later you can fight them in WHITE !


  120. Shashikant Mandal says:

    Dear Sir,

    Fullerton charged me one additional EMI in view of increased interest rates in 2011-12 & wants me to pay in full. My loan for Rs.199000 with Rs. 6570 (48 installments) was completed in December 2013.
    They are now referring to some obscure clause saying they can do so, I have written to their mail id & am waiting for their response. Please guide whether I shall pay the extra EMI or try to take this up by escalation.

    1. Credexpert says:

      Dear Mr. Mandal,

      Assuming that the loan was availed under floating interest rate type, any increase in the interest rate would result either in recalculation of the new EMI amount or increase in the tenure. In your case it seems they have not recalculated the new EMI amount (i.e. higher EMI due to the increase in interest rate) but have increased the tenure by 1 month.


    2. If the loan is already closed then they cant ask for any other EMI from you . Tell them you wont pay and also complain to Banking Ombudsman on this malpractice !

      1. Shashikant Mandal says:

        Dear Manish/ Credexpert,

        Thanks for the valuable feedback/input, my loan was a fixed interest loan as far as I know (but do not have loan agreement copy with me). I completed my last EMI in Dec’2013 (as agreed). The extra EMI was intimated by them against which I wrote to their CCRC – they have replied and asked me to pay for the ECS bounce+penalty charges (legitimate ones) which can not be waived off, but they would waive off my extra EMI worth Rs.6114 as a service gesture against this (also received mail). I have thus paid Rs.2042 yesterday & am awaiting their loan closure & NOC letter (deadline given is 9th Jan’14).


        Shashikant Mandal

        1. Credexpert says:

          Dear Mr. Mandal,

          We are glad that you have repaid the penalty charges and cleared the outstanding amount. Ensure that your NOC states the repayment of the complete outstanding balance including Rs.6114 which has been waived off as a service gesture


          1. Shashikant Mandal says:

            Dear Manish & Credexpert,

            Thanks for the guidance, just received call from M/s Fullerton confirming waiving off’ of last EMI as a service gesture. They would be sending me the NDC.


            Shashikant Mandal

        2. Thanks for updating us on this

        3. Shashikant Mandal says:

          Would like to add that I have received the scanned copy of No Dues Certificate by mail !
          Thanks & Regards
          Shashikant Mandal

  121. Asshish says:

    Hi Manish,
    I applied for credit card last month with two bank but bot got rejected. I dont know the exaxt reason for it my scor is 729. I already explained you that i took two wheeler loan loan but i default but later on i paid them off last year December,same thig happnd wit bajaj i paid them off even total amount this year January. but in my dpd section 900 showing. when i will be removed. plz reply soon what should i do. how every thing will be ok from last three year i am very upset.

    1. Credexpert says:

      Dear Asshish,

      Repaying the complete outstanding amount against the defaulting accounts is a good step taken by you. However, the late payments (DPDs) which are a matter of your concern would still reflect on your credit report since these are facts that depict your repayment behaviour in the past.

      Lending institutions have their own internal evaluation criteria and credit score cut off, based on which it sanctions/rejects loan applications.

      Whilst, there are various factors that could have resulted in the rejection of your loan application, a lot of it would be case specific and could be commented only after analysing your credit bureau report.


  122. Devendra says:

    Hello Manish,

    I checked my score (proactively) in June 2012 and it was 846
    this year again I checked my score (again proactively) in Nov 2013 and the score is 692
    I am not able to understand the reason for low score
    1. there is no issues in my home loan (every month I can see 000)
    2. no issues with my credit card payments yet (3 cards)

    only issue:
    my SBI card renewal fee was changed in June 2013, which I informed SBI to cancel the card, but instead of cancelling the card they send outstanding amount details to CIBIL and I can see 030, 060, 090, 120, 150(nov 2013)
    I check with SBI customer care and they mentioned that the same acount has been reverted and the latest information was sent to CIBIL on 15th Nov, which will refelect in my CIBIL report in Jan 2014 (after 45 days)
    Based on this information I raised the dispute in CIBIL

    Pls let me know because of this reason is my score droped from 846 to 692 (which is more then 150 points) …. otherwise in past I never had any bad credit history.

    How can I come out from this situation now

    Pls suggest


    1. Credexpert says:

      Dear Devendra,

      The above mentioned card details might be the reason for your credit score to decrease. Since you have already taken up the issue with the bank, we would request you to be patient and wait till January 2014 and then based on the outcome, take the necessary steps.
      Also, wait for the response from CIBIL. But do not take any further action with CIBIL till you have received confirmation from the bank regarding the updation of your account.


    2. I think this reason is surely one of the reasons for low score, but in general CIBIL has lowered all score (700 earliar is same as 650 now) . So once this new update happens, your score should move up a bit


  123. Prabhat says:

    HI Manish,

    What is the impact of fore closure of a personal loan on the CIBIL record?

    If the personal loan is for 36 month long is set to be nil foreclosure charges after 12 EMI and I want to foreclose after say 6 or 7 EMI will that improve or negative impact on my CIBIL score?

    1. Credexpert says:

      Dear Prabhat,

      It would be difficult to comment on the impact on your credit score based on this single information of foreclosing the Personal loan.

      Credit score is calculated based on various parameters like the number of loans/credit cards – open and closed both, outstanding balance and payment history against each account, number of enquiries. The foreclosure of your Personal loan would have an impact on your credit score based on its linkage with various such factors.

      Personal loans are high interest loans and it would be a good option to repay the outstanding balance if you have the capacity to repay.


      1. Prabhat says:

        Thank you Credexpert for your input. All the paid EMI was via ECS and there was no issue in those payments. Now I am planning to fore close the loan and wanted to know the impact of this closure on my CIBIL record.

        PS: It was a direct personal loan from ING bank and no card was associated with that.

        1. Credexpert says:

          Dear Prabhat,

          The timely repayments of this Personal loan would have helped in boosting your score. But as explained earlier your credit score would be linked to all your other loans/credit cards as well. The repayments against them, outstanding balance, credit utilization (in case of credit cards) together will be the answer to the increase or decrease in your score.


          1. Prabhat says:

            Thank you Credexpert for you input.
            As you said all loan components including credit card payment will impact the score and I agree with you. Leaving other factors apart and by not looking at the overall score impact I was looking for the impact of the foreclosure on my score.

            Ex: Lets say all other factors (like card payments) are good and there are no issues so far and foreclosure happen. Will this help improve overall score?

            Other Ex: Other factors (like card payments) are having issues (atleast 5 yrs ago and since then all good and timely/before time payments) and foreclosure happen. How will this impact? Will this help improve the score?


            1. What do you mean by forecloushre here ? How will foreclosure help ?

    2. Foreclosure means “Paying all the money and closing the loan?” ?

  124. Venkatesh Kulkarni says:

    Hi Manish Ji,

    I had a bad deal with ICICI (Credit card) was taken on 2008 and there was payment gap of 3 Years, now i have closed the account (not settlement) after paying the entire amount, ICICI have updated the status as Zero Balance in cibil & Score was 740, but now the same bank had updated as Settled, fed up running behind there guys to remove settled status in cibil, after the closure i got an NOC & with same i have tried applying for personal with HDFC & ICICI both got rejected due to the 900 DPD’s, only for these two rejections my Cibil has come down to 630 (Almost 110 Points) , any Suggestion or comments from your end…


    1. Credexpert says:

      Dear Mr. Kulkarni,

      Your CIBIL score has dropped by 110 points not because of the 2 rejections by HDFC and ICICI bank. In fact the late payments (i.e. 900 days) have negatively impacted your credit score and have made these lending institutions reject your loan application.

      If you have not settled your credit card payment and have repaid the complete outstanding amount then, the “settled” remark should not be appearing on your credit report. We would suggest that you check the NOC to ensure if it mentions any settlement.

      Get your credit report analysed from our experts and get comprehensive yet simplified understanding of your credit report. We also offer service wherein our experts handhold, guide and coordinate with lending institutions and/or the credit bureau to resolve any errors appearing on the credit report and ensure a healthy credit report.


      1. Venkatesh Kulkarni says:

        Team Credit expert,

        When i had a credit O/s with ICICI my Score was 740 only even though the DPS’s were showing 900, the real problem started when paid the entire amount, now after many mails/calls to ICICI & Cibil Settled status is removed, any chances of Cibil score is Up? should i purchase a cibil report now & can apply any personal loan?

        Venkatesh Kulkarni

        1. Credexpert says:

          Dear Mr. Kulkarni,

          Yes, now that the settled status is removed from your credit report, your credit score could have improved. However, the settled status is not the only remark that has resulted in the score drop. Credit score is calculated based on various other factors like outstanding balances, no of secured & unsecured loans, no. of enquiries etc.

          Also, the late payments of 900 days would stay on your report even after the settled status is removed and this would be viewed negatively by lending institutions resulting in rejection of your loan application.

          Since, personal loans are unsecured in nature, lending institutions would be more cautious in evaluating your credit worthiness. We would suggest that you stop making any further loan applications and start making timely repayments towards any of your other loans or credit cards.

          Monitor your score over a period of time before applying for a loan or credit card. Get your credit report analysed from our experts and get comprehensive yet simplified understanding of your credit report.


    2. If you feel that there is a mistake from bank or CIBIL , you can file a case against them and claim the damages !

  125. Halappa says:

    Hi Manish,
    I saw your suggestions on many issues its excellent. I am also in some problem. Please help me in resolving my issues.

    I had Standard Chartered Credit card and had balance of around 80k in 2011, due to some financial problems I could not make the payments regularly and SC Bank offered me to covert the whole balance into EMI, I paid some 6 to 7 EMIs and later I have closed the card by paying the remaining balance of card (including all EMIs) in July 2012. I did not know that they will update the CIBIL status as RESTRUCTURED LOAN, recently when I applied for the loan its got rejected, then i checked my CIBIL report and came to know the status. I have send e-mails to nodal officers of standard chartered bank and they said “We wish to confirm you that you have availed the restructured plan towards your card account. The same reflects in CIBIL Records. We regret our inability to amended the CIBIL records”. Please can you suggest me to how to remove the RESTRUCTURED LOAN status my CIBIL report. I am waiting for your reply.
    Thanks in advance.

    Best Regards,

    1. Yes, it cant be changed. All loans converted to EMI are marked as RESTRUCTURED LOANS and thats how it works

      1. Halappa says:

        Thanks Manish for your kind information.
        May i know the way how to resolve this issue? shall i go with Creditsudhaar to resolve this issue? or myself personally approach bank to change this status?

        Thanks for your support.

        Best Regards,

        1. You dont need any company . You can just contact the bank to rectify it !

          1. Halappa says:

            Hi Manish,

            Thanks for your great information. I have started interacting with SCB, they said they will check and get back to me. I will update you once its updated.

            Thanks once again for providing such a good information. It will help to many peoples who are suffering from this kind of issues.

            Best Regards,

            1. Halappa says:

              Hi Manish,

              I checked with SCB Bank, they are saying once you availed EMI option on credit card it will be updated as RESTRUCTURED LOAN, it can not be changed.

              Could you know what we can do now? do you have any RBI rules on this issue?

              Please suggest me.

              Best Regards,

            2. You cant do anything on that . Thats the way it works . Because you are actually restructuring the loan from lumpsum to EMI . There is nothing wrong in it .

            3. Welcome . Spread the knowledge !

  126. Sam Wilson says:

    Hi Manish,

    I had taken a personal loan from HDFC in 2007 for 4 years. The EMIs were regularly paid till 2009 after which i had unfortunate medical emergencies and the payments were delayed every month. Though there was a delay but the emis were paid monthly . I believe that it as hit my credit score badly and am suffering the consequences now.
    Today I am looking for a personal loan but it is geting delayed without answers, which makes me believe that my CIBIL socres are on a toss.
    Kindly advice

    Name: Sam Wilson
    Qual :MBA Operations Management
    Work: Team Lead at KPIT Global Solutions (4.6pa)
    A/C: StanChart (holding a/c since 3+yrs)

    Sam Wilson

    1. First step for you is to actually order your report and check the score and remarks on it . only then more comments can be made !

    2. Credexpert says:

      Dear Mr. Wilson,

      First obtain your CIBIL credit report and score and check your credit score.
      The late payments that occurred in the past would reflect and stay on your credit report as the report reflects the facts related to all credit activities.

      Personal loans are unsecured in nature and hence the lending institutions would be extra cautious.

      As an industry practice, a score of 750 and above is considered to be a good score, but having said that lending institutions would also consider their internal credit policies and will have their own credit score cut off. We would suggest that you do not make any further applications until there is an improvement in your credit score. The rejection would only increase the number of enquiries appearing on your credit report which indicate a credit hungry behaviour and is viewed negatively by lending institutions.

      Build your score by making all your credit card and EMI payments towards your loan accounts on time. Over time your score will improve and lending institutions could consider your applications based on this.

      Get your credit report analysed from our experts and get a comprehensive yet simplified understanding of your credit report.


  127. Senthil says:


    I had settled my CC payment, the total due amount is 26000 & I Settled it as 20000. Also I missed 2 months due. currently I am looking for a loan with Joint account ( Myself & my brother). Is there any impact on getting loan approvals due to settlement ?


    1. Credexpert says:

      Dear Senthil,

      Settlement and the late payments would be viewed negatively by lending institutions as it indicates your servicing inability and yes this could hinder your loan applications. If this settlement and late payments were recent the impact of these negative remarks is more.

      Which loan are you planning to avail and what is your credit score? Besides the general industry practice of considering score above 750 to be good, each lending institution would have its internal credit policies and credit score cut off.

      We would be unable to comment on the approval of your loan application unless we have additional details regarding your credit facilities.


      1. Senthil says:


        Thanks for your reply. My credit score is 670. Is there any possibilities to get the loan as JOINT (my brother is having good score) my self as a secondary customer ?


        1. Senthil says:


          I am looking for Home loans. I used 1 credit card & settled it.


          1. Credexpert says:

            Dear Senthil,

            See our reply earlier.

            Warm Regards,

        2. Credexpert says:

          Dear Senthil,

          670 as a credit score is considered as a low score.

          Many lending institutions use their internal credit evaluation policy clubbed with the credit bureau score to decide whether to reject the loan application or approve the loan application.

          Depending on the score which you brother has got, you can become the secondary borrower of the loan and your brother can become the primary borrower. But again the point which I mentioned above will play a role in deciding your loan application.

          Warm Regards,

        3. Your credit score and report will matter equally

  128. Srikanth Kadari says:


    I am Srikanth from Hyderabad.

    I have two credit cards –
    Axis bank Credit card –
    Limit – 50000
    Outstanding balance – 55692

    Standard Charted bank –
    Limit – 20000
    Outstanding balance – 26562

    I have two personal loans –
    Axis bank personal Loan amount – 100000
    duration – 3 years
    EMI’s paid – 21 months
    Outstanding amount – 45535
    Check bounces – 4

    Fullerton India personal Loan Amount – 10000
    Duration – 4 years
    EMI’s paid – 11 months
    outstanding amount – 97656
    Check bounces – 4

    Up to last year my credit score was 700+ befor I took Fullerton India loan. But unfortunately, due to financial crunch, i paid only minimum amounts to the credit cards and few
    check bounces happened. Last month, when I tried to clear all the CC outstanding amounts and loan amount by taking another personal loan, due to my cibil score degraded to
    562, they rejected and no bank is offering me any sort of loan.

    One more thing, I even lost my job this month. I would like to settle the cards and loans with clearance of cibil. Please advice me on this.


    1. Credexpert says:

      Dear Srikanth,

      Personal loans are high interest rates loans and we would advise that you do not avail a Personal loan to repay your outstanding loans/credit cards.

      Firstly, since currently you have no steady source of income, personal loan would only burden your cash flows.

      Secondly, all your loans/credit cards are unsecured in nature, opting for a settlement would only provide a temporary solution from debt stress. Settlements would impact your credit score negatively and hinder your future loan applications.

      We would suggest that you arrange for some interest free personal borrowings from friends or family and repay the outstanding balances. This would ensure that your credit report is not impacted negatively and you also have successfully overcome your debt for the time being.

      If for any reason you are unable to arrange for this fund, then we would request you to talk to the lending institutions to close the card and convert the outstanding amount payments into EMIs. Also make sure the EMI amount match your servicing capacity.

      But one thing do not opt for settlement.


    2. I dont think settling is a good idea for future . Better talk to bank and ask them if you can convert it into EMI !

  129. Krishna says:

    Hi Manish..

    I have taken a loan for the amount of 40000 /- frm a private finance which i was paying correctly for the 1st 12 months. After that my ECS payment has been stopped when i enquired about this after 6 months of emi which was not paid from me to Fullerton India bank. Now, when i enquired about this to my personal bank, they gave me a report of NOT CHEQUE BOUNCE CHARGES AND same from the money which i have lend frm the bank. Now , my cibil score is 650 and paying all my emi through cash to respective bank in branches. I have cleared all my outstanding 6 EMI with Interest more than what they noted for my safety. whereas still my cibil score is not improving whereas my loan gets over only by the year of 2014 december and i am paying my EMI with bank respectively. Will my cibil score gets increase in future and Fullerton INdia Bank Sr.Managers are saying they wil get me a CIBIL statement as NOC and Dues cleared paying on time which helps me to get a New loan or credit cards or House loan in future ? How i can trust these things pls advise me how to proceed with further ?

    1. But you have not shared whose fault was it to not pay on time ? If it was yours, then DPD section of your cibil report would be messed up and will get corrected overtime . Otherwise if you are paying your dues on time, then things will improve on its own .

  130. Vipin S says:

    I had taken a Home loan of 3 lac 10 yrs ago which was paid well in time. Then a couple of personal loans that too paid in time, and then came credit cards in 2007-08 (4 to be precise).

    Until 2010 everything was fine when my business stuck into huge losses and I had to find some other source of income to pay my cards due on time but unfortunately that never happened and finally I had to settle all of them one by one in a years’ span.

    Today, I have no personal / home loan and not a single credit card in hand. After reading this article I bought my CIR from CIBIL’s website. I was very much sure that my score will be somewhere below 750 mark.

    But surprisingly, it is 831 on the date, however showing each and every detail about whatever I’ve done in the last 5-7 years. Almost every CC showing as settled or Post (W/O) settled.

    For the last 2 years I have shut down my business and I am salaried into an IT company earning over 2ok p.m. My current bank offered me Credit card / personal loan couple of time in last 12-14 months. Which I firmly denied.

    Recently in the month of June I accepted an offer for their credit card but my application got rejected by them saying I am not eligible as per bank’s internal T&Cs.

    So the question is if my score is showing 831 and my bank might be well aware of this as they have rejected my CC application.

    What’s the options I have now to improve my score or to remove the “Settled” status from my CCs??

    1. Credexpert says:

      Dear Vipin,

      Whilst credit score is undoubtedly one of the important tools utilised by lending institutions to evaluate the credit worthiness of an individual, any negative remarks in the report could result in a rejection. This seems to have happened in your case.

      To remove these “Settled” remarks you would have to repay the outstanding amounts against these accounts, provided your cash flows allow you to do so.

      Since your application for credit card has been rejected, you could opt for a secured credit card and build your score by making timely repayments. As these credit cards are secured against Fixed Deposits, we do not see a possible reason for a rejection of the same.


    2. The only option to remove or improve your remarks is to contact the bank and pay them all the dues back . Other than this , there is no option .

      Now coming to your score, its just a matter of time when it will reflect the proper status or your situation.

  131. Mohit says:

    Hi Manish,

    My query is about a Barclays card that I had in 2007. My room-mate wanted to use the card for buying a laptop with my employee discount, following which he promptly disappeared. I was unable to pay the dues on this card which amounted to Rs.58000 at that time. When an agent contacted me, I agreed to pay Rs.10000 to settle the account. He took the money and disappeared. However, the payment reflected on my card account and I was satisfied.

