Cibil score stuck at 741

[krish170794]

I am using 3 credit cards with total limit around 6 lakhs and usage per month around 1.5 l and usage always lower than 30 percent. No personal loan and other liabilities. My score stuck at 740 past 4-5 months. Can anyone guide me in this scenario and get past 750+

 

[Nemesis]

Use more than 30% I can bet it will go down 😆

 

[krish170794]

Definitely i know that 😊

 

[repertoire]

Are you by chance paying off your cards before statement generation?

 

[krish170794]

Are you by chance paying off your cards before statement generation?

No, paying only after bill generation

 

[Akashgod]

Take some loans 6 months plus tenure

 

[krish170794]

Is it because of the lack of credit mix. Only credit cards

 

[Credit Karma]

I am using 3 credit cards with total limit around 6 lakhs and usage per month around 1.5 l and usage always lower than 30 percent. No personal loan and other liabilities. My score stuck at 740 past 4-5 months. Can anyone guide me in this scenario and get past 750+

I may be able to help you. But before that I need some info -
How many years old is your oldest account and newest account? Are they still active?
How many number of enquiries do you have?
What is the shortest duration of inquires that you made?
What is the max utilisation ratio on any of your CC?

 

[krish170794]

I may be able to help you. But before that I need some info -
How many years old is your oldest account and newest account? Are they still active?
How many number of enquiries do you have?
What is the shortest duration of inquires that you made?
What is the max utilisation ratio on any of your CC?

The oldest card is a icici coral and it is 4 years old and still active. In 2022 two enquiries and shortest enquiry which is in 2021, two credit card enquiries with gap of one month.
In axis card which has very low limit of 30k 90 percent

 

[Credit Karma]

The oldest card is a icici coral and it is 4 years old and still active. In 2022 two enquiries and shortest enquiry which is in 2021, two credit card enquiries with gap of one month.
In axis card which has very low limit of 30k 90 percent

I would suggest to don't open any new accounts for atleast 6 months. And try playing with your utilisation. Take it below 15%. And

Credit algorithms are highly unpredictable. But given enough data, and time your score may move a bit.

 

[krish170794]

My doubt is that is it because of the credit mix. In cibil there are only credit card accounts and mostly using card is hdfc millenia and it doesn’t report credit limit. I will try two months of minimal usage

 

[Digvijay]

My doubt is that is it because of the credit mix. In cibil there are only credit card accounts and mostly using card is hdfc millenia and it doesn’t report credit limit. I will try two months of minimal usage

Yes, as you are having only credit cards which are unsecured accounts. Having a secured account might boost the credit score. But it is okay with this score if you do not wish to apply for new product at the moment. Even if you apply for anything as you are paying all dues on time, this score might not affect for new application.

 

[Credit Karma]

My doubt is that is it because of the credit mix. In cibil there are only credit card accounts and mostly using card is hdfc millenia and it doesn’t report credit limit. I will try two months of minimal usage

Yes, as you are having only credit cards which are unsecured accounts. Having a secured account might boost the credit score. But it is okay with this score if you do not wish to apply for new product at the moment. Even if you apply for anything as you are paying all dues on time, this score might not affect for new application.

Credit mix accounts for lowest that is 10% of overall weightage.

Credit age which accounts for 15%, is just a waiting game, and we cannot play with payments history.

One must not chase new debts just to please credit algorithms. They are meant to evolve organically. So wait it out.

If I'm correct, HDFC reports the highest utilised amount, not the credit limit. And because of that, bureaus calculate CUR on highest limit used. And that's a bummer!

Hence, I belive that to move your score just try increasing or decreasing credit utilisation.

 

[krish170794]

Credit mix accounts for lowest that is 10% of overall weightage.

Credit age which accounts for 15%, is just a waiting game, and we cannot play with payments history.

One must not chase new debts just to please credit algorithms. They are meant to evolve organically. So wait it out.

If I'm correct, HDFC reports the highest utilised amount, not the credit limit. And because of that, bureaus calculate CUR on highest limit used. And that's a bummer!

Hence, I belive that to move your score just try increasing or decreasing credit utilisation.

I’m not gonna apply new card anytime soon but the concern is that the existing cards limit enhancement. Both my axis and hdfc card are due for LE

 

[Credit Karma]

I’m not gonna apply new card anytime soon but the concern is that the existing cards limit enhancement. Both my axis and hdfc card are due for LE

So you need a 750+ score for LE, is that the case?

I think banks do have 2-3 points margin.

If they present an offer of LE, take it without a doubt! Or better yet ask them since you are having 4+ years credit history.

And given the upcoming sale on Flipkart and Amazon, atleast Axis will definately give an LE offer.

 

[Digvijay]

Credit mix accounts for lowest that is 10% of overall weightage.

Credit age which accounts for 15%, is just a waiting game, and we cannot play with payments history.

One must not chase new debts just to please credit algorithms. They are meant to evolve organically. So wait it out.

If I'm correct, HDFC reports the highest utilised amount, not the credit limit. And because of that, bureaus calculate CUR on highest limit used. And that's a bummer!

Hence, I belive that to move your score just try increasing or decreasing credit utilisation.

Absolutely! Interestingly I was stuck around the same score for a quarter of period. When I contacted bank expert who deals with credit report, he told me that the main contributing factor for any score is debt to income ratio. In my case debt was more because of home loan factor. Even though it is one of good secured account to have, the more the loan value, the lower effect it will have on score. In the end, it all depends on credit utilization. More limits and less or appropriate usage are key to score!

 

[Credit Karma]

Absolutely! Interestingly I was stuck around the same score for a quarter of period. When I contacted bank expert who deals with credit report, he told me that the main contributing factor for any score is debt to income ratio. In my case debt was more because of home loan factor. Even though it is one of good secured account to have, the more the loan value, the lower effect it will have on score. In the end, it all depends on credit utilization. More limits and less or appropriate usage are key to score!

Yes, they do value CUR. It is quite evident from the fact that they give second most weightage to it!

 

[krish170794]

So you need a 750+ score for LE, is that the case?

I think banks do have 2-3 points margin.

If they present an offer of LE, take it without a doubt! Or better yet ask them since you are having 4+ years credit history.

And given the upcoming sale on Flipkart and Amazon, atleast Axis will definately give an LE offer.

Not exactly, maintaining 750+ is always good and some financial emergency happens it will help. Little bit of confusion around the non movement of score and also looking for Infinia in future If LE lags that also lag

 

[Credit Karma]

Not exactly, maintaining 750+ is always good and some financial emergency happens it will help. Little bit of confusion around the non movement of score and also looking for Infinia in future If LE lags that also lag

I advise you to wait it out for min 3-6 months and it will increase, for sure!