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  1. Raj
  2. Complaints, Objections
  3. Tuesday, December 11 2012
I was holding 5 credit card almost 5years back. Latter due to huge usage of it i end up in trouble and i closed 2 of my credit cards and latter on i made a settlement on other 3 cards as well with respect to the dicussion with the concern bank representative. I also got the valid letter and payment receipt as proof of payment made for the credit cards. Now when i apply for the credit card the application is getting rejeceted. I tried wit 2 of the banks but both the application got rejected. May i know what is the reason for it? Because when i closed the card they said after 1yr i would be eligible to apply for credit card again but its more than 3 years now and im still not able to get any card on my name. Im sure something is due to the CIBIL which is causing the issue. Can anybody help me how to sort this issue because i would need to apply for home loan now which i feel little serious due to this issue. Appreciate your help. Thanks. -- Raj
Gagan Modi Accepted Answer
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Yes, it seems that the credit card settlements has damaged your CIBIL Rating
Pl always note that - Settlement and closure in Banking Asset repayment terms has altogether different implications

Settlement implies under Banking that the individual is unable to honor the complete outstanding and is requesting for Bank to write off some loss and close the account on a part-payment basis. No Bank would like to increase its NPA - hence once the customer comes in sync to make even a partial payment - the bank official may offer a settlement. However, this will show in CIBIL as a 'settled off account' (account here could be credit card / loan)

Closure implies that the applicant honors the entire payment with all applicable charges and makes the complete payment to Bank. Though there could be delay or regular payments - but the applicant has made clear all the outstanding pertaining to his account and hence closed it.

Regarding how to Sort - It may take time to understand the :-
- Profile, Seasoning of payments
- CIBIL Report
- Settlement amount
- Further recommendations

Will suggest to join us as Registered Member by following the 'Register' Menu in the top menu tab - if suits


  1. more than a month ago
  2. Complaints, Objections
  3. # 1
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