I earn Rs 1.5 lakh a month and have a Credit Information Bureau (India) Limited (Cibil) credit score of 600. Still, a public sector bank refused me a home loan. What could be the reasons and how do I go about negotiating the same?
Credit score is just one among the many criteria that banks consider before approving a loan application. However, banks are duty-bound to provide the reason for rejection of a loan application. You should ask the bank and then try to convince them about the apprehensions that they may have. You may also apply to other banks or housing finance companies.
I am 28 and planning to take a personal loan. I learn that maintaining a good credit history is important. What are the key elements of a good credit history report? Which of my financial activities will the credit bureau keep a check on?
The key elements for a good credit history report are - payment history such as late payments, write-offs, repossessions, settlements, credit utilisation in terms of credit used against the limit sanctioned (in credit cards etc.), mix of secured and unsecured loans and duration of your credit history. Credit bureaus capture all financial activities related to loans in the credit history including credit card payments. While insurance and telecom companies can access the data, they need not provide the customer data as of now, but may be mandated to do so in future.