u/auto-palta-de

I want to share my experience and also ask a question. Question is, how long are late payments visible on CIBIL report and even if they are, do they have any impact after 3 years.

My experience about how missed ECS and my carelessness caused my CIBIL to drop from 810 to 740 and how I built it back to 801.

Incident:

I had CIBIL of 810 before 2023. Then I got a car loan and after few months, I switched companies and the new company mandated having a salary account in a specific bank. As old bank account was just for salary, I thought I would close it later.

So I went it bank (Bank of India) and told them to cancel my from old bank ECS and start new bank ECS. I had finds in both my banks.

These highly efficient people stopped ECS from Bank 1, but did not start ECS from Bank 2. Hence my 4 EMIs got missed. My fault as well as I should have checked/validated, but the bank didn't even remind me that EMIs are bounced, which other banks are so fast to do.

Came to know after 4 months when they realized. I check my CIBIL and it dropped to 740 and my home loan interest increase.

I went to BOI asking why was ECS not started. Surprisingly the person who took my document and form, was transferred and other parson there refused to take any accountibility. The branch manager told me that they would mail CIBIL and accept their fault as well, but he said that CIBIL would probably reject it as ideally I should have maintained the EMI amounts in my BOI saving account (which I didn't believe).

Long story short, nothing happened and I immediately closed my car loan by paying in full.

3 years later, my CIBIL finally crosses 800. However I still see late payment of 2023 on my report.

What I did to improve.

My older CC had limit is 1.6L/month. I took another card with 2.5L limit and started preparing the amounts before bill generation. So my credit utilisation is less than 5%. Also closed the older car loan by preparing (not sure if they helped).