• Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.

Credit score dropped by 50 points after closing home loan.

  • Thread starter Thread starter zaid_2913
  • Start date Start date
  • Replies Replies 34
  • Views Views 4K

zaid_2913

TF Premier
Contributor
I recently closed my home loan and noticed a sudden drop in my credit score from 802 to 754. Despite having a credit history of almost 6 years with no late payments and a credit utilization of -1%, the closure of my home loan seems to have impacted my score. I am concerned about this drop of 50 points and would like to know how long it will take for my score to increase.
 

Attachments

  • IMG_5749.jpeg
    IMG_5749.jpeg
    120.5 KB · Views: 125
  • IMG_5746.jpeg
    IMG_5746.jpeg
    107.9 KB · Views: 125
  • IMG_5745.jpeg
    IMG_5745.jpeg
    129.3 KB · Views: 125
Solution
Now only have credit cards, no secured loans. 2 years ago gold loan closed and home loan closed a month back.Have multiple cards from Hsbc, scb, amex, axis, hdfc, icici etc. All of them have more than 5 lakhs limit. Oldest card age is 6 years.

This is my cibil profile. 🥱
okay good.. your score will recover pretty quickly.. my guess would be in about 3 months.
As you are maintaing -ve utilization.. and have more than 5 years of history in the open accounts, you are fine.

Make sure each account is in -ve / 0 balance not just overall utilisation is -ve... This is very key point here..

Its just an after shock event after you closed your home loan.. You will be fine in 3 months time and back to near 800 again pretty soon.
Good luck
I recently closed my home loan and noticed a sudden drop in my credit score from 802 to 754. Despite having a credit history of almost 6 years with no late payments and a credit utilization of -1%, the closure of my home loan seems to have impacted my score. I am concerned about this drop of 50 points and would like to know how long it will take for my score to increase.
It will jump fast .. back up
 
I recently closed my home loan and noticed a sudden drop in my credit score from 802 to 754. Despite having a credit history of almost 6 years with no late payments and a credit utilization of -1%, the closure of my home loan seems to have impacted my score. I am concerned about this drop of 50 points and would like to know how long it will take for my score to increase.
This is because you have closed a Secure Loan which created an imbalance between Secure and Unsecure Loans.
 
My guess is probably a secured loan was closed/matured and hence the drop. Anytime a loan is closed, there will be noticeable variations. Also you may not have any other secured loans which knocked off the balance between secure and unsecure loans in your account.
 
I recently closed my home loan and noticed a sudden drop in my credit score from 802 to 754. Despite having a credit history of almost 6 years with no late payments and a credit utilization of -1%, the closure of my home loan seems to have impacted my score. I am concerned about this drop of 50 points and would like to know how long it will take for my score to increase.
What is your current open portfolio in your CIBIL?
A bit more details about different credti products their age , limits etc
 
What is your current open portfolio in your CIBIL?
A bit more details about different credti products their age , limits etc
Now only have credit cards, no secured loans. 2 years ago gold loan closed and home loan closed a month back.Have multiple cards from Hsbc, scb, amex, axis, hdfc, icici etc. All of them have more than 5 lakhs limit. Oldest card age is 6 years.

This is my cibil profile. 🥱
 
  • Like
Reactions: SSV
My guess is probably a secured loan was closed/matured and hence the drop. Anytime a loan is closed, there will be noticeable variations. Also you may not have any other secured loans which knocked off the balance between secure and unsecure loans in your account.
Right. But most of the people never had secured loan but still their score is always good.
 
  • Like
Reactions: SSV
Now only have credit cards, no secured loans. 2 years ago gold loan closed and home loan closed a month back.Have multiple cards from Hsbc, scb, amex, axis, hdfc, icici etc. All of them have more than 5 lakhs limit. Oldest card age is 6 years.

This is my cibil profile. 🥱
okay good.. your score will recover pretty quickly.. my guess would be in about 3 months.
As you are maintaing -ve utilization.. and have more than 5 years of history in the open accounts, you are fine.

Make sure each account is in -ve / 0 balance not just overall utilisation is -ve... This is very key point here..

Its just an after shock event after you closed your home loan.. You will be fine in 3 months time and back to near 800 again pretty soon.
Good luck
 
Solution
okay good.. your score will recover pretty quickly.. my guess would be in about 3 months.
As you are maintaing -ve utilization.. and have more than 5 years of history in the open accounts, you are fine.

Make sure each account is in -ve / 0 balance not just overall utilisation is -ve... This is very key point here..

Its just an after shock event after you closed your home loan.. You will be fine in 3 months time and back to near 800 again pretty soon.
Good luck
Thanks for detailed info, apart from credit cards i have slice and uni as consumer loan, lazy pay as personal loan and paytm postpaid as other in my profile.
 
  • Like
Reactions: SSV
Thanks for detailed info, apart from credit cards i have slice and uni as consumer loan, lazy pay as personal loan and paytm postpaid as other in my profile.
All these have to go ... at some stage ..
As you had the mother of credit product line (i.e. Home Loan) until now all these extra artists ( BNPL personal loan consumer loans) were coverd untilnow.
As the mother gone. all these extra artists were exposed.. so until you do something about these don't expect anything near 800..
 
Back
Top