    Recently, I took out my cibil report after having told by colleagues on why its important. Now I’m sure you know where I’m going with this. My credit score is 668 and this card is still open. After 4 years, the amount due is shown as Rs.71000.

    I have a personal loan and one consumer loan. The consumer loan was closed without any late payments etc. The personal loan was for three years and will end in another 4 months. There are no late payments or misses on it either. Basically I’ve never missed a payment in my life. I do not have any other loans or credit. Which is perhaps why my score is not rock bottom.

    Now my question is this – How do I settle the card? Is there a way I can contact a collections agent to get this sorted out once and for all? If I call the bank directly, what can I ask for? To make matters worse, I do not have the card.

    I do not mind the impact on my score due to a settlement. After all, it cannot be worse than having a non-payment record for four years!

    1. You should contact the bank and pay the whole amount and settle it completely . But I guess you will face a lot of issues with barclays bank as they have already sold their credit card business to some local company .

      1. Mohit says:

        Is there any way of finding who has taken over their credit card portfolio? I am surprised as to why they haven’t contacted me. It’s been four years! Is there a statute of limitations in India pertaining to this?

        I’m further confused because my CIR shows two entries for the same card. One shows Closed “19/05/2009” and Reported and Certified “30/04/2011” But the other shows no date against closed. However Reported and Certified shows 30-04-2013. And the DPD shows 900 for every month.

        Does this mean that this card is written off? I’m wondering because the DPD has not increased beyond 900.

        I apologise for the long string of questions. Thank you for your help!

        1. Credexpert says:

          Dear Mohit,

          Barclays Bank credit card portfolio was purchased by Standard Chartered Bank and Kotak Mahindra Bank. Under what lending institutions names are the 2 entries of the credit card being shown as?

          We would suggest that you do not opt for the settlement and repay the complete outstanding amount, provided your cash flows allow you to do so.

          However, assuming that you still opt for the settlement, we would suggest that you do not approach any collection agencies and contact the bank directly. Ensure that you do collect the NOC form the bank and check your credit report after 30-45 days for the updation of this account as a closed account.


  132. peter says:

    hi! I have settled all my loans which I dint pay till now. and recently when I came to know that settlement is not a way out, so I made full payment in one case.
    I just want to know, that should I approach the bank regarding the settled loan and ask them to close it after paying the dues.
    and what do you suggest about the websites plans regarding credit improvements. should I take their help.. I really need your advice please reply…

    1. I think all you need to do is pay back all the dues in case you have settled in past and from now on just be more cautious !

      1. peter says:

        thanks so will help me and you dint reply bout the website who claims to improve our cibil score..

    2. Credexpert says:

      Dear Peter,

      Once a loan or credit card is settled, it is reported as a closed account on the credit report with an outstanding balance of “0”.

      Since you have repaid the complete outstanding against one of your settled account, the “settled” remark from your credit report should have been removed. You would have to obtain your credit report and score to check your score and the updation of the said account.

      Visit to apply for your CIBIL credit report and score

      Based on the fact that you have settled all your accounts, we assume that your credit score would be low. An expert analysis of your credit report would point out all the areas that have impacted your score negatively. Additionally, our experts also handhold individuals in resolving discrepancies appearing on their credit report and build action plans for score improvement.


  133. neeraj says:

    I have settled 2 CC and i Have 1 CC write off settled. 1 PL Settled and my CS is 740.

    all these settled was done way back in the year 2011, Still I am not able to apply new PL or CC as i checked to track my credit value. Please suggest me if I can make it happen when all these happened I was just 24 yrs old after 3 years of Job i went for my higher studies which made my credit hell. Please suggest me if i can do anything to remove all this .

    1. Now you will have to contact each of them and pay back the dues !

      1. neeraj says:


        I checked with Icici PL dept they said i need to pay around 41k also Icici CC dept said that i need to pay 11k approx .

        no update yet from HDFC people for the same.

        Is there any midway to sort out and get this clean out, please suggest me as it will seriously bother my future needs.

        Would you suggest me some third part company which deals in solving these problems .

        Appreciate your reply.

        1. Neeraj

          Try to understand that trying to cut corners and saving money has landed you in this situation . Paying anything less than what you owe will create an issue .By adding all the late payments and penalities, this number has arrived. This is what you actually owe to them


  134. Hi sir I have a small doubt, there is a credit card on my name which was taken on my name without my knowledge by one of my cousin who used to work with Barclays Credit Card Company at that time& was also a freelancer for some other banks. So at that time (2008) I signed few personal loan forms with him & which I took it for my personal purpose, but I was not aware that I also signed a form which was for Barclays Credit card and which was used by my cousin. All this matter came to lime light recently only when I re applied for credit card & home loan, both got rejected because of poor credit score (573), we had a big fight in our family, finally he agreed to return the actual amount of the credit card which was Rs.23000 at that time, but now in my cibil report it showing as Rs.42000 amount due. Now it’s my headache to clear my cibil report, so I’m ready to pay remaining amount due from my pocket. Now the problem is that Barclays CC company got shut down. When I google it I came to know that they have sold all the account to 3rd party collections & the name of the company is PHOENIX ARC (which belongs to kotek Mahindra bank). Now in my cibil report 1st PAGE showing as-
    Are they different accounts or both are one account, bit confuse about it. now when I am ready to pay off the balance, what precautions I need to take before making the payment and what documents should I ask them in written that there is no due with them. I also came to know that if there is written off or suit filed I won’t be eligible to get a loan, is that true? If it’s true what letter should I ask them keep my cibil report clean. Please help me because recently one person approached me that he would clear the cibil report & also help me in settling the credit card amount for lesser amount, for which he also took Rs,5,000 as advance to pay the lawyer fee. It seems i’m getting cheated in every step. Kindly please help no one there to guide me.

    1. sir i’m waiting for your reply

  135. VIPIN says:

    well i have one CC bill pending from the past 3 years….i have stopped making payments towards it since then….all i want to know is, for how long this CC bill will reflect on my CIBIL….

    1. Credexpert says:

      Dear Mr. Vipin,

      The account on your CIBIL report will appear for at least minimum period of 7 years. We suggest you pay your dues and close the account; otherwise it will drastically impact your score and future borrowing capacity.


    2. Credexpert says:

      Dear Mr. Vipin,
      The account on your CIBIL report will appear for at least minimum period of 7 years. We suggest you pay your dues and close the account; otherwise it will drastically impact your score and future borrowing capacity.

      We at Credexpert, can help you in getting your Credit card account closed and also can help you improve your score and be eligible for future borrowings.


    3. Till you dont pay it back !

  136. Vishal Raja says:


    I have done settlement of my 2 credit cards one year ago.
    After that I have applied for credit card & PL both got rejected. Recently, I came to know the reason was my earlier settlements & CIBIL issue.
    So,today I checked my CIBIL score its 741.
    Can you please tell me is it decent score ? If not what should I do to improve?
    Because I am planning to apply home loan.

    Thanks in Advance.

    1. Its not the best score you can get, better try for 780+ kind of score . More than score, the issue is the remarks in your CIBIL report . did you have a look at that ?

    2. Credexpert says:

      Dear Mr.Raja,

      Although credit scores are one of the important tools considered by lending institutions to evaluate credit worthiness of an individual, they would also consider their internal credit policies.

      741 is a decent credit score but the negative remark of 2 settlements could have been one of the reasons for the rejection of your loan application. Whilst there are various generic steps that can be followed to improve credit score, we would be able to comment on case specific steps only after we analyse your credit report.


  137. Karthik says:

    Hi Manish,
    I recently checked my CIBIL score and found it to be 747. I thought that was a decent score until my friend told me his was 840. I’m quite stunned.
    > I’ve never had a loan so far.
    > I currently have 2 cards –
    >> 1st one from Dec, 2011. Have NEVER missed even a single payment so far. Has limit of 37000, my avg usage is less than 10000.
    >> 2nd from Jan 2013. Limit of 300,000. Usage of abt 5000 per month only so far.
    I have 3 bank accounts. Reason on CIBIL says –

    My friend, on the other hand, just got a credit card only recently. I’m still wondering why.
    Could it have something to do with the fact that I returned to India only in 2010 while he has been here all the while?

    1. Credexpert says:

      Dear Karthik,

      Firstly 747 is a good credit score.

      Rightly so, length of credit history is one of the factors considered for score calculation and this factor has also been mentioned on your credit report.

      We do understand that your friend also has recently borrowed and has shorter credit history as compared to you. But along with the length of credit history various other factors like the no. of loans/credit cards, no. of open/closed accounts, type of credit facility i.e. secured/unsecured, credit utilization, outstanding balances, payment history, no. of enquiries etc. are also considered for the calculation of credit score. One or more of any such factors could have impacted your credit score.

      The fact of you returning to India in 2010 and your friend being in India is not related to the credit report unless there were credit activities carried on during this period.

      Continue making timely repayments against all your credit facilities and your credit score would improve over time.


  138. balbir singh says:

    i settled an credit card with kotak mahindra in three instalments but unfortunately i failed to pay third instalment due to my cheque dishohoured. now executive is saying that bank has the option of grace period and i can pay my third instalment now ( after one month ) under same settlement letter. is it true or that executive just lie…

    1. Credexpert says:

      Dear Mr. Singh,

      The settlement of the credit card would have negatively affected your credit score. The fact that the bank has now allowed for the repayment of the 3rd installment, would not help boost your score since the “Settled” remark would
      still reflect on your credit report.

      We would suggest that you repay the complete outstanding amount against this credit card (if your cash flows allow) and ensure that the settled remark is removed from your credit report.

      However, if you are planning to repay only the 3rd installment then ensure that the outstanding balance on your credit report after the payment is reported as “0”.


    2. Yes, if they are saying that you can pay , then it should be possible

  139. Chitra says:

    Hello Manish,

    I had a credit card which I lost or misused by my friends back in 2005 and it was closed in 2008. Recently I ordered my CIBIL report which shows that this Credit card with Citibank as “WRITTEN OFF” and was last reported on Jan 2010.
    I never had any communication about this from bank. Infact I had another credit card from Citibank in 2009 and closed in 2010. I also have a savings account with them even now. None of them ever asked me about this.

    My credit score is 868 which looks better.
    Will they consider this WRITTEN OFF status for future loans?
    Infact I had a house loan in 2009 and paid off entirely in 2012. I had 2 more credit cards which are actively paid an no payments past due date.
    I also have an auto loan which I cleared in 2009.

    All that bothers me is that old data which I really dont remember. How long does this data show in CIBIL report. I thought it was 7 years. Please let me know.

    Now, my question is will this status be a problem in getting future loans?
    How should I get this fixed? will it affect even if I settle the amount with them and the status show “SETTLED”?

    Please let me know.

    1. Credexpert says:

      Dear Chitra,

      868 is a good score in spite of a Written Off remark. Recent remarks of Days Past Due (i.e. late payments), Settled, Written Off etc. have a negative impact on credit score and is also viewed negatively by lending institutions.

      Rightly so, a Written Off or Settled remark could be reported by a lending institution for a minimum of 7 years. The approval of your future loans would completely be at the discretion of the lending institution and their internal credit policies of how they treat a Written Off account.

      As mentioned in your query, the date reported against the Written Off account is January 2010 and if you opt for a settlement now then, the date reported would become recent and this could hinder your future loan applications.

      We would suggest that you repay the complete outstanding amount against this Written Off account; provided your cash flows allow you to do so. Do not opt for any Settlement and continue with your timely repayments against all your loans/credit cards. Your disciplined credit behaviour would help maintain and improve your credit score.


  140. Deepak says:

    Hi, Manish , My self Deepak…i found three Credit card in my cibil first one is of RS 6544 over due but that is not mine…(i think that belongs to my father but he is no more) and 2nd one is Rs 232 is written off and third one is 1898(principal) 4142 total is also written off but i never demanded from any bank of such amount so please help me to raise up my score.
    and one more thing to be discuss that there is one address updated which is not relating to me.

    Thanks & Regards


    1. First you need to contact the banks for this. I am sure you were secondary holder for these cards or some mismatch has happened due to this .

      1. Deepak says:

        Thanks Manish..but what is the solution of this situation…what should i do now, shall i have to clear my father’s dues.

        Thanks & Regards


        1. Deepak says:

          Dear Sir,

          Is it my liability to pay off my father’s debt, please advice me because bank’s credit cibil officer is speaking to me very abruptly, she said me very harshly that bank will not remove this from my cibil weather you are liable to pay or not.
          seeking your help soon.

          Thanks & Regards


          1. No it is not ! .

    2. Credexpert says:

      Dear Deepak,

      What is your credit score and when was this report obtained?

      Your liability towards your father’s credit card would be established by the card holder’s agreement. This would decide whether the details of the said card should be reflecting on your credit report or not.

      Similarly, we would have to establish the facts of the other 2 credit cards.
      The fact that your credit report reflects 1 wrong address indicates the possibility that the credit details of some other individual is reflecting on your credit report. This and any such other errors have to be rectified immediately, in order to ensure that your credit report reflects the actual data.


      1. Deepak says:

        Dear Sir, My credit score is 558 and obtained 3 days back, for the amt 4142.00 there is phenix arc , i think it is new name of ABN amro bank and 232.00 from SCB, so I have spoken to both the bank about the concernd issue but the major problem is my father’s Dues from ICICI, I dont know how to reslove that problem, Please help me out in this matter.

        Thanks & Regards,


        1. Credexpert says:

          Dear Deepak,

          Firstly, 558 is a low credit score.

          Were your repayments against the ABN Amro made on time?
          Phoenix ARC is an Asset Reconstruction Company (ARC) which purchases non performing portfolios of lending institutions. We assume that there could be possibilities that ABN Amro has written off your account due to non receipt of payments.

          The outstanding balance against your SCB account is low and hence we would suggest that you repay the same.

          About the ICICI Bank account, were you an additional card holder or was your father an additional card holder? Answers to the above would help us establish your liability towards this account.


  141. Raj Kumar says:

    Dear Manish,
    I have taken cibil report and its says 762 But when i applied for home loan they have taken some report B that shows score 682. I have pre-closed one loan 2 months back and received no dues letter from bank but in cibil its still reflect active. pls advice?

    1. Credexpert says:

      Dear Mr. Kumar,

      We trust that the second report and score you are referring to is also from CIBIL. Equally important is the date when these two reports were accessed – if the dates are different then any activity of any kind, between the two dates could change the score.

      For the loan you mention you have closed- did you pay back the entire amount or was there a negotiated settlement? Yes, the closure of the loan account should be reflecting on your credit report as this would imply a reduction in the no. of loans you are currently servicing and could also have a positive impact on your credit score. However, depending on when you repaid the loan, there could be an operational time lag between you having repaid the loan and the lender reporting the same to CIBIL. These and other possibilities could be the reason for the discrepancy and we would have to analyse and understand your credit report.


    2. What was the gap between your and their report ? Was it more than few months ?

  142. BHARATHI RAJESH says:

    hello.sir my cibil score 532 now i clear my 3 loans hdfc full payment. sbi card full payment and corporation bank full payment now i left one icici card not paid pls tell me now what is the score i am getting ………bharathi rajesh

    1. Credexpert says:

      Dear Ms. Rajesh,

      Paying off the complete outstanding and with normal closure of 3 loans would boost your credit score. This will not reflect on your credit report overnight, this is a slow and gradual process and you will have to wait and monitor.

      However, we would not be able to comment on the increase in your credit score as it is calculated based on various factors like the outstanding balance, high credit, balance between secured and unsecured loans, no. of enquiries etc.


    2. Reapply for score !

  143. BHARATHI RAJESH says:


    now my cibil score 532 i want to increase what i want to do now if clear all the loans when i will get the high score………bharathi

    1. Credexpert says:

      Dear Ms. Rajesh,

      532 is a low score for any loan (secured or unsecured). Normal closure without any late payments on them will help you gain some points but will not boost your score significantly. Instead, your credit behaviour which is depicted by the repayment history against these loans would help improve your score, provided you have repaid on time.

      Increasing credit score is not a quick process and requires certain steps to be followed and a disciplined payment behaviour resulting in a gradual increase over a period of time.


    2. Yes, your score will get higher

  144. kaushik says:

    Dear Manish,

    I checked my cibil report after getting rejection in loan approval and it stands at 596. I have only two crediit history as of now. One pesonal loan of 1,00,000 disbursed in june 2012(tenure three months), and one financial loan from Bajaj Finserv in july 2013.
    I have fully paid my finserv loan but it is still shwing outstanding balance of 5877 which I reported to CIBIL through dispute forum although I have one DPD marking 10 days.

    As with fullerton loan I paid only two emis one in july and other in december. Now cibil is showing them as written off status of written off total amount as 98359.

    Kinldly tell me whether my score will improve once Finserv will update the satus.
    and how should i approach to correct the written off status. The cibil report is showing amount overdue as 39,000 and total written off amount as 98359.

    Do I have to pay only total written off amount to clear my report. Can i negogiate with bank to remove the DPD status.

    Guide me plz sir.

    1. Credexpert says:

      Dear Kaushik,

      596 is a low score. Since you have completely repaid the Bajaj Finserv loan and have also disputed the same with CIBIL, the outstanding balance in your next credit report should be reflected as “0”. Yes, this would help improve your CIBIL score but we would not be able to comment on the percentage increase since the score is based on various other factors as well.

      About the Fullerton India Credit Company Ltd (FICCL) loan, we would suggest that you repay the complete outstanding amount against this loan provided your current cash flows allow you to do so.

      The DPDs reflected on your credit report indicate your late payments and this data is provided by the lending institution to the bureau. Since they are factual data, this cannot be removed from your credit report.


    2. First you need to check which thing is rightly updated and what is wrongly updated. For those things which are wrongly updated, contact the concerned lender and settle the matter with them , find out what exactly happened.

  145. nishanth says:

    Hi i have a written-off status for credit card (2008) on by cibil for 108000.00 and my credit score is 806 , will i be getting approved for home loan ??

    1. Credexpert says:

      Dear Nishanth,
      806 is a good score for a Home loan (i.e. secured loan). The written off remark is in the year 2008 and not recent, thus the negative impact on your credit score will be low.
      Although credit score is one of the important factors considered by lending institutions for evaluating a credit application, they do consider their internal credit policies. Although the negative remark is more then a year old but it still depends on the lender to consider it while evaluating your home loan.
      We offer a service “Credit Report Analysis” under which we analyse each section of an individuals credit report and list down the factors that have affected his credit score. We also point towards the next steps to be taken to improve his credit score.


    2. I doubt it , because score has no meaning if your report shows a bad remark . finally it would depend on the bank if they want to approve or not .

  146. Lijith V V says:

    Dear Manish,

    Recently i have applied for a citi bank credit card, due to low CIBIL ranking they denied my application. My current CIBIL rank is -1 how to improve this.

    Need your assistance.


    1. Credexpert says:

      Dear Lijith,

      A score of -1 imply any one of the following:

      • You do not have a credit history or you do not have enough of a credit history
      to be scored, i.e. you are new to the credit system
      • You do not have any credit activity in the last couple of years
      • You have all add-on credit cards and have no credit exposure

      We would suggest that you avail a secured credit card and start building your credit history. Since these cards are “secured”, lending institutions would consider your application in spite of having a -1 score.

      Make regular repayments; do not carry high outstanding balances, do not apply randomly for credit facilities and your credit score will increase gradually over a period of time.


      1. Lijith V V says:


        Thanks for the suggestion, i would appreciate if you can provide me how to improve my CIBIL rating.


        1. Credexpert says:

          Dear Lijith,

          As suggested in our earlier reply avail a secured credit card and start building your credit history. Make regular repayments and “on time”, do not carry high outstanding balances, do not apply randomly for credit facilities until you build your credit score as these rejections would only increase the no. of enquires appearing on your credit report. High no. of enquiries imply a credit hungry behaviour which is viewed negatively by lenders.


