A bounced cheque is one of the biggest obstacles that can affect your credit score when it refers to your CIBIL score. Even if it might, not every bounced cheque will have a bad effect on your credit score. So let’s see does cheque bounce affect CIBIL score in India.
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Will cheque bounce affect CIBIL score?
When there are insufficient funds in your bank account to cover a cheque withdrawal, your cheque will bounce. In certain circumstances, the bank will transfer the cheque to the withdrawer and give the reason as "insufficient funds." A bounced cheque could lower your CIBIL rating. This will almost likely cause you problems in the future if you apply for a loan or credit card. Because lenders are wary of giving money to someone who has already had financial difficulties.
It's important to keep in mind that your CIBIL score only factors in timely payments. And that the reality that your cheque bounced has a negligible impact on it. This generally means that your credit score won't be impacted if you pay your bills or instalments on time. Despite receiving a bounced cheque because your ability to repay will not be compromised. Additionally, timely payments shield you from additional penalties and charges. This is all about the cheque bounce CIBIL score.
What is the meaning of a bounced cheque?
A cheque bounce problem is essentially a word used to describe the improper execution of a disbursed cheque due to various factors. One of the main causes of a bounced cheque is a lack of funds (NSF) in the account of the sender. The cheques, often known as rubber cheques, are returned or dishonoured by the banks along with a fee. Furthermore, depositing bad cheques is against the law. Depending on how much money is involved and whether state borders are crossed, this offence may be made more serious. There are times when the issuer is unaware of the cause of why the bank has rejected the cheque.
Now you know does cheque bounce affect CIBIL score.
Read More: What happens if a cheque bounces? How much CIBIL score is required for home loan? How to improve CIBIL score immediately? How to check CIBIL score?Your Feedback Matters! How was this Answer?
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Does cheque bounce affect CIBIL score?
sahil
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2022-08-08T22:19:06+00:00 2022-08-08T22:19:07+00:00Comment
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