Loan cancellation

1) your credit score is determined by your income and your ability to pay off loans . you have not mentioned what is your income . if you are well qualified and doing well in life your mother credit score ought not to affect your ability ro obtain a credit  card

2)loan  settlement does affect your CIBIL score . in the present case you have not bounced any cheques nor settled your loans with your creditors .

3)as far as your mother is concerned her CIBIL score can improve if she pays off all her loan  outstandings . since banks have settled loans taken by your mother on account of her inability to pay off full amount it has been reflected in her low CIBIL score

Dear Arindam,

Financial advisors say that if you know your Cibil rating has gone down or there is an issue with your rating, then you can directly approach Cibil online.

One can fill up an online Credit Score Request Form and pay Rs 470 as fees to get your credit report.

With the credit score in hand one needs to get in touch with the bank or financial institution where you have a pending issue to resolve the same.

Even for credit enhancement, one can directly approach the bank and take credit card against a fixed deposit with the bank to move on a healthy credit enhancement path.

Ideally the system (banks and other credit providing firms) should create alerts for people. Banks should inform their customers that if they do not make their payments on time, their rating will dip by this many points. So we need more awareness on what helps in building good credit and what actions can lead to its deterioration.

However, in the absence of awareness and knowledge on what can hit your credit, Credit Sudhaar may come as a handy advisor to you. At an organisation level, they seem to be the only one offering a credit health check-up service as of now.

The services of Credit Sudhaar have become popular. They already have 3,500 clients in just one year of operation. For the credit restoration programme, the charge is Rs 11,000 per annum and for the full service of credit restoration, credit enhancement and credit protection, the firm charges an annual fee of Rs 16,000.

So you can go to creditsudhaar.com and solve your aforesaid problems in a peaceful and professional manner.

 Dear Ajay Sethi Sir and Amar Ranu Sir,

My net  income is about 40 K per month and the most important thing is I have never taken a loan or a credit card before, I use only Debit cards. I have seen my CIBIL score which is -1 which if I am not wrong, indicates that I have never taken any loans and there are no loans in relation with me. This is the 1st time that I have ever applied for a loan. But when I have tried for a personal loan and home loan, the bank official said that as my mother was a defaulter as there were some cheque bounces and settlement of  4 personal loans on my mothers name and as the residential address is in their defaulters list, , hence I will not be able to get the loans of any sorts from any banks in India. 

I have 2 main questions:

a) Does my mother's poor credit record affect my credit record and my elligibility to get a loan when I am no where at fault and will her past records affect my CIBIL score as well  ??

b) As the bank official said, is it really a fact that I will never get any kind of loans from banks in India beacuse of the above mentioned situation??

In spite being clearly told that solution to your problems lies with a professional body like Credit Sudhaar,you are repeating the same quaries in a wrong forum,which deals with legalities and nothing else.

you are requested to go to Credit Sudhaar website and hammer these quaries there and you may have your solutions.