  147. Babu says:

    Hi Manish,
    I have applied for a HomeLoan with my wife as Co-applicant, but the banks says its not possible since my wife has a PL of 50K settled from ICICI though the score are pretty good. Now as a next step, I plan to visit ICICI and get them to remove the “settled” circular by paying some amount as would be required, hope this is fine and the usual process?


    1. Credexpert says:

      Dear Babu,

      Making part payment on your ICICI Bank account would not remove the settled remark, hence it is advisable to repay the entire outstanding amount against this account. Do ensure that ICICI Bank confirms the removal of the settled remark post payment. Also, late payments against this account would be reflected on your credit report even post this payment.

      Banks/lending institution consider many other factors other than the credit scores while evaluating a credit application like outstanding balances, balance between secured and unsecured accounts, settlements, write – offs etc. The same has occurred in your case and ICICI bank has rejected your application in spite of your wife having a good score.


    2. Yes, but it can take 1-2 months and finally bank has to decide if they want to give loan or not

  148. Santosh says:

    Hi Manish,

    I defaulted a two wheeler loan in 2008 and now CIBIL showing 22,480 Rs as outstanding, But bank is asking for around 45,000 with added bouncing and late fee charges. They are agreed to settled my loan in just 22,480 as showing in CIBIL but I am confused if whether it will show close or settled later. Bank is saying that it will show close. Could you please advice me on that. Should I go with it and pay 22480?

    Thanks Santosh

    1. Credexpert says:

      Dear Santosh,

      In interest of maintaining a healthy credit report, we would suggest that you repay the entire outstanding amount against this account depending on your cash flows. Confirm from the bank whether there will be a date closed against this account with or without a settled remark as settled remarks is viewed negatively by lenders and will hinder you future credit applications.


  149. Sanjay Sorahia says:

    Dear Sir,
    I Signed a bond for working with ICICI bank for 5 years with an outstanding loan of Rs. 3 Lacs but now I am finding it very difficult to work due to immense sales pressure and stress. What will be the consequences faced if I am unable to repay the loan?

    1. If you do not pay , then it will be reported to your CIBIL report

  150. Sunitha says:

    Hi Manish,

    My cibil score is 644, I discovered i had a loan that had a due of 2,303 and bank told me total outstanding is 10,000 and they told me waiver of 5,000 and i have paid it and they will give me NOC will this appear with a “SETTLED” status in the cibil report or will it be clear? if its cleared how much will my score improve? how long it will take for meto reach the 750 and above mark? thanks

    kind regards,

    1. Credexpert says:

      Dear Sunitha,

      Firstly, check the actual amount outstanding. If the outstanding amount is ₹ 10,000 and the bank has waived ₹ 5,000 then, yes there would be a “Settled” remark against this account.

      644 is an average score and other than this particular account there could be various other factors that could have impacted your score negatively. We would need to analyse your credit report in order to comment on the specifics.


    2. It will be SETTLED

  151. BUJJI BABU says:

    Dear Manish,

    Recently I have settled my credit card dues and received the NOC stating…

    Our records mentioned card account has been closed and as on date, there are no outstanding dues payable towards the card account.
    We further confirm that CIBIL will be updated in our next cycle of reporting which shall occur in 45 working days.

    I am worried would this reflect as settled or closed in CIBIL.

    Would I be able to get any other loan. Please advice.


    1. Credexpert says:

      Dear Mr. Babu,

      The said credit card account would have a date closed along with a “Settled” remark against it and this could possibly hinder you from getting a loan. In the interest of having a healthy credit report we would suggest that you repay the entire outstanding amount.


    2. What do you mean by SETTLED here ? Did you pay 100% amount outstanding or LESS . If its less, then the status would be SETTLED

  152. Chinna says:

    Hi Manish,

    Good blog and lot of information. I have a personal loan and there is an outstanding of around 3.5 lak, which include late fees, interest on the outstanding. etc… I am thinking of asking the bank for removal of fines and pay the amount. What way this would effect my CIBIL score, or is just going and paying the complete outstanding is the only way out of this scenario.


    1. bank might remove the fines , but I dont think they will remove the interest part . If they agree to not charge you fine , then check with them that its a complete payment and not SETTLMENT, ask them for NOC which says that there is no outstanding and the cibil STATUS would be CLOSED

    2. Credexpert says:

      Dear Chinna,

      The bank has charged the fine / penalty as you were late on your payments. If the bank acts on your request to waive off these charges then, there would be a “Settled” remark on your credit report.

      The best option is to pay the complete outstanding, but the late payments would reflect in your report even after the payment. In interest of having a healthy credit report, develop a habit of repaying on time.


  153. Lijith V V says:


    I have read your article of best credit card in India, Its gave me lots of information before going to apply for a credit card. I would like to know one more information like i recently graduated & stared working & Am having a education loan & repaying it on time also, will it reflect when am going for a new Credit card.

    Hope to hear from you .

    Lijith V V

    1. Yes, your current education loan will be there in your credit report . If you are paying on time from long, then you should get the credit card, but I suggest wait for some time, generally these days credit card is not given to new employees. Better take a secured credit card against a fixed deposit

      1. Lijith V V says:

        Dear Manish,

        Thanks for your prompt response & i appreciate your suggestion

    2. Credexpert says:

      Dear Lijith,

      Banks / lending institutions report borrower’s information to at least one credit bureau. Basis this information the credit bureau generates credit report and score.

      So yes, your Education loan would be reflected on your credit report and score. Since you have been repaying this loan on time, we assume you would have a healthy credit report and score.


  154. Rao says:


    I taken personal loan from HDFC bank and I paid 20 months EMIs (still 40EMIs pending) after that I met an accident and I am not able to pay the loan amount. HDFC bank able to take any legal action on me.


    1. Credexpert says:

      Dear Rao,

      No, the bank would not take any legal action, however we would suggest that you approach the bank and present your case requesting them to restructure your loan whereby they would increase the tenure of your loan and the EMI would come down. Although a Restructured remark would appear on your report against this loan, it is always better than non payment.


  155. Deepak says:

    Hi Manish,

    Need help actually in 2005 due to bad financial position i could pay my loan of 60000 I just paid 5 installments out of 36 ( principal outstanding is 58000 currently and total 1,46000). Now bank is approaching me to settle the loan for 35000. Now is question is if I settle the loan now, will I be mark as settled for next seven years or they will count the account of loan from 2005 only.


    1. Credexpert says:

      Dear Deepak,

      Yes, if you opt for settlement then a “Settled” remark would reflect on your credit report against this loan. And this loan with the settled remark could be reported for a “minimum of 7 years” from the date of settlement i.e. minimum next 7 years.

      We would suggest that you pay the entire outstanding and then close this loan in order to have a healthy credit report and improve your score. However, please note that the late payments would reflect on your credit report even after you pay the entire outstanding and close this loan.


    2. Yes, you will be marked as Defaulter and the status will be SETTLED .

  156. Deepak says:

    Hi Manish,

    Need help actually in 2005 due to bad financial position i could pay my loan of 60000 I just paid 5 installments out of 36 ( principal outstanding is 58000 currently and total 1,46000). Now bank is approaching me to settle the loan for 35000. Now is question is if I settle the loan now, will I be mark as settled for next seven years or they will count the account of loan in 2005 only.


  157. LOVE KUMAR GUPTA says:

    Hello Sir,

    I took a personal loan 6 years ago from a private bank. In 1st year i have paid installment time to time but then after I could not pay remaining installment. Now i require a home loan from another bank. How can it possible to take a new loan? I can’t settle my old loan. Please suggest me……………..

    1. Its not possible then .. because all your past history is on your report and no bank will give you loan now looking into it !

      1. Love Kumar Gupta says:

        Thank you for suggestion, but give me the solution. I went to branch of private bank to pay the loan. A senior officer of there told me to pay the principal amount of loan, then after 3-4 month I will take a loan from another banks. Is he suggest me right? & Will i pay the full principal amount (without interest) to private bank or settled amount?

        1. You have to pay the FULL amount ..

    2. Credexpert says:

      Dear Mr. Gupta,

      If you have not repaid the personal loan for the past 5 years, your score would be low and most lenders would reject your loan application.

      Also you have mentioned that you cannot settle the personal loan. Assuming that this is a cash flow problem, how do you propose to repay the home loan?

      Obtain your CIBIL credit report and score to check the status against this loan account. We assume that since you have not paid any installments after the 2nd year there could be a Written Off remark on your report along with the late payments. This would make the lender view your report negatively as it indicates your inability to service the loan.

      The best option is the repay the outstanding amount; however the late payments would reflect on your report post this payment as well.

      Do you have any other existing loans / credit cards? If yes then, how are your payments on them? There could be various factors that could have affected your score. We would need to analyse your report in order to comment on the specifics.


  158. Ravi M says:

    Hi Manish,

    I applied for PL twice in HDFC bank, both times it got rejected due to address verification, actually my original address is different from temporary address where i am working, the bank is asking for co-applicant with their signature and i don’t have guarantee. In this cases what need to be done.

    1. Credexpert says:

      Dear Ravi,

      Is the address change the only reason for the rejection of your loan application? The fact that the bank has demanded for a co-applicant indicates that there could be a possibility of low score.

      If you do not have a co-applicant then, one way of avoiding the need for one is by improving your credit score. Did you check your credit score? We would suggest that you apply for a credit report and score.


    2. I am not sure on this , what is bank saying on this ?

  159. bhaskar says:

    I taken 3 personal loans and paid 2o EMIs out of 60 EMIs with out any check bounce and have good cibil score.(before that I taken 5 Pls and completed without late payments)
    Unfortunately due to severe health problem I stopped my job based on doctors advice. In future I don’t want any loan because I am not able to do job. I am not able to pay outstanding money.
    It is not good, I know that. But I didn’t expect this kind of situatuation will happend in future due to health problem. At the same time I don’t have any properties.
    Can you suggest what it will happend.

    Formally they are asking to come for settlement, I know that.
    My total loan amount: 8 lakhs
    (its came from loan top ups and enhanced loans from one bank to another bank for existing loans)
    Paid: 3 lakhs
    Outstanding: 5 lakhs.

    Kindly suggest on this, if I am not able to pay duo to severe health issue and no property.

    1. I am not sure what exactly is your question . You have taken a loan and its your responsibility to pay it off. If its not possible for you, then you will have to do the settlement , but then you need to understand the future implications

      1. Bhaskar says:

        Hi Sir,

        I asked above question regarding I am not able to pay the loan amount due to health condtion is not good and I don’t have money or property to settle the loans.
        Now I need surgery, for that doctors asked around 4 lakhs, even that also I don’t have money.

        Now my question is
        1.what kind of action bank will perform on me?
        2. they can able to do the police case on me or any legal action?

        I have medical report regarding my health issue.

        Could you please advice for my above questions?

    2. Credexpert says:

      Dear Bhaskar,

      As a borrower you are obliged to repay the loan. If you are not able to work due to health problems, then the only option is to go for settlements. But please note that if in future you decide to apply for a loan again then, these settlements would prove to be a hindrance in approvals of those applications.


      1. Bhaskar says:

        Ok sir.

        I am not able to pay the outstanding amount, eventhough based on your suggestion I will go for settlement with bank. How much percent in outsting amount they can expect in worst condition.

        I am looking for your valueble information.


        1. By settlement I mean FULL payment, otherwise it will be reported to CIBIL

          1. Bhaskar says:


            With out money and property(i exposed all my health condition and financial situations to you), how can I pay FULL payment.Its not possible from me, if my health is recover, i will do job any pay it. Otherwise I am not able to pay it and I wouldn’t ask any loans in future because I am not able to do job due health issues. So that I don’t want any CIBIL score.

            Note: Especially bank agents said at the time of loan taking, they are giving PL loans based on salary pay slip, If salary it will come pay it, other wise leave it, likewise they said. For improve the business and getting the margins.

            Very Thanks,

            1. Bhaskar

              You are mistaken then.. agent has not told you right things .. Once you take the loan of any kind, now you have to pay it on time without fail , If you do not, you are marked as defaulter and your next some years will be affected like anything .

        2. Credexpert says:

          Dear Bhaskar,

          If you opt for settlement there would be no legal course of action against you but these settlements would prove to be a hindrance in any future loan applications.

          Also, the amount that needs to be paid for settlement will be best informed by the bank to you.


          1. Bhaskar says:


            sorry, I think you understood differenly.

            I asked with out settlement and not able to pay money, private banks able to take legal action on personal loan issues.(Paid half of the EMIs).


  160. Pandu says:

    Hi manish

    My Cibil Score is “NH” can you suggest me which bank will provide me the credit card such the i can apply for it and increase my score for getting auto loan .

    1. Credexpert says:

      Dear Pandu,

      A NH means that you do not have a credit history or your history is less than 6 months. A credit card or any other loan will help you increase your score only if you make timely repayments on them. Ensure that you do not make any late payments and your score will increase gradually.

      One of the best options to improve score is to opt for a secured credit card.


      1. Pandu says:


        I know the NH mean No credit histroy , i need to know which bank is providing credit card If the Cibil score NH

        1. Credexpert says:

          Dear Pandu,

          It is difficult to comment on the banks that would offer credit cards for a score of NH, however the bank other than the score also consider various other factors like employment, income etc. Alternatively, you could also apply for a secured credit card.


  161. Prateek says:


    I have checked my CIBIL score. It is 611. It is also showing status ” one of the loan has been resrtuctured in last 24 months” I had two credit cards and due to medical emergencies , i availed the option of restrucuring with 2% interest with full prinicipal converted in to 24 EMI which is going to end by December this year. I have one car loan and that has been running with out any late payment since lase three years but CIBIL does not contain records for Car loan. I dont have any credit cards as of now and i have not made any attempt to get personal loan, credit card or other loan in last two years

    I want to know how” badly” written off status – Restructured loan impact Cibil score and what are the ways to improve it. Please note my credit cards have been restructured not setlled.

    Will i ever be able to get home loan or credit card in near futute, If yes what are the recommendations to secure it ?

    Many thanks in advance.

    1. they impact the score, but how much will depend on many things. first check your score and see how much is it ?

    2. Credexpert says:

      Dear Prateek,

      Yes restructured loans do affect your credit score but it would be difficult to comment on the extent of its affect.

      Your car loan data is not reflected on your report either because the lender has not reported this data to the bureau or this is not picked on your report due to the de-duping logic of the bureau. If you have been paying regularly on your car loan, them the reporting of this data would help increase your score further.


      1. Prateek says:

        Thank you for your revert. I have recently downloaded my cibil report and have a score of 736. My two credit cards are running under “Restructure loan” – EMI plan. Out of which one loan has been successfully repaid and other would be closed soon. I have also taken a CC against Fixed deposit to build credit history. Do you see any issues if the credit score crosses 750+ and reports contains written off status as “Restructured loan” . I am planning to apply home loan next year. Please guide. Many thanks for your expert advice

        1. Credexpert says:

          Dear Prateek,

          An increase in your credit score from 611 to 736 is appreciated; this is because of the steadya dn slow steps you are taking towards improving your credit score. 736 is a decent score and by continuing the disciplined credit behaviour over the next few months, it could improve further.

          Undoubtedly, credit scores are one of the most important tools used by lending institutions in analysing an individual’s credit worthiness this is combined with their internal credit policies whether to reject/approve the loan application.

          Hence, even if your score is above 750, we would not be able to comment on the bank’s view on the “restructured remark”. The best option is to talk to banks official and get the clarity on the same.


          1. Prateek says:

            Thank you Credit Expert.

            Is Restructured loan is considered as negative remark or is it just information reference for Bank while looking at loan application.

            I have a small confusion. How the term ” Restructured Loan / Credit Card” is considered against “Settled Loan / Credit card” when assessing the impact on CIBIL. Which term (Restructured Loan /Settled Loan / Credit card) is more dangerous (equally?)for credit score ?

            Thank you very much for your prompt replies.. Much appreciated…

            1. Credexpert says:

              Dear Prateek,

              Restructured loan “could” be considered as a negative remark depending on the internal credit policies of the lending institution. This remark indicates that certain difficulties were faced by the consumer in servicing the loan as a result of which the loan was restructured in terms of loan amount (reduce EMI) or increase in loan tenure.

              Settled remark indicates the inability of an individual to make the complete payment against the current outstanding and the part of the outstanding amount is hence waived off. However, here an individual still has the option to clear the settled remark by making the balance payment against the loan / credit card in future.

              Any negative remarks like restructured /settled / written-off / post written-off settled / DPDs all are viewed negatively, as it reflects your inability to service the loan/credit card account. To lead a healthy credit life and to get your future loan approved with better negotiation power, you should refrain from these terms appearing on your credit bureau report.

              As per our understanding, we think that a settled remark is slightly dangerous than restructured remark on your credit report.


            2. Prateek says:

              Thanks for your expert advice. I would like to know this “restructured” remark can be taken off (i have tried asking bank officials to take this out, but they refused to do so) with the help of your paid services.

              I am planning to apply for a home loan next year so would like to have a easy credit application for approval. Could you advice me on the same. Thanks

            3. Credexpert says:

              Dear Prateek,

              The restructured remark cannot be removed from your credit report since the loan terms (i.e. EMI/tenure) had been changed basis your request. The loan was then serviced based on these terms and hence are facts reflecting your credit behaviour.

              As mentioned earlier, a “restructured” remark “could” be viewed negatively by lending institutions and not necessarily is always viewed negatively. This entirely depends on the policies of the lending institution you have been planning to apply to.

              It also depends on when the loan was restructured and if your financials have improved over a period of time, then the same can explained to the lending institution while making the application.

              Lending institutions also view your credit behaviour in your credit report and how have you been repaying other loans / credit card dues. If the other accounts in your credit report for any reason have some negative remarks then you need to correct them and then apply for any other loan in future.


        2. Most of the lenders first look at the REPORT remarks and not on SCORE. Now its upto the bank decision how they want to look at restructured remark !

          1. Prateek says:


            Thank you very much for all your prompt replies. Could you please advise me the further ways / steps / precautions to secure a home loan in near future. As i informed, i have

            1. Two credit cards , both restructured and closed (with restructured loan status in CIBIL report).

            2. Two credit cards closed without default.

            1. Only bank can tell how do they look at those restructured loans status ! .

  162. Sonu Kumar says:

    Hi Manish,

    I took loan from HDFC 1,50,000 for 36 months and I have to pay 36 installments, I paid 16 installments and now I am not in a position to pay any further amount because i lost my job.
    Now I am getting a call from recovery agents to settled down the loan or repay the rest 20 installments so What should i do here?? I dont want to become defaulter in CIBIL but at the same time my financial condition is very bad because i had a huge loss in business….

    Please suggest me……………………………………………

    1. There is no solution out of this, either you pay, or you are defaulter PERIOD !

      1. Sonu Kumar says:

        Thanks for the prompt response…..Do you have any idea if I will become defaulter then what is the time period that my name will appear defaulter on the CIBIL?

        1. Anywhere from 7-20 yrs !

    2. Credexpert says:

      Dear Mr.Kumar,

      We would advise that you arrange for some interest free personal borrowing through friends / family. It is important that you repay your loans as non- payment will affect your score thereby affecting your future borrowings.


  163. SM says:

    Hi Manish,
    I ordered my CIBIL score in September 2012 and found that it was 637. I found an entry from Standard Chartered bank saying I had an outstanding amount of Rs 84 and the status was WRITTEN OFF with DPDs since 2007. I had paid all my dues in December 2007 and asked for the card to be closed, however SCB had kept it open for an overdue of Rs 84 without informing me. I raised a dispute with the bank and they said they have invalidated my account and reversed the WRITTEN OFF status with CIBIL. I wrote to CIBIL after 2 months and they confirmed that SCB has reversed the WRITTEN OFF. I have ordered my new credit score again today. Hope it turns out better .. Also i hope SCB has purged the DPDs too

    1. SM says:

      I received my new CIBIL score and SCB has reversed both the WRITEOFF and the DPDs appropriately and my new score is 825. I am really happy and would advise everyone with a dispute to write to the bank and get it resolved ASAP.

