How to improve my CIBIL score? Please help
Dear Dimers,
I am planning to avail a housing loan in June/July 2021 and would like to start addressing the concern of improving my CIBIL score from now.
Can someone please guide me on factors that affect the score and what I need to do in general to improve the score?
I have 3 active credit cards. Don’t use 2 of them on most occasions apart from once or twice a month for transaction value less than 5k at max. Credit limits on these are 90k and 2.25 lakhs. I have loan on card active on both these credit cards availed for 48 months EMI out of which 40 EMIs have been paid so far without missing due date even once so far.
My active card has a credit limit of 6.2 lakhs and I use it for around 30k to 50k each months apart from one exception of 2.5 lakhs in a month. Credit limit on this card has been increased from 90k to 6.2 lakhs in November 2020 and the very same month I used it for 2.5 lakhs.
As per the feedback received on OneScore app regarding my CIBIL score. One discrepancy I see is that two of my accounts have a different address (my old office address). I will get these reverted to my home address to maintain consistency.
I am planning to close both my loan on card accounts by end April by prepaying whatever principle amount is pending then.
Any other actions I need to take?
My current cibil score generated in Feb 2021 is 780
Thanks in advance guys.
PS: I just realised I crossed 10k karma. Thanks to @goss8877 and @Siddhartha07 for the most recent karma added to me.
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Thank you. I never missed due date of any of my credit cards till date and hope to maintain it that way going forward.
Any other suggestions? Does number of active loans at a point of time affect the CIBIL score too?
Thanks for mentioning me bro, anytime…
Although I don’t know much about your query,
Tagging someone who I feel can help you with this,
@hotchap
Fd cards boost CBIL since its secured
Try to get a ICICI free FD card and spend 200-500 on it
My cibil jumped from 791 to 834 in 6 months
For housing loan try to negotiate from PSU banks unless you hold wealth account in private . For the later you can talk to your rm and negotiate they will waive off certain points and or processing fee
Will adding a new credit card not affect the score in a negative way as I just have 4 months more to avail a housing loan?
Do PSU banks offer better interest rates or is there any other major advantage opting for PSU banks?
You are going good…
Don’t take any credit cards for safe side till you get your home loan.
Don’t close old credit card also use it some times
Don’t take multiple loans
If any credit limit increase are there then opt to increase them
Use 30% if your limit
cc: @Siddhartha07
My company recently opened a salary account along with they seemed to have included credit card with it.
I received an sms stating application in process but I am not interested in getting it..
If I request the bank to cancel my application, will it impact my CIBIL score??
I think you are doing fine, if you continue to pay due(full payment) within time, there will be no harm with the cibil score. Actually defaulting is the main problem to affect the cibil score. Don’t breach the credit limit, try to use upto 50% of the credit limit. You will be fine with your given requirement. Close the credit cards asap if you don’t use. Get the credit report from any of the 4 bearues and see everything is fine apart from credit score.
Any specific credit bureau report you suggest?
If possible, try to get your credit card limit increased.
Both my major credit cards are at decent limits already. One at 2.25 lakhs and one at 6.3 lakhs.
How to check CIBIL score ?
Any link
Non spam and genuine
cibil site 1 free report
Via sbi card app
Hdfc free report per month
Icici free via NB
Rest other will spam your no
If your CIBIL score is above 750 then you are good. You are eligible for the best interest rate on all loans, so nothing to worry. Anything above 750 does not affect your borrowing power.
For housing loan, cibil score alone is NOT the prime criteria. You will be asked many questions based on cibil record.
The main point is the earnings to loans ratio. If you are earning 1L per month, they calculate 50k as your EMI amount for all loans.
If you are already paying 20k as EMI for some other loans (like car/personal/CC etc). The new housing loan EMI would be 30k. The minimum housing loan amount would be 30k x 12×10 = 36L (Here 12 is months and 10 is years)
Since you are taking secured housing loan , cibil score is not considered much but cibil report entries are considered as important parameters.
First of all CIBIL is least bothered about home loan. Its already a secure loan. Bank only cares about job profile, property value, etc
I am a complete noob when it comes to loan.
When you refer to secured loan, do I have to submit some collateral in terms of existing land documents or something or can I avail a loan based on my pay slips?
CC: @ramadesidime
CIBIL seems to play fast and loose with their reports…Even the people with the best repayment seem to move around in the 750-810 zone.. how is that possible when there is one loan and the person is paying it on time…
Recommend checking Experian as well, my personal experience, CIBIL is shaving off a few points from the top with no proper justification… There should be some regulation around the credit reports to ensure they can’t just mess around with people..
It’s about checking your worthiness and eligibility to provide a loan…
My experian score is around 840
What happens if I use 90% of card limit and repay the same before bill generation date..? .
Will cibil decrease?
What happens if I pay within due date of bill? Anything changes?? Will impact CIBIL?
It’s already good. No need to worry. Just don’t miss any due.