How Late payment in CIBIL can affect Credit Card approval

[Credit Karma]

I have a 1 day late payment on my credit report in Feb 2022. It was wrongly marked by PNB. I am trying to get it removed but it is not yet removed.
I have on-time payment ratio of 38/39 with 4.5+ years of credit history.

But I'm thinking that what happens if they don't remove it?
Will it affect my chances of getting approved for CC's?
Will I get pre-approved offers?
What impact will it have on future if it is not removed?

 

[Credit Karma]

@StanRoute66 @007 @Batman @Batmanbaba @TechnoFino @Anirban
@dav33
@Dr. Drake
Please clear this doubt if you have some info regarding this...

 

[Batmanbaba]

@StanRoute66 @007 @Batman @Batmanbaba @TechnoFino @Anirban
Please clear this doubt if you have some info regarding this...

I had late payment from flipkart paylater due to the fact that flipkart blocked my account.... It still shows after 4 years

 

[Credit Karma]

I had late payment from flipkart paylater due to the fact that flipkart blocked my account.... It still shows after 4 years

Had your late payments ever caused any issue for getting a credit card approved?

 

[Digvijay]

I have a 1 day late payment on my credit report in Feb 2022. It was wrongly marked by PNB. I am trying to get it removed but it is not yet removed.
I have on-time payment ratio of 38/39 with 4.5+ years of credit history.

But I'm thinking that what happens if they don't remove it?
Will it affect my chances of getting approved for CC's?
Will I get pre-approved offers?
What impact will it have on future if it is not removed?

If you make a late payment, it stays on your credit report for a full seven years unless it’s an error. As time goes off, it will affect less on credit score. People have multiple credit scores, and everyone’s situation is different. So it’s impossible to say exactly how a late payment will affect your credit. But if the account with late payment is old, you can write to that lender and request them to remove those entries as goodwill. Not sure if they will remove all of it but you can try. Hardship reasons can help, and you get even better results if you ask nicely.

 

[Batmanbaba]

Had your late payments ever caused any issue for getting a credit card approved?

I have two credit cards.. One from bob and udfc... Rest all rejected till date so cant say exactly

 

[Dr. Drake]

@StanRoute66 @007 @Batman @Batmanbaba @TechnoFino @Anirban
@dav33
@Dr. Drake
Please clear this doubt if you have some info regarding this...

I took about 7-8 credit cards and 2 loans (nothing in 2019) after I had 2 late payments from SBI in 2019, therefore I don't think it had much of an impact on me. My cibil continues to be in the 750–790 range.

 

[Credit Karma]

I took about 7-8 credit cards and 2 loans (nothing in 2019) after I had 2 late payments from SBI in 2019, therefore I don't think it had much of an impact on me. My cibil continues to be in the 750–790 range.

That's great!

My CIBIL tanked to 670 from 770 when the late payment first reported. And now it stands at 728.

Hope it will recover further.

But does banks considers this heavily for considering credit card applications?

 

[Batmanbaba]

That's great!

My CIBIL tanked to 670 from 770 when the late payment first reported. And now it stands at 728.

Hope it will recover further.

But does banks considers this heavily for considering credit card applications?

Nobody knows as banks don't specify exact reason for decline.... Only answer is declined due to internal policy....

 

[Credit Karma]

Nobody knows as banks don't specify exact reason for decline.... Only answer is declined due to internal policy....

Yes, alternatively there must be some metrix that weighs all late payments.

Afterall not all late payments are equal, right?

A 1 day late payment should have the least impact on bank's decision than the 30+ days late payments typically has.

Isn't it right? Atleast that's how credit score works!

 

[gurubhai]

I have a 1 day late payment on my credit report in Feb 2022. It was wrongly marked by PNB. I am trying to get it removed but it is not yet removed.
I have on-time payment ratio of 38/39 with 4.5+ years of credit history.

But I'm thinking that what happens if they don't remove it?
Will it affect my chances of getting approved for CC's?
Will I get pre-approved offers?
What impact will it have on future if it is not removed?

PNB is careless. Same happened with someone I know

 

[Batman]

@StanRoute66 @007 @Batman @Batmanbaba @TechnoFino @Anirban
@dav33
@Dr. Drake
Please clear this doubt if you have some info regarding this...

I have one late payment. It affected my score considerably.
But it is still good enough and I don't get problems while applying for cards.

 

[dav33]

Yes, alternatively there must be some metrix that weighs all late payments.

Afterall not all late payments are equal, right?

A 1 day late payment should have the least impact on bank's decision than the 30+ days late payments typically has.

Isn't it right? Atleast that's how credit score works!

What is the banks latest reply on correcting this issue. Yes one day late payment has the least impact. 90+ days are more severe and can be classified as NPA . Each bank has their own criteria to asses the cibil report which we dont know. Most will consider 1 day late payment. For loan it can also help if all payments are made and the loan is closed from which point on they will stop reporting the account.

 

[Credit Karma]

What is the banks latest reply on correcting this issue. Yes one day late payment has the least impact. 90+ days are more severe and can be classified as NPA . Each bank has their own criteria to asses the cibil report which we dont know. Most will consider 1 day late payment. For loan it can also help if all payments are made and the loan is closed from which point on they will stop reporting the account.