      1. Thanks for sharing that point Sujeet !

      2. Sunil shirsat says:

        I am also facing similar problem with the Standard Charted bank.
        CIBIL report showed that my amount due is 45000.00 RS.

        I asked Bank details of transactions and why so much amount is due and response from bank -they say that my account has been invalidated.

        What should i do now?
        Now they are not responding to mails also.

        Please guide me.

        1. Better visit the branch once and get it corrected . tell them you will complain to banking ombudsman if they do not support you with information

    2. Check it once ! .. I guess you have already commented back with your updated status 🙂

  164. Santanu says:

    Hi Manish,

    Thanks for writing such an useful article. I cancelled an HDFC credit card in 2006 since I resigned from my job and went back to college for higher studies. Unfortunately due to a late payment from the side of a merchant (an online travel portal returned the cancelled air ticket charges late to the card account), only the last dues were not paid in time and finally I had gone for a settlement at that time owing to my frugal financial condition. Later in 2009 I got an SCB card and have been a good customer since then. Recently I got my CIR and the score turned out to be 832 with the above account having status “POST (WO) SETTLED”.
    Can you please tell me the repurcussions of the above report if I want to get a home loan and car loan?

    1. Credexpert says:

      Dear Santanu,

      Did you repay the outstanding against the Settled account and when was the settlement done? 832 is a good score and we do not see any reason for a hindrance in your Home or car loan application.


      1. Santanu says:

        Dear Manish and Credexpert,

        Thanks for the quick reply. No, I did not repay the outstanding against the Settled account. I am planning to contact the credit card division of HDFC for knowing the outstanding bill. Although, I am afraid that my outstanding would be such a huge amount by now that I will not be able to pay it.


        1. Yes, take that step and ask for the Amount you need to pay to get out clean.. You should not have taken the shortcuts earlier !

        2. Credexpert says:

          Dear Santanu,

          We would suggest you to pay back the entire amount through some interest free personal borrowings, failing which your credit report and score will be impacted negatively which will affect your future borrowings.


    2. Its not a good remark … First it was WRITTEN OFF , and then you settled the loan ,, so its the remark like that .. better pay the full amount !

  165. Praveen says:

    Hi Manish

    Today when I checked my Standard chartered credit card statement I came to know that I have been charged Rs500 twice (Rs 1000) on 31st Dec 2012 and 5th Jan 2013 as part of ‘B2OVER LIMIT FEE’. While taking the credit card I never opted for this option and was never informed by anyone while activating this option. Also when my credit limit is 47000 which is clearly seen in my statement, I just don’t understand why it went beyond the limit. I have been paying the credit card bill on time every month.
    Could you please help me what exactly can be done on this over limit fee?

    Praveen G

    1. Better ask for the explaination from the company … about this LIMIT fee ? What is it exactly ?

  166. aladdha narayan says:


    I ahve taken i Education loan from a bank in 2002 of INR 1,45,000; i was paying it regularly, but last 3 year i forgot to pay (i have no issue with finance), but unfortunatly i missed out thsi completly.

    now i got to know that i have outstanding of 56,000 principal and 24,000 interest; and they are giveing me rebet of some amount from interest not from principal.

    please confirm this will affect my cibil score if i comsider taking that rebet and how this will show in cibil as ” settled” OR “paid Off”; since i am paying full principal.

    please let me know.


    1. Credexpert says:

      Dear Narayan,

      As mentioned your cash flows allow you to make the payments and in interest of having a healthy credit report we would recommend you to pay the amount in full – both principal and interest.

      However, the non payments for 3 years will be reflected on your credit report and would have impacted your score negatively. We would advise you to obtain your credit report and score to check your score.


    2. Dont take any rebate .. it will be marked as SETTLED if you do .. pay full money ..

  167. michael says:

    ir i had a consumer loan long back i had paid nothing blank in status my score i 676 loan always rejected any ?????

    1. Because of your old history . you need to clear it now

      1. michael says:

        how will i clear my hitory

          1. michael says:

            all dues
            dpt history??????? Sir

            1. Please put your question properly with points you want to ask !

    2. Credexpert says:

      Dear Michael,

      676 is an average score. The reason for rejection of your loan application is the non – payment of your existing loan. Also, what do you mean “blank” in your status?

      Your query is not clear and hence we are unable to give specific answers to your query.


      1. michael says:

        my query i that somewhere down the lane i have done mistake of non-payment but after that i took noc of the the outstanding due but still i am not eligible for loan pleae gie how to improve that now

        1. Credexpert says:

          Dear Michael,

          Do you mean that you Settled the loan and obtained a NOC from the lender for the outstanding amount? If Yes, then this is the reason for the rejections of your loan applications, as this “Settled” remark will be reflected on your credit report.

          Check with the lender if they accept the payment of the outstanding amount and remove the settled remark from your credit report – assuming you are willing to pay.


        2. You will have to pay for that mistake … either you will have to pay off that outstanding now or you will not get the loan ..

  168. chinmay says:


    I had issued one credit card in 2005 & i used the total amount 30000 in 2005. However i lost my job hence not in a position to make the repayment. In 2007 bank caught me & asked me to pay 80000. After the discussion it was finalized in 40k. I got full & final settlement letter after paying 40k . In my case my name not reported as settled in Cibil. Is there any scenario whether Bank did not inform to Cibil?


    1. Credexpert says:

      Dear Chinmay,

      There could be possibilities that either the lender has not provided the updated information to the bureau or your credit history is not picked up at the bureaus end due to de – duping logics. In any case the relief is temporary.

      We would recommend you to make the outstanding payment if your present cash flows allows you for the same.


  169. Shantanu says:

    I have settled one credit card due to financial issues, on the other hand i have a PL and i have been paying it without a delay.

    Due to this SETTLEMENT will my Credit history hav a huge impact??

    Please clarify me!

    1. Obviosuly .. it will make sure you do not get any loan in future , lenders do not like to lend to anyone who has settled the loan earlier

    2. Credexpert says:

      Dear Shantanu,

      Yes, this Settled status will affect your credit score inspite of you paying the personal loan on time. Settled status shows an individual’s inability of not servicing the loan and is viewed negatively by lenders.

      Continue paying your Personal loan without any delay and do not shop randomly for credit, these steps will help improve your credit score.


  170. Ram says:


    I have just checked my CIBIl report. 2 cards 5 years back are under “settled” status. I remember only asking them to waive off some disputed charges – (Citi & SBI), and these banks have waived off but unfortunately kept the status as “settled”. How can I undo this status, I am ready to pay whatever are the dues according to these banks. Will that help in changing status of those cards in my CIBIL report. Please advise how do I go about and how long will it take to get rid of “settled” from my CIBIL report.
    Thanks very much for the help and advise.


    1. sivakumar says:

      1. You can undo this status by paying the bank the dues as they claim. Negotiate with them before paying that they would clear the status in CIBIL, and most probably they would do that with out hassles.
      2. Get also an No dues certificate from the bank. If the bank does not update on time, you can raise a dispute request with CIBIL with the help of no dues.
      3. It will take around 1-2 months depending on the bank post your payment to remove the settled status from your report

    2. Seems like they told you its waived off, but in reality was never and then they assumed you will never pay that ! .. now check with bank and check whats the outstanding !

    3. Credexpert says:

      Dear Ram,

      Is this credit card still open? as settled accounts are closed accounts. Did you make any payments towards this credit card’s disputed charges or any amount that could state that you have settled the account?

      Few banks have credit policies that allow them to accept the outstanding amount of a credit card already settled and remove the settled status before reporting the data to the bureau. Check with Citibank and SBI to know the specifics and pay the dues if they agree to remove the settled status.


  171. sivakumar says:

    My experience with CIBIL. When I was advised that I was a defaulter in CIBIL by a bank where I had applied for a credit card, my internet searches led to this forum and it throwed lights on what my problem was and what should be done to come out of it. I am out of the problem today and I am sharing my experience here with great sense of thanks to Manish.

    1. Some 6 months back all my credit applications got rejected with out reason, and after 5 attempts with various banks came to know from a bank that I was marked as a defaulter in the CIBIL report.

    2.That was a shock for me because, in my whole life I have had only one credit card issued against me, which I had used once when I was abroad. I had made the payment and asked to bank to close my card account as I was
    planning to stay abroad for a longer time. All the rejections happend, when I returned to India few years later and I did not even imagine that the card account that I
    had earlier was the culprit.

    3. I bought my CIBIL, The bank had marked my account as written off for some 21K in 2011 and Days past due reported as 120 days for all the past 36 months. My score was poor 560.

    4. I had written to the bank stating I was not aware of any dues that I had to pay and why had the bank marked 21 k outstanding and Written off status?

    I was very soft in my email written as It wasalso partly my mistake that I did not share to the bank that I was moving out of the address I had given to them, though
    i could have aruged they did not let me know of the outstanding through email.

    Based on the earlier responses/blog from Manish, I realized that even a small annual fee might have grown to 21K and I should have been more responsible to check.

    In the email, I offered to pay the outstanding and made it clear I was not requesting for any settlement

    5. The bank did not reply for more than 15-20 days inspite of my multiple followups. Call centers wont help as the account is closed. I waited assuming the bank would need
    more time as the account was very old and inactive.

    And finally bank responded after 3-4 weeks.

    6. The response was a surprise stating that “Your outstanding as on date is 21K and we are arranging to reverse the outstanding and post reversal there will be no outstanding”

    7. A big surprise for me, in further email clarifications they confirmed the outstanding were relating to financial charges and bank was ready to reverse the same.

    It was very furiating for me, if it was all reversable why report that as Written off causing all the problems, but I did not show any thing to the bank.

    8. Bank confirmed to me that CIBIL status will be updated to blank,which they did, my score jumped from 560 to 630 when written of 21k was removed. DPD of 120 days for past 36 months
    was still hurting my score.

    9. Twist of tale here, I got the report again next month to see if score had improved, a big shock, all the reversal done have appeared again…Later it was a problem with the
    bank system, the batch process I guess running overwrote the manual updates done in the midst of the month.

    It was a tough time with bank for about a month to get that reversed again

    10. All the mails to custome care did not help me with DPD, they continuesly told me that It cannot be changed as per policy.

    11.I escalated the issue to Nodal officer with logic ” If the amount is reversible, I never owed you anything. Also my outstanding is 0 now and last payment is in 2006 and I am not
    required to pay anything now and hence the DPD reported for past 36 months is obsolete and meaning less”

    Finally nodal office agreed to my claim and now also have removed the DPD of 120 days and made my report clean.

    11. My score now is 760. It jumped from 560 to 630 when the Written off status was removed and outstanding was marked as 0. I has further jumped from 630 to 760 when the DPDs were removed.

    My sincere advise, never loose your cool while negotiating with the bank. The banks have a bad habit of not responding to mails until they complete the action or investigation until then only an automated ackn would be sent even if it takes 20-30 days irrespective of how many chasers you send.

    Also if the account is marked written off/settled due to banks mistake negotiate also to remove the DPDs as they seem to reduce more score than just a Written off status, may be it is dependant on the written off amount my case it was 21K.

    Sincere thanks to Manish again for such an useful forum and lively responses.

    1. Thats great to know Shiva ! .. very nice ! .. I would say that once again check your report in few months, just to confirm that things are good now ! .. I will post your success story for others to learn ! .

  172. infoseeker says:

    Hi Manish,
    Hope all is well with you… I have applied for a loan and got to know my CIBIL score is less. Here I have not filled any application to apply loan but the bank executive checked my score through online. My fear now is that will this bank pass on my details to other banks which will put me in trouble? Request you to kindly advise me on this.

    1. I think you are not clear about few things here , let me explain it to you

      1. Banks are clients of cibil , So when you apply for a loan with a bank , they ask CIBIL to send your credit report and score and they get a copy of it , Now based on that , they decline or approve your loan application , here bank has just shown you the copy they have got from CIBIL .

      2. Next, a bank does not have to share it with other banks . All the banks already have the access to your report through CIBIL , so when you apply for any loan, the other banks will anyways access your report . you cant skip it !

      Now coming to the point, why is your score less, has your past been bad ? Did you sette or not pay any loan ? Was your payment record clean ?


      1. infoseeker says:

        Hi Manish,

        Thanks for the reply. Currently I have a Credit card and loan running with one of the banks (No over due till now) and I have not paid my internet bill for a month since the service was poor and moreover I didn’t use the connection for that month. After few months the bill is showing as 6.5K. But the original bill amount was around 1.5K. To my knowledge this is the only bad outstanding.

        1. It must have added the late payments .. I think you should clear it and fight with them later seperately, in future this can create an issue for you

  173. Abhishek Depuria says:

    Hi Manish,

    I applied for my CIBIL report and it;s showing “NH” in my score section and POST (WO) SETTLED in my loan info section.

    Do you think I can get loan or credit card

    1. There is nothign to worry on that, But will you get a loan or not , depends on your overall credit report and score . How much is your score ? and past record of payment ?

  174. Paresh says:

    I had an ICICI CC 4 years back which I ended up settling in 2011 – amount Rs. 41,000/- (total due was Rs. 70,000/-). I have now applied for a Car Loan of approximately 8 Lacs with HDFC Bank. In 2008 I had acquired a Car Loan from HDFC and peacefully foreclosed in 2010 (acknowledgement from HDFC present).

    Do you think my past positive history with HDFC will help in anyway?

    1. Yes it will help , but the point is what about your negative history , if in total you credit history is not impressive then you will be affected , and for sure your settlements will be viewed negatively !

    2. Credexpert says:

      Dear Paresh,

      By the facts mentioned by you, we assume that the Credit card and Car loan were availed almost in the same year. Also, was the HDFC car loan foreclosed or paid off systematically? Assuming it was paid off systematically, is there any reason for paying back the car loan systematically but settling the credit card?

      Inspite of the fact that you have established a positive credit behaviour with HDFC, the lender will check your credit behaviour over all your other loans as this will help them evaluate your application more realistically.

      While there is no guarantee that HDFC will consider your positive credit behaviour with them, the best way is to wait for their response and find out.


  175. Hemant says:


    I took a loan of 1 L by 2006 and paid some installments after that due to some problem, I couldnot pay further and Now I wanted to pay, but now when I check my CIBIL report it states Score as 805 and loan as Written off or settled. Confirm what implications will I have when I take further other loans.

    1. It will affect your getting loan in future, written off or settled remark is seen negatively and your application can get rejected, make sure you pay back the full outstanding amount as soon as possible to avoid problems in future !

    2. Credexpert says:

      Dear Hemant,

      805 is a good score, but the Written off / Settled remark can make lenders view your credit report negatively.

      As mentioned, you are willing to pay the outstanding amount. Approach the lender and clarify if they are ready to accept the outstanding balance on a Written off / Settled loan and remove the Written off / Settled remark before reporting the data to the bureau.


  176. Sri says:

    Hi Manish,

    I have a query in getting Home loan. I have a credit score of 808 and my cibil report shows status SETTLED and nil balance for 2 credit cards in that past(i was not having knowledge, so landed in this status. The amount waived off at that time was less than Rs 1000/- for both the cards! this was happend about 3 years back and 6 years back). Anyway i have an NOC from one of the banks and other had given settlement letter.Could you please advice me whether i am going to get home loan?


    1. Sri

      You need to pay back the full outstanding amount and only then the status will be improved .Check with your banks !

    2. Credexpert says:

      Dear Sri,

      The settled remark could make the lender view your credit report negatively, but the score of 808 – which is a good score could work in your favour. However, it depends on the credit policy of the lender and also your repayment behaviour post the settlement.

      The other option would be to approach the lender and clarifying if they are ready to accept the outstanding balance on the settled card and remove the settled remark before reporting the data to the bureau – Assuming you are willing to pay the same


  177. Gaurav says:

    Hi Manish,

    I read all the comments above and seems like there is no solution to my current situation. Here it is:
    Few months back, I had settlement in one of my credit card. Currently, I don’t have any credit card or personal loan. When I apply for any unsecured loan/card, it gets rejected with the reason of low cibil score. How can I improve my CIBIL score in my current situation? Can I get any secured loan with low cibil score, as you also mentioned in one of your comment? My main concern is home loan..


    1. Gaurav

      I think there is no solution . You will have to pay the outstanding amount, only then your score will improve , you can always take a secured credit card, thsts what I mentioned in my comments .

    2. Credexpert says:

      Dear Guarav,

      What is your credit score? The settlement being very recent in your case, could be the main cause for the rejection of your loan application. The possibilities of getting a unsecured loan with a low credit score is low however you can avail a secured credit cards or an overdraft loan. Regular repayment on them will help to improve your credit score.

      Similarly banks have their evaluation process to give a secured loan. The best option is to improve your credit score. Apart from the Settled status, there could be other factors on your credit report that have affected your credit score and is making lenders view your credit report negatively. The exact factors can be commented upon only after analysing your credit report.


  178. Lalit says:


    My cibil rating is 796, I have settled one citibank card and paid all of hdfc. Now I have applied for both the banks citi bank has rejected my application and hdfc is still checking for the possibilities. How should i improve my rating, I am planning to take car loan but I am scared will it be sanctioned or not.

    1. You will have to pay the outstanding amount of your loan first

      1. Lalit says:

        Now nothing is pending from side. I hope i will get the loan. Credit card will not hamper the loan part.

    2. Credexpert says:

      Dear Lalit,

      796 is a good score, but possible reasons for rejections of your applications could depend on the Settled Citibank credit card. However, there could be other factor on your credit report that have affected your credit score and is making lenders view your credit report negatively. The exact factors can be commented upon only after analysing your credit report.


  179. Rohini says:

    I took a personal loan with HDFC but could not repay it on time because of my father illness though my cibil is 769 but my personal loan application has been rejected I was ready to pay the amount but one of my friend who is also working with HDFC said that if I pay the entire balance amount that will be of no use because the bank has already closed my account.Secondly when any application comes to the bank for approval they always check the customer paying capacity i.e. if the customer doesn’t pay his or her EMI’S on time, then also it effects on personal loan. I want to ask you one thing if I want to maintain a good relationship with the bank then what do I do? Atleast bank should give atleast one chance or bank can say that I am giving you the personal loan after deducting the previous balance. Otherwise people will start making another pan card to get the personal loan.Don’t you think so?

    1. Did you contact the bank on this , dont go with friends info . Bank should be able to take back the rest of the money left and update your status with CIBIL as “clean” . After that you again apply for loan and mostly this time if your other things are in place , you should get a loan .

  180. mayur nayak says:

    I had a Citibank Credit card which I unfortunately misplaced and had to cancel it. Since I did not have any details regarding my credit card , they could not send me the E-statement and hence i could not pay the amount of 2700. This was in 2010, July.

    Since then I have checked my CIBIL score in Nov 2011 . It was 816. I checked it again in Dec 2012 . it was 808. The Current Amount for the credit card is showing as 5016, but there is not Written off or any other details. Only Outstanding amount and Current amount can be seen. Also Actual payment amount shows 15,000 ( I dont know what this is ). There are no DPD’s or any other bad remarks on my report.

    What I want to know , is Will Citibank mark Written off for my credit card ? How long does a bank take to put Written off into the CIBIL report?

    1. In that case it seems that there is a outstanding amount and the bank has still not reported it was WRITTE OFF . I think you can now pay it off and close this cleanly !

  181. Saranya says:

    Hi Sir

    I would like to get some advise from you regarding a PL that I had taken from Fullerton India Ltd 2 yrs back. I had made full settlement with no outstanding balance as on Oct 8 2012. The bank does a CIBIL clearance only every 3 months and I am planning to take another PL loan due to emergency. When I applied in one of the banks, it got rejected saying “Defaulter in CIBIL report”. I also tried emailing cibilinfo@ to increase my cibil score since I have made the full payment.

