How does cibil works..?
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Anyone any comments..?
I understand that one should pay CC bill before 30th of every month for decent score.
Tell tell..
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one should pay the bills > 20% before their bill generation for decent score,
but recently i have seen some news where banks are asked to send outstanding balance every 2 weeks. So for decent score, keep the utilization under 20% all the time.
If you need to use, then pay back immediately.
my friend who has gang of cast, community & support says "Thappad marne se" CIBIL works and he got loan to the tune of 10cr with this.
He says dont get into intricacies', this is INDIA
I never really understood how CIBIL works, I know many such examples where CIBIL is stupid.
My driver got cibil score of 806 where as me with a card limit of 32L has 802 cibil, he has no credit card, no history of home loan, he opted for one time personal loan of 1l and paid in 12 months without any miss, with a history of 1 year, he has cibil better than many of us here. I checked his score on gpay, other apps for 2 months and yet it stayed for 806+.
On the other hand, my friend's son who just got his first salary got credit card limit of 16k, his cibil is 796. Probably 1-2 months old credit account.
One more friend who always use cards to 80-90% and pays in full, got cibil score of 752+ after 4-5 years of credit history. His score never gets above 760.
FIRST BANK SHOULD SHOW TRANSPARANCY
CIBIL works like magic for "banks/financial institutions" to give you high interest rate loans:) saying your CIBIL is bad
first we need to mandate banks to show how much cibil numbers gives you WHAT INTEREST RATE IN FRONT OF DISPLAY IN THEIR RECEPTION, then this entire thing will be solved
board should be like the following
300 - no loans
350 - no loans
400 - no loans
450 - no loans
500 - 25% APR interest rate
550 - 23% APR interest rate
600 - 22% APR interest rate
650 - 21% APR interest rate
700 - 20% APR interest rate
710 - 19.5% APR interest rate
......
....
850 - 10% APR interest rate
900 - free interest (joke)
this solves BANK PLAYING GAMES WITH CIBIL NUMBERS with end customer who seeks loan products
as its bank discretion to offer anything CIBIL IS JUST A GAME THEY PLAY TO GET MORE SPREAD FOR BANK REVENUE
BANK IS HIDING THINGS ON HOW IT USES CIBIL SAYING INTERNAL POLICY LOL