Best ways to increase CIBIL Score from Credit C...

Best ways to increase CIBIL Score from Credit Card?

110°
Images
Deal Colonel
1,312
56,895
68447
751

Guys, pls ans the below queries. tia.

1.Best % of Credit limit to be utilized. I mean the % utilized in billing vs approved cc limit
– is it 20-25 %?

2.Does more Number of Credit Cards affect cibil score?
- i guess yes

3.Does more consumption of cc limit in a single billing cycle affect cibil -vely?
for ex if i have 1 lakh CC limit and in a single billing cycle i do the below txns.
day1 – 1 lkh txn
day 2 – transfer 1 lakh from bank acct to cc.
day 3 – one more 1 lakh txn
day 4 – transfer 1 lakh from bank acct to cc.
so in total have done 2 lakh txns and paid off totally and the bill generated was 0.
any -ve or +ve impact?
- tech it should not but not sure.

4. does no usage of cc affect cibil? meaning no txns at all.
- i guess so

also, pls post any missed queries. thx,

also, pls let us know the best ways to increase the same.

15 Comments  |  
9 Dimers
Img 20170303 wa0005
Deal Captain
7
23
7606
40
rajrocks wrote:

Guys, pls ans the below queries. tia.

1.Best % of Credit limit to be utilized. I mean the % utilized in billing vs approved cc limit
– is it 20-25 %?

2.Does more Number of Credit Cards affect cibil score?
- i guess yes

3.Does more consumption of cc limit in a single billing cycle affect cibil -vely?
for ex if i have 1 lakh CC limit and in a single billing cycle i do the below txns.
day1 – 1 lkh txn
day 2 – transfer 1 lakh from bank acct to cc.
day 3 – one more 1 lakh txn
day 4 – transfer 1 lakh from bank acct to cc.
so in total have done 2 lakh txns and paid off totally and the bill generated was 0.
any -ve or +ve impact?
- tech it should not but not sure.

4. does no usage of cc affect cibil?
- i guess so

also, pls post any missed queries. thx,

also, pls let us know the best ways to increase the same.

https://cdn1.desidime.com/assets/textile-editor/icon_eek.gif
Download
Deal Cadet
0
104
974
6

@rajrocks

day 4 – transfer 1 lakh from bank acct to cc.
so in total have done 2 lakh txns and paid off totally and the bill generated was 0.

I guess CIBIL would only receive your end of cycle Statement balances. And if any/full payment was made towards the reported Statement balance.

I have a feeling this scenario you came up with will make it appear as a non-utilization of your credit line. (Your point 4)

If this guess is indeed true, the obvious solution is to reduce your payments within that cycle to such extent, as to let the statement generate to the desired amount as determined in your point 1


Hopefully CIBIL only sees, what we want them to see https://cdn2.desidime.com/assets/textile-editor/icon_wink.gif

Geek
Shopping Friend
0
401
6254
140

@rajrocks

1. A credit utilization under 50% is optimum.

2. More number of credit cards may effect your credit history in short term but would build up your CIBIL score on the longer run since more number of credit cards = more credit limit = better credit utilization. BTW, just make sure that you don’t come across as credit hungry by applying multiple credit cards/loan at the same time. If you have recently got a credit card, wait for at-least a few months/year before you sign up for the second one.

3. Single day billing doesn’t matter. Just ensure that it doesn’t fall on the statement date. Banks would only report billing amount/outstanding amount to CIBIL. None of your transactions gets reported to CIBI.

4. Usage doesn’t matter . Use your CC as much as you want.

FYI, Secure loans build up your credit card faster than non-secure loans. A home loan and a car loan will generate a much better credit score than credit cards/personal loans.

Images
Deal Colonel
1,312
56,895
68447
751
umarkumar wrote:

@rajrocks

I guess CIBIL would only receive your end of cycle Statement balances. And if any/full payment was made towards the reported Statement balance.

I have a feeling this scenario you came up with will make it appear as a non-utilization of your credit line. (Your point 4)

If this guess is indeed true, the obvious solution is to reduce your payments within that cycle to such extent, as to let the statement generate to the desired amount as determined in your point 1

Hopefully CIBIL only sees, what we want them to see https://cdn2.desidime.com/assets/textile-editor/icon_wink.gif

thx bro. https://cdn2.desidime.com/assets/textile-editor/icon_smile.gif

reg point 4 – i meant to sa NO usage at all. NO txns. https://cdn3.desidime.com/assets/textile-editor/icon_wink.gif

reg point 3 – wht u say is true then this would save our a$$ https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

Images
Deal Colonel
1,312
56,895
68447
751
cybertechie wrote:

@rajrocks

1. A credit utilization under 50% is optimum.

2. More number of credit cards may effect your credit history in short term but would build up your CIBIL score on the longer run since more number of credit cards = more credit limit = better credit utilization. BTW, just make sure that you don’t come across as credit hungry by applying multiple credit cards/loan at the same time. If you have recently got a credit card, wait for at-least a few months/year before you sign up for the second one.

3. Single day billing doesn’t matter. Just ensure that it doesn’t fall on the statement date. Banks would only report billing amount/outstanding amount to CIBIL. None of your transactions gets reported to CIBI.

