Credit card declined---On what CIBIL reasons??

nRiTeCh

nRiTeCh

Skilled
This is on behalf of my good friend.

Its the the first time he ever applied for a credit card that too for which he got an offer on phone from the bank itself (ICICI).
He immediately sent all documents via email.
He was miles above the criteria needed for the credit card--- min sal 15k, his sal 40k.
He has all documents right from adhar card, pan to passport, reside proof etc. all registered.

But today after 4 weeks sadly he got to know his application is declined due to some CIBIL records reason.

He is very shocked as till today he didnt had any loan, never ever made any cheque payments (so no cheque bounce), no credit card late fees as never ever owned any such cards etc etc.

So on what CIBIL grounds his application might have been denied????
 
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ask him to order his CIBIL report. most probably someone else had taken a bad loan on his name. or CIBIL wrongly linked his name to bad accounts. i randomly checked my CIBIL report and i had both of these issues, even though my score was quite high.
 
Criminal said:
ask him to order his CIBIL report. most probably someone else had taken a bad loan on his name. or CIBIL wrongly linked his name to bad accounts. i randomly checked my CIBIL report and i had both of these issues, even though my score was quite high.
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WTF? How can somebody take a loan on anothers name without his idea or consent? Then how to clear this shit??
 
Maybe he had some issues with the account balance(if he had an account in ICICI bank). They keep another system generated score based on the account balance one maintains. I also got my first credit card rejected giving the reason I keep low amounts in my account(though my AMB/AQB was maintained).
 
I'l also share my icici story. I have a car loan with them since last year, suddenly a month back got calls that you are shortlisted for some blah blah free credit card. i told her i dont need , she said its all free and all is ready for dispatch. i still said no. now after 2 weeks or so i got sms your credit card application is being processed etc. Last week got a call asking to verify im im me as i had so called applied for a CC. I told him i never applied so. now i got a sms few days back that my cc application has been rejected. These guys are spoiling my CIBIL without even me ever signing a form or calling them for a CC as i heard rejection of CC gets recorded. What should i do ? should i change my loan to some other bank ?
 
RakaKaKaka said:
These guys are spoiling my CIBIL without even me ever signing a form or calling them for a CC as i heard rejection of CC gets recorded. What should i do ?
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some points get deducted upon inquiring CIBIL but they are added back after a fixed time period. this is to discourage several simultaneous inquiries.

nRiTeCh said:
WTF? How can somebody take a loan on anothers name without his idea or consent?
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you think your identity details are secured with you? esp in a country like india?

in USA, you can opt for a paid service which notifies you when your credentials are being used. helps in avoiding identity theft early on.

unpaid dues also result in low scores but that's for not-properly-closed credit cards or bank accounts. not maintaining MAB cannot affect CIBIL score as banks apply instant penalty. also, low income or low balance cannot be a reason to reject a CC application. we have CCs with varied limits for a reason.

if your friend is acting as a guarantor for any loans then it'll affect his score if the borrower defaults on loan payment :p
 
Even after having SBI credit card for 8 years SBI rejected my card application when the limit on new card was 50 % lesser than old card. Axis & ICICI refused credit cards even after priority accounts & FDs.
 
Criminal said:
some points get deducted upon inquiring CIBIL but they are added back after a fixed time period. this is to discourage several simultaneous inquiries.


you think your identity details are secured with you? esp in a country like india?

in USA, you can opt for a paid service which notifies you when your credentials are being used. helps in avoiding identity theft early on.

unpaid dues also result in low scores but that's for not-properly-closed credit cards or bank accounts. not maintaining MAB cannot affect CIBIL score as banks apply instant penalty. also, low income or low balance cannot be a reason to reject a CC application. we have CCs with varied limits for a reason.

if your friend is acting as a guarantor for any loans then it'll affect his score if the borrower defaults on loan payment :p
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Now how can my friend inquire whether somebody borrowed loan on his behalf unknowingly??
Also if I got your documents and even if I apply for loan then by some means like sms/email or whatever I should at least be getting some intimation regarding such loan right???[DOUBLEPOST=1468911888][/DOUBLEPOST]
kuduku said:
What's the job profile of your friend? Job sector affects a lot for credit cards. CIBIL is just noise...... M
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He is into IT since past 5 years and on good package.
 
