CIBIL Score massive drop from 802 to 721

[sunit123]

credit utilization should be less than 30%...10% increase in utilization shows credit hungry behavior.

* A credit rating agency was my client therefore i know that this is the reason

 

[✪ D&C Cards Connoisseur 💳]

A quick question - We all know that 30% credit utilization is ideal which will not impact Cibil score. However, if I have utilized around 70-80% credit limit of any specific card and have repayed before bill generation, making the bill ideally nil, will that decrease Cibil score? I repeat the 70-80% credit utilization is of a specific bank's card and not of the all total limit combining all bank's cards.

 

[Dr.AMAN]

A quick question - We all know that 30% credit utilization is ideal which will not impact Cibil score. However, if I have utilized around 70-80% credit limit of any specific card and have repayed before bill generation, making the bill ideally nil, will that decrease Cibil score? I repeat the 70-80% credit utilization is of a specific bank's card and not of the all total limit combining all bank's cards.

Yes been there, done that. If u utilize even 99% limit but repay full on/before the cibil reporting day (mostly 15th nd 30th of the month) then the utilization will still be reported as 0%.for that particular card

 

[sunit123]

A quick question - We all know that 30% credit utilization is ideal which will not impact Cibil score. However, if I have utilized around 70-80% credit limit of any specific card and have repayed before bill generation, making the bill ideally nil, will that decrease Cibil score? I repeat the 70-80% credit utilization is of a specific bank's card and not of the all total limit combining all bank's cards.

Credit utilization is calculated across credit accounts...Example, you have 5 CC of limit 1 lakh each and you used 100% limit on 1 card i.e. 1 lakh and not used any other card...In this case, your utilization is 20%

To answer 2nd query, even if you pay entire amount before bill generation still it will be reported because banks report "Highest Credit Availed" not the credit due as on billing date

 

[shutzz]

It is possible that you either missed a payment or that the payment transfer you initiated failed. Do check your complete CIBIL report thoroughly. It might be an error, and it can be fixed. Ensure that there are no delays in your payments on your end, and request a manual review of your account with CIBIL.

Regarding the increase in credit card utilization by 13%, it is highly unlikely that your score would decrease by 80 points due to this change.

I have thoroughly checked the latest cibil report and there's no delay in payment since last 12 months. But how do i request a CIBIL to manually review my account?

 

[Yugi]

I have thoroughly checked the latest cibil report and there's no delay in payment since last 12 months. But how do i request a CIBIL to manually review my account?

You cannot. Your only hope is that your CIBIL score will stabilize in a few months.

 

[Dr.AMAN]

Credit utilization is calculated across credit accounts...Example, you have 5 CC of limit 1 lakh each and you used 100% limit on 1 card i.e. 1 lakh and not used any other card...In this case, your utilization is 20%

To answer 2nd query, even if you pay entire amount before bill generation still it will be reported because banks report "Highest Credit Availed" not the credit due as on billing date

These r 2 separate data points in Cibil report:-
1. High credit: the max limit u have ever utilized in that particular credit card. If out of 1 lakh limit, I used 90k last month but this month used only 10k then the High credit will be reported as 90k only. It means in that credit card the highest limit u have ever used is 90k. This doesnt affect Cibil score
2. Current Balance: this is reported month on month basis on 15th nd 30th of every month. This affects the credit utilization and hence Cibil score .
Personal experience: Few months back I used 90% limit of my ICICI credit card. Just 1 day before the cibil reporting day i.e. on 29th of the month I prepaid the entire amount and even paid little extra so that the credit utilization became negative in that ICICI card. So Cibil reported ICICI card's Current balance as negative. My Cibil score increased 10 points as my other cards' utilization remained same but my ICICI card's utilization came down from 5-6% to negative