https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9154779
this topic again?
Yes 30 - 40 points will be reduced
HDFC CIBIL/Bureau reporting queries
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As I have noticed, HDFC updates CIBIL/other credit bureaus on the last day of the month for me (dunno for others)...
As you are aware, HDFC does not report total credit limit, but max used credit amount.
Let us take a hypothetical scenario:
For a user, earlier max used credit = 1L, avg spend last few months=20k, so credit utilization for card=20%
Now, for a particular month, he spends 2L...
Now the credit utilization and max credit used will both move to 2L as per latest month cibil reporting, so technically, utilization=100%
* So, if he has no other card, 100% utilization = massive fall in cibil score, right? *
Also, let's now take that he has a SBI card with 2L limit and 20% utilization...
* So Net CL utilization becomes (2+0.4)/(2+2)=2.4/4=1.2 that is 60%, this also should hurt cibil heavily, right? *
Or am I wrong and HDFC max used credit amount is used differently by cibil, etc.?
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https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9154792
woodfield753 wrote:Didn't come across before... where you did here?this topic again?
Yes 30 - 40 points will be reduced
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9154856
If there is no loan required in the near future, how about using the max limit of HDFC CC. Let the CIBIL fall. It will recover in three to twelve months, but as HDFC reports utilized limit as credit limit, from then on overall utilization ratio gets lower?
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9154868
10ven wrote:Planning and executing that... but need some doubts cleared. Replied to your other thread post too on this.If there is no loan required in the near future, how about using the max limit of HDFC CC. Let the CIBIL fall. It will recover in three to twelve months, but as HDFC reports utilized limit as credit limit, from then on overall utilization ratio gets lower?
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9154879
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9154982
10ven wrote:HDFC report only the last month utilized limit so it doesn't matter how much limit you used previously, the reported limit will always be last month only.If there is no loan required in the near future, how about using the max limit of HDFC CC. Let the CIBIL fall. It will recover in three to twelve months, but as HDFC reports utilized limit as credit limit, from then on overall utilization ratio gets lower?
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9154986
CIBIL most likely use some specific method for HDFC cards else majority of HDFC cc users would have poor cibil score by now(majority ppl in India anyway use 1-2 cc only).
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9155013
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9155026
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9155043
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9155081
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Agnivo007 wrote:
Nope, in some months I hardly use the card yet the "max credit utilized" amount stays at lifetime high value...
@10ven Yes "High Credit" figure remains same for months but I doubt cibil use this as base figure to calculate utilization ratio of hdfc card. I think cibil use some sort of formula specific to hdfc cards for calculating utilization based on typically constant "high credit" figure & monthly changing "current balance".
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9157213
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And I have observed one of family members report who holds just HDFC CC and though timely payment CIBIL got down, on onescore app it predicted high utilization as the reason. Clearing unbilled amount before bill generation/reporting date has brought down utilization and improved score over the months.
guest_999 wrote:Why is this specifically with HDFC? Any partnership with CIBIL? And as @Agnivo007 mentioned, some apps (onescore) which fetch report from CIBIL show limit of HDFC which corresponds to the utilized limit wherein in the report that is high credit.@10ven Yes "High Credit" figure remains same for months but I doubt cibil use this as base figure to calculate utilization ratio of hdfc card. I think cibil use some sort of formula specific to hdfc cards for calculating utilization based on typically constant "high credit" figure & monthly changing "current balance".
And I have observed one of family members report who holds just HDFC CC and though timely payment CIBIL got down, on onescore app it predicted high utilization as the reason. Clearing unbilled amount before bill generation/reporting date has brought down utilization and improved score over the months.
https://www.desidime.com/discussions/hdfc-cibil-bureau-reporting-queries?page=1#post_9157249
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10ven wrote:
Why is this specifically with HDFC? Any partnership with CIBIL? And as @Agnivo007 mentioned, some apps (onescore) which fetch report from CIBIL show limit of HDFC which corresponds to the utilized limit wherein in the report that is high credit.
And I have observed one of family members report who holds just HDFC CC and though timely payment CIBIL got down, on onescore app it predicted high utilization as the reason. Clearing unbilled amount before bill generation/reporting date has brought down utilization and improved score over the months.
Since HDFC does not report card limit & cibil formula depends on card limit as one of the factor so ideally they should have some specific method to account for this in their formula when it comes to HDFC cards.
As far as I know, cibil formula consider utilization as one of the factor & there is a limit to how much it can bring someone's score down if all other factors like timely payments are good but yes just having HDFC cc will not be good for cibil in the short term. Still, you can check cibil formula method here posted by @shraaj
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