    Can you please help me if I can reach out to any specific email address where I can submit my NOC letter and receipt for payment and get the score increased at the earliest.

    Thanks a lot.

    1. You first need to check you report, what is there on it ? Does it have a SETTLED or WRITTEN OFF remark ? Is should have if banks told you , that you are on defaulter list . IF there is that kind of remark , better talk to bank because they are the one who have reported it to cibil

  182. ravindra says:

    Hi Manish,
    I have paid off the total outstanding amount of HDFC & Kotak credit card due in April, 2012. Now i want to know when my name will be removed from CIBIL.

    1. It should ideally be removed by now , your bank should have communicated the new updated information with CIBIL , talk to them urgently !

  183. Pramod says:

    Hello Manish,

    I took some personal loans from Citi bank, but due to my financial situation was not able to reply it fully. So we had a re-structuring. The original credit card was closed in Feb 2010. And for the restructuring they opened a vertual credit card. I did all the repayment as per the emi decided for restucturing the loan in May 2012.

    I purchased by recent CIBIL report last month, and even after repaying everything the virtual credit card account is not yet closed. I have opened a dispute request and simultaniously contacted the bank for the same. They told me that they will look into it.

    Later they called me and told me that they can not close this virtual credit card. Ideally as per my understanding they should be able to close it because its impacting my score.

    What action I should take if they fail to put a closure date for my virtual credit card account?

    Thanks & regards

    1. How is it impacting your score if the card is not closed ? talk to bank on this !

  184. Vijai says:

    I have taken a loan on Card from SCB and i have paid almost all the EMI upto now.Now the problem is,I have closed the card due to some issues.The bank now asked me to pay the entire loan amount.I don’t have that much amount and they are not ready to given the EMI option too.. Can i give a legal notice to the bank that i am not able to pay the amount.. (like defaulter list).


    1. Why not ! .. you can give that . But that does not stop them from reporting you a defaulter to CIBIL .

  185. Namrata Ketkar says:

    Dear Manish,

    I took education loan from SBI in 2007 for 10 lakhs 65 thousand which i later started paying from 2009. But in the meanwhile i was unemployed and due to other financial constraints i defaulted the installments and now the loan has swelled upto 12 lacs. is their any option like one time settlement. If yes then how much they can negotiate?? I mean how less they can ask me to pay…Since my financial condition is too bad i just want to get rid of this loan asap irrespective of other consequences. it doesnt matter even if my CIBIL score get affected..but right now i just want to get rid of this loan. Please advice.

    1. Namrata

      Yes, settlement option is there, you can tell bank that you are unable to pay now . they will give you the settlement option , this will adversely affect your CIBIL score and in future if you want to correct it , then you will have to repay the remaining amount with interest !

      1. Namrata Ketkar says:

        Dear Manish,
        Thanks for your reply.

  186. Radhika says:

    Hi Manish,

    I was holding SBI credit card 6 years back , in 2007 Dec I was intended to close the credit card account, hence called SBI CC and got confirmation that amount I should pay to close my account is 18795/- which was outstanding,hence I made same amount to SBI bank on Dec 05th 2007 intended to close the account. I made the payment to the executive from SBI bank visited to my work place and also got confirmation from bank as well that they received the amount from their side on phone where they confirmed that I can close account from now. Later on phone I have placed request to close the account, where they confirmed that request is taken and they will process it further. Later I crushed my credit as well. After some months I noticed emails landing from SBI bank on my credit card bills, but those emails are dated as Jan 1 1970. I did not took it so seriously, since the date itself seems obscured and took them as Junk emails , that time I even did not got doubt on SBI, the reason being I have crashed card already and Iam not using it anyways. I have all communication on closing credit card only on phone, no other documents I expected from SBI that time. But now I realized that is big blunder I did,when I extracted CIBIL report on Nov 08th 2012, I surprised to see status as written off and current balance as 13,770. The only evidence I have now is some of the emails dated as Jan 1 1970 with bill statement and today (Nov 13th 2012) I called SBI to know what was the outstanding balance after I made last payment on Dec 05th 2005, now they are saying it was 8/- which was 4% preclosure charges of EMI account. when I was closing my credit card account EMI was running it seems, hence it got carried forward thats why the the current balance has came to 13,770. But when I called to know the outstanding balance when intended to close, 18795/- was amount confirmed by SBI as settlement amount and later on phone they confirmed me that they will process my credit card closure request as well, for me 8/- is nothing when I paid 18795/- as settlement to close the credit card account.I suspect something wrong went from SBI side where my closed SBI account is reopened and after some months and hence some junk emails landing on my mailbox on this credit card. When questioned about this today to cover their fault SBI is putting blame on me that I did not made full settlement, hence the account was not closed. If I was not made full settlement, why did SBI not informed me that time only and why did they confirm me that they will take forward my closure request.Since they very well knew that Iam making this payment to close my account only.

    I do have some of that emails which are landed in my mailbox dated Jan 1 1970 on credit card bills. Please let me know what kind of action I can take on SBI bank . Now they are saying that they will take my concern to concerned department and if possible they will make it as NIL. And I need to call them after 10 days to know the status of my concern. But here Iam concerned about my CIR report and black mark in CIR report under this credit card account for past 6 years. Please advise.


    1. You need to clarify this with SBI only and find out whats the final action . They will update CIBIL once its clears with you !

  187. kumar says:


    I got HSBC card issued in 2006 and last payment i made on Oct 2007 and after that i moved to abroad.. recently back to india..

    Original outstanding is: 52K and now i checked in my CIBIL report the balance amount showing as 4.5 Lac..

    i was thinking to call bank to finilaze this matter? am ready to pay 52K not 4.5 Lac.

    Can you please suggest which is best way to workout with bank.. ( i dont want get this marked as a ” Settled “) ..


    1. But you didnt pay 52k , and with terms and conditions , the amount you need to pay now along with interest and late payments will be 4.5 lacs only . Whats wrong with that ? Anything less than 4.5 lacs will be settelement only !

  188. Debapriya Dillip says:

    Hi Manish,

    once I tried to do balance transfer using my Barclay Credit card and They send a Demand Draft which I never receive. As their DD Section and Credit Card department are different It took 1 year for credit card department to get the money . During that time I had lot of argument with the bank and as it was showing defaulter in their list and I did not get the money so i was not paying. After the bank got the money from their internal department ,I close the credit card and They return the extra money as I paid some extra money. Now on the cibil report it is showing settled but I was never a defaulter and when I call the bank they stopped their credit card department in India. Now How i will remove my name from cibil settled lsit.

    1. Check with them on where did they transfer their credit card department, they will have your accounts now, you will have to resolve it with them !

  189. Venkat says:


    I have a querry, in my case I was SBI Card. it was not paid for long time and they have closed on their own. After a year I have recognised and they have updated in the CIBIL as Written-Off. When I contacted the phone banking, they said they will revertback in next 5 days but no reply. Even I have mailed them, but No reply. What could be your suggestion.

    1. you need to resolve this with them only, contact with credit card customer care or just walk in to the bank .

      1. Radhika says:

        Waiting for SBI update on my concern, SBI CC has asked me to call after a week when I called yesterday, they are still looking into it.

        There was one more discrepancy seen in my CIBIL report, with ICICI bank. I closed my credit card account in 2008 , but CIBIL report shows current balance as 1332. On same day of extracting CIR , I called ICICI bank customer where they confirmed that they closed my account in 2008 only , it shows closed from their side and they also sent NOC on Nov 12 confirming that they have closed my credit card on Sep 18 2008. They are not sure why CIBIL is showing as balance. The status did not show as written off in CIR. Hence I raised dispute with CIBIL to correct same in CIR soon after I received NOC on Nov 12.Today I got update from CIBIL saying that reply they got from ICICI is that current balance is 1250/-. Iam really confused here on where is the real dispute lies, is it with CIBIL side or ICICI bank side???

        fyi…I also shared NOC sent by ICICI bank with cibil after I raised dispute with CIBIL.

  190. sivakumar says:

    Manish I am completely fed-up with this CIBIL saga. SCB had marked me a defaulter for 23K for the card that I stopped using 2006 and had no balance to be paid when I stopped using it when I flew abroad. Later SCB reverted that those were financial charges and will be reversed and CIBIL will be updated
    They did as promised they updated CIBIL and also issued me a NOC with out me paying anything. And this whole thing took more than 2 months.
    I was happy and with the NOC I also managed to get another credit card from different bank.
    When I purchased CIBIL report again I see SCB has again marked me for the same 23K ,this is after they have written to me multiple times in Email that I have no outstanding, they have also issued me NOC and CIBIL was also updated…

    Totally fed up, I might have to spend another month or two get this all back and I have no guarantee that this would not repeat in future.

    The system is very fragile and untested and is causing more agony than good.

    1. I think you should have waited a little bit more .. at times this whole thing takes more time , like 60-75 dasy .. in worst case . Check with the bank once more and also threathen then to sue .. ALso check with CIBIL on this ! .

  191. Bhaskar Swain says:

    Hi Manish,

    My name is Bhaskar Swain, I am going through some CIBIL problems. Need your expert advice please….I had 5 credit cards (2 ICIC Bank, 1 Citi Bank, 1 Barclays, 1 HDFC) & 2 Personal loans (1 ICIC Bank & 1 HDFC Bank). I’ve paid both the person loans completely, however, for the ICICI Bank PL 1 installment was due but I’ve paid that including all the charges. Out of the 5 credit cards I am still using 3 credit cards & and I am paying all my dues in time.

    The problem is, I had opted for settlement on my HDFC bank CC around 2yrs back & because of some late fee argument with Barclays bank I’ve stopped paying them. Around 6 months back I had applied for a Personal Loan from HDFC bank it was rejected & bank informed me that my CIBIL score was 580 & since then I am paying all my dues in time. In between I’ve taken a consumer loan of Rs. 30,000 from Andhra Bank & I am also paying the EMI’s in time. Had a word with HDFC bank to issue me a NOC on the settlement but they are asking for Rs.22,000. Also, I am thinking of contacting Barclays bank to close my CC a/c with them by paying them in full.

    Please advise if I take all of the above steps then would it improve my credit scores as I want to go for a car loan. Also, in between I’ve request for credit limit enhancement on my existing credit cards but it got denied & also I applied for a fresh credit card from SBI, also, it got rejected.

    1. The problem is

      1. You have done settlement in past , it does not work ! . Your settlement will be reported to CIBIL, you will have to pay the full amount to get rid of bad report.

      2. You have too much of unsecured credit, credit cards, consumer loan etc etc . If you apply for car loan, it will surely be rejected. First get rid of your existing loans and only then you will get new

      1. Bhaskar Pratap Swain says:

        Hi Manish,

        Thanks for your reply.

        Sure, as I said, already had a discussion with HDFC bank & they are asking for Rs. 22,000 more to issue me the NOC. Also, I’ve sent an e-mail to Barclays asking for a solution. When I stopped making payment to Barclays around 15months back my outstanding was Rs.15,000, I am sure it must have been a huge amount as of now. Is there any possibility to get some mercy on this because there was a fraud transaction took place on this card which instigate me to stop the payment.

        Also, just to clarify, though I am currently using 3 credit cards & has 1 consumer loan but I am paying them in time & there is no delay at all. Do you think this will create a problem for me to get the car loan? Also, if I clear the disputes with HDFC & Barclays bank by paying the full amount then credit score will improve immediately or do I have to wait for some time for it reach 750 mark? Please advise.

        1. Bhaskar

          Here are few points

          1. the bank is creating issue, because they think its under terms and conditions . So if you feel, that you are right and you should not be charged, then its a DISPUTE with bank , and the only option is to move to consumer court.

          2. YOu have high number of credit cards and consumer loan which is UNSECURED LOAN , so it depends on bank how they view it , banks generally do not like people who are high on UNSECURED LOAN , so they might reject the car loan, there is a possibility of that.

          3. Once you settle all the dispute and pay the money, banks will take 30-45 days to update CIBIL about it , this will increase your score, but you can never say how much , so there is no surity that it will move above 750 .


          1. Bhaskar Pratap Swain says:

            Hi Manish,

            Thanks for the reply…

            I had a discussion with Barclays & the outstanding is 30,000/- & my HDFC outstanding is 22,000. I will pay these 52,000/- this month..barring this I do not have any other dispute. Though I have credit cards but it’s all up to date & payments are going in time without any charges. After paying these 52,000 do you still feel that I will strugle to reach 750 CIBIL score? Last time when I checked my CIBIL score it was 580. Please advise.

            1. Paying that money will definately bump up your score with a big margin , You can never say that it will cross 750 with that action , but given that you are paying your cc bills on time , within some months it should be .

  192. Ashok chandrika Prasad says:

    Recently I had come to know that my CIBIL Transunion Score is 559. I had purchase credit card from HDFC Bank for the year 10.04.2003 & ACCOUNT NUMBER 0004346771001439679 of creditcard & date of last payment 19-08-2004 however I discontinue my credit card. las to so many I am surprise still bank is showing over due Amt. Rs. 1,138/-( fact is nothing to outstanding these are fake amount as per my knowledge there is no outstanding.) status is showing writtend off. while my salary account is on same bank. I had apply for credit card & personnel loan for same bank bank is rejected my application . Plese advice me how to get another credit card who is contact person to resolve the issue?.

    1. What is banks reply on that outstanding amount ? You should first hear there side and then comment on that.

  193. pavan kumar says:

    sir, i have taken hsbc personal loan in 2006 april with tenure of 5 years and paid emis upto february 2009. unfortunately my adopted mother fell ill with brain tumor and it required huge amount, i was unable to pay the emis. and all of sudden today on 16-10-12, hsbc people came to me and told outstanding was 92,035 rupees. is there any chance to reschedule that amount. and if i pay total due, then will they remove my name from cibil

    1. First point is that the amount is not wrong . Its increased now with all the charges and late payment and interests ! . You will have to pay it off fully .

  194. Anshuman says:

    Please help me out how can I get out my name from cibil.

    My question:

    I have default by mistake ICICI bank credit card.
    Bank are asking for settle as a such amount.Now I am not able to pay the total amount once.
    So should I go for settlement…………?
    And get NOC letter and able to get another loan from any bank and pay pay all the outstanding amount of ICICI bank once for all……?

    So, my question is that is it possible to get loan of minimum amount for any other organisation showing NOC letter………………?


    1. No , settlement is not a solution . Did you read the full article ?

  195. Prabin Kumar says:

    Hi Manish,
    Recently got to know that, there was a due in SCB on my lost credit card. It was going on from 2007. When I inquired about the due amount, it was 29K. But in the due process SCB informed that, those due amount was due to financial charges (they have placed some charges which I was not notified) and now they reverted all my dues to nil with a notification that CIBIL will get updated.

    As it was going on from last some time, got a hit to my CIBIL score. Currently it is 598.

    What should I do now to improve the CIBIL score, which got hit with out my fault. Please guide.

    Prabin Kumar

    1. Yes, it should improve your score once they update the CIBIL about it .

  196. ritesh says:

    Hi Manish,
    I didn’t requested for the loan from the bank on my credit card but after providing wrong information they had activated it. ( HDFC )
    How can sue them?

    1. Yes, you should file a case against them .

      1. ritesh says:

        Am srry Manish but I asked that how could I sue them?

        1. That you can do only from the consumer court .

  197. ganesh says:

    can i take tvs finanace for two wheeler to increase the cibil score? will it reflect in cibil..

    1. obviosuly it will reflect in CIBIL . any loan will reflect . if you pay off the loan on time , then it will be good for your score !

  198. Nikhil says:

    Hi Manish,
    My problem is same as everyone else’s. I had a dispute with Axis Bank over a credit card payment of Rs. 1100 for which they dint send me a letter till it became Rs. 5000. I threatened them of a police complaint and a court case and they stopped calling. But reported it with Rs. 8000 to CIBIL. Now after this thing I got a car loan from Kotak Mahindra Bank which was paid by me with utmost care and I also got the credit card from HDFC Bank for which I am regularly making payments. Now I urgently in needed a car loan and I applied with SBI which is denied as my Axis Bank thing was reflecting on it. Now I have settled it with them with Rs. 1700. My question is how did I get the loan from kotak and card from HDFC if this was reflecting on CIBIL and after a good payment done by me to these two companies why m i denied loan from SBI…

    1. It totally depends on the bank how they want to look at CIBIL report and based on their internal rules they approve or reject the loan

      1. Nikhil says:

        And would please tell me how many days do they take to change the ongoing account to settled..?

        1. Banks update CIBIL each month , so it should take 30-60 days !

  199. Amit says:

    Hi Manish,

    Needed some help. I setteled my Citibank card in the year 2010. While going through the procedure they closed my actual account as setteled and opend a virtual account and closed it again as setteled. the problem I face is that the last payment I made was in 07/2010, however, as per cibil my last payment date is in 05/2009. It also states that the account was closed in 06/2009. If I made my last payment in 2010, can they show this as closed in 2009. Another thing that I wanted to clarify was, how many times can Citi report this to Cibil. As per the latest report that i have the last reporting date is 08/2012, which is almost after a gap of 2 years. Post this settlement I applied for two CCs and got them and have been making all my payments on time, however due to the reporting date my loan application is getting rejected. Is there any way to sort this out.

    1. You need to know 3 things

      1. Banks update CIBIL each month with the latest info
      2. Settlements are reported to CIBIL and are taken as negative things
      3. If you have any thing settled in past, you will have to get rid of it by paying the full money now

  200. Kaushik Sengupta says:


    I have a bit different issue here. Around 2006-2007, I had a CC of ABN-AMRO, suddenly Family First Insurance premiums were being charged though I never applied for any such insurance policy. This insurance again was joint venture of ABN-AMRO and ICICI Lombard. They asked me to pay the premiums, though I never received the insurance documents from them and obviously I did not pay them a penny. Please suggest if my case would have been reported to CIBIL? By the way, I had received loans from Bajaj Finance thereafter for buying electronic goods and have hold HSBC and SBI CC without being a defaulter.

    Thanking you in advance.

    1. Kaushik

      Was this a new credit card which had the policy or an old credit card and suddenly out of no where the premiums started for the policy ? Because I suspect you signed some documents without checking ! ..

      If thats not the case, then its just a fraud by company, you should complain to banking ombudsman on this .

      1. Kaushik Sengupta says:


        Thanks for the reply. When I got the CC, there was no such policy offer clubbed with, it was only after a few months of using it, I saw the premium amounts charged in monthly statement. I asked for any evidence on whether I signed any paper or consented over phone, to which they had no answer and as I mentioned never received any policy documents.

        Should I be eligible for a car loan now?


        1. Kaushik

          I suspect , that in the credit card form, there might be some “check box” which said that “I also want to apply for insurance” . Just mail the company that you demand the proof or you will move to banking ombudsman or consumer court in next 30 days .

          1. Kaushik Sengupta says:

            yes those were mailed but they did not bother to reply. my only concern is whether it can be lodged in CIBIL and prevent me from getting car loan as this happened long back in 2007 end and I otherwise carry a clean record with other CCs.


            1. It will already be on your cibil report . Better call the customer care directly and not rely on mail

            2. Kaushik Sengupta says:

              ok, thanks for the advice

  201. Abhijit Roy says:

    Dear All, dont give such importance to your CIBIL scores. If any Bank doesnt offer any Personal loan or Credit Card think yourself as one of the lucky guy. Afterall both these instruments are not of any worth. Try to save money in FD and build up a reserve for accidental expenses. Transform your FD into Over Draft Limit so that you can use it at the time of need at a very nominal interest rate. For housing loans, try to get loans from your PF, Loan against Gold or against LIC Policies/ NSC etc. Even if you fall short by some amount, dont worry, talk to a Manager in any Nationalised Bank, use your contacts to reach them. They can offer you a Housing Loan despite your CIBIL score if you reach them through a proper channel.
    Hence dont panic if you settled your cards or loans, just forget it and never ever fall in those traps. No need to pay the rest amount as that would worsen your financial status further.

