CIBIL Defaulters List and Factors That Make Your Applications Rejected

1. CIBIL Defaulters List and Factors That Make Your Applications Rejected Borrowers that have CIBIL score 700 and higher will have higher possibility of getting their credit card or loan applications sanctioned by banks or other financial institutions. In fact, every bank and financial institution has the CIBIL score as an assessment tool to determine whether the applicants are worth considering or not. Practically, having 750 score, anyone that is not in CIBIL defaulters list will be approved when applying for some credits or loans, but in fact, there are some factors that make the applications rejected. Rejected with CIBIL Score 761, You May Have These Factors • Defaulter List It is very important to make sure that you are not included in CIBIL defaulters list. This is the list of some people that has some problems in paying their credits or loans. In simple words, they have some problems with their banks because of always being late in making payments or stopping making their payments. Luckily, this problem does not directly affect the CIBIL score and even you have CIBIL score 761 but your name is listed on the defaulter list, any banks and financial institutions will never approve your applications of loans and credit cards unless you remove your name from the list first. You better respond to how to remove name from CIBIL defaulter list first before applying for credit card or loan. • Credit Status Some problems may happen, including when you used to pay the bills on time, invest some money, pay taxes, and even have good CIBIL score and your loan application is rejected. Having 700 or more CIBIL score means having higher chance. You should remember that there is no certainty of being approved with that score. There are some reasons and the most make sense reason is if you are on the CIBIL defaulters list. If you have “Settled” or “Written Off” status, it seems to be impossible for you get the loan you apply. • DTI Ratio In addition, you should also consider the other assessment tool that banks and financial institutions use, DTI ratio. Debt to Income ratio will check your income that you use to pay your EMI. The higher the ratio is the worse. This means that you are already overleveraged and will not get the loan. Besides making sure that you are not in CIBIL defaulters list, you should also make sure that you have less than 50% DTI ratio. • Loan Availed and Defaulted Some banks and financial institutions will not give out loans to their customers that have availed several loans in the last year. Commonly, one who has availed a personal loan in the last 3 months will not be approved when applying for the other one. Then, another reason of rejecting the application is when the banks find bad history. If the history shows that you already made some late payments or the loan

2. was settled, the banks will simply reject your application. This bad habit may also make your included in the CIBIL defaulters list. • Tax Paying History In addition to the CIBIL personal loan defaulter list, the next problem is that you don’t have enough taxpaying history. This problem seems to be not as serious as being noted in CIBIL defaulters list, but unless you have already filled 2 year worth of income tax, you may fail to have your loan.