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logistopath said:
Visit www.cibil.com and get the report/score after paying a fee. The report will have a detailed listing of all the accounts and dues and other such stuff, along with the addresses submitted while taking those cards/loans.
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Ok. But what if something unusual and suspicious is found, then whom can we report and get the cibil cleared?
Do we need to file police complaint or have to fight with respective banks from whom such transactions have taken place??
 
Credit card applications can be rejected for a variety of reasons. The reason may or may not have anything to do with the CIBIL score. As far as credit history goes, In fact, you have a better chance at getting a credit card if you have a loan and no defaults on it than having no history at all. A person who has a loan and paying the EMI's on time has more credibility than somebody who is a compete fresh face with no history at all to prove his credibility.

Marketing agents, their quotas and commissions are the most important factors in this game. These people want the applications to go through them since they earn commissions. Once the quota for a duration is met, it doesn't make a lot of sense to get further applications processed. They would rather have the application rejected and get the customer apply again sometime later when they can count towards their quota.
 
As per ICICI they said he will receive an email and letter at his home regarding rejection of his application. So he is awaiting the same. It might take 15 days or so for the same.
 
nRiTeCh said:
WTF? How can somebody take a loan on anothers name without his idea or consent? Then how to clear this shit??
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To paraphase a story from couple of years ago. A namesake of a colleague took a loan while working in the Sales Dept. in Delhi. The application had office address in it. When the banks tried to collect on the debt this guy had left the company. Debt collectors reached the sales office, the receptionist there in his/her infinite wisdom ran an employee directory search. On finding a namesake in Hyderabad office, he/she shared the number with the collector. Now even when the collector was made aware that the Father's name or Permanent address dint match, they kept on persisting to get some money out of him.
Now in case they were able to find those details most probably the credit history would then reflect this loan in my colleague's name.

So normally the data they have could be wrong or mistaken for the namesakes. Here's a segment John Oliver did on Credit Reports:

I also struggled to get a card in my initial years in IT. At that time I was working with a bank and they had an internal employee credit card offer. Got one through that.

So first place to start for a new credit card should ideally be the bank holding the salary accounts. While most "offers" do provide cards, these are also target based calls. So the probability of being rejected once targets etc are might is pretty high.
I wouldn't hold my breath for the ICICI rejection letter. Most of the time it doesn't even arrive.
 
^^ It is an SBI agent who told me that agents get applications rejected once their targets for the period are met. This is to ensure customers for the future. My SBI Credit card was rejected the first time and issued after second time.


nRiTeCh said:
WTF? How can somebody take a loan on anothers name without his idea or consent? Then how to clear this shit??
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How to you think a poor UP farmer ended up being the guarantor for Vijay Mallya's Multi crore loans?

While I do not want to say your friend might have ended up in such a situation, these things do happen and not that uncommon.

The culprits are usually bank officials and particularly in nationalized banks and cooperative banks. They identify easy targets among their customers (farmers are a favorite choice) and use their documentation to issue loans to themselves, relatives or to businessmen like Mallya. There are numerous cases of abuse of this kind.
 
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If salaried, best option is the bank where the salary gets credited.

Credit scores are BS in India. Someone with highest possible score should get a loan at a lowest possible rate and, no that doesn't happen. The score is being used / abused to check whether to sanction loan in the first place.
 
You can also get a CC rejected due to your address. At times some localities which have high default, banks do not give a CC.

I just checked my CIBIL, there are like 3 cards which I never even knew existed (but closed) and 2 consumer loans. How the heck did the get attached to my PAN. How can I get these removed. They are almost 8 years old.
 
Same here, I had an ICICI card which I had closed 12yrs ago , it had transaction even after closing from my side. Same thing reflected in my Cibil history.

5 yrs back, My application for Citi credit card got rejected twice for the same reason.

Surprisingly, I got a new ICICI credit card without any hassles, ICICI also approved my Home loan same year. I got Amex card also without any issues.
Credit scores and its implementation are pure BS IMHO.
 
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