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It's time to get rid of CIBIL score.

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dharmanath481

For a decade believed higher CIBIL score is good.

So when needed to purchase gadget it didn’t hurt buying using zero EMI from Amazon.

But that in turn turned into a large amount so started being uneasy over period of time as multiple EMI’s started piling.

Finally on 28 dec 2019 I got a threat call from icici that if I don’t pay my Amazon pay credit card bill on time they would spoil my CIBIL score. Even when I have never defaulted on any payment for last 2 decades and still had 7 days time till due date while amount is just 13k.

This incident turned into an eye opener. Found Dave Rodney an author and a Podcaster with sound financial knowledge explaining how credit cards are addictive.

Higher CIBIL score really means nothing it proves you are bad in finances.

Unless taking a home loan where saving few thousands when paying lakhs in interest doesn’t prove its point.

It’s not a sign of prosperity but dependency on loan.

I always saved and bought in cash (even my RE Thunderbird 500) but with higher credit limits over time got complacent. Personal loan at home loan interest rates and credit cards do allow one to take wrong and impulsive decisions while purchasing.

My new year resolution is now to get rid of credit cards. Firstly self blocked the icici Amazon pay card from imobile app and next will settle all before Jan 2020 since I confirmed I don’t need to pay penalty for foreclosure.

Guys do check Dave Ramsey channel on youtube. He is old school but with the numerous bad decisions I made over lifetime thanks to tv Commercials by banks and credit card companies found its right to be old school.

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Benevolent Benevolent
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The problem is not just with credit card but with digital money also.
As when we pay online or via different digital method we lost the feel of real cash while paying
so we end up paying without understanding the value while it will be a completed different scenarios when we pay via cash.

Pro Entertainer Pro Entertainer
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Sure get rid of cibil but what about those managers/banks who insists on score? @rogerthat any thoughts babuji?

Analyst Analyst
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Taking a home loan today is worst thing one can do. Other than loan any manager asking CIBIL score is doubtful person.

good CIBIL score will only help secure pre approval faster than one not having any score at all. Even a salary slip or itr does the trick for fast processing .

To get the 850 score imagine the interest paid to bank to achieve it.

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Deal Subedar Deal Subedar
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Thanks for sharing experience.

People should not try to get the BEST CIBIL score because a perfect score of 900 can only be achieved by people who are making (paying) money for the bank.

Also, self-discipline is the key to financial freedom. Credit cards are a good “tool” that one can effectively use to save money but one should know how to make best use of the cards.

It’s weird that ICICI Bank called you when there were no delayed on payments from your end.

You should give a written complaint to ICICI branch manager against the harassment documenting the events so that corrective action can be done.

Deal Subedar Deal Subedar
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Its a criminal act of threatening.

And I am really astonished why the bank has resorted to spoil its relationship with customer.
I am feeling somehow ICICI is loosing on its retail business / personal banking market and instead of correcting themselves they want to correct their customers.

I will suggest OP to send the call recording to ICICI bank for verification and confirmation if the call was actually made on their behalf.
Also send a copy to banking ombudsman.

Tech Guru Tech Guru
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I was/am/shall remain against the lure of credit cards. They want us to get loan burdened like stupid Americans.

Helpful Helpful
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Bro no bank calls you before a credit card due date, most even wont call till the next bill is generated.
This guy is not telling the truth, he would have definitely missed payments in between and not paid minimum due

Analyst Analyst
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no i am somewhat good in finances and never missed a single payment till date.
It’s strange but they did call
the called ID stated number as +40 385 270 00

I also verified its from an icici bank representative and not fake call cenre

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Deal Subedar Deal Subedar
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In simple terms, CIBIL is used by banks to increase their own income in the form of interests, late payments and similar things by scaring customers.

It’s a lucrative Trap and most educated and so called over-smart folks fall for it.

Deal Cadet Deal Cadet
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This is misguiding
No bank will ever call before due date and if u r not a regular defaulter they won’t threaten.

I agree with you cibil of 900 only if u r earning bank profit.

Analyst Analyst
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Correction: paying through the nose for life so bank is earning profit for 900 score.
I am a bank share holder likeaall others as well as stock holder where I don’t earn more than 600 per year from all the investment .

