I have a crazy idea? Will it work?

[0xShailesh]

Happy Republic Day folks.

I have a theoretical idea to boost my credit score.

Now that there are many banks that provides credit cards against FD's at a very low amount. I wanted to know if getting 2-3 cards and making 1 rupee transaction every month and paying them after the bill, will improve the credit score any bit?

I plan to do this for the next 1 year and then probably close these cards, so that's 12 months x 3 payments per months = 36 on time payments with low utilisation.

Does doing tis makes any sense, or am I better off just using my regular cards the right way?

thanks

 

[deep@vie]

Happy Republic Day folks.

I have a theoretical idea to boost my credit score.

Now that there are many banks that provides credit cards against FD's at a very low amount. I wanted to know if getting 2-3 cards and making 1 rupee transaction every month and paying them after the bill, will improve the credit score any bit?

I plan to do this for the next 1 year and then probably close these cards, so that's 12 months x 3 payments per months = 36 on time payments with low utilisation.

Does doing tis makes any sense, or am I better off just using my regular cards the right way?

thanks

total utilisation is considered,not on single card.
e.g. you have 10cards with combined limit 10l & using 6l,then it will be considered 60% irrespective of few of your cards have no utilisation.

 

[0xShailesh]

total utilisation is considered,not on single card.
e.g. you have 10cards with combined limit 10l & using 6l,then it will be considered 60% irrespective of few of your cards have no utilisation.

Yes, that is right.

 

[CVR]

Single card utilisation also matter if it is on higher side. So if total is 5% but on one card if it us above 30% it impacts score negatively.

 

[deep@vie]

Single card utilisation also matter if it is on higher side. So if total is 5% but on one card if it us above 30% it impacts score negatively.

in my experience, no

 

[CVR]

in my experience, no

I had had cibil score drop of 7 points last month as i had 32% utilisation in one card.. total utilisation was 3%

 

[SiddharthR]

I had had cibil score drop of 7 points last month as i had 32% utilisation in one card.. total utilisation was 3%

There must be some other factor for it, otherwise there is no proper rule that your utilisation must be exactly <=30%

 

[SiddharthR]

Happy Republic Day folks.

I have a theoretical idea to boost my credit score.

Now that there are many banks that provides credit cards against FD's at a very low amount. I wanted to know if getting 2-3 cards and making 1 rupee transaction every month and paying them after the bill, will improve the credit score any bit?

I plan to do this for the next 1 year and then probably close these cards, so that's 12 months x 3 payments per months = 36 on time payments with low utilisation.

Does doing tis makes any sense, or am I better off just using my regular cards the right way?

thanks

I have another very wild idea
Why not take 12 cards every alternate day for a month?
And make payment 3 times in 3 months
And close those cards after 3 months

Boom your credit history now has 36 on time payments

 

[souvikr]

There is another easier way. Just pay off all your credit cards and don't use any credit card for next 3 months. After that your credit score will definitely increase.

 

[0xShailesh]

I have another very wild idea
Why not take 12 cards every alternate day for a month?
And make payment 3 times in 3 months
And close those cards after 3 months

Boom your credit history now has 36 on time payments

Trust me, would do this if it was possible haha

 

[SiddharthR]

Trust me, would do this if it was possible haha

Par Bro credit score kis liye boost karna hai?

Ho sake to bank account khole, no limit on that and pre-approved offers in just 3-4 months :xD

 

[0xShailesh]

Par Bro credit score kis liye boost karna hai?

Ho sake to bank account khole, no limit on that and pre-approved offers in just 3-4 months :xD

I need a few loans in the future, I have heard the more on time payments there is on the report the better it is. And yes, already got an HDFC CC after opening an Account, doing the same for axis.

 

[SiddharthR]

I need a few loans in the future, I have heard the more on time payments there is on the report the better it is. And yes, already got an HDFC CC after opening an Account, doing the same for axis.

For loan, it's better to maintain more Balance in bank and get pre-approved offers

 

[0xShailesh]

For loan, it's better to maintain more Balance in bank and get pre-approved offers

Yea, right. Doing that as well.

 

[CVR]

There must be some other factor for it, otherwise there is no proper rule that your utilisation must be exactly <=30%

no other change in that month except this sudden increase in utilisation in one card to 32% from 5% normally.. i use onescore for checking score and they generally suggest as per them what led to score decline or increase every month.. anyways one can never be sure of how cibil thinks..

 

[SiddharthR]

no other change in that month except this sudden increase in utilisation in one card to 32% from 5% normally.. i use onescore for checking score and they generally suggest as per them what led to score decline or increase every month.. anyways one can never be sure of how cibil thinks..

Check thread by @krishc on this

 

[vaibhav111vaibhav111 is verified member.]

Happy Republic Day folks.

I have a theoretical idea to boost my credit score.

Now that there are many banks that provides credit cards against FD's at a very low amount. I wanted to know if getting 2-3 cards and making 1 rupee transaction every month and paying them after the bill, will improve the credit score any bit?

I plan to do this for the next 1 year and then probably close these cards, so that's 12 months x 3 payments per months = 36 on time payments with low utilisation.

Does doing tis makes any sense, or am I better off just using my regular cards the right way?

thanks

test it , that the only way to be sure it work or not

 

[anirban.choudhuryanirban.choudhury is verified member.]

Single card utilisation also matter if it is on higher side. So if total is 5% but on one card if it us above 30% it impacts score negatively.

single card utilization is not considered, its always total credit utilization

 

[Copycat]

no other change in that month except this sudden increase in utilisation in one card to 32% from 5% normally.. i use onescore for checking score and they generally suggest as per them what led to score decline or increase every month.. anyways one can never be sure of how cibil thinks..

I'll confirm this, next month or later. I have been using 50+% of my Magnus for the last 2 months and this month and intend doing for for the 2 months as well. In March I may even have to go up to nearly 100%. Have lots of expenses in these 5 months. Of course, I've paid and intend paying everything within the due date as these were/are/will be planned expenses. I'm well below 30% on the overall balance and haven't applied for any new cards/loans/anything for the last 3 months. Let's see what happens to CIBIL