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Credit Score (CIBIL) Formula Revealed

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The PostMighty
shraaj
How CIBIL Score is Calculated in India ?

Check CIBIL Score formula & learn how does it calculated.

https://cdn0.desidime.com/attachments/photos/783877/medium/2022-06-30_%284%29.png?1656572772

Now, This is the Ratio, that our Credit Score comes from and has an Impact on Gaining and Losing Credit Score in Points.

1. PAYMENT HISTORY- 

    This is the Most Important Factor, Now see the Parameter/Table

    https://cdn0.desidime.com/attachments/photos/783878/medium/2022-06-30_%286%29.png?1656573173

    Now, You Can ADD THE POINTS - Eg- 

    1. If you have just recently paid like 0-4 months then add 15-25 Points.

    2. If there is no delay in payment then add 85-95 Points 

    3. No Bankruptcy - Add 75-85 Points

    Now, See even if you don't pay the bank/NBFC then also you will get a score but see the points gap,

     

    2. DEBT BURDEN/CREDIT UTILIZATION-

    https://cdn0.desidime.com/attachments/photos/783880/medium/2022-06-30_%287%29.png?1656573399

    Now, See if you don't have any burden then also point score will be less or even if you have heavy debt burden then marks will be deducted or less score. So, I will add 20-29% which is 145-155 points along with previous points.

    3. LENGTH OF CREDIT HISTORY- 

    The most important thing look at the points in increasing order along with years,so better to keep our old products active.

    https://cdn0.desidime.com/attachments/photos/783881/medium/2022-06-30_%288%29.png?1656573618

    Add No.of Months like which is the longest credit report product for you mine is in 12-23 months, so I  will add 105-115 points with the previous one. (It can be seen in the cibil report or directly in OneScore App)

    4.RECENT SEARCHES FOR CREDIT/CREDIT ENQUIRIES-

    https://cdn0.desidime.com/attachments/photos/783882/medium/2022-06-30_%289%29.png?1656573775

    Now, See How Many Enquiries have you made in CIBIL in the Last 6 Months that also impact, Add this previous one.

    5. TYPES OF CREDIT/MIXTURE OF CREDIT ACCOUNTS-

    It is always healthy if you have a mixture of Loans like Credit Card, Personal loans, Home loans, etc. Now, see the table

    https://cdn0.desidime.com/attachments/photos/783883/medium/2022-06-30_%2810%29.png?1656574059


    NOW, ADD All those Five Things and final outcome would be your expected Credit Score,offcourse it would be not accurate but it's 90-95% Accurate.This Formula has been applied to 20 Different People and the Results were +/-20 Points are here and there.

    Try and comment.

    Expired
    Disclaimer
    We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.

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    Top Comments
    Deal Cadet Deal Cadet
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    Good explanation. Taking all extreme values, I got 765 which is 5 more than my score of cibil score of 760. plus1
    Critic Critic
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    noobDealer wrote:
    ganjedi ar juanri 😄
    It is genjedi only if you are poor, if you smoke weed like Elon Musk then it is cool. Similarly, it is juanri only if you are poor/typical person playing in some some shady place/online site but not if you are a rich person playing in Las Vegas top casinos.
    113 Comments  |  
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    Deal Cadet Deal Cadet
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    Good explanation. Taking all extreme values, I got 765 which is 5 more than my score of cibil score of 760. plus1
    Deal Cadet Deal Cadet
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    Good one..
    How to find No of different credits?
    I have CC and Home loan..
    No vehicl loans and personal loans

    Deal Subedar Deal Subedar
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    Thanks For Info Bro.

    How Many Cc You Have? 

    Deal Cadet Deal Cadet
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    10 points difference for me, but mine is standard case, can’t say if it will work for everyone.

    Someone with high utilisation and/or non-payments can comment.