    1. Thanks for your views Abhijit !

  202. teja raman says:

    Hi Manish,

    I had a personal loan and I got my ECS regected twice since 1 year. And I did not paid the billed amount for my credit card for 3 months and later I cleared the total amount. And all the rest of the things are fine now. Will I be able to get any loan in future. I am planning to study abroad after 6 months. Kindly help me in this mater.

    Teja Raman

    1. Abhijit Roy says:

      Dear Teja, Study loans are different. It depends on the institution you are going to study. I dont think you can get a study loan for studying abroad. And you wont get a Personal Loan if you quit your job and decide to study again. Mostly people get secured loans against properties for these purposes. Talk to your father.

      1. teja raman says:

        Ok thanks,
        But does this( 2 ECS bounce) effect me in future to get any personal loan ?

        Teja Raman

    2. First you should check your credit report and score , it should be clean as of now

  203. Jai Kishan says:

    Hi Manish,

    I have checked my trans union score from CIBIL website. It is >750. I have 5 credit cards and 2 personal loans running without any defaults or delay in payments.

    Does having more credit cards hammer my score as I am using all the cards?
    Does using credit cards and making timely payments increases my credit score?

    Please revert.

    1. Paying bills on time is POSITIVE
      Having too much of UNSECURED CREDIT (like in your case) will take your score down !

      1. Jai Kishan says:

        Hi Manish,

        Thanks for the revert. Can you just elaborate about how Unsecured Credit will take my score down? As every year there is enhancement in my card limits.

        Do help me in understanding this, so that I can plan accordingly.


        1. Its not the limit of unsecured loan , but the usage of it which will take it down , and not always it takes things down , upto a limit its fine !

  204. Raj says:

    I have a personal loan of 3 lakhs and I have been paying it religiously for the past 2 .5 years, Last month I lost my job, is there any way I can get a waiver till I get my next job, thanks in anticipation of your reply

    1. No I dont think so , all you can do is talk to your bank and tell them about this, see if they are ready to take up this matter

  205. Nilesh Shah says:

    Hello Manish,

    I had 9 around 2 years back out of these 2 (CITI and ABN) were lost in travelling. And somebody found those and miss-used those before i came to know this they are used by around 1.5Lac. I raise a dispute on this. and did police complaint. But nothing is happen. Also I had Loan on the CITI cc of 1.70Lac.
    After the long conversation with banks nothing happen. Then I have not paid amount which I have not used. and Also stop payment of this CITI bank cc loan.

    Other than this I have well maintain other CC and also I have Paid 2 PL without any issue.

    So please suggest me what are the options available for me to deal this. Because I am planning to take home load.


    1. there is no alternative other than first coming to an agreement with bank on this. Did you inform the company about the lost cards on time as per defined by banks ? If no, then you will have to pay the amount first.

  206. Sivakumar says:

    HI Manish,

    Update my score has improved from 569 to 632 with SCB removing the Written Off status for my 23k outstanding reported earlier. Now my report is atleast clean

    I am fighting to remove the DPDs reported as well, SCB has infact reversed the balance as I did not owe anything hence Ideally DPD reported also is invalid and they should agree to remove that too, not sure how it will go

    In the interim another bank has issued me a credit card with out any deposit, I have a long relation with this bank and they accepted NOC issued by SCB. Manager says even an autoloan can be considered though I am not sure how much that is possible with score of 632. With Credit card I can make now regular payments how long do you think would it take to reach 700+ upon reaching which I am sure manager can help me with an auto loan.

    1. Siva

      1. I think you should report this DPD point to CIBIL with a dispute resolution, ideally yes DPD info should not be removed , do it using this –

      2. I think if bank manager is saying you can get a card loan , then it will be approved.

  207. Amit Monde says:

    Hi Manish,
    Need some information… is there any finance company/institution from which, if we take some loan. Data for the same will not reflect in CIBIL….

    1. No , its not possible , all credit lending institutions report to credit beureu !

  208. Harish says:

    My CIBIL Trans union score is 789. But in the remarks its showing as

    And my PERSONAL LOAN SCORE is 828. It has the remarks as

    What does it mean? Also I have one personal loan which is still going on and will be there till another 2 years. I am paying every month with out fail.
    But I need a Home loan so wanted to clear it off what ever the pending amount is there.
    Is that a good idea?

    Please explain to my questions above.

    1. Is your history in past 24 months totally clean ?

      1. Harish says:

        Yes its totally clean.
        But what what does the below means?

        My CIBIL Trans union score is 789. But in the remarks its showing as

        And my PERSONAL LOAN SCORE is 828. It has the remarks as

        1. Those remarks might be just a info remark and not specific to your score

  209. Amit Kumarrao Salunkhe says:

    My Self Amit Kumarrao Salunkhe my pan card no. AVVPS2810G PLZ Sent me Cibil Report. Address -30/ 698 niljyoti socity Ghokhale Nagar , pune 16
    email mo. no.-9822302332

    1. You have to order it from CIBIL website, by paying Rs 470 !

  210. saurabh says:

    One of my friend has name on cibil with amount Rs.15 for 2006 loan. is there anyway to remove name from CIBIL.

      1. saurabh says:

        already paid and got NOC from bank too.

      2. saurabh says:

        Please guide me. My friend has already pay and ready to pay Rs. 15 also. To whom he should contact?

        1. The bank with whom its due !

    1. Rohit verma says:

      Dear Saurabh, don’t worry about Rs. 15 due amount.just collect NOC & approach any bank near to your home because in every bank it is discretionary powers given to branch manager or AGM to give waiver up to the amount of Rs. 25000/-(in cible)

  211. vanitha says:

    i have taken loan and that time i have not had PAN card. to get my CIBIL score and CIR giving PAN card will help or what is the proof required to give?

    1. There is no proof to be sent if things go fine online, you need to give it only if payment fails !

      1. vanitha says:

        I have registered but it failed bcoz of address proof. I don’t have any address proof for current where i stay. How i can get CIBIL Score and CIR please.

        1. I think CIBIL customer care will be able to guide you on this better !

  212. Vinay says:

    Hi Manish,
    I have credit score of 760+ but I also have exclusion codes on my report. These are as below:
    * One or more trades written off in the past 24 months
    * One or more trades with settled debt in the past 24 months.
    I currently have an education loan that I am paying on regularly.
    Will I be able to get any loans (home/car) in the future once the education loan gets completed.

    1. If you have anything settled or written off, then you need to first pay it off !

      1. Vinay says:

        thanks manish

  213. kamal says:

    hi manish
    i wish to know as my cibil score is 804 and my husband’s score is 621 so can he be co applicant for home loan along with me and will that work for us.


    1. I dont think its a good idea, bank will reject the loan in that case because your husband score is really not that high .

  214. Maninder kaur says:

    I had a Citi Bank credit card debt which is since 2005. I was not in a position to pay it off so i kind of absconded and now i have joined this company two days back where their corporate banking is with Citi Bank. What i want to know is can they find me and trace me down if i open a salary account with the same bank.

    1. Obviously they can ! .. And there can be a case where they deduct the dues from your salary account also in future

  215. S.Vijay says:

    Hi Manish,

    Your advices are very helpful.

    I had Citibank Credit Card & ICICI Bank Personal Loan which I had defaulted from June, 2008 due financial crisis. I had cleared off the dues of Citibank Credit in February,2012 & ICICI Bank Personal Loan in August,2012. As per your advice to above folks I haven’t opted for settlement, instead I had paid all the charges and cleared off both.

    Now I don’t have any Credit Card or any type of loans. My CIBIL Score is 590. I was wondering how to improve the score as I don’t have any credit card or loans now.

    I am thinking to go for a Car Loan (SBI Car Loan), will I am able to get with the above mentioned low score? If not how do I can convince the bank for a Car loan.

    Please advice. Thanks in advance !!! 🙂

    1. You will not get a loan i think . Its almost impossible .

      First you need to get a secured credit card from bank against a FD and then use if for few months or may be a year and see how your score can move above 750 or 800 . Only then you have some chances to get a loan !

      1. S.Vijay says:

        Hi Manish,

        Thanks for your reply. I had contacted Axis Bank & State Bank of India (SBI) for Car loan. Due to my low CIBIL score (590) Axis Bank rejected my loan application, however I was able to convince the SBI Bank Manager, the reason for my low CIBIL Score (It came to 520 from 590 due multiple inquiries for car loans).

        Surprisingly I got Car loan from SBI, 70% loan on Road-On price of the Car and also got SBI Gold Credit Card. 🙂

        Could you please let me know how many months/years it takes to improve my CIBIL score from 520 to 750 & above by repaying the Car Loan & Credit Card bills promptly?

        Thanks in advance,

        1. It depends that for what reason your score was down . Did you have any bad loan which you didnt pay

  216. satish says:

    Hi Manish,
    I have a CIBIL Score for 614, And I has defaulted 2 Credit Cards long time back.. This Month I have made the payment in full for entire outstanding amount.
    Same should I ideally be available in CIBIL report by this quarter end.

    I am using 2 other credit cards for last 3+ years and made all payments on time every month with some 60K Converted to Flexi Pay on one of the Credit Card with Credit Limit of 1,08,000/- . Plus I had a Personal loan which I closed without any default 3 years back.

    I am Planning to avail a home loan. I have 2 queries here..
    1. Will my CIBIL Score Improve with these dues clearance in Full.
    2. What are my Home loan application chances for approval

    Your expert guidance will surly help me. An early response will be appreciated.

    1. 1. yes you can make the full payment and that would improve your score

      2. There is almost no chance of getting home loan at this moment. Banks generally look for 800+ score and a clean report .

      1. satish says:

        Thanks for your reply, Just one additional query..

        I am making payments of my both current Credit cards on time and Since CIBIL updates the data quarterly. My Defaulted payments, which i cleared in full this month, hopefully should also be cleared from CIBIL this Quarter End. Just wondering when can my score move from 614 to a respectable figure so that I can apply for a home loan. Since I have already paid the booking amount for property and I need to secure a home loan to pay the next installment within next month.
        And What are my options for Home loan going by my current Low CIBIL score.
        Pls help.

        1. Satish

          to increase your cibil score, you will have to make some kind of loan payment to show your repayment capability

  217. Usha says:

    Dear Sir,

    I forget to add one more thing that recently I have applied for the Credit card in CITI bank they rejected that and they said that I did not meet the CIBIL score.

    1. Did you check your cibil report first ?

  218. Usha says:

    Dear Sir,

    I want one advice…..I have applied for the Personal loan in 3banks at a time but 3banks rejected my application,when I asked the middle person they are hesitating to tell me the answer, is it any problem if I apply PL in 3banks together and Niw I want to go for Home Loan, can I apply in different banks together since if one bank rejects means another bank can approve na,Thats why.kindly advice me wats the problem for rejecting of My PL and is there chance to get the HL.I want to add one more word, I am staying in Chennai and I am CA and ICWA professional and I have given my brother address who is staying along with his family and I have 8months experience other than my CA article ship exp….. Is it possible get the loan.

    1. It will be tough . Was there a past loan which you didnt pay on time ? first check your cibil report and score !

  219. Sam Dhule says:

    Hi Manish,

    Recently I have been contacted by bank stating, I have payment over due on a credit card which in 2001/2002. They have told if not payed may have repercussion. To be frank, I am simply unaware of dealing with bank after such long years gap, since from more than 15+ years I am having the premier banking with other international bank.

    In CIBIL report, will this be reflected and I can able to get the details about the same. Appreciated your view on this.



    1. Was there any payment which was due or not ? If not , then how can bank say that, if there was anything , you should pay off that soon , It might be reflected in CIBIL , better you order your CIBIL report and have a look once !

  220. Arun says:


    I was in UK around 5 years back, i had very bad credit history in UK, will it effect here in India, as i applied for a credit card which has been rejected. Reason mentioned was SRN 96.


    1. Arun

      No idea what is it exactly, but yes, it might effect your credit taking ability here in India !

  221. Shamita says:

    Very good article and many useful comments. Thanks

  222. tushar pandit says:

    Respected Sir,

    I also have a problem in getting a loan… Yes i did have a bad period of two years due to which my home loan payment was getting delayed.. and also my bank changed quite regularly due to change in my job profile.. as different companies have different i would like to have home loan (top of loan ) on my current property which is worth 55 lacs… the loan amount required by me is rs. 12 to 15 lacs..sir, can u please give me a solution for this.. require this loan very very very urgently..

    1. Is your score bad ? Did you check it ?

  223. vinodh says:

    This writeup is very useful. My credit history is good.
    simply because I paid full amount in time.
    As you say SETTLED status is dangerous. no credit in future.
    I ordered my cibil report online today.
    thanks & regards

    1. Good to hear that Vinodh .. were you going to avail some loan ?

      1. vinodh says:

        No. I checked my credit history before 2 years in printed format mailed to my street address. But I want to know credit score. thats why.

  224. Nikita parashar says:

    Dear Manish

    Thanks for supporting and the way you Clearly explain the things, I want to know that how Many points degrades in your CIBIL rating once you settle a Credit Card and how many points increased when you Pre-Cleared a Loan. Is there any critirea ?
    after cclearancce a loan amount how much tie it takes to upgrade in CIBIL

    1. There is no benchmark like this , settlement will have a immediate imapct on score , but after few years , your score might increase and get better , but your report will always carry that remark of “settlement”

  225. Ganesh N. says:

    Hi Manishji,

    It is more appreciable that there are your hands to help us.

    I have a Home loan of 7 lakhs and recently I appied for a personal loan of One lakh but the application was rejected because of the low CIBIL score. When I asked for the details, I came to know that as per the CIBIL records, there are 3 personal loans as well as One mortgage loans [whole the loan amount is showing as not paid yet anything] in inaddition to the Home loan which I had taken recently.
    Is there any remody to overcome from this. I have never taken any loan from any Bank except this Home loan but I don’t have any idea how it came and other details of that loans.

    Thanks in Advance.

    Ganesh N.

    1. This has happened to some people where some one else has taken a loan on some other person. You need to enquire about those personal loans and how it got sanctioned !

  226. lucky says:

    Hi Manish, Thanks for such kind of article. Actually my story is somewhat same. I had 2 PL and 5 CC which I done settelement two years ago , I got my cibil score in the month of Jan-2012. at that time , it was 734. On september 5 I got score again as 798. Here are my questions

    1) you say that regular payments make the score incremental but in my case I did not take any loan or make payment for any loan after Jan-2012, except ICICI PL(which record is not yet updated in Cibil)
    2) I have taken ICICI Pl in 2008 and in the month of Mar-12, I got a call from Cumulative Investement and trading Co. Ltd ( CIT) saying that ICICI has sold my PL with them and I need to pay off. They sent me intimation letter and I paid off total outstanding. The amount was 1 lac and I paid all out standing. I got NDC letter from CIT and they said they cannot update CIBIL as they are NBFC but they will ask ICICI to update it. in my Jan12 version of report the ICICI PL account was there but all was blank , no written off , no setteled. While in recent edition the same thing is appearing. I was expecting some updates regarding it. I have clear off dues in the month of June-2012. Whom should I reach up to ?

    3) You said that the we need to pay entire outstanding to clear that settled state. can it be possible to negotiate with banks on that total outstanding as I can see for my credit cards , the limit was 35,000 and the after putting magical interests the outstanding reached upto 1,83,000. Which is too high to be paid off.

    4) I have already applied for CC on FD , do you think this will improve chance?

    Waiting for reply


    1. 1. Your score depends on your past 24 months of activity , if you had a very bad activity in start, then as time passes , the last 24 months data gets better, so your score increases.

      2. I am not very sure of this company, did ICIC confirm that this company is anyway related to it ? You need to reach to ICICI only for this

      3. But thats your mistake , right .. you never paid that and the amount keep grewing with interest and charges as defined in the terms and conditions . I dont think any thing lower than the outstanding will do, unless bank explicitely says so

      4. Banks gneerally look for 750+ and a clean report. I cant say anything .

  227. Julius Khati says:

    I have applied for a loan but it has been rejected, and i have been informed that my name reflects in the CIBIL on defaulter,i have had my credit card settlement done a year back,is there any way that my name can be removed from CIBIL.

    1. Settlements are the problem , it will reflect in the cibil report . you need to pay off everything and only then it will be removed !

      1. julius khati says:

        Hi Manish,

        Thankyou for the response.
        So, should i call the bank and pay the amount, and how much time will it take after i pay my dues for my name to be removed from the CIBIL list.

        1. Yes you should do that , it will be updated in 45-60 days !

  228. Sandeep says:

    I have some credit card dispute 10 years before with Standard Chartered bank after that my credit history is clean, i have taken home loan and paying it regularly without a single delay, taken personnel loan or loan on creditcard paid on time, taken bike loan paid on time, taken consumer loan paid on time.
    my ITR is strong. Can i get another homeloan.

    1. That will depend on how much is your EMI right now compared to your take home . Also how is your report . did you have a look at it ?

      1. Sandeep says:

        I have checked that it is 538, but the problem is SCB has defaulted me in that now they are asking around 200,000 Rs. I have dispute with them in year 2002 on payment, but I did not closed it despite i paid them money also.
        My Current EMI for Homeloan is 19000 i am paying is regularly without any problem. After 2002 I have taken so many personnel Loan and Bike loan and closed on time also my credit card details are clean. what can done for this SCB shall i go to ombuds of RBI.

        1. Ok , you had paid all the money and there was no due ? Not even a single paisa ! . Right . Was there any yearly fees or something , which might have amounted to this ? Can you clear that with SCB that how did it grow to such a big amount ?

  229. manoj says:

    hi, i have 2 settled credit accounts which i am clearing by paying the waiver amount. i had settled a/c with hsbc in 2008 but recently when i got my cibil report i see Rs. 16800 overdue and status as written off which hsbc accepted as mistake and have done status as “post written off settled” and overdue amount nil. my credit score is at a low of 590 due to this. i am currently using 1 credit card and have no pending loans. how much time does it take if i regularly use credit card and pay timely to go to a score of 750+. Please guide.

    1. Even that remark is not going to help you , finally you settled the money and didnt pay the full amount , Right ! .. If you go for any waiver, then it will be marked as “SETTLED” only, may be post written off . So better not get into it . Pay 100% full money !

      1. manoj says:

        No. I have paid waiver amount and bank is willing to remove the flag saying “settled” and “Post written off Settled” to nil and dues to nil from the accounts. How much does this help and how many months/years would it take to get a score of 750+ from now. Thanks for your reply.

        1. Yes you can go ahead in that case . It will take some months to improve the score , for that you will have to regularly pay off some debt to show your repayment capability !

  230. Raghav Ranjan Roy says:

    Hi Manish,

    I had one credit card and loan account. I have settled both account in 2010. I have no loan or credit card now. In CIBIL, my credit card is showing (WO) settled and Loan account is showing settled. My Cibil transunion score is 555 and personal loan score is 541. Please tell me how to improve the scores, since i dont have any account to pay now. Please assist.


    1. sivakumar says:

      Hi Raghav, Status of settled will be looked negatively by the banks as it means you were not able to honor your previously acquired debts completely and the bank had to settle down for a lower amount than what it had owed.
      So you should ideally connect to the banks that had provided credit card and loan and pay them the difference now so that both your credit card and loan would be paid 100%.
      Get a NOC from the bank and most importantly negotiate with them to remove the Settled status from CIBIL.
      You should first work on removing the Settled status by doing the above than working on the score.

