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Can Changing Your Mind On A Credit Card Hurt Your CIBIL?

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Cold Feet = Cold CIBIL Score?

We got an interesting question from reader Prashanth, take a look:

From: Prashanth 
Subject: SBI Credit Card – Application Cancellation

Message Body:
I had applied a Railway SBI Credit card and executive was supposed to come and collect the documents for processing the request. Infact i applied for credit card online and told the executive that am not interested anymore to apply for a credit card. He threatens me saying if i cancel now it will impact my CIBIL score and for next 6 months i cannot apply any loans. Please help me to understand if this info is true.

Demand Respect From Your Bank

Hi Prashanth! Thanks for your email. First of all, this representative’s behavior was out of line. Even if he was trying to communicate some sort of policy to you, it was unprofessional of him to threaten you just for changing your mind. My first thought would be to call or write a letter about your experience to the correct department at SBI. A bank is supposed to make you comfortable considering you are trusting them with your money – threats on my CIBIL score are something that would drive me away immediately and be looking for another bank.

Aside from that, lets look at your actual problem. Your card account was essentially not even open yet from what you describe. He wanted to see more documents, which means the account needed more information before being open. You told him you had changed your mind – and I assume you did not provide the documents. Common sense would then tell us the account was never opened, so his threats are likely empty threats.  An executive bully trying to put pressure on you to open the account. I’m sure every bank has their own policy regarding cancelling cards, and it’s certainly within SBI’s rights to prevent you from applying for a loan with them for a 6 month period.

Your CIBIL Should Be OK

However I would bet your CIBIL score was never effected by this. All evidence points to the account not being opened officially. Even if it was opened normally , and you decided to cancel it immediately before the card arrived or before a charge is made on the first billing cycle, it is completely within SBI’s power to simply not report it to CIBIL. If they do, it’s a spiteful action on their part. They should want to retain you as a customer, and perhaps help you find a card that better suits your needs. Ask if there is a grace period to cancel an account after opening, many companies in the world do this.

I would be interested to hear a follow up on this. If you got the card, then what did you do next? It might be an interesting case for our readers to hear about.


Best of Luck,

CreditSmart Staff CreditSmart

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