Low Cibil score can hurt your new credit card application

I had a credit card of ICICI Bank three years back and was in the defaulter list for some Rs12,000. On January 1, 2009, I paid 26,000 plus amount covering all interests and dues pertaining to that card. I was told by the bank officials that the card has been permanently deactivated and everything is settled.

But now all of my credit card applications are being turned down. I don’t know what to do as Credit Information Bureau of India (Cibil) officials are asking me to contact bank officials and the bank guys are not responding.

I do not have any other proof of making that payment other than the screenshot of their website reflecting the payment made against the credit card on January 1, 2009. I have attached the whole scanned Cibil score report as I am not able to make head or tail of it. —Akhilesh Gopi

You need to first confirm whether you have been reported as defaulter by ICICI Bank or some other bank to Cibil. For this purpose you can get your report directly from Cibil. After getting the report if you find that ICICI Bank has not updated the record with Cibil, you need to write to the nodal officer of the bank clarifying the position along with the proof of having paid full dues, and request the bank to update the Cibil records under intimation to you. Once this is done, there should not be any problem unless your credit score is too low for banks to consider your application.

The writer is chief counsellor, Abhay credit counselling, a trust sponsored by Bank of India. For credit card and loan queries you can contact him at dnadebtqueries@gmail.com