Before applying for home loan, I just checked my credit score at CIBIL. Its showing score of 638.I suspect that this is due to a outstanding due from standard chartered back credit card which was issued in 2004 and last payment was made in 2005 March. I am not aware of any outstanding and not aware when or if bank tried to contact me. I continued to live at same address in Mumbai till 2006 July. Its inconceivable that I would have willfully not paid or bank tried to make any serious attempt to contact me.
I have written to bank about it and asked for details. Meanwhile, I am keen to get my score improved as its causing unnecessary anxiety. I need a solution asap so that I can close the purchase soonest possible. I would apply loan for not more than 2 times of my current yearly earnings.

From your email, it seems that you have been very conscientious about your finances and still face a problem. Issues with Standard Chartered Bank have to be handled to ensure that your credit score is improved. We are afraid that the issue, you pointed out is not as simple as you think it is.

There is a good possibility that the bank will keep adding interest to what is outstanding. it may have even sold your dues to a recovery company. There is no way to work around it and improve your Credit Score.

We request you to go and meet the bank and step up the effort to resolve the problem. Write to the consumer complaints cell of the bank. Escalate it quickly if necessary. Write to the government's online complaint cell. Find out the exact status at the earliest. Once you have done that, you can write to us again and come in for counselling if necessary.
Our Experts

Sucheta Dalal Trustee - Moneylife Foundation

Abhay Datar Abhay Datar is a consumer activist. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of Mumbai Grahak Panchayat (MGP) in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related with mobile banking frauds and mediclaim. He was a Member of the Managing Committee of MGP till March 2021.

Suresh Prabhu Mr Prabhu retired as Senior Vice President from HDFC Bank

R Bhuvaneswari After serving Bank of Baroda for almost 40 years, Ms Bhuvaneshwari retired as Chief Manager in 2013.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on finance, credit related issues

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