Via E-mail
Hi Card Bhai,
I had some 3,500 due on my HSBC credit card. I changed my company and came to pune and immediately went abroad. Thats why I couldn't follow up with the payment of my card. Now when I came back this January almost 10 months to 1 year after the payment due was 3,500 and I got a call from a collection agency that the current due was 10,700. We settled on Rs. 5400. I paid that amount but still i haven't got any settlement letter copy from these guys. When I called the bank they told that the account was closed in june itself and now i have to contact the collection agency for follow up. I would appreciate if you can clarify following thing
1) When does a customers name goes in CIBIL.
2) In my scenario how will be my credit score?
3) How would you suggest me to improve my credit score since I am planning to get a home loan this year.
Please reply, I am in deep frustration regarding this issue.
Thanks,
1. As soon as you default your name enter CIBIL [ 30 days of default] stating that you have missed payment.
2. Credit Score will be BAD.
3. Since you have paid-off, get the banking ombudsman involved and GET LETTER Of FINAL Settlement. Later, request a credit report from CIBIL - Details on getting report here -
http://www.cardbhai.com/2009/08/cibil-credit-report-on-demand-available.html If HSBC A/C in the credit is still being reported as default, then get banking authorities involved by taking FINAL SETTLEMENT letter and ask them to report to CIBIL that it is CLOSED. This will stop your credit from damaging further.
Improving will involve getting new credit line, which you will, if your balance sheet and tax records are good. Payment history on it will improve your score again.
