Confusion Regarding Credit Utilization Calculation in CIBIL

[sasha008]

I have 4 Credit cards with a combined limit of 4 Lacs and want to have my credit utilization reported in CIBIL as ~>1% (near 1%). If I only spend 10 Rs on each cc every month to keep them rotating (as I don't use credit much) and pay after statement generation, technically my utilization will be 40/400000 = 0.01%.

Does CIBIL round off this percentage to be 0 or is anything >0 considered as 1%? In other words if I want the utilization to be reported as 1%, do I need to spend exactly 1% of my credit limit or any small amount >0 will be considered as 1% in cibil?

 

[SSV]

I have 4 Credit cards with a combined limit of 4 Lacs and want to have my credit utilization reported in CIBIL as ~>1% (near 1%). If I only spend 10 Rs on each cc every month to keep them rotating (as I don't use credit much) and pay after statement generation, technically my utilization will be 40/400000 = 0.01%.

Does CIBIL round off this percentage to be 0 or is anything >0 considered as 1%? In other words if I want the utilization to be reported as 1%, do I need to spend exactly 1% of my credit limit or any small amount >0 will be considered as 1% in cibil?

Anything > Re 1 , it will report it as more than 0..
It won't round off to 1% , but its effect on the score is as if it is more than 0%..

AN example:
1) Say ,if you have 0% or -ve% of utilization , it will have some impact on the score..(the best possible positive impact on the score)
2) Say, If you have >0 and <10% utilization , it will have same impact irrespective of whether it is 0.0001% or 1% or 2%... the impact is based on the range bound.
Here I took 10% as an arbitrary one.. it could be 5% .. I dont know the exact range bounds...

The point here is: whether it is 0.0001% or 0.001% or 1% it is all the same in the view of CIBIL...
Hope it clarified your doubt... IF so, mark this post as a "Solution"

 

[sasha008]

Anything > Re 1 , it will report it as more than 0..
It won't round off to 1% , but its effect on the score is as if it is more than 0%..

AN example:
1) Say if ylou have 0% or -ve% of utilization , it will have some impact on the score..(the best possible positive impact on the score)
2) If you have >0 and <10% utilization , it will have sam impact irrespective of whether it is 0.0001% or 1% or 2%... the impact is base on range bound.
Here I took 10% as an arbitrary one.. it could be 5% .. I dont know the exact range bounds...

The point here is: whether it is 0.0001% or 0.001% or 1% it is all the same in the view of CIBIL...
Hope it clarified your doubt... IF so, mark this post as a "Solution"

Thanks for this valuable insight. Based on a potential CIBIL formula shared in this forum, 1-9% is the best possible impact for Cibil, while you say 0% is the best possible impact. Why do you say so?

 

[SSV]

Thanks for this valuable insight. Based on a potential CIBIL formula shared in this forum, 1-9% is the best possible impact for Cibil, while you say 0% is the best possible impact. Why do you say so?

Because it is the BEST ( <= 0%) .. and I practice it and my socre is always near or above 800..

 

[Ash8]

Because it is the BEST ( <= 0%) .. and I practice it and my socre is always near or above 800..

Changing my reaction now, seems this message was edited now..

 

[SSV]

Changing my reaction now, seems this message was edited now..

but I will keep the same reaction , to this post of yours !!