Effect of spending more then the credit limit on cibil score?

Deal Cadet
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No defaults the bill are paid on time

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No impact as far as I know, only thing is in case of “heavily misused” cards this is considered as a negative & a warning sign by the card issuing company.

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It hampers the Credit Score, Even i am the Credit Card user and from Last 2 months, I am utilizing my Credit Score Fully, even paid the bill very early.

It does not show you very fast,but after your full usage when 3-4 months will passed,then it will reduce nearly 30-40 points down.

Remember Credit score doesnt mean only paying bill ontime,its one of the reason,In Past 30 days have you enquired about any loan/cards or in short span of time you apply for loan/cards or you utilise full loan amount/credit card amount and also the your age of credit or loan account ,these are the reasons you have to look for good credit score.

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If you spend more than your credit limit, your credit score will reduce if at the time your bank reports your credit card dues to the cibil is more than 30% of your limit. This is called credit utilization ratio. If you are using more than 30%(when reported to cibil, generally end of month) then the credit rating company (or simply cibil) will assume that the person is credit Hungry. So, I recommend that no matter how much credit you use, you must maintain your credit utilization below 30% i.e.if credit limit is 1 lakh, your credit utilization must not exceed 30000. If it exceeds, please pay the amount to bring it down so effect is less.

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I’m going to be straightforward here. Just keep paying bills on time. Don’t worry about score. It will keep fluctuating but will remain above 760.

Just don’t apply too many cards within short span of time.

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Credit score falls if apply too many cards at a time.

Also at end of month every month ensure that ur pending dues is less than 30%
Then ur cibil won’t be affected that much

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