Need advice with cibil issue

[saver-user]

Hey guys, I need some advice. My CIBIL score dropped from 745 to 709 after a loan closure update.

The only change in my report was that Asset Care updated my account from "Settled" to "Closed" on Feb 15, 2025. No other loans, credit card usage, or late payments were added. From what I understand, closing a loan should either have a neutral or positive impact, not a huge drop like this.

I’ve already emailed CIBIL requesting a recalculation, but has anyone faced something similar? Does CIBIL correct such issues, or am I stuck with this drop? Any insights would be helpful!.

 

[Quantum]

Hey guys, I need some advice. My CIBIL score dropped from 745 to 709 after a loan closure update.

The only change in my report was that Asset Care updated my account from "Settled" to "Closed" on Feb 15, 2025. No other loans, credit card usage, or late payments were added. From what I understand, closing a loan should either have a neutral or positive impact, not a huge drop like this.

I’ve already emailed CIBIL requesting a recalculation, but has anyone faced something similar? Does CIBIL correct such issues, or am I stuck with this drop? Any insights would be helpful!.

Was this loan your oldest entry in CIBIL among all your credit cards, loans, etc.?
Do you have any active loan or credit card in CIBIL after this loan closure?

Do you have a CIBIL subscription? If yes, then in the simulator, check the score if it increases after taking a new credit card. If you don't have a CIBIL subscription, then you can check the same in CRED app.

 

[saver-user]

Was this loan your oldest entry in CIBIL among all your credit cards, loans, etc.?
Do you have any active loan or credit card in CIBIL after this loan closure?

Do you have a CIBIL subscription? If yes, then in the simulator, check the score if it increases after taking a new credit card. If you don't have a CIBIL subscription, then you can check the same in CRED app.

yes i do have the cibil subscription. and no this was not the oldest loan not even close. no i dont have any active loan only credit cards. total 5. basically 3 banks as axis and hdfc i have 2 cards each. And no in score simulator adding new credit card or a home loan of 70L doesnt even effect the score it stays the same

 

[saver-user]

idk man i feel sus about cibil. my annual CTC is greater than 35L my credit history is more than 25 years old. my oldest card and account is citibank (now axis) which is from 2000"s. No late payments ever home loan personal loan all paid on time. only once missed amazon pay later payment 2 years ago.

 

[Quantum]

yes i do have the cibil subscription. and no this was not the oldest loan not even close. no i dont have any active loan only credit cards. total 5. basically 3 banks as axis and hdfc i have 2 cards each. And no in score simulator adding new credit card or a home loan of 70L doesnt even effect the score it stays the same

btw, the one that was closed, was it a secured loan?
Also, what is the age of your oldest ACTIVE credit card or loan in CIBIL? Limit?

 

[saver-user]

btw, the one that was closed, was it a secured loan?
Also, what is the age of your oldest ACTIVE credit card or loan in CIBIL? Limit?

it was a amazon pay later loan idk if its secured or not. consumer loan. and my oldest active card in cibil axis rewards in 2000. and no active loan

 

[Quantum]

it was a amazon pay later loan idk if its secured or not. consumer loan. and my oldest active card in cibil axis rewards in 2000. and no active loan

Pay later loans are never good for credit score/history.
Anyways, as you mentioned your score was 745 even with a missed amazon pay later payment 2 years ago, you could be sure that this drop is not because of any payment defaults.

So, don't worry, as you have a pretty old credit history, and if you maintain zero or negative utilization across each of your active accounts, then your score should be able to recover in 2 to 3 months time or sooner than that.

Don't go for any BNPLs now, and no late payments, etc.

 

[saver-user]

Pay later loans are never good for credit score/history.
Anyways, as you mentioned your score was 745 even with a missed amazon pay later payment 2 years ago, you could be sure that this drop is not because of any payment defaults.

So, don't worry, as you have a pretty old credit history, and if you maintain zero or negative utilization across each of your active accounts, then your score should be able to recover in 2 to 3 months time or sooner than that.

Don't go for any BNPLs now, and no late payments, etc.

ohk thanks mate