CIBIL Score Query

soulweaver

soulweaver

On TE since 2005
Enclave Plus
Galvanizer
Hello!

I have a query. I have never taken a loan. I have a couple of credit cards, but I barely use them. When I do use them, the bills are paid in full, and on time, everytime. There might have been a few lapses, four or five times, five or six years ago, but since then, there hasn't been a single lapse.

My ITRs are filed regularly, but I am sort of a lower-middle class guy. I have zero debt. I have some investments in SIPs. I have an EV two-wheeler on my name. I do not have a car or a home on my name. My monthly expenses are around 10k.

Is there a way I can improve my CIBIL score? I have no need for any consumer durables (recently purchased a fridge, and a computer screen), so there is no much I can do in terms of paying things via EMI. My score is around 750 - 760 (do not know why)

I might be planning to buy a car soon, and would much prefer buying a car on EMI. And also start looking for a home (home loan), so I want to have a decent enough score to easily get a loan.

Any suggestions would be welcome.

@honest1 @nRiTeCh
 
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Using your credit card will increase your cibil score but utilisation shouldn't exceed 30% of your credit limit.
So ideally you'd want a credit card with a high credit limit.

I once missed an emi 4 years ago and my cibil dropped from around ~815 to ~720. I got a credit card with 3.5 lakhs credit limit. I spend close to 30-40k on credit card per month, that's 10-15%, before my next bill payment I'll have spent another 10-15% unbilled payments. Sometimes I've reached my 3.5L limit and sometimes haven't used it at all, in just 2 years I was able to go from 720 to 785.
 
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I have a couple of cards. One is over 8 years old, and the other is about 3 years old. Limit is 5L on both cards. I have rarely if ever reached the limit on either. And for most part they are not used much. In the past three years, I have probably reached 30 or 40% of the limit on the cards may be once on each.
 
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You are thinking too much!
If you don't use cards or stick to existing spending habits the score is going to stay as is.
For home loans, the first check is done on personal loans and their repayments, then comes credit cards and so on along with your cibil which a bare necessity is 750 afaik when I went for an home loan 3 yrs ago.

So simply relax as you don't have any liability on you nor you have skipped anything to the tune of getting rejected.

My score keeps fluctuating and the last time when I missed on a mere 250/- icici payment my score dropped from 890 to 820 but then it pumped back to 870 within 3 months. Right now not bothered at all as I'm done with all types of loans so even a bare min 750 works for me.
 
nRiTeCh said:
You are thinking too much!
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I want to see how my spending habits may be altered. I just find the whole financial system strange. I am from the old school of thought that no debt is a good thing. Lived most of my life like that. Apparently, these days, good savings and investments aren't enough. :confused:
 
soulweaver said:
I want to see how my spending habits may be altered. I just find the whole financial system strange. I am from the old school of thought that no debt is a good thing. Lived most of my life like that. Apparently, these days, good savings and investments aren't enough. :confused:
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CIBIL score isn't score of your spending habits or financial health, but a score of how good of a borrower you are. Think of it that way.
 
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napstersquest said:
CIBIL or Experian?
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Most probably Experian. I had it at 892 for a long time before they tweaked their algorithm recently.
soulweaver said:
Hello!

I have a query. I have never taken a loan. I have a couple of credit cards, but I barely use them. When I do use them, the bills are paid in full, and on time, everytime. There might have been a few lapses, four or five times, five or six years ago, but since then, there hasn't been a single lapse.

My ITRs are filed regularly, but I am sort of a lower-middle class guy. I have zero debt. I have some investments in SIPs. I have an EV two-wheeler on my name. I do not have a car or a home on my name. My monthly expenses are around 10k.

Is there a way I can improve my CIBIL score? I have no need for any consumer durables (recently purchased a fridge, and a computer screen), so there is no much I can do in terms of paying things via EMI. My score is around 750 - 760 (do not know why)

I might be planning to buy a car soon, and would much prefer buying a car on EMI. And also start looking for a home (home loan), so I want to have a decent enough score to easily get a loan.

Any suggestions would be welcome.

@honest1 @nRiTeCh
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750-760 is a good score. Sometimes even 780-800 score won't guarantee loan sanction. Along with CIBIL score, your relationship/leverage with lender, eligibility criteria are other crucial factors.
 
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From what i understand isnt anything upwards of 700 considered a very good score? like the top 15% percentile or something like that.

You're probably overthinking this a little.
 
soulweaver said:
That, I don't know much about. Have my PF and a couple of deposits from a long time, but nothing much. Low 7 figures or so.
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It's fine. For now your decision of getting a car loan will positively affect the CIBIL score as it will help in diversifying the credit type. Generally, those with scores above 800 have different types of credits - secured, unsecured, credit cards, auto, personal, home loans etc.
But don't go for loan and pay extra as interest for the car just to get the score up, if you have cash to purchase.
enc0dex264 said:
From what i understand isnt anything upwards of 700 considered a very good score? like the top 15% percentile or something like that.

You're probably overthinking this a little.
Click to expand...
700 above should be good to go, but in practice 750 above is safer as sometimes financial institutions reject applications for some products (such as specific unsecured credit cards if the score's below 750). So, above 750 can be termed as very good and near or above 800 as exceptional.
 
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