in computing credit utilization ratio by CIBIL, do they include amount used in personal loans or only credit card utilization is considered ?

[Mahirathore360]

i am bit confused in that, expert please give your opinions

 

[sunit123]

Based on my past loan history, i can say that they consider all types of credit including loans....Your credit utilization should not exceed 30% of total credit available. For loan they consider total loan amount as 100% credit utilization amount.

With personal loan, it is difficult to get credit card...As personal loan is considered unsecured loan.....Apply secured credit card i.e. backed by FD

 

[Mahirathore360]

Based on my past loan history, i can say that they consider all types of credit including loans....Your credit utilization should not exceed 30% of total credit available. For loan they consider total loan amount as 100% credit utilization amount.

With personal loan, it is difficult to get credit card...As personal loan is considered unsecured loan.....Apply secured credit card i.e. backed by FD

yeah, they take loan as 100% utilization and it decrease with every EMI . But still i am unsure if we have credit card then what they took in counting ,,do you have credit card and loan simultaneously ? , can you share screenshot of that credit utilization ?

 

[harsh_ujjwal]

All your allotted credits will be taken into consideration. All types of loans n credit card. If you have loans it will add up in the outstanding

 

[Mahirathore360]

All your allotted credits will be taken into consideration. All types of loans n credit card. If you have loans it will add up in the outstanding

Can you share any screenshot of the same

 

[TrueColours]

Credit utilisation ratio = (Total outstanding on all credit cards / Total credit limit) X 100

 

[Mahirathore360]

Credit utilisation ratio = (Total outstanding on all credit cards / Total credit limit) X 100

is this calculation correct ? Paisabazaar showing 3% credit utilization

 

[harsh_ujjwal]

is this calculation correct ? Paisabazaar showing 3% credit utilization

That's the correct formula to get your CUR.

 

[hitirfan]

CIBIL showing CUR of Cred Cards only. I have PCL also.

 

[Mahirathore360]

CIBIL showing CUR of Cred Cards only. I have PCL also.

what is PCL

 

[hitirfan]

what is PCL

Personal Consumption Loan

 

[Mahirathore360]

Personal Consumption Loan

thats a personal loan

 

[hitirfan]

thats a personal loan

Yes. Also called PCL

 

[hitirfan]

@SSV please guide related to Loan Credit Utilization. Does it count for CIBIL score or not?

 

[Mahirathore360]

@SSV please guide related to Loan Credit Utilization. Does it count for CIBIL score or not?

@SSV Please guide

 

[SSV]

@SSV please guide related to Loan Credit Utilization. Does it count for CIBIL score or not?

@SSV Please guide

Credit Utilization Ratio ( CUR) =
CUR is calculated ONLY on the Revolving Credit Accounts ..

What is a revolving Credit ?
A revolving credit is a credit line which still remains available even after you pay the balance outstanding..

So, by this definition: your personal loans are not included in the calculation of Credit utilisation ratio..

This doesn't mean your PLs wont effect Credit score, but they impact in a different way in the calculation of the score, but they wont be part of CUR and CUR's impact on the score..


In the CIBIL SS , you attached it clearly shows "Credit Card Usage" ,

 

[Mahirathore360]

Credit Utilization Ratio ( CUR) =
CUR is calculated ONLY on the Revolving Credit Accounts ..

What is a revolving Credit ?
A revolving credit is a credit line which still remains available even after you pay the balance outstanding..

So, by this definition: your personal loans are not included in the calculation of Credit utilisation ratio..

This doesn't mean your PLs wont effect Credit score, but they impact in a different way in calculation of the score, but they wont be part of CUR and CUR's impact on the score..


In the CIBIL SS , you attached it clearly shows "Credit Card Usage" ,

View attachment 77026

if revolving credit is considered in CUR then why Amzon and other paylater accounts not used in it, they are also revolving credit

 

[SSV]

if revolving credit is considered in CUR then why Amzon and other paylater accounts not used in it, they are also revolving credit

you have to ask Amzon and other BNPLs about how they are reporting theri BNPLs to Credit bureaus..

 

[Mahirathore360]

you have to ask Amzon and other BNPLs about how they are reporting theri BNPLs to Credit bureaus..

they report it as Consumer loan

 

[harsh_ujjwal]

you have to ask Amzon and other BNPLs about how they are reporting theri BNPLs to Credit bureaus..

Right.. Flipkart's pay later was reported as Personal Loan in cibil.