Deal Subedar Deal Subedar
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Nice idea to get rid of CC. If we have a CC we tend to buy many things which is not even required. So i closed my CC in this month.

Deal Cadet Deal Cadet
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I own SBI cc initaiatilly they gave 30k now limit is almost 7times.
CiBil was not there before 1year now have appro.861 decemeber I have never paid 1rs extra. Paid 500rs for card fees also got it back as I was mentioned free card during call recording. Have spent 2cr+ in 1year

Pro Shopping Friend Pro Shopping Friend
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“Have spent 2cr+ in 1year”

Just asking If ur spends would have been same without having cc..??

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Deal Cadet Deal Cadet
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Using credit cards is the best thing if you use it responsibly and always pay your dues in full everytime. All i can say is that you are leaving money on the table by not using credit cards.

Pro Shopping Friend Pro Shopping Friend
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Other dimers have put forward there points against having a cc.

So, pls explain ur point in favor as well..How is it “Leaving money on the table by not usign a CC" ?

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Deal Cadet Deal Cadet
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Using credit cards can make you money.
Example if you are purchasing 50 thousand per month using credit card you get 40 days to pay for it. That 40 days in your bank account can generate 0.5 percent assuming 4 percent saving account interest. Plus reward points too.
Plus paying credit card dues through cred app generates minimum 0.5 percent .
So total benefit would be minimum 2 %.

Shopping Friend Shopping Friend
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Credit cards are necessary evil for some of us. I have been using CC for decades now. Like everything in life , it depends on how one handles the tempting credits . On wrong hands , CC can be a tool for financial disaster. If used wisely, CC can build a good credit score. A good score is a must these days for securing a loan with favourable interest rates . It won’t be long before employers in India start including CIBIL scores as a part of background verification.

Credit cards also have much superior fraud prevention. You can always file disputes against unscrupulous merchants. How many debit cards in India can boast about fraud prevention?

CC can be used for emergency expenses if you don’t have funds lying in your savings account. Most hospitals and other emergency service will be happy to accept to accept a CC payment. This gives you to the elbow room to concentrate on the emergency situation rather than worrying about how to arrange funds.

I very rarely buy items on EMI. My logic is , if I can’t make the full payment of the item , it is beyond my means. Having said that , no cost EMI is not a bad option.

Deal Subedar Deal Subedar
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Lakh rupaye ki baat kah di smile

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Hunk Hunk
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Here is my take :
One of my friend who is a owner of grocery shop explain this to, that why he always do transaction in cash with proper VAT/GST bill.
Lets say you are purchasing a 10K mobile online. What you do? You go online, simply put your card details and money get debited to your account/card.
Now do the same thing in offline shop with cash, go to ATM and withdraw the money, and hand over the same to shop owner.

In first case, you are happy you got good deal and new mobile. But in seconds case you will think twice, thrice, you really need this mobile now , or your current mobile is good for another 6 months. This happens bcoz there is a touch of hard earned money which we dont get while doing transactions with card.
Once I did this trail and really felt the difference.
If you want to see your self, do this, generally many of us order food online, like pizza for around 600. Now go to any fruit seller and try to buy 1KG apple by paying 150Rs in cash. You will feel the difference.
So, my take is you keep cards (2 Max) as they will be helpful in some cases but keep it for very limited and necessary transactions.

Like Magnet Like Magnet
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I have seen comments like this recently that icici bank is doing this shit thing. Not sure why.

Benevolent Benevolent
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I absolutely agree on credit card addiction. I am intending to shut down all my high limit credit card and have just one in access for emergencies as I often run out of cash due to irregular payment cycles from clients most times.

Coincidentally, I got a payment reminder call from ICICI (claimed to be) as well on 28th december 2019. I gave them a strict warning to never call me again even if I don’t pay on time, they apologised and cut the call. As usual, I blocked their number later. My redmi note automatically identified that number as spam as well, not sure how many annoyed users marked that number as spam.

As other pointed out, they have no right to threaten you. Moreover, I don’t think an individual can control your CIBIL score, it would mostly be an automated system that would track your loans, credit card usages, payment cycles etc.

Deal Subedar Deal Subedar
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While the score is calculated automatically based on many parameters, a negative remark from a bank can do a lot of damage for score.
Of course, bank cannot send wrong data or threaten to send it for recovery. They have to follow the process and report correct status every month for all accounts.

