[Help] How to fix my fiance's CIBIL

[dvader]

Hi,

I recently got to know that my Fiance has an education loan. This loan has some missed payments as the payments were handled by her family for some time. I asked her to generate a report on One Score.

Timely payments: 88%
Accounts: 1
Age: 8 years
Score: 726

My question is what should be my strategy now?

Khurafati Question:
Also, what if she doesn't pay the loan and it goes NPA (since the damage is already done), will she save any money that way? what are the repercussions of such an action?

I am thinking of getting a HUF PAN and she can build credit on HUF PAN.

 

[theglobalinvestor]

Pay regularly to improve the score. Do not default on payments. That will only make things worse.

 

[unusedbrain1]

Hi,

I recently got to know that my Fiance has an education loan. This loan has some missed payments as the payments were handled by her family for some time. I asked her to generate a report on One Score.

Timely payments: 88%
Accounts: 1
Age: 8 years
Score: 726

My question is what should be my strategy now?

Khurafati Question:
Also, what if she doesn't pay the loan and it goes NPA (since the damage is already done), will she save any money that way? what are the repercussions of such an action?

I am thinking of getting a HUF PAN and she can build credit on HUF PAN.

Settle the loan .. pay the dues..
Maybe u won't get amex card as they require 100% .
but opening a fd based card from icici and account in it. Will make things normal in 5-6 month.
And to make that 88% to 95or 96 in 1-2 year .
Do a gold loan ,
After doing all payment ..in few months ur score will jump.
Do 2-4 Fd based cc .
As u will earn Fd rate & if immediate cash liquidity isn't your problem

 

[unusedbrain1]

Hi,

I recently got to know that my Fiance has an education loan. This loan has some missed payments as the payments were handled by her family for some time. I asked her to generate a report on One Score.

Timely payments: 88%
Accounts: 1
Age: 8 years
Score: 726

My question is what should be my strategy now?

Khurafati Question:
Also, what if she doesn't pay the loan and it goes NPA (since the damage is already done), will she save any money that way? what are the repercussions of such an action?

I am thinking of getting a HUF PAN and she can build credit on HUF PAN.

any NPa will lead to
Very bad loan terms untill pre approved
With npa .. every Pre approved will. Be declined generally

 

[dvader]

Thanks for the input. My intention is just to know if her CIBIL can be salvaged. She is paying the EMIs regularly for last 2 years.

What if I take a loan on my name and settle hers and she pays the second loan with better interest rate (My CIBIL is excellent). I have personal loan offers of 20-25L all the time

What do you guys suggest?

 

[unusedbrain1]

Thanks for the input. My intention is just to know if her CIBIL can be salvaged. She is paying the EMIs regularly for last 2 years.

What if I take a loan on my name and settle hers and she pays the second loan with better interest rate (My CIBIL is excellent). I have personal loan offers of 20-25L all the time

What do you guys suggest?

You said she is finance .. congratulations on that . see
Ofc we don't know the amount.
If she had paid late ! Its ok People make mistakes .
And you don't have to Close it asap keep doing repayment. As u are doing

if She had loan she defaulted and Loan has overdue and days are Growing . Then only pay the rest and Close & take NOC.

In both case in order to build a Or rebuild a score from 726..
Make a fd of 5-10 k in kotak ..
If u already have account in Icici , axis .
Make a fd and take Cc based on it .
Don't use it just keep idle

Overall ur % of payment on time will increase as 100% timley payment no will increase.

 

[dvader]

You said she is finance .. congratulations on that . see
Ofc we don't know the amount.
If she had paid late ! Its ok People make mistakes .
And you don't have to Close it asap keep doing repayment. As u are doing

if She had loan she defaulted and Loan has overdue and days are Growing . Then only pay the rest and Close & take NOC.

In both case in order to build a Or rebuild a score from 726..
Make a fd of 5-10 k in kotak ..
If u already have account in Icici , axis .
Make a fd and take Cc based on it .
Don't use it just keep idle

Overall ur % of payment on time will increase as 100% timley payment no will increase.

Thanks brother 🤟.

Also Just to clarify, the payments are just late, all EMIs are payed till date. No defaults or anything. Just want to do best for her that is all.

BtW, will add on card help her CIBIL?

 

[unusedbrain1]

Thanks brother 🤟.

