Personal loan, Credit Cards and CIBIL!. Review on General Tips on Personal Loan

Last week I had very bitter experience with the HDFC bank. Being HDFC bank's customer for more than 1 year, I was told that I am eligible for to apply for Personal LOAN. They collected all the documents from me(Address proof, Bank Statement, Employment Proof, Photos, PAN Card, Passport, Salary Slips etc). They started physical verification for following documents which lasted for 1 week:

1. My Current Address.

   
   




2. Permanant Address where my parents live.

   
   




3. Verification of my mobile and office number.

   
   




4. Verification of my 2 references(One from Bangalore and one from Outside Bangalore).

   
   

5.Verification of my previous and current employers(They went to my all offices!).

1. Verification of my Bank Accounts.

   
   




2. Verification of my home landline number.

   
   

etc etc.

During this verification/processing period I use to get calls from the Bank all the time asking for some or other info.

I co-operated with them though and finally on last thursday the executive told me that they have completed 90% verification of documents and the result is positive. The only verification remained was of my Credit Card.

I use HSBC and Barclays credit cards for last 8 months and I am never defaulter. One time I paid late payment and couple of times I made part payments too. But I regularly use the card and I never got any complaints or warnings from the HSBC regardig my pattern of usage.

On last Friday HDFC executive called me and informed me that my LOAN Application has been rejected because I am defaulter in CBIL's(Credit Information Bureau(India) Limited) list!

I do not understand why I am in that CIBIL's list?

is making part payment or late payments makes you defaulter? If so then why the credit cards are for?

Why do I use credit card if I have the money all the time? Its quite natural that I can make part payment some time and also someone can pay late too. Anyways they collect the late payment charges and why should they label us as DEFAULTERS? Now I learnt that people whose name is on the defaulters list there are very less chances of getting loan from any of the Banks in India. Now I am worried a lot about this. I have decided to throw away the plastic cards and never beg the banks for LOAN for 22% interest!

My advise to you all:

1. Avoid using credit cards as much as possible.

   
   




2. Do not apply for LOAN and apply only if you are very much in need. Applying and getting rejected also lists us as risky customer.

   
   

Thanks!