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POSTED BY ON June 5, 2012 1:44 pm COMMENTS (4)
Hi Manish and the team,
First off, thanks for maintaining such a good and informative website. Really appreciate what you are doing.
My question/ concern is as follows:
I received my CIBIL score on 2nd June 2012 and it says my Score is 710. But, on March 26, 2012 when I received my CIBIL score it was 730. My concern is that the score has gone down instead of going up.
Between March and May, I have only made more payments in a timely manner and based on that the score should have only gone up. My score was calculated as 730 in March 2012 based on all the timely payments and non-timely payments, the loans I have cleared in full, a written off credit card and all that.
So, between March 2012 and June 2012 everything else remains the same and there have been no additional defaults. Also no additional loan inquiries have been made to my account.The only difference is that I have made more payments on time (which is reflected in the June 2012 statement). But, still the score instead of going up has gone down. Do you have any idea as to why this has happened?
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Dear Vim, the possible reason may be – you paid back the loans in full (closure of loans means no more credit mapping) on the other hand, an old written off credit card is still attached to your credit history. Please do not worry for this. Over the next few months, keep paying your credit card bills in full & the score ‘ll improve automatically.
Thanks
Ashal
Hi Manish and Ashal…Thank you for your thoughtful answers. After going through what you have written, it does make sense as to why the score has gone down. I’ll wait and see whether the score improves or not and will keep you guys posted accordingly. Thanks, once again.
Dear Vim, just a small suggestion, this time do not go to score checking in next 3 months. Please check your score in either December 2012 or January 2013 only to give a bit of time for credit mapping & reporting to CIBIL from the financial institutions you are dealing with.
VIm
I know there is some thing strange in this . But here are some of the possibilities .
1 : CIBIL has still not got any update about your activities for last few months and that is not included in the score generation
2. The score is calcualated based on a fixed period history like 36 months , So your current 36 months might not be better than your 36 months just before 2-3 months back
3. Your score depends a lot of your OPEN LOANs, so as soon as you close a loan, there might be a temporary dip in your score . dont look at it so fast , check it after few months . It should ideally be ok .
You can read some similar incident here : http://www.creditkarma.com/question/why-the-heck-did-my-score-drop-48-points-in-one-month-with-only-positive-changes-to-accounts
Manish