My CIBIL Score Debt is shown as Negative. Does it matter?

[Deleted member 21631]

I have an HDFC Account, where I opted for Overdraft (OD) against FD facility. Unlike most overdraft accounts, HDFC didn't created a separate account, but added the overdraft limit as balance in my regular account, and from there, I can use it without any problem for any payment (also helps maintain MAB, even if actual bank balance is ₹0)


I primarily opened HDFC account for credit card and bank employee said that getting OD against FD will help me get a credit card soon (probably for generating my cibil score).


Today, my CIBIL score got generated with 744 score and my credit utilization is 0%. But the problem is, my debt is showing Rs -2,05,741 (yes, in negative). Probably, since I had this extra money in my bank account when HDFC reported to Credit bureaus.


This technically means, I have extra money in my loan account and the Bank owes me money instead of me owing to the Bank


So, my questions are-

1. Will this negative debt that has been reported to credit bureau, impact my credit report badly?

2. Is this safe? Should i report to Cibil or hdfc bank?

3. Is my CIBIL score bad, since its 744, in CIBIL app, its showing as 2nd bottom on credit score ranking? Can anyone tell me what their score was when it was generated for the first time?

4. Will this overdraft facility affect me in getting a pre-approved Credit card from the bank, as its a loan. Currently, i am maintaining 4.3L in this account.

5. If I can get a pre-approved credit card, should i keep this overdraft facility on?


Please answer them and thank you for reading it

 

[Rohith-2009]

744 is not a bad score. I got three credit cards when my score range 725 to 735

 

[Deleted member 21631]

@BUDHRAJ @Wealth is my birth right! @kredit

 

[shrewdoc]

The main objective of a credit facility is to use it. Keeping a negative balance is not always good. You have to select credit products which you can use.

If you just took OD against FD for developing a CIBIL Score, just take a Credit Card against that FD instead.

Try to keep your utilisation between 1-9% of your credit limit. Keeping it 0 might not help much with your credit score.

 

[D₹V]

I have an HDFC Account, where I opted for Overdraft (OD) against FD facility. Unlike most overdraft accounts, HDFC didn't created a separate account, but added the overdraft limit as balance in my regular account, and from there, I can use it without any problem for any payment (also helps maintain MAB, even if actual bank balance is ₹0)


I primarily opened HDFC account for credit card and bank employee said that getting OD against FD will help me get a credit card soon (probably for generating my cibil score).


Today, my CIBIL score got generated with 744 score and my credit utilization is 0%. But the problem is, my debt is showing Rs -2,05,741 (yes, in negative). Probably, since I had this extra money in my bank account when HDFC reported to Credit bureaus.


This technically means, I have extra money in my loan account and the Bank owes me money instead of me owing to the Bank


So, my questions are-

1. Will this negative debt that has been reported to credit bureau, impact my credit report badly?

2. Is this safe? Should i report to Cibil or hdfc bank?

3. Is my CIBIL score bad, since its 744, in CIBIL app, its showing as 2nd bottom on credit score ranking? Can anyone tell me what their score was when it was generated for the first time?

4. Will this overdraft facility affect me in getting a pre-approved Credit card from the bank, as its a loan. Currently, i am maintaining 4.3L in this account.

5. If I can get a pre-approved credit card, should i keep this overdraft facility on?


Please answer them and thank you for reading it

1. No
2. Safe
3. Not bad but fine as it's new. Shouldn't be <730
4. Yes
5. As you wish, it's better than PLs, isn't it?

 

[RishiKiDev]

Why did you go for OD? The thing is you just could've opened a HDFC savings bank account (preferable higher amb) and made some transactions here and there using their debit card and UPI regularly and mostly after 6-9 months you would've got a Pre-approved credit card offer in your netbanking.

I got my first unsecured card without any CIBIL score from HDFC Bank like that.

HDFC Throwing away Pre-approved cards left, right and center.

 

[Deleted member 21631]

The main objective of a credit facility is to use it. Keeping a negative balance is not always good. You have to select credit products which you can use.

If you just took OD against FD for developing a CIBIL Score, just take a Credit Card against that FD instead.

Try to keep your utilisation between 1-9% of your credit limit. Keeping it 0 might not help much with your credit score.

Even though it is reported as negative balance and 0% limit used. Actual payment amount is listed there, which I think means, there has been activity on this account? (Not sure, please confirm).

The actual payment amount is listed as my total debit amount of my bank account. I have listed as a screenshot below

 

[Deleted member 21631]

1. No
2. Safe
3. Not bad but fine as it's new. Shouldn't be <730
4. Yes
5. As you wish, it's better than PLs, isn't it?

4. I have been receiving credit card messages, just not pre-approved yet. My account is 1.5 month old. Also, i will soon be upgraded to preferred banking if that helps? Will it be good enough for CC?