    Trailblazer Trailblazer
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    credit mix makes ur credit score increase easily n dont close old ccs it wil effect score

    Deal Cadet Deal Cadet
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    OK, so I need to add 2/3 new CCs… that’s it.

    Entertainer Entertainer
    Admin
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    good share bro!

    Deal Cadet Deal Cadet
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    Can someone explain me debt burden? If I have 6 cards and I use one card majorly and its limit is also minimum … Like 30k and I utilise 25k and for rest cards I hardly use 5% …. Then debt will be calculated on overall limit(sum of all cards limit) or per card?

    The PostMighty The PostMighty
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    Xhaster wrote:

    Can someone explain me debt burden? If I have 6 cards and I use one card majorly and its limit is also minimum … Like 30k and I utilise 25k and for rest cards I hardly use 5% …. Then debt will be calculated on overall limit(sum of all cards limit) or per card?

    Yes, the debt burden will be calculated as the overall limit of what you spend.

    Deal Cadet Deal Cadet
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    Xhaster wrote:

    Can someone explain me debt burden? If I have 6 cards and I use one card majorly and its limit is also minimum … Like 30k and I utilise 25k and for rest cards I hardly use 5% …. Then debt will be calculated on overall limit(sum of all cards limit) or per card?

    Total debt/total limit

    Deal Cadet Deal Cadet
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    EkdamSastaRaju wrote:

    whats the score of Nirav Modi ?

    860…. He took company corporate loans, not personal loans

    The PostMighty The PostMighty
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    Vinod358 wrote:

    Good one..
    How to find No of different credits?
    I have CC and Home loan..
    No vehicl loans and personal loans

    In Your CIBIL Report, See the Account Like If there are 2 credit cards from 2 different banks, then also credit account will be considered as 1, so add a loan account then your mixture of accounts will be 2.

    1- VEHICLE LOAN
    1- PERSONAL LOAN

    Your account lies in Mixture of 2 different loan accounts.

    The PostMighty The PostMighty
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    Tony007 wrote:

    Thanks For Info Bro.

    How Many Cc You Have? 

    I have,
    APAY ICICI CC
    SBI CC (ON THE WAY)
    BOB CC (ON THE WAY)
    AU SMALL FINANCE BANK CC (ON THE WAY)
    SBI CC (WAITING FOR APPROVAL)
    Critic Critic
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    I still think this mainly applies to below 800 cibil score, there must be something "extra" involved to keep a consistent 800+ cibil score.

    Deal Cadet Deal Cadet
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    by this formula my credit score should have been 300. But it's around 720 from last 1 year..

    Deal Cadet Deal Cadet
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    Good one plus1

    Post Mogul Post Mogul
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    Cibil scores are scam, if you use credit card to max use they reduce your rating.

    If you dont have any credits going they reduce your ratings.

    You pay your loans early they deduct 80-100 points... Its all sham thats why two methods dont give same output

    I have 650 rating in experian and 850 rating in CRIF

    Like Magnet Like Magnet
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    Dileep_kumar wrote:

    credit mix makes ur credit score increase easily n dont close old ccs it wil effect score

    If old card is upgraded then it will be treated as new or old credit?

    Deal Cadet Deal Cadet
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    shriAyodhya wrote:
    If old card is upgraded then it will be treated as new or old credit?

    Account number remains same after upgrade, no effect...

    Deal Newbie Deal Newbie
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    Tony007 wrote:

    Thanks For Info Bro.

    How Many Cc You Have? 

    13. 14th one just got approved

    Deal Lieutenant Deal Lieutenant
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    No transection will increase score?

    Deal Lieutenant Deal Lieutenant
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    Op from where u got this info?

    Deal Subedar Deal Subedar
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    What needs to be done to get 800+? My CIBIL got reset a few months back. Don’t know how it happened. On-time payments are showing 7/7 in CIBIL, though account age is showing as 11 years because of CC and few loan accounts are 1+ years old.

    Experian shows 140+payments!!

    replyuser
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