Cibil score dropping continuously

[knight]

Hi folks.
My cibil score has been dropping for the last few months.. 30 points down.

I lost 4, 6 points for 2 credit card enquiries respectively.
Then another 4 points for closing an education loan
Another 8 points when my new credit card got reported.

Before all of this also around 8 points were lost. So it's overall down by 30 and is currently around 735.

Currently I'm holding 2 credit cards.. hdfc and icici with good limit and less than 10% utilization. And flipkart paylater (planning to close but afraid as it will cause another dip).

I've noticed people on this community applying for multiple cards without significant dip in cibil.

Am i missing something?
Can i do anything else apart from just timely paying, maintaining CUR and waiting?

 

[knight]

Seems like the only thing i can do for now is either 'WAIT' or "Close Flipkart Pay Later and then WAIT"

I've seen people in this community arguing that BNPL/Personal Loans are bad for CIBIL. (Flipkart is shown as IDFC personal loan)

But closing this will also remove a 4-year-old account from my cibil and reduce 'credit mix' since i'll only have 2 cards left.

Has anybody closed these Paylater schemes and noticed any impact?

 

[pprakash11]

Seems like the only thing i can do for now is either 'WAIT' or "Close Flipkart Pay Later and then WAIT"

I've seen people in this community arguing that BNPL/Personal Loans are bad for CIBIL. (Flipkart is shown as IDFC personal loan)

But closing this will also remove a 4-year-old account from my cibil and reduce 'credit mix' since i'll only have 2 cards left.

Has anybody closed these Paylater schemes and noticed any impact?

Unfortunately I had just one paylater in 2019 (Flipkart, IDFC First PL). That too my limit was 10k but these buggers reported it as 60k.

I immediately cancelled and closed successfully in cibil as well this pay later account.

Later this my cibil has been increasing since then from 740 to 791 now.


My suggestion is you close and wait!

 

[Card_Crafter]

Personal loans are bad for CIBIL and impact negatively. Flipkart pay later is reported as PL in credit bureaus. Getting rid of it would be a wise decision.

 

[D₹V]

Just make ur usage as low as 1-5% and your CIBIL score will increase rapidly, I'm sure.

Tried & Tested. No need to close accounts 🙂. DM if u need proofs.

 

[n00b]

I am not an expert, but I will share my experience.

In January 2023, my CIBIL was 746, but an SBI agent messed up and made four hard inquiries, lowering my score to 724 in February.

It recovered 4 points normally in March. I closed my Lazypay account, which raised my score to 732.

In February, I got the APay Card, which was reported in April, and my score increased to 756.

It has now returned to normal, climbing by 4 points this month.

 

[Strange]

Seems like the only thing i can do for now is either 'WAIT' or "Close Flipkart Pay Later and then WAIT"

I've seen people in this community arguing that BNPL/Personal Loans are bad for CIBIL. (Flipkart is shown as IDFC personal loan)

But closing this will also remove a 4-year-old account from my cibil and reduce 'credit mix' since i'll only have 2 cards left.

Has anybody closed these Paylater schemes and noticed any impact?

There was no effect in my CIBIL after closing years old BNPL loan accounts.

 

[2024]

This generally happens for unpaid loans outstanding in your name. Check your cibil report thoroughly for such things.

People generally take small loans of say 500-1000 from NBFCs in your name as the process to get the money is just not that optimised and commit fraud in your name. Check your report dor any such outstanding loans.

If you have vouched (given guarantee) for some other person, it could be that he is defaulting and this is impacting your cibil score.

Or it could be that once your score drops below a certain level say 750, then all events pull the score down even more rapidly. I could be wrong here.

Thanks,

How to check is there any guarantee given for other person in my CIBIL as my CIBIL not increasing above 760 despite of 20l+ limit n 5% utilisation timely payments 8yr credit age, only factors pending to varify that may be there is guarantee given for anyone unknowingly or fraud issues

 

[ray8285]

Credit age is one of the key factors for a simple reason, algo factors in how long you’ve had credit and how well you’ve handled it.

For the sake of argument, I have had 250+ credit accounts in 19 years of history & lots and lots of them have been PLs (unsecured) … but I’ve had a home loan, few LAPs & quite a number of auto loans too (secured) … right now I have 25 active accounts (CC+PL+CDL+AUTO) with a score of 776 …

Credit mix is important but that mix is to do with secured + unsecured and not how many loans you have against how many credit cards …

My score dropped by 18 points the moment home loan was closed a year back (795 to 777) and has not recovered since !

 

[D₹V]

Credit age is one of the key factors for a simple reason, algo factors in how long you’ve had credit and how well you’ve handled it.

For the sake of argument, I have had 250+ credit accounts in 19 years of history & lots and lots of them have been PLs (unsecured) … but I’ve had a home loan, few LAPs & quite a number of auto loans too (secured) … right now I have 25 active accounts (CC+PL+CDL+AUTO) with a score of 776 …

Credit mix is important but that mix is to do with secured + unsecured and not how many loans you have against how many credit cards …

My score dropped by 18 points the moment home loan was closed a year back (795 to 777) and has not recovered since !

Appreciate you add 😊