4. Usage doesn’t matter . Use your CC as much as you want.

FYI, Secure loans build up your credit card faster than non-secure loans. A home loan and a car loan will generate a much better credit score than credit cards/personal loans.

thx bro. https://cdn2.desidime.com/assets/textile-editor/icon_smile.gif

reg 4. – i meant no txns at all.

reg 3 – if what u said is true then i hope would be same for a case where if i want to make a single txn of 1.5 lakh, i can add 50k from bank to credit card to the existing 1 lakh cc limit and make the cc limit to 1.5 lakh. (ex as per in the main post).
actually i had done once like this.

Missing
Deal Newbie
0
50
20
0

Credit Card companies submit report quarterly to the CIBIL. In indian CIBIL score takes some time to improve mainly due to delay in reporting.

You can read more about it on http://CreditCard...rg

Dual survival cody lundin 2
Deal Captain
40
104
12763
141
Carry Forward – NOT!

Not paying your Credit Card dues in full could mean high interest on that debt. Watch out. Swipe and pay the entire bill. That’s how you get smart with Credit Cards.

High Credit Utilisation

It’s not a good idea to use more than 30% of your credit limit. High credit utilisation means danger for your Credit Score. Pay off your Credit Card dues to reduce your credit utilisation rate.

Late Payments

Don’t complain about paying heavy interest charges on your Credit Card if you don’t pay the bill within the due date.

Collecting Credit Cards

While you might be tempted to get every new Credit Card offered to you by banks, watch your step there. Too many Credit Cards may become rather difficult to manage.

Don’t let these bad Credit habits spoil the fun of owning a Credit Card. We have some awesome offers – just for you.

Images
Deal Colonel
1,312
56,895
68447
751
Cody wrote:
Carry Forward – NOT!

Not paying your Credit Card dues in full could mean high interest on that debt. Watch out. Swipe and pay the entire bill. That’s how you get smart with Credit Cards.

High Credit Utilisation

It’s not a good idea to use more than 30% of your credit limit. High credit utilisation means danger for your Credit Score. Pay off your Credit Card dues to reduce your credit utilisation rate.

Late Payments

Don’t complain about paying heavy interest charges on your Credit Card if you don’t pay the bill within the due date.

Collecting Credit Cards

While you might be tempted to get every new Credit Card offered to you by banks, watch your step there. Too many Credit Cards may become rather difficult to manage.

Don’t let these bad Credit habits spoil the fun of owning a Credit Card. We have some awesome offers – just for you.

what offers u have for me https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

Matrix stickmen
Perfectionist
30
2,278
42799
736
umarkumar wrote:


I guess CIBIL would only receive your end of cycle Statement balances.

@cybertechie wrote:

3. Single day billing doesn’t matter. Just ensure that it doesn’t fall on the statement date. Banks would only report billing amount/outstanding amount to CIBIL. None of your transactions gets reported to CIBIL.

Not entirely true, gentlemen. Banks do report your credit utilization and it’s reported in your CIBIL report under a column/field called “High Credit” even if you alter the net due amount by making payments before the monthly bill is generated. In this column, you will see the highest reported credit utilization by you since starting the credit card and this can be more than even your credit limit for over-utilization or spend-and-pay-before-the-bill-generation cases.

Download
Deal Cadet
0
104
974
6

Hopefully CIBIL only sees, what we want them to see

Our hopes just got dashed!!

Narcos netflix
suspended
0
50
164
3
Expand
DealSeeker wrote:

Not entirely true, gentlemen. Banks do report your credit utilization and it’s reported in your CIBIL report under a column/field called “High Credit” even if you alter the net due amount by making payments before the monthly bill is generated. In this column, you will see the highest reported credit utilization by you since starting the credit card and this can be more than even your credit limit for over-utilization or spend-and-pay-before-the-bill-generation cases.

Not sure about this, I have spent around ~55K in a month with a CC limit of 20K by pay spend before billing date. But in my CIBIL, the CC limit is absent, and the High Credit is reported as 17K, i.e., the highest statement amount generated till now.

This might be limited to HDFC, or CIBIL have the data, and they are not sharing with us. HDFC won’t allow (at least for me) to raise the limit by paying early, in any case, the maximum limit remains the same for me.

D7rgy8yx
Deal Subedar
3
155
2664
33
cybertechie wrote:

@rajrocks

4. Usage doesn’t matter . Use your CC as much as you want.

Usage does matter. Try not to use more than 35% of credit limit. It will affect your Credit Utilization Ratio, @DealSeeker already mentioned a lot about it.

Narcos netflix
suspended
0
50
164
3
Expand
cyberboy wrote:

Not sure about this, I have spent around ~55K in a month with a CC limit of 20K by pay spend before billing date. But in my CIBIL, the CC limit is absent, and the High Credit is reported as 17K, i.e., the highest statement amount generated till now.

This might be limited to HDFC, or CIBIL have the data, and they are not sharing with us. HDFC won’t allow (at least for me) to raise the limit by paying early, in any case, the maximum limit remains the same for me.

Noticed 7 bucks as an overdraft on my cibil apart from usual credit card bills. I think that’s the reason for my low score.

If anyone interested in reviewing my cibil and giving suggestions, let me know. I appreciate it.

Missing