5. It is reported in credit report as overdraft and not personal loan and have no charges keeping it on (unless i use its fund). So, idk if its better or not. I am new to credit score

 

[D₹V]

4. I have been receiving credit card messages, just not pre-approved yet. My account is 1.5 month old. Also, i will soon be upgraded to preferred banking if that helps? Will it be good enough for CC?

5. It is reported in credit report as overdraft and not personal loan and have no charges keeping it on (unless i use its fund). So, idk if its better or not. I am new to credit score

You're getting general promotions.

You need to wait 6-9 months for a great card offer like Millennia with above 1L limit.

At first they'll give you shit offer, don't accept that.

All you need is patience now.

Till then keep using HDFC DC everywhere.

 

[Deleted member 21631]

Why did you go for OD? The thing is you just could've opened a HDFC savings bank account (preferable higher amb) and made some transactions here and there using their debit card and UPI regularly and mostly after 6-9 months you would've got a Pre-approved credit card offer in your netbanking.

I initially wanted to go for secured one. But thought, by maintain good bank balance, i would get unsecured credit card.

Bank employee said, activating OD against FD will help me get it faster (idk if it was bs or not). So, i probably think, he meant to generate credit score?

Also, my account is around 1.5 month old and I am getting hdfc credit card messages to apply for, just not pre-approved. Also, i will soon be upgraded to preferred banking.

Will it be good enough? I am quite new to this, so I don't know if it make sense to continue using this?

 

[Deleted member 21631]

You're getting general promotions.

You need to wait 6-9 months for a great card offer like Millennia with above 1L limit.

At first they'll give you shit offer, don't accept that.

All you need is patience now.

Till then keep using HDFC DC everywhere.

Thank you. I will keep patience and try to use DC whenever I can. Also, will 4L bank balance help me get good cards faster? Or will I start with moneyback with low limits?

 

[D₹V]

Thank you. I will keep patience and try to use DC whenever I can. Also, will 4L bank balance help me get good cards faster? Or will I start with moneyback with low limits?

If you're maintaining that much amount.

Your offer will easily start with 1L above but being said that skip that & wait. You should get atleast 2-2.5L limit card with that much amount maintained.

Have set your goal .

 

[RishiKiDev]

I initially wanted to go for secured one. But thought, by maintain good bank balance, i would get unsecured credit card.

Bank employee said, activating OD against FD will help me get it faster (idk if it was bs or not). So, i probably think, he meant to generate credit score?

Also, my account is around 1.5 month old and I am getting hdfc credit card messages to apply for, just not pre-approved. Also, i will soon be upgraded to preferred banking.

Will it be good enough? I am quite new to this, so I don't know if it make sense to continue using this?

Bank employee just cross selled/mis-selled you as usual. NEVER ever trust a private bank employee. They are just glorified salesmen especially your RM.
Just trust the system.

You will get good offers sooner or later.
Hope you get the card you want.

 

[Deleted member 21631]

Then, I will keep patience and wait for the good cards in pre-approved then. Thank you.

 

[Wealth is my birth right!]

Then, I will keep patience and wait for the good cards in pre-approved then. Thank you.

With 750 score u can get cards
They offer pre approval for cards too

 

[Deleted member 21631]

Even though it is reported as negative balance and 0% limit used. Actual payment amount is listed there, which I think means, there has been activity on this account? (Not sure, please confirm).

The actual payment amount is listed as my total debit amount of my bank account. I have listed as a screenshot below

Is that good enough? I mean, it should not report my credit utilization as dormant, but moving.

@Wealth is my birth right! @RishiKiDev @D₹V @shrewdoc @James

 

[D₹V]

Is that good enough? I mean, it should not report my credit utilization as dormant, but moving.

@Wealth is my birth right! @RishiKiDev @D₹V @shrewdoc @James

It'll be moving because it's linked to your account.

So nothing to worry.

 

[Deleted member 21631]

It'll be moving because it's linked to your account.

So nothing to worry.

So, just to clarify, once more...my 0% credit utilization, shouldn't be a problem...right?

(Thank you for answering the question, I am kinda freaking out right now)

 

[Wealth is my birth right!]

So, just to clarify, once more...my 0% credit utilization, shouldn't be a problem...right?

(Thank you for answering the question, I am kinda freaking out right now)

Unutilised credit limits will not have impact or support on credit score
So always use little and pay on time

 

[D₹V]

Unutilised credit limits will not have impact or support on credit score
So always use little and pay on time

But it's loan.

Even if he doesn't use, won't effect anything.

Just monthly timely payments will count automatically.