      1. Raghav Ranjan Roy says:

        Thank You Sivakumar Ji, I will definitely worked upon the ways provided by you. Thanks again.. 🙂

    2. Contact your loan and cc companies ,they will tell you how to settle the rest of the money and then they will update your report to CIBIL

  231. Karthik Pai says:

    Hi Manish,
    Now i have cleared my bike loan with no dues, they said will get you the NOC in within 15 working days, when i checked with HDFC loan adviser, he said apply it in the month of Nov End, with 3 months bank statement, NOC letter surely your loan will get approved. so what is your suggestions for me.
    Thanks in advance

    1. Yes .. if the guy is telling that it will be done , then it will be done 🙂

      1. Karthik Pai says:

        Thanks Manish for your advise, LOL

  232. sudhank says:

    Hi Manish !!

    I got my CIBIL score and it is 802. I have taken education loan of 4 lacs for 7 years and prepaid it in 3 years only. And currently i have Home Loan and using 4 credit cards.

    Interesting part is that, i didnt spend Rs 470 but just requested my agent of trading account and he mailed it to me without any charges 😉 but also requested that please dont share it in my office otherwise everyone will be behind him.

    He only took my DOB & PAN.

    So one can also attempt for this !!

    1. Great to know that 🙂

  233. Tamanna says:

    Hi Manish,

    I just got my CIBIL report and my score is 740. I had a credit card which i got in 2008 and i made all the payment in 2008 however since 2009 till Feb 2012 it was due because was facing some financial crises in my family and i was the only earning member so was not able to pay. Now in Feb 2012 i made the payment in full, i didn’t settled paid in full with interest as it was my fault that i was not able to pay.
    Now i want to know how can i improve my credit rating & score?
    I applied for a two wheeler loon in the month of may 2012 and it got rejected because i was a defaulter in my credit card payment.
    I want to buy a property and for that i want home loan so what should i do for that now?
    Should i get a secondary credit card on my name and start using it as you mention earlier? and also talk to the bank to remove this thing from my record, is it possible???

    Please assist me in the same as i need your help.


    1. As you have already paid off the full money on your credit card, now just keep paying your dues on time each month, in few months your score should move up , From 740 it should move into 770+ territory . Then you can apply for home loan

  234. adi says:

    Dear manish,

    I had a credit card of hsbc. Which was settled. CIBIL status is POST(WO)Setteled.
    I mailed to HSBC and they replied if pay all due they will update it to blank.
    I cleared all dues now . I have mailed to them the details of payment. Will they abide to promise?

    1. Yes , they will update it with CIBIL in few weeks, you also get a NOC from them

      1. Adi says:

        Dear manish, HSBC guys have mailed me that
        We confirm that the payment of INR X has been credited to your card account on 03 September 2012.

        With reference to your concern on credit status updated in CIBIL (The Credit Information Bureau [India] Limited), we confirm having arranged to remove the ‘Post Write Off Settled’ flag updated against your credit card in CIBIL. This will reflect in fifteen working days.

        1. Great to hear that .. just order your report once more after 20-25 days ! .. Congratulations !

  235. Sivakumar says:

    Dear Manish, You are doing a great service Thanks for this.

    I recently came to know Stand Chart has put my name on CIBIL due to credit card payment that has been missed in 2006, I have been genuinely assuming that the payment had been made as arranged to settle the payment then through my friend and I was abroad. It was my oversight and up on my return now to India banks have declined my new credit card applications.
    I genuinely want to make all the payment due to SC which according to their customer care is 22K. Up on paying this Am i entitled to request SC to report my case as closed or closed after due etc, is it a normal practice that SC would agree to close provided i pay all dues without any dispute.
    How does banks look at such closures for my future credit requests?

    1. Sivakumar says:

      Manish, I also got my credit score and is at terrible 570. Would closing my card with all payment have some immediate impact to my score. I have never had any othe card or credit transaction.
      Understand I would need to get some FD credit card and start improving my score. How long would it take to reach a decent 700 range?

      1. Pay off all the debt , but dont close your credit card, Keep using it . Why to close it and take another one. You will face a lot of difficulty to get a new card, so dont close the card, just pay off all the debt. It will bump up the score, but not to a level which will get you loan asap, it will take time, you are in a bad phase .

    2. Yes, ideally once you pay off all the dues, the bank will update your loan status as “Closed Post Settlement” . I mean you first settled and then you closed the loan by paying full amount.

      1. sivakumar says:

        Hi Manish, Received following update from bank, they confirmed me that I had paid for all the transactions that I had made in my card and the outstanding of 23K pertains to Financial charger. They have offered to reverse those charges and update the status to clean. I have confirmed with them that it is not a settlement and they have written in a email that they will send me a NOC and update the CIBIL status as (Current Balance: Nil, Over Due: Nil, Status: Nil). Email extract below for your reference. Would the above status make my report clean, though I understand that I would need some time to reach an acceptable score though.

        Further to the discussion with the undersigned, the outstanding in your card account pertains to financial charges.

        We have arranged to reverse the same in two working days. Please bear with us till then.
        Post reversal, there will be no outstanding in your card account.

        Accordingly, your account will be updated in CIBIL with the appropriate status (Current Balance: Nil, Over Due: Nil, Status: Nil).

        Post reversal, we will arrange to send the No Objection Certificate to your mailing address and email id. You will receive the same shortly. Please bear with us till then. “

        1. Ok Looks good to me them . If they are ready to update the Status as NIL , then it would be a great thing . This move will also help your score, but for a better score a regular payment on some kind of loan is a must. Keep every proof with you and check within 45-60 days again , and let us know about it too 🙂

          Good luck


          1. Sivakumar says:

            Yes Manish, Thanks for the clarification, I will keep you posted. The article and your expert advise here with extreme promptness has been a great great tool for people like me to understand the CIBIL STUFF .What it means to people like me is invaluable direction when we feel we are completly lost 🙂

            1. Nice, most of the people learn about it and just go 🙂 . I would love if you can spend your 10 mins and help other people who do not understand CIBIL and ask for help here on this blog. Can you help 5 people on this blog (on CIBIL related posts) for next 30 days ?

            2. Sivakumar says:

              sure manish 🙂 done deal!

            3. sivakumar says:

              Manish One more query, the bank had earlier reported Account status DPD with 150 days for every month since 2009. Now that due is not required to be paid by me they have agreed to update the status to (Current Balance: Nil, Over Due: Nil, Status: Nil) and they are saying DPD 150 for every month reported earlier would not have an impact and they do not have a process now to update that. They have asked me to check with CIBIL post their update if DPD would be an issue and If CIBIL confirms they would look in to helping me further on this.

              My last payment reported is in 2006. I am not making any payment now and hence my last payment will remain as 2006.
              With outstanding now updated to 0 or Nil, the outstanding reported for the past three years would any how be illogical in the CIBIL report. ie last payment is 2006 and balance 0, and the DPD 0f 150 days for the recent three years would be meaning less?

              Would CIBIL help me correct the anomoly of illogical data provided bank updates by balance to 0 with no payment being made at this point by as they had earlier reported default for the payment that I do not owe and they have agreed to reverse.


            4. DPD’s show your history on how much months of money you didnt pay in a particular month, even if you repay everythign, that data is still valid . It will not be removed. It will go from the report only with each passing month.


            5. Sivakumar says:

              Hi Manish, yes your scenario is valid if I have paid any money now. Bank infact has reversed the balance as I am not required pay anything and the bank is removing the overdue and balance that it had reported for the past few years with out me paying a penny at this point?

            6. Ok then good to hear that !

            7. Tulasi says:

              Hi Sir,

              I have 2 CC i didnot pay from last 6 months,why because i don’t have any job now what can i do please suggest me.

            8. There is no option other than paying

            9. Sai Boyina says:

              Hello Manish,

              Can you please let me know, what does these below comments means by.

              CIBIL TRANSUNION SCORE(S): 789

              SCORING FACTORS:
              1. Low proportion of satisfactory trade.
              2. Credit cards balances are high in proportion to High credit Amount.

            10. sivakumar says:

              Hi Manish,

              CIBIL update is still happening as the update would take typically 30-45 days its only 10 days since SCB has sent me an NOC stating no dues. Hence my score is still only 569 with Written off status against my SCB card.

              Earlier my card application with another bank was rejected because of CIBIL, I forwarded all the communication emails that I recieved from SCB that they have reversed all the charges and NOC from SCB confirming that they would update the CIBIL status to NIL, the bank based on the above has issued me a Credit card now and using it wisely would help me further improve my credit score.

              This was an old application, if an unsecured credit like CC can be given to me I believe car loan may also be possible, which I wanted to desperately take before I got in to my credit rejection stories and CIBIL traps..But I am not applying now I would wait patiently for CIBIL and bank to reverse the Written off status and see how score moves in next few months, I went ahead with the credit card request as the bank had already made a CIBIL check and it was the bank that first brought to my notice the CIBIL issue.

            11. Yes , better wait .. just now you got a credit card and if you apply for car loan, it can show a very high credit hunger, better not mess up more on this 🙂 . Wait !

  236. kenneth says:

    Hi Manish, on a settled account of mine I had asked the bank to close it by me make a payment of the differential account. The Bank officer told me that on a settled account no additional money can be taken as per RBI policy. Is this true? Kindly guide me as to how can I get this settled word removed from my CIBIL report

    1. That looks weird to me , can you ask the other party to give you a detail on the circular or that rule by RBI ? That should not be governed by RBI actually .

  237. Vimal Sharma says:

    Hi Manish,
    I had purchased my CIR and transunion score from cibil. My cibil transunion score is 817/900.
    Due to global slowdown in 2008-09, I also gone in some economic crisis and lost the job. Due to that , I had not able to pay the credit card payments on time. I had 5-6 credit cards at that time , I had paid full outstanding including interest of most of them from my savings except Axis Bank credit Card as no money is left with me for payment at that time. Later, the amount increased to 73000/- above and i am receiving calls and threats for payments from bank agents. Finally , the axis bank agents taken Rs.22000/- chq. and given me settlement letter at end of 2009 and NOC and I had also received nil due statement from axis Bank.
    But In Credit Information Report of cibil , my axis credit card account is updated as settled by bank.
    One more citibank credit card account is showing as restructured loan as I had paid the amount of citibank credit card in 6 EMI cheques offered by their executive at that time to me to settle the dues.
    Kindly, help and guide me in this regard as what should be done to remove my name from cibil and my transunion score is 817 as per cibil report received by me.

    Vimal Sharma

    1. Vimal

      Settlements on loans (like in your case) is not a final solution , the remaining amount you dont pay is treated as Lost money and its written off , so they update it as SETTLEMENT , you can imagine how other banks will look at it as , Its negative .

      You will have to pay off the remaining amount now and only then it will be updated as a clear loan account. Also the restructured debt (convert to EMI) is also mentioned into Credit report.

      1. Vimal Sharma says:

        This axis credit card was settled in way back in nov 2009 as it is now possible to pay the remaining amount . In my cibil report my Current balance of this account is showing zero and also written off amount is not mentioned either for principal nor for the interest amount and also settlement amount is not written there, Only written off status is showing as settled.

        Second thing I want to know that Is credit managers view differently the defaults done on credit card account and defaults done on loan accounts eg. personal loan, HL ,Auto loan etc. Credit managers take settlements done on credit cards accounts lightly as compare to settlements or defaults done on loan accounts at the time of approving the loan as every second person has some issues in past from credit cards as recently my application for personal loan is approved for 2 Lacs by HDFC bank and same application for CC is rejected by another ICICI bank.

        Third thing I want to know that My cibil score is 817 currently that is good according to u. Then also settled status in my cibil report affects me negatively as I have successfully paid 1 auto loan of 5years tenure recently till july 2012 is the last month without any bounces and also paid two wheeler loan successfully without any bounces and also paying my HDFC credit card bills monthly in full without any delay from last 2 and a half years and also paid succesfully personal loans in past that are also mentioned in my cibil report.

        1. Vimal

          It might happen that credit card remaining dues are seen with less weitage, it may be because somewhere many banks know that people do not understand the credit card working and even if their intention is good, and they have the ability to pay , many do not pay simply because of some dispute or confusion . But if one defaults on a loan accounts, it is generally taken as if he genuinly defaulted. So yes , what you say makes sense.

          Regarding your score , 817 is really good. Most of the banks look at 800+ , but what your report contains also matters as much as your report

  238. infoseeker says:

    Hi Manish,

    First of all thanks a lot for many useful information. I would like to know my CIBIL Report in detail. So planning to buy my CIBIL Report Online. But I am scared to provide my details there. Will CIBIL share my records (like mailing address, mobile number, PAN card info, etc.) to other banks?

    1. Infoseeker

      No , it does not pass on that info to any bank . just go ahead , dont be fearful

  239. veu says:

    Hi Manish and all….This is so informative chain of communication. I appreciate.

    This is just to share my experience.

    In 2003, a sales guy approached me and told that I was being offered a PRIVILEGE CARD from CITIBANK. That time I did not know what the privilege card means and honestly I never used a Credit Card and not at all having plans to get one. He told that the card being offered was for entertainment. I can book movie tickets for discounted prices, do shopping in music stores for more discounted prices etc etc. After convincing, I submitted the documents and I received a Card within 15 days. After a long time, as I didn’t know how to use that card, I called up the City Bank. I was informed that the PRIVILEGE CARD what he offered was actually a Credit Card. Genuinely speaking I was not in need of a credit card then and did not know how to handle that. Slowly I started using the card and paying the bills. In 2005 I used the card for 13,000 and could not pay the bill as I lost my job.

    Here, let me say, I was a fraud and did not want to pay the bill. In this case, Bank would have called me to remind the outstanding bill and to know the problem why I did not pay in next month or a month after. That did not happen by email (my phone number was changed as I consider myself as fraud). Years passed on, I got a new job in 2008. Forgot all the past issues and started leading a new life. All of sudden I received a call(I dont know how they traced my number now…after 5 years) from Citi Bank Credit Recovery Dept. asking me to pay outstanding amount of 73,000 in 2010. The surprise here was, ideally speaking, the Bank should have known(I believe that nobody is innocent in the BANKING and INSURANCE Sectors) that I was defaulting after 3 to 4 months(i.e. in Nov or Dec 2005). But no warning of the same was there. They kept the issue till it reach 60,000 more what I used and started asking me to pay 73K. I told them that I can pay what I used. Then settlement done for 16,000. Paid 3,000 more than what I used. This is the end of one story of trying to default the credit card bill and settling the same.

    I started applying for the Credit Cards in 2008 & 2009. All were rejected. Did not know why. In 2010 I was offered Standard Chartered Credit Card which I am still using properly paying the amount far before due date. Depending the SC CC, I applied for SBI CC. SBI expects the person to hold at least one CC as primary requirement. By that time I was holding SC CC and based on that, I received the SBI CC. The same SBI people rejected me twice in 2008 & 09. I DID NOT KNOW ALL OF SUDDEN WHAT THEY FELT GOOD IN ME. If I was wrong in 2009, I will be wrong in 2010 also. In one year how they found me clear has to be pointed here. SBI CC is being handled well without any delays in payment.

    In 2011, I went for a Personal loan of 2,00,000 from HDFC and Home Loan of 13,00,000 from Corporation Bank. Now, in Jul 2012, my CIBIL Credit Score is 809. The CIBIL report shows all the rejected Credit card inquiries done from 2008, my home loan rejection from HDFC and Credit Card settlement (Post WO Settled).

    HDFC Home Loan rejection was not my mistake. I gave the blank cheque to builder and builder submitted the cheque to HDFC without intimating me the amount and time. That was bounced at very beginning of Loan Application.

    My own observation (I don’t know how far I am true) was that these financial institutes Approve or Reject the loans / Credit Cards based on their Company reputation(Infosys, TCS, Wipro etc), Nature of Job(IT/Eng./Construction etc.) and Salary(This is where they are interested). According to me, these 3 are playing main roles as the Credit Providing Companies are much wiser than other domains. They are well trained in giving false information to the public or delay the processes when we want something from them or accelerate the processes whenever they need something from us. This is commonly observed in Insurance Companies, Banks, Internet & Phone Service providers; all the warranty service providers (let me say the Water purifier AMC services, Repairs of goods under warranty etc).

    This is my experience as well as a general observation. I don’t have any questions. If somebody wants to correct me or comment on this, please welcome.

    1. Thanks for sharing your experience .. I must say you can look at this whole thing from various angles. HOwever this is what I beleive.

      When you take a debt, its your primary responsibility to pay it back , you can always say that why bank did not remind you , but will you depend on the bank to remind you and only then you will pay ? Else you will not . If bank never asks you about it, will you not pay it back ever , thinking “Good, they are not getting back” . Note that these are the incidents which banks are looking for, one incident like this gives them enough profit to take loss from 10 good credit card customers .

      Also bank will be at fault if they are doing anything against their terms and conditions . I dont think that bank mentions anywhere in their terms that its their responsibility to inform you each month about your debt, its your responsibility to pay it back on time . While its bank responsibility and as per RBI guideline to give you the account statements , if that has not happened then yes, bank is at fault .

  240. VIKAS says:

    Hi Manish,

    I had defaulted few payments of my Citibank Credit Card in 2008. Actually, the credit card was with one of my friends and I had changed my mobile numbers, so bank reminders never reached me.

    As soon as I came to know about the all the fuss, I had cleared ALL my dues immediately and closed the credit card.

    Since then, I am enjoying a good relationship with Citibank in terms of Credit Cards, Personal Loans, Suvidha Savings Accounts, e.t.c. It has been more than 4 years and I have made all payments of credit cards and personal loans on time. Not even a single bounce or late fee.

    How can I clear my name from the CIBIL now ? I do not have any acknowledgement receipts or NOC now.

    Please help me out. Many thanks in advance.


    1. Did you check your cibil report ? Your cibil report will exist anyways. just have a cibil report does not mean its bad. What is your score

  241. Dear Manish,
    I have setteled my 3cc account (ICICI, CITI BANK AND BARCLAYS BANK)
    in 2009 and my cibil report it shows post (wo)settled this account and my score is NH. now plz tell me how to remove my name from this cibil and icrease my score.
    Is it possible to pay balance full amount of my all 3 cc after 3 years .
    looking for ur response

    1. You can pay off full amount and your name will be removed !

  242. Karthik Pai says:

    Hi Manish,

    One of my friend applied for Credit Card in SBI Bank and he received a message as your application as Rejected because not met the required requirements so could you please let me know.
    What will be the requirments ?
    Will it be updated in Cibil ?
    Will it affect to get a loan in next 6months Span ?
    He doesnt have any loans or any credit cards before, this was is first step to the Financial environment. Please Advise.

    1. Karthik

      It will go only if he has any report at all , which I dont think he will have . the rejection can be due to his income or some thing like that.

      1. Karthik Pai says:


        We received a message from SBI stating “Dear Applicant. we regret your SBI card application is declined as we could not establish contact with you despite repeated attempts” what it means ? Does it say about income ?
        One of the guy who came to office, he said who and all having xxxxxx salary can apply for the credit card, we had eligible to apply for it, so we did. Now we received message like this. May i know that shall we apply for next credit card to another bank.

        1. You can apply , means you can fill the application , we will then look at it ! .. It does not mean that you will get the credit card for sure, our salary limit was just one level of clearance!

  243. Ashish says:

    My name is in Cibil , I settled 6 credit cards and 2 loans . i read ur article and got an understanding that I will not be eligible for a loan in future unless I PAY 100% outstanding . Now i want to go for a home loan , I want to know if I can get a home loan if my name appears in Cibil because house is an immovable asset which the bank can take back if dues are unpaid in future and I know i will be prompt enough to pay the EMI’s for the home loans , do u know anyone who can help .. is there ANY WAY I can get a home loan under these circumstances ?

    1. Unless you pay 100% outstanding, I dont think any bank will give you loan

  244. Rajan says:

    Hi , I have settled 3 personal loan accounts(Out of 5), 4CC(all settled) , 1 Auto Loan(Completed) before few years. Now my credit score is 540. Is there anyway to improve score without going to work on the settled accounts?

    I have planned to go with LIC policy , will this helps ?

    I don’t want to get any loan/card for atleast 1 year from here. Will the score improve automatically?

