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Harsh Roongta: Credit card default is costly

Borrowers with low credit scores should take secured loans and build up their credit scores faster

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<b> Photo: Shutterstock <b>

Harsh Roongta
A common query: I recently settled my credit card account for Rs 1.2 lakh including overdue interest and penalties. The original outstanding? Rs 50,000. And even after paying more-than-double the outstanding amount to settle credit card default, I was denied a home loan. Can I complain somewhere?

While this kind of query is common in social media or channels, digging a little more is likely to throw up a similar trend – a person who overspent; found it difficult to repay; relied on the slow and creaking legal system to default; rushed to settle with the bank when he