Vanguard Vanguard
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@indiansoul i regularly used to check wishfin but my score n report hasn’t been updated by them for about a year now? Is there a limit to the no is times you can check?

Deal Subedar Deal Subedar
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I get updated report when I check every other months. Score may not change every month but details like credit card outstanding and payments should be reflected for recent months.
Btw, I check the report not for the score but more to validate that there are no unusual changes.

R u looking at your CIBIL score or the report details to assess if your report is latest?

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Deal Cadet Deal Cadet
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People who can’t control their credit card spends or don’t know how to use a credit card only complains against Credit Cards. They should never use credit card. smile

Deal Cadet Deal Cadet
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No bank is giving me a credit card
Now I feel happy

Deal Lieutenant Deal Lieutenant
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credit cards can be both boon and curse
depends on the person using them

example
I purchased the swytch gc from snapdeal at 10% discount and will sell amazon from that at 2.5% discount, 7.5% profit in about 15 days
p.s- I am not at all worried about the late delivery as I previously also purchased and got every time with about a 1-2 week delay

also I never purchased anything on chargable EMI
I purchase only on free EMI that too when I have the whole amount with me at the time of purchasing

my cc helped me a lot when my grandmother was hospitalized recently I paid with it and then paid the due also on time, so effectively without any extra charge

but thats the case for me
cc can also ruin someones financials if used in that way

yes about ICICI bank
I think they are a bunch of F********ups
I have also experienced it and wondered how the hell is this such a big bank

Helpful Helpful
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OP bro you are just bad in managing personal finance. You should always spend as if the money is going from your pocket; because it is, credit cards just offer convinience.

Deal Subedar Deal Subedar
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I see a lot of misconceptions and missing info about credit scores in this thread.
1) As per RBI instructions, every individual is entitled to get 1 free credit report every year from each CIC. Check their individual websites and you will get link to apply for free report (detailed report, not just score). If you can’t get a link, mail them citing RBI instructions.
2) Hitting a credit score is not someone’s (here, banks) discretion. Generally, there is an automated process where ongoing repayment data is shared with CIC to develop scores. However, some institutions don’t share every repayment data with CIC but only reports any default in payment.
One should keep in mind that one can always raise dispute if any irregularity is noticed in financial reports. It’s a common scene these days when faulty credit reports are corrected by CIC’s after a dispute is raised by individual.

*CIC – credit information companies

Coming to discussion on credit cards relevance, I see them as a great method of savings. You get some good card discount offers beside intrest free deferred payment option. Also if we cancel any order later if we don’t like the product, then in case of debit card or net banking, an unnecessary debit is marked in your accounts for some days but in case of credit cards, we tried that product for free. On views of excessive spending due to credit limit, I feel that I already think twice before buying any product, be it in cash or credit.

Helpful Helpful
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wid gr8 powers… comes greater responsibility.. sunglasses
use it wisely

Deal Cadet Deal Cadet
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Credit cards if used wisely are biggest boon and if used carelessly becomes biggest curse. Besides credit card comes with host of benefits best of all which we enjoy as family is Free Lounge Access across the World under Priority Pass tie ups. This is best thing while traveling by Air as you get free palatable food and drinks. Apart from Savings in form of reward points which can be converted to air miles for free tickets. This are the advantages one can never get while spending in cash.

Analyst Analyst
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I am back after 4 months and looking behind I feel icici call was actually good for me. I listened and acted on it.

I don’t care what the critics said. I give a damn to them.

After lockdown my CC bill was ZERO. it’s still ZERO since all purchases (lockdown left only groceries and utility bills to spend on) switched them to Gpay. Since there are no more emi’s it’s zero.

I no longer need to worry on how I can pay that CC bills on 3 cards and actually restarted savings.

Deal Captain Deal Captain
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Personal experience varies from one person to another. As for Me Credit Card has to be best thing that ever happened to me. You don’t need to beg others for money. Yes you need to clear monthly dues on time and stay after from interest charging EMIs.

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Deal Subedar Deal Subedar
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Cibil history – 1

Deal Captain Deal Captain
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Now Paytm is offering free CIBIL score in their app.

Deal Cadet Deal Cadet
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Not now. They have been offering it since months.

Helpful Helpful
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any option in paytm app for free cibil score, i cant find any option

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