Understanding CIBIL Score and Methodology

[karnik_sachin@rediffmail.]

Dear Cardbhai

I had recently acquired my CIBIL report from CIBIL itself, while going through the same i noticed that :-

I had closed an home loan in year 2007 for INR 640,000/- which was taken from IDBI Home Finance Limited. The same was updated with closing date but the current balance showed as outstanding as INR 613000/-

I wrote to IDBI Home Finance Limited in this regards for its correction:-

My question is :-

How are credit score calculated? Should it not be transparent and consumer be aware of the same.

Will this scenario affect my credit score? Since my liability has not come down even though i have paid the amount way back in 2007. The total current balance add's up this amount also.

I feel it will, if it does then the effect has to be retrospective and update the score accordingly as because of mistake of either bank or CIBIL, customer like us are affected and our credit history is spoiled.

Is there any forum in which this matter can be taken for fair judgement.

Regards
Sachin karnik

[cardbhai]

1. Calculation of Credit Score is Confidential Business Practice claims the Credit Rating companies. Once many Indians will be aware of this, maybe then the Government will ask to open the Algorithm.

2. Yes, I think it has to an extent affected your score. Get it rectified at IDBI Bank and you should be fine.

Best.