CIBIL Credit clarification needed

POSTED BY Suresh R ON February 23, 2013 11:35 am COMMENTS (5)

Whenever I pay for my online tranactions (train/bus booking, mobile bill payment, online purchase), use my credit card only. I am using credit card for past 1 year for shopping also. In average I used to get Rs. 3000-5000 (couple of times got 12000) credit card bill and paid all the bills on time. Actually I am using my credit card knowing my capacity only. Since it offers some grace period to repay the amount, instead of debit card / net banking, I am using my credit card.

Recently read one article saying if one who use credit card, CIBIL rate will come down? Is it true.. Last year I got a personal loan of 1 lakh and paid it on time without fail. My take home is 45k. Planning to take home loan in couple of years.

“CIBIL credit score is critical to the loan approval process. It provides lenders an indication of how likely it is that we will pay back a loan.”

So just want a clarfication on the use of credit card. Any input from experts much appricated. Thanks in advance.

5 replies on this article “CIBIL Credit clarification needed”

  1. Credexpert says:

    Dear Suresh,

    No, your CIBIL score would not decrease if you use your credit card for making purchases unless you are making late payments. Personal loans and credit cards are both unsecured loans and making timely payments on them will make the lender view your application positively.

    We assume that there should be no problem in your home loan application.

    Regards,
    Credexpert

  2. Using a credit card is better for your score + report , compared to not using credit card at all . Just that you have to do it wisely . As far as you are paying on time, your history is getting build and you are showing that you are paying your dues on time .

    There are many instances where people are refused loans , because they DID NOT have any past history of any repayment .

    So for you I would say you are on right track , Just keep using credit card wisely !

  3. Anshuk Jain says:

    Using credit card and paying it promptly actually helps your score..

  4. Dear Suresh, I’m glad to know that you are using your Credit card wisely & within your repaying capacity. Regarding the lower interest rates, still it’s not on the table to be offered to the customers who are using credit limits (be it CCs, PLs or HLs or Vehicle Loans) sensibly & repaying promptly. Yes a good credit score, help your banker to decide swiftly for the credit limit you are asking for.

    In future there may be differential rates based upon our Credit score as like in many other countries.

    Thanks

    Ashal

  5. As long as your pay your dues on time the regular use of a credit card will not affect the chances of getting a home loan.

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