Hot Deal It's time to get rid of CIBIL score.

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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.

94 Comments  |  
42 Dimers
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Shopping Friend
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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.

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

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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.

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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.

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Deal Lieutenant
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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.

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Deal Cadet
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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

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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.

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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.

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Analyst
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karanoshan wrote:

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

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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Analyst
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kirandr221996 wrote:

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.

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 .

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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.

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Analyst
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P_A_N_K_A_J wrote:

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

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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dharmanath481 wrote:

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

it would have been a mistake then, has happened with me once for the first EMI of my car loan. Before the EMI deduction date only i got a call from an recovery agent, saying i have not paid my EMI, i escalated the matter, even sent them the recorded call. I got call from nodal officer apologizing for the same

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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

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Deal Subedar
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dharmanath481 wrote:

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.

How can I check my CIBIL Score? Is there some website for it? Just curious…
Never bothered about what it is actually so don’t know a bit …

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cocay wrote:

How can I check my CIBIL Score? Is there some website for it? Just curious…
Never bothered about what it is actually so don’t know a bit …

To get your score you have to pay too stuck_out_tongue

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Deal Subedar
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rsai01 wrote:

To get your score you have to pay too stuck_out_tongue

Seriously? flushed
I’m better not knowing then. Life is fun and peaceful without CIBIL, Credit Cards and Loans.

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cocay wrote:

Seriously? flushed
I’m better not knowing then. Life is fun and peaceful without CIBIL, Credit Cards and Loans.

Yep minimum I have seen is 440/450 on SBI. CIBIL themselves of 3 plans of 1200, 800 and 550. I don’t know mine either because I don’t want to pay for it. Didn’t bother to check if there is a free way of knowing it as I never had the need to and will not need in the future too.

By the way don’t forget to apply for sbi card IPO. Better to buy one share of SBI to be eligible for shareholder quota.

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Deal Subedar
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rsai01 wrote:

Yep minimum I have seen is 440/450 on SBI. CIBIL themselves of 3 plans of 1200, 800 and 550. I don’t know mine either because I don’t want to pay for it. Didn’t bother to check if there is a free way of knowing it as I never had the need to and will not need in the future too.

Good!
Conclusion is, it’s definitely a trap of banks to make more money. I’m glad to have never bothered about this shit.
Thanks for confirming though

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Blogger
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cocay wrote:

Good!
Conclusion is, it’s definitely a trap of banks to make more money. I’m glad to have never bothered about this shit.
Thanks for confirming though

Speaking of the devil got a call from SBI to convert my 18k (spent because of the snapdeal gift card discount offer) into EMIs and she was explaining how easy it will be for me to pay without having the burden. stuck_out_tongue

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Deal Subedar
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rsai01 wrote:

Speaking of the devil got a call from SBI to convert my 18k (spent because of the snapdeal gift card discount offer) into EMIs and she was explaining how easy it will be for me to pay without having the burden. stuck_out_tongue

Even I get such calls. It’s not their fault actually. There are a lot of dumb folks out there who opt for these traps

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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.

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kirandr221996 wrote:

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

“Have spent 2cr+ in 1year”

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

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watever wrote:

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.

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
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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 %.

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Deal Cadet
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dharmanath481 wrote:

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.

Taking home loan is the best scenario today.
You get 1.5 lakh deduction on interest in ITR Plus 1 lakh on prinicipal. Plus 2.30 lakh subsidary.
I have taken 30 lakh loan for 10 years at a rate of 8.30 floating rates.
And i haven given same 30 lakh to my cousin buisness at the rate of 12% per year.
You just need to be smart in finance

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Ramesh1997 wrote:

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" ?

Many examples are there if you do proper research. Savings depends from card to card. For example Amazon pay card gives 5% back on you amazon purchases. You will get just the normal discount if you use debit card or cash. With Diners Black you get around 33% back if booked flights and hotels via Smartbuy, That is huge amount of savings. You would get zero if you paid by cash. Many examples are there and benefit varies from card to card. One of the best use is around 40 to 50 days interest free days to use the money. So ya you are leaving money on the table.

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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.

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Deal Subedar
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rsai01 wrote:

To get your score you have to pay too stuck_out_tongue

What bout cibil report that paisabazaar gives fr free ?! I know it’s not exact like cibil… But somewhat near right ?!

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