It is in my education loan account. I had to start the payments from Jan 22, so I did. But due to non - recapitalisation of interest accrued on loan, it was showing as overdue.
After countless emails, bank removed all negative entries but one. Now when I email them the branch manager assures me that he is looking into the matter and asks me to look the other way as if this issue escalates then he will be answerable to why he did not re capitalise the interest.

I have been going after it for 4+ months now. Despite the fact I made all payments on time PNB is not removing my incorrect payment. And this speaks loads about our PSB's workings

 

[Credit Karma]

You already aware of this, just in case you missed: https://www.bajajfinserv.in/insights/how-is-your-cibil-score-calculated

Below points are based on experience with friends, never had personal experience nor I do not know how banks use Cibil report.

Since a late payment is marked in your report, first try to get it removed and if not removed

- Make sure your score stays up above 750 before applying new loan/credit.
- Keep utilization of credit to 10-20% (not general 30%).
- You already have 4+ years of Cibil history, that is good and works better with new applications.
- Overtime ( 1 or 2 years ) things will be normal.

Personal loans - no problem as long as you agreed that interest rate, since anyway they do analysis and approve based on bank statement, existing EMIs, salary along with Cibil report (a human involved here).

Credit Cards - keep above points in check, because these are the ones get approved/rejected by computer itself. Few months, if possible try to apply offline for better support or wait for 6 months to settle down your score and try online but be cautious.

Hypothetically, if I have to give u a credit card at this time (720 - 1 default payment) I won't approve. At 750 I might approve with very less limit. Personal loan at this time will increase interest rate to 1%+ higher, at 750 I still take chances because you're always liability and to my advantage you have a missed payment history.

Thanks for your advice.

As you said I'm trading very cautiously these days. I had a pre approved offer from Kotak as well as ICICI in March 22.
My CIBIL at that time tanked to below 650 from high of 770.

Despite bank CS nagging me to give a CC I did not apply since it had been a month only after that late payment and even if had I applied they would have rejected it anyways. (No pre approved offer application get approved if there is a derogatory mark in credit report).

Now that 5+ months has passed to that event and my CIBIL is already 728, I'm waiting for it to go atleast 760+, and then only I will go for new CC applications.

 

[dav33]

Thanks for your advice.

As you said I'm trading very cautiously these days. I had a pre approved offer from Kotak as well as ICICI in March 22.
My CIBIL at that time tanked to below 650 from high of 770.

Despite bank CS nagging me to give a CC I did not apply since it had been a month only after that late payment and even if had I applied they would have rejected it anyways. (No pre approved offer application get approved if there is a derogatory mark in credit report).

Now that 5+ months has passed to that event and my CIBIL is already 728, I'm waiting for it to go atleast 760+, and then only I will go for new CC applications.

pre approved offers donot enquire the cibil report. did u get rejection for preapproved application

 

[Credit Karma]

pre approved offers donot enquire the cibil report. did u get rejection for preapproved application

I did not apply. I had read on this forum as well as watched on the YouTube that pre approved offer doesn't always mean a guaranteed approval.

I also confirmed this with bank Customer support. They also reiterated the same thing.

So i did not go ahead with application.

 

[dav33]

I did not apply. I had read on this forum as well as watched on the YouTube that pre approved offer doesn't always mean a guaranteed approval.

I also confirmed this with bank Customer support. They also reiterated the same thing.

So i did not go ahead with application.

yes there are many types of pre- approved offers.

pre approved offers from third party websites like paisabazaar and bankbazaar can ask details related to income, address, etc which bank will verify. if not satisfied will lead to rejection. but it is most likely not due to cibil as its not enquired.

preapproved offers directly from bank which shows in netbanking / app is instantly approved. it is without cibil check and minimal details and that too without verification.

recently got idfc wealth, legend like this. other direct bank offers are also similar.

 

[Credit Karma]

yes there are many types of pre- approved offers.

pre approved offers from third party websites like paisabazaar and bankbazaar can ask details related to income, address, etc which bank will verify. if not satisfied will lead to rejection. but it is most likely not due to cibil as its not enquired.

preapproved offers directly from bank which shows in netbanking / app is instantly approved. it is without cibil check and minimal details and that too without verification.

recently got idfc wealth, legend like this. other direct bank offers are also similar.

It was a offer showing in netbanking as well as in bank's mobile app.

I explained my situation to the Kotak customer Care and explicitly asked them that "Does this offer means a guaranteed approval"

And to this they said, NO with a thin explaination like "we will not get it rejected", "just apply and leave to us" but they were just beating around the bush.

And I have seen on this forum that when banks reject credit card application they don't provide specific reasons.!

 

[dav33]

It was a offer showing in netbanking as well as in bank's mobile app.

I explained my situation to the Kotak customer Care and explicitly asked them that "Does this offer means a guaranteed approval"

And to this they said, NO with a thin explaination like "we will not get it rejected", "just apply and leave to us" but they were just beating around the bush.

And I have seen on this forum that when banks reject credit card application they don't provide specific reasons.

it would have gotten approved