How to improve my CIBIL score? Please help

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Deal Captain
raghupro

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.

37 Comments  |  
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Deal Subedar Deal Subedar
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It’s already good. No need to worry. Just don’t miss any due.

Deal Captain Deal Captain
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rockingneo wrote:

It’s already good. No need to worry. Just don’t miss any due.

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?

Community Angel Community Angel
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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

Deal Subedar Deal Subedar
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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

Deal Subedar Deal Subedar
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raghupro wrote:

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?

Don’t  close your oldest credit line. As an average  10 -14 points increases every month in my case and any hard enquiry drops it by 5 points. In any case it will take some time to build a great score no matter what.  Since your score is already very great no financial institutions can deny any loan request if other things are okay.

Deal Captain Deal Captain
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SastaRaju wrote:

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?

Deal Captain Deal Captain
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rockingneo wrote:

Don’t  close your oldest credit line. As an average  10 -14 points increases every month in my case and any hard enquiry drops it by 5 points. In any case it will take some time to build a great score no matter what.  Since your score is already very great no financial institutions can deny any loan request if other things are okay.

Thanks once again. The oldest credit line are my credit cards, won’t close them anyways. I would like to close my loan on cards availed 3.5 years ago on my credit cards. Will that help boost the score at least by a tiny bit?

Deal Subedar Deal Subedar
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raghupro wrote:

Thanks once again. The oldest credit line are my credit cards, won’t close them anyways. I would like to close my loan on cards availed 3.5 years ago on my credit cards. Will that help boost the score at least by a tiny bit?

Of course it will but not instantly. It may take 2-3 months as some credits companies reports lately.

Deal Subedar Deal Subedar
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raghupro wrote:

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?

No neg effect since its a secured card against FD . But to show a pos effect min 6 months is req

PSU banks have more transparency , their loan rates are low also .

Analyst Analyst
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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

Deal Subedar Deal Subedar
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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??

Deal Subedar Deal Subedar
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SastaRaju wrote:

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 fd based card improve or worsen the credit score if one is already having say 5-6 normal ( non fd) based cards?

Shopping Friend Shopping Friend
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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.

Deal Subedar Deal Subedar
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If possible, try to get your credit card limit increased.

Deal Subedar Deal Subedar
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ManojSingla wrote:

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

Deal Captain Deal Captain
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jaybro wrote:

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?

Deal Captain Deal Captain
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neehesh wrote:

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.

Deal Subedar Deal Subedar
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chai_lover wrote:

Will fd based card improve or worsen the credit score if one is already having say 5-6 normal ( non fd) based cards?

Improve

Credit score improves when there is a mix of credits

Deal Captain Deal Captain
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ManojSingla wrote:

How to check CIBIL score ?
Any link

I am not sure if there are better ways but I use onescore app

Deal Lieutenant Deal Lieutenant
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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.

Deal Subedar Deal Subedar
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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.

Deal Newbie Deal Newbie
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First of all CIBIL is least bothered about home loan. Its already a secure loan. Bank only cares about job profile, property value, etc

Deal Captain Deal Captain
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shivanshu.k507 wrote:

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

Deal Cadet Deal Cadet
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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…

Deal Lieutenant Deal Lieutenant
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rockingneo wrote:

Don’t  close your oldest credit line. As an average  10 -14 points increases every month in my case and any hard enquiry drops it by 5 points. In any case it will take some time to build a great score no matter what.  Since your score is already very great no financial institutions can deny any loan request if other things are okay.

do u mean closing credit card also decrease credit score ?

Deal Captain Deal Captain
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tristar wrote:

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

Deal Cadet Deal Cadet
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raghupro wrote:

My experian score is around 840

I think some pvt banks do check both the reports just to ensure there are no outstanding EMIs that you’ve not disclosed to them and sort of check your eligibility..

I’ve tried my best but for some reason Cibil doesn’t let me move beyond the 790 level :S my experian score is 869 go figure..

You don’t have to worry about Home loan it should be processed as long as your salary has enough bandwidth to pay the loan emis that you want…

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