CIBIL big drop and rise : An Analysis

Me Too Learned Some Cibil Lessons

Hdfc Cibil Reporting Date Is Month End 30/31 , I Am Paying Full Outstanding 2 Days Before Month End.

In Cibil it Is Showing High Credit 44k (58k Card Limit) , Current Balance Zero.

And Cibil Down By 7 Points...

783 To 776

Cibil is not life , just don't miss any payments  thats all and keep score over 750  ...  Using credit limit  won't effect much on your score and changes are temporary ...Don't take too much stress for cibil score 

Each bank has different way of reporting to CIBIL e.g SBI reports after 3 days of the due date. CIBIL won't increase so drastically. I used to pay HDFC bills on the due date.

This all optimization  around month end thingy is not anymore relevant  banks have became  smart by randomly  reporting credit bureaus whenever your utilization  is high this is especially implemented for perceived high risk customer and ntb customers since past year when RBI raised flag on High cc spends 

Then there is deadline  by RBI to make reporting  every 15 days starting  Jan 2025 and this is a step towards  regular reporting  weekly & real time each day eventually although that may be couple of quarters  away 

The basic hygiene  here works from now on is keep the leverage  low in every category be it card specific -bank specific -overall credit card portfolio  and even overall credit exposure 

Next coming to variation in above instance from op is algorithm which is opaque can't be true for everyone  but the basic feature is Risk and leverage....and yeah it may say counterintuitive  but risk is minimised when there is consistent behavior and any deviation  in a set pattern  leads negative  that's why you see such variations 

If ye start prepaying the full amount due before the bill generation date then there will be nothing to report to Cibil in any case & that would not be helping you in future loan /card purposes. Atleast give the banks something to report.