Also Just to clarify, the payments are just late, all EMIs are payed till date. No defaults or anything. Just want to do best for her that is all.

BtW, will add on card help her CIBIL?

As i mentioned ..
If u want good result in 6 month .
do 2-3 Fd card ..on priority basis .
1 kotak ( Open 811 if u don't have account) do 5-10k fd for 1 year ( most probably after 1 year she will get card from kotak
2 - Axis (20k fd .get Flipkart axis card or even axis iocl for upi ) after a year they will offer a card too
3 - maybe icici if she has account .10k fd based .if u do 20k u will get coral . which has free railway lounge 😁.

If u have one loan 1 payment per month -100% weightage.
If i have 1 loan +3 fd cc ( every loan has 25% weightage.)

If u wann do less amount fd ( 2k idfc wow card ,2k onecard . 2k Paisabazar card ) 5k kotak card .

 

[PRIYANSHU_]

Khurafati Question:
Also, what if she doesn't pay the loan and it goes NPA (since the damage is already done), will she save any money that way? what are the repercussions of such an action?

my father has a home loan now only 5L is remains of it, we were thinking of foreclosing it, but Branch Manager said "Bank give discount only to those who default. yaha acche logo ko(one who pays on time ) ko koi discount Nahi milega " In a joking tone

 

[dvader]

As i mentioned ..
If u want good result in 6 month .
do 2-3 Fd card ..on priority basis .
1 kotak ( Open 811 if u don't have account) do 5-10k fd for 1 year ( most probably after 1 year she will get card from kotak
2 - Axis (20k fd .get Flipkart axis card or even axis iocl for upi ) after a year they will offer a card too
3 - maybe icici if she has account .10k fd based .if u do 20k u will get coral . which has free railway lounge 😁.

If u have one loan 1 payment per month -100% weightage.
If i have 1 loan +3 fd cc ( every loan has 25% weightage.)

If u wann do less amount fd ( 2k idfc wow card ,2k onecard . 2k Paisabazar card ) 5k kotak card .

Thanks brother...will follow this. She has an ICICI account will get the icici card first. Onecard with FD will be quick too. Will plan the rest from thereon.

 

[dvader]

my father has a home loan now only 5L is remains of it, we were thinking of foreclosing it, but Branch Manager said "Bank give discount only to those who default. yaha acche logo ko(one who pays on time ) ko koi discount Nahi milega " In a joking tone

Yeah absolutely correct. If her CIBIL was beyond repair I would have asked her to default and get some discount, that's why I started this thread. But looks like there is still hope.

 

[aceventura]

How long ago was the last late payment? Also how long is the remaining tenure on the loan?

 

[shrewdoc]

I am thinking of getting a HUF PAN and she can build credit on HUF PAN.

Please don't mix individual and HUF accounts. Keep them separate. Also, by default, karta would be you (male heir).

What if I take a loan on my name and settle hers and she pays the second loan with better interest rate

Would advise against taking anything under your name until you're officially married. Just my stance on this.

 

[dvader]

Please don't mix individual and HUF accounts. Keep them separate. Also, by default, karta would be you (male heir).

Would advise against taking anything under your name until you're officially married. Just my stance on this.

yeah, I understand.

1. Noted. Counting this out.
2. Yeah even she is against it. She wants to pay it all on her own. I was just thinking why pay extra interest that's all. I will refinance it after we tie our knots just to save on extra interest.

The point is my In-Laws are not financially well-informed. It wasn't that they couldn't pay the EMIs on occasion, it's just that they forgot and didn't care. SBI BM is my FIL's friend and he didn't even call these guys to inform them about the CIBIL hit.

 

[dvader]

How long ago was the last late payment? Also how long is the remaining tenure on the loan?

The last late payment was around 2 years back. The remaining tenure is 5-6 years.

 

[aceventura]

The last late payment was around 2 years back. The remaining tenure is 5-6 years.

Good then, CIBIL only shows the repayment history for the last 3 years. So, one more year of consistent payments would lead to a clean CIBIL report, perhaps even boosting the score from where it is. I would recommend against closing/transferring this loan atleast for another year till the CIBIL report is cleaned.

Edu loan being an unsecured loan (kind of similar to personal loan) could also have a bearing on the score. What is the utilization ratio shown in the report, if it is greater than 30%, then that would also lead to a low score.

Getting a secured/unsecured credit card could reduce the utilization ratio, if that is a problem.