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Ask Us: Improving CIBIL Score After Double Credit Card Default

Defaulting Is Not The End Of  The World

Hello readers! We got a very short email from reader Pradeep with a question about recovering his CIBIL score after a double default.


Dear CreditSmart,

I was defaulter 2 different banks ( HSBC & ICICI CREDIT CARDS) paid with all the interest, how to correct CIBIL?


Hello Pradeep!

Thanks for your email. Wonderful news that you have paid off your HSBC and ICICI cards with all the interest. Paying in full was the smartest thing you could have done in your journey to improve your CIBIL. The hard part is over, now it’s down to discipline. Getting an even higher CIBIL score from now will take time and good credit habits.

Do, Do Not

The first thing you should do is NOT apply for any new credit cards or loans. This will cause a hard credit inquiry and affect your score marginally. Besides, with 2 defaults recently, you will not likely be approved.

Secondly, if those credit card accounts you paid off are still open, then start using them for small purchases. Then be sure to pay in full each month. Like we said, if you currently do not have a credit card, you may not be approved since you just have gone through a double default. If that is the case for you, seek out a Secured Credit Card. This is a credit card backed with your own deposit.

The main idea here is, you need to show a steady flow of on time payments over the course of 6 months or a year. Only then will you begin to see a larger change in your CIBIL score. It can be hard coming back from a default, and the only true way to repair is good credit habits + time.

If you have a credit question for us, please send it to us here at Ask CreditSmart and we will do our best to get back to you soon!

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