    1. There is no scope of improving it unless you pay all outstanding amount !

  245. T R Narayan says:

    Settlement Vs No Dues

    Article above explains that settlement is no better and I agree. Then what is the way to get the name removed from CIBIL?

    Lets take an example of credit card (mishandling) dues like thousand of people suffer. I missed to pay my CC fee in year 2005 with no outstanding then on my card. All the dues except for that years CC fee of Rs. 150 was paid in time always. I could not keep track of card statement and outstanding fee due to relocation from one city to another. Subsequently I continued to use other credit cards (number of them infact) and also availed number of loans such as education loan (2007), Car loan (2007), consumer durable loan (2011) and house loan (2009)- didn’t have any problem. I was prompt with all my card outstanding and loan EMI payments – never defaulted and never delayed any of the payment. Even my car and education loans were pre-paid.

    I was under the impression that my credit score is going to be great so applied for it in January 2012 and got shock of my like when I found it to be about 600. My 2005 credit card renewal fee came haunting me and amount (rs. 150) has now become Rs. 24000 and status was marked as written off.

    I had tough time finding credit card details and contact the card issuing bank. Started mailing them in May and finally I was told to contact some person a week back. When I called up that person in Bangalore – he seemed very excited and suggested that I should not go for settlement instead he will seek some approval from higher authorities towards my outstanding dues which has grown Rs. 29000 by now. He talked to his manager and called me back in less than 30 mins to inform that if I pay Rs. 15000, I’ll be issues a no dues and same will also be sent to CIBIL to clear off my credit score. I’m okay to pay off this and get my credit report clear but the response and behavior made me feel a bit suspicious – he was pressing me to let him know if I go ahead with this payment of Rs 15000 soon so he could start work on approval and I was told I should let him know immediately. When I asked him for a day to think – he seemed reluctant and wanted me to confirm it then and there as if there is no tomorrow.

    What should I do? I have no choice but to pay but doubt if it will help me clear off my cibil score? What precautions should I keep, shall I pay by electronic transfer or cheque?

    Please help suggest,
    T R Narayan

    1. First point is what ever you did with other credit cards have no relation or link with your credit card on which you didnt pay Rs 150 fee , Note that world is cruel and banks are here to make money , and if you break the rule , then they will use that legal rule against you. Its the moment which they search for and 100;s of people who did pay on time always, are on mercy of these situations when 1 person makes mistake .

      So you didnt pay , it was due from your side, it never got paid and then each month penalty and interest got added and it balloned to a big amount now.

      Now you need to pay it off .. and then the company will mark you “Clear” on cibil and give you a clean chit. It ultimately depends on company if they can allow you to pay less and clear off everyting (just make sure its not SETTLEMENT) . 2 things which you need to make sure while making that payment

      1. Issue a cheque on name of bank only , not an individual .
      2. Make sure you have a reciept of the payment
      3. take a NO Dues from bank and a letter saying , you have cleared everything and no dues are there.
      4. Check your cibil in next 60 days of making payment and make sure things are ok . You must have checked everything on cibil long back , but you were too overconfident on this 🙂
      5. I know from next time you will be super cautious for everything .


  246. Sankalp says:

    Hi Manish,
    i use to have two credit cards in year 2006,outstanding was close to 1 lac in both .i paid more than i spend those days i tried to do settlement with them but failed and finally i was almost absconding because my financial condition become very after 6 years i am earning good about 1 lac a month,recently i applied for car loan from HDFC,KOTAK MAHINDRA got rejected because they say my score is 530 which is very low and i have credit card out standing of 2.5lac so there is no chance of getting loan.i tried explaining them that my financial condition has been improved and 6 year back my salary was 20thousand ..and now i earn 1 lac a month and i have no loans now so can easy pay the amount i also said that i can pay full amount and buy car but i also want to build good credit ratings thats why i am looking for loan and i am asking 30%funding for a new car rest 70 percent i am paying down payments so my loan amount is very less if i dont pay on time you can cease my car.but i am failed to convince bank to get loan.

    i feel like hell.somebody suggested to settle the old credit card amount .some one said if you settle also your score will be same ..i really dont know what to do.???

    Yesterday sriram finance & tata finance person approached and said we will approve your loan but interest rate will be high compare to banks..

    My question is if i go with this finance company for loan ..will my cibil score improve ?? should i settle my old credit card out standings will that increase my score??

    Please suggest??

    1. Credexpert says:

      Dear Sankalp,

      We would suggest that you repay the complete outstanding amount against the credit card assuming your cash flows today allow you to do so. Making settlement at that point has impacted your score, and settlements are viewed negatively by the lending institutions.

      It is important to understand that although credit scores are one of the important tools utilised by lending institutions to evaluate the credit worthiness of an individual, they would also consider other factors basis their internal credit policies.

      Hence, it is always advisable to maintain disciplined credit behaviour.


  247. DeepakP says:

    I have big problem lik very big big i had CC From ICICI in 2009 i had settled becz i couldn’t pay 20,000 same time lost my job after 2 yr i paid settled amount 12.000 just for my knowledge i called ICICI bank asked about my CIbill status they said status is settled now you don’t get loan 99% ICICI bank saying that if you pay more 17,500 we can remove settled status what to do its good deal or not

    Q) What if i pay 17,000 what will happen?
    Q) What if they remove settled status?
    Q)what about scores ?
    Q) I know if they remove settled status what about history? (when i apply for loan other bank can see my payment history and scores too )

    please help reply ASAP Thanks

    1. DeepkP says:

      Still no reply

    2. 1. Yes you need to pay 100% dues , so remaining 17500 if you pay , your status of “Settled” will be removed, you should go for it

      2. If they removed Settled status , then if your score is also good , you will get the loans . else not , Note that even score matters here

      3. Credit history will matter , it will be there in your report . but note that only 36 months of credit history is there on report . What whatever happened in last 3 yrs will be there.

      1. DeepakP says:

        Thanks Mr.Chauhan i am glad that you reply i am getting bike loan form TVS now i mean now thats good news also going for FD credit Card (for 20,000) with ICICI bank after 6 month i will pay 17,500 same amount from FD so time being i will boost my scores with bike loan & FD Credit card

        answer 3 after 3 yr history will go or it will be there? also help me find out best FD Credit Card

        when i called ICICI Bank they also asked about FD Credit Card what do you thing should i go with ICICI Bank

        Please Reply Me ASAP

        1. I am not of your question , please rephrase it in simple language !

  248. sugha says:

    hi manish

    My husband had a personal loan. But he couldn’t repay few dues because of heavy loss in his business. He had 34000 actual amount + interest and he also had late payment charges of Rs 30000. Bank waive off some late payment charges and we paid totally 40000. is it possible for us to get any loan hereafter? Especially home loan.?

    1. In that case this is “SETTLEMENT” , this will be mostly reported to your CIBIL report and it can decrease the chances of getting any loan , not just home loan .

      1. sugha says:

        we spoke with citi bank folks and told about our previous loan and the settlement that we made with chola bank. As per their suggestion we submitted all the documents including settlement letter( which i have mentioned above). Once the loan application has been submitted we got an email which i have shown below:

        “We have received your Personal Loan application – Reference Number XXXXXX. We regret to inform you that we are currently unable to approve your application as it does not meet our internal credit acceptance parameters.

        However we have recommended it for an exception review by our credit committee for further loan processing. We shall get back to you with the final status of your Personal Loan application within 4 more working days.”

        Is there any chance to get the PL in the above case?

        1. Sugha

          It would be tough.

          With a bad credit score/report . I dont think there is enough chance, still in some conditions it might be given , depends on other things like your income and other EMI;s if any !

  249. Amit Kumar says:

    Dear Manish,

    Very informative post, including the comments section. Makes me ask a question as well if you could have any insights:
    Had a HDFC credit card issued in 2006 as a student but could not repay the dues so stopped paying. Let’s call this credit card D
    In 2009, opened a salaried HDFC bank account, and the bank issued me another card. using it since 2009, without one late payment or default. Credit limit increased to Rs 3 lakhs by bank. Let’s call this credit card A.
    I check my CIBIL report- Score is 799, and shows no default or anything. Able to get more credit cards- StanChart, AmEx with limits of rs 3.5 lakhs etc, and have been using them diligently, with no repayment issues or late payments.
    Unfortunately, past catches up on me 🙁 . Somehow, HDFC links card D to my bank account, and liens the amount available in the savings account in early August 2012.
    Now, worried about credit report so my questions are:
    1. Why has this not reflecting on my CIBIL report so far (Just wondering even though I’m better off for it)
    2. Can the bank report my credit card D to CIBIL now (It will be 7 years in January) since it is said that defaults remain on your credit history for 7 years.
    In case they do, then
    3. How does this impact my credit score of 799, given that I am using 4 other credit cards with full discipline no default or late payments.4.. My only worry is a Home loan otherwise I would not care two hoots. In case I continue to have a good score, and a default showing, how does that impact a secured loan like a Home loan. in other words, do banks only look at the score for Home loans, or even things like settlements/ defaults.
    4. What is HDFC Bank’s policy in case you have defaulted on one credit card. Can I continue to use card A or will it be blocked by the bank.

    Best solution for me. Option A- Wait for 2-3 months and get a CIBIL Report to see if they’ve reported card D againsts my name to CIBIL at this stage. If they haven’t, that’s good for me. In acse they have, I’ll probable close the whole amount on card D to maintain my credit history.

    I look forward to your thoughts.

    1. 1. Your bank has just not updated it , but the information is with them and it can be reported later , you never know

      2. Yes

      3. Your credit score will not be impacted much now due to this, but some affect will be there, your score gets impacted by your recent actions

      4. Generally if you default on one , they cancel and ban you for life , but you never know , better apply for a credit card with someone like citi bank too to be on safe side !

  250. rasheed says:

    Hi manish,

    After reading your article on this site, I purchased my credit report/Score from CIBIL.

    my “CIBIL TRANSUNION SCORE ” is 792.

    almost all the details are correct except 1 settlement that i have done on HDFC Credit card in 2007. Butin CIBIL credit report it shows the reported dated as “31-07-2012” please advice how to correct it.

    Below are the details from the Report:

    DATE OF LAST PAYMENT 12-03-2007
    HIGH CREDIT 13,981




    PAYMENT END DATE 01-08-2009
    PAYMENT START DATE 01-07-2012

    1. that depends on the bank when they report it to CIBIL , you cant have control on it ,still you can enquire with bank on why they reported it so late ?

  251. Devinder says:

    Dear Sir

    My name is Devinder Sharma and i am from Chandigarh. I have applied an education loan from oriental bank. They get the information from CIBIL that the amount of RS 566 of some housing loan is pending from my side and the report shows that i scored 650. But i want to tell you that i have not taken any kind of housing loan from any bank in my future and i do not even know how to take the loan from the bank.

    In the report CIBIL did not showed that from which bank this housing loan was. Please help me sir to sort it out this problem as soon as possible because i want the education loan for my Internation Studies.

    1. Devinder

      IN that case its a issue of wrong entry in your CIBIL report . It happens at times when some wrong person data comes into your report . Kindly open a dispute resolution with CIBIL –

  252. Sidharth says:

    @Manish thanks a lot for your response

    I had checked my CIBIL SCORE Now and it is 740 ( An improvement from 550 to 740 in 5-6 months ) .But still the account status is ” WRITTERN OFF” ( On a personal front no am going for an creditcard against FD and am expecting the score to increase in the next few months ).

    As suggested by you am now going to consumer forum and i will definitely post the outcome for the benefit of the community of investors here.

    1. Yes , share with them that you would be going to consumer court now on this !

  253. Prasad Mhadeo Kshirsagar says:

    Dear Sir,
    If any one settels loan with default and get NOC but his name still shows in Cbill that he couldent paid total amount. In such cases wheter it will affect on Govt Bank Exams like PO, Clerical…!
    I heard that bankers check Cbill report before accepting candidate in bank job or they cancell our canditature if our cbill status shows as we have deafulter.
    Plz tell me, i have facing confusion and cant getting real information.

    1. Yes this trend has started , a lot of people are facing issues in interview like this !

  254. Shalini says:

    They have also had three blank cheques signed by me & my pan card copy. So how else can this affect.

  255. Shalini says:


    I had taken a personal loan last year feb.. I lost job & i shifte to other place after marriage. I have had rumours that those executives are in search of me with localites… I was actually paying my loans clearly through ecs & paid six months due. The month which I lost my job I couldnt pay for more than a month. I had those executives go to my parents and say that I havent paid even a months loan… when contacted the executives they used harsh language & demanded full amount from me for which i was pissed off….. Now it is exact one year that I havent paid my loan. I am not in any need of any need in future… How long will it take for them to close my case…. If in case, am not going to make any settlement? After my case is closed will the executives still keep searching of me. As of now I don have any money to make the settlement… how far is it? What are the further actions they can take on me… Pls advice. I am financially poor & cant make even the partial settlement..

    1. Shalini

      Actually after some time , they will mark the loan as WRITTEN OFF and leave it , but that will be marked in CIBIL and for next 15-20 yrs you will face too much issues in getting a loan

      1. Shalini says:

        Hi Manish,

        Thank you so much for your reply. I may not need any more loans. So no problem though. But i am unable to bare the harrasment from those loan people. From where can I find whether my account is written off… Pls advice..

        1. Apply for your cibil report and look at it .

  256. Sidharth says:

    Hi Manish,
    I would also like to know what will be the CIBIL status of a consumer who has closed his entire dues ( total outstanding till date ) . This would be helpful as am planning for aproaching RBI ombudsman.

    1. Sidharth

      Its not like that ,. the score depends on your activity for last 24 months !

  257. Sidharth says:

    Hi Manish,
    I had taken a creditcard in 2006 and had a due of Rs 55,000 which was not paid till 2011 since i was in financial trouble. From 201o onwards my financial situations have stabilised and the first thing i wanted to do was to pay off my credit card debt ( this is the only card i had taken so far) . After researching your blog and few articles from moneycontrol I realised that clearing the entire outstanding is better way to close this and I have aproached the bank and closed the card by paying 1,17,000 ( this include 56,000 previous dues + interest/penalty till date). Now as suggested i had asked the bank for writtern assurance for changing CIBIL status and also a No Due Certificate . But the Bank was very vagoue on this and had given me a Nil Due Certificate and and my final credit card statement ( which mentions the amount closed as 117,000 and balance is Zero) . Now on the Nil Due certificate they had mentioned that “MY STATUS IN CIBIL WILL CONTINUE TO BE WHAT IT WAS “. Though i disputed the same with the bank saying that it was against the CODE of Conduct of the bank and the bank should correctly update the status on CIBIL with out any luck with the manager, Ombudsman(both Trivandrum & Central) . As a next step i took my CIBIL report ( My Cibil status was 550 at the time of settlement and after 3 months it was 610). Now in May ( 3 months after me closing my account) i have taken the CIBIL report which was showing 610 & status as “WRITTERN OFF” ). I have raised a dispute resolution( again based on your suggestion to a visitor on your blog) with CIBIL which said that the “they will update me within 30 days after contacting the financial instution ) and every 30 days i will send a mail to CIBIL and they will send me this standard “30 days funda” . ( By the way my payment 117000 is reflected in the cibil report i took in may though the status is WRITTERN OFF)

    My question to you is
    1. If a customer pays off his loan/credit card in full ( total outstanding till date), Can the bank mark this as “WRITTERN OFF” (When the bank has given a NIL DUE CERTIFICATE and the Final Credit card statement reflecting the amount paid)

    2) Can the Bank issue a letter to a customer saying that “You have paid your entire outstanding and there is no dues, but the CIBIL record will remain the same”?

    3) Since i have not recieved any response from Axis bank nodal officer & CIBIL dispute resolution how can i aproach RBI ( through an advocate or can i aproach directly)

    Many thanks for your proactive support for thousands of people in this forum. The Bank in question here is AXIS BANK . I feel really betrayed becuase after taking the pain to pay off entire outstanding instead of settling for Rs 30,000( the agents where forcing me for a settlement) my CIBIL status is still “WRITTERN OFF” . Your response will help me proceed further with legal options .

    1. 1. no , bank should be updating your status as “Closed after Written off” or “Closed later” something like , which should say that earliar there was issue, but later you have paid off .

      2. No

      3. You better go to consumer court now – refer this –

      Better meet a lawyer now and send the legal notice to them , you can do it for a small amount at

  258. Jony says:

    Hi Manish
    Really appreciating for your time and help.

    I paid 2 years my personal loan( HDFC – tenure 4 years ) and i want to pre close it now. Will this affect my CIBIL Score? Plz reply.. i’m in confusion, i tried google for this info. I didn’t get anywhere.


    1. Jony

      Understand that your score depends on your repayment history , if you continue paying your EMI, then you have some more history of payment , If you prepay your loan, then you dont have any chance to show your regular payment , while this is not a big thing , you can preclose your loan and close it , It will not negatively affect your score!


      1. Jony says:

        Thanks for the time Manish. Lot of info in comments also 🙂

        To my problem, if i close it now, i can save at least 70k, so i want to do that, here i’m not paying the full interest, but some of them. As per your advice i’m moving ahead to close my loan.

        Anyway, i really liked your blog. I will definitely show this to my friends.

        1. Yes .. both options have their pros and cons , but I think paying is now makes more sense , go ahead !

  259. Samir says:

    I had 4 credit cards and a loan out of which I could only pay 1 completely. Rest all of the credit cards and the loan were settled as I had been going through a rough time. Now, I want either a loan or a credit card so that I can start improving my credit score with regular and undefaulted repayments. Could anyone please advise how do I go about it?

    1. Samir

      You will find it tough to get any loan or credit card now, what you can do it get a secured credit card against a FD

  260. Tarun Dhawan says:

    Hi Manish,
    I think you have a great deal of knowledge on the CIBIL issues. In my case I have always paid my credit card bills and never been a defaulter except for 1 which was back in 2003 which was settled in 2004 and I even paid off each and every penny that I have borrowed from various the banks, but I don’t know why and how they have still screwed up my credit report. Its very hard to read this CIBIL report, I can recognise all the loans that I have taken and even cleared them but there are figures which I really cannot corelate.
    I am now planning to sue all those banks which have actually created this mess, as I am unable to go for a home loan due to this. Is there anything that you can guide me on these lines?
    Hope to hear back from you soon.


    1. Ok , I assume that by settlement, you mean you paid all the amount (not left even Rs 1) and closed the LOAN successfully , In that case there should not be any issue, I think the card company has not updated the data in correct manner. Now should really file a case against them and ask for compensation , pursue it , you should get back some compensation !

  261. sohail khan says:


    i am a defaulter in bank with credit card and loan ,can my mother apply for loan can she get it

    1. If she fullfills all the criteria , she will get it , it is not related to you atall , she must have proper income, and other documents for loan

  262. Ameet Srivastava says:

    Hi I had once a Issue with HSBC bank credit card. There was some 1000Rs due which I was not aware of and now after 5 yrs It had piled up to 35K. I had requested for CIBIL score n it is 791. Please suggest what should I do for the HSBC card. I had tried for settlement they say for 22K which is not feasible for me to pay.

    Please suggest

    1. Ameet

      Anything below 35000 would come into category of settlement , that would be reported to your CIBIL , right now i assure it would be marked as WRITTEN OFF.

  263. vinay says:

    Hi Manish,

    I have personel loan outstanding amount around 1,70,000 of 300000.
    I have some financial problem for pay my emi.

    I get call from “Impact Managment” debit organisation, it’s help for early free from debit through settlement, I want to know, it’s type organisation, definetly help me out of debt.They ask for some fee for that settlement.

    Are such type organisation can be helpful for settlement of personel loan.
    Please suggest me for that.


    1. Vinay

      there is no such thing , SETTLEMENT is done when a company is sure they cant take out the money out of you , they take some amount from you and tag you a “defaulter” in CIBIL , this is not a short cut 🙂