CIBIL - Credit Card Vs Loan Defaulters
Credit card payment defaulters and Loan EMI payment defaulters. Both are listed in CIBIL. There should be difference between credit card defaulter and Loan EMI defaulters. Both should not be treated as same.
If a person defaulted in his Credit Card payment, he should not be denied for getting loan. If he applied for another credit card, his application can be rejected since he already defaulted a credit card. But what is happening is investigators or loan issuing authorities check CIBIL status irrespective of whether Credit Card default or loan default.
Why a loan is denied for a person who is listed in CIBIL for defaulting in Credit card payments. If he has not defaulted previous loan payments, he could be given new loans irrespective of defaulting in credit cards.
Assume that, a person lost his credit card. Somebody else who took his credit card and used available money in the card. How a person will repay the money which is spent by somebody else.
Assume that, Credit card marketing executive convince a person as no precessing and annual fee for getting the XYZ card. After getting the card the person receives bill with processing fee and annual fee. He is cheated by the marketing executive who is authorised to promote the XYZ credit card. The XYZ credit card company should take actions to penalise the marketing executive who gave false information instead of giving perks to him. How a credit card holder will pay for precessing fee and annual fee if he is promised as the credit card is absolutely free.
In credit card defaulting, there are valid reason from customer side. But CIBIL without analyzing who has justice, penalised the credit card holder by listing in Defaulters list.
Before listing credit card defaulter proper scrutinising should be done, which is not done practically.
Few credit card defaulters are innocent and cheated by either directly by credit card companies or indirectly by its associates.
Creditors and Banks before denying the loan based on CIBIL status, should analyse whether it is credit card defaulting or loan defaulting. If credit card defaulting, it might not be considered it as a negative factor to issue loans.
CIBIL also clearly differentiate whether it is Credit card defaulting or Loan EMI defaulting. So Credit card defaulting may not be a hindrance to avail bank loans.