ICICI Bank Credit Cards

[royalroy]

If I use 100% of my limit in a month and pay 90% of that before the bill is generated, will the bank report 10% utilization to CIBIL?

 

[Sudarshan61]

Banks report CC limit(100) and High Credit(90)and Current Balance(10) ..in short everything gets reported bro.

 

[royalroy]

So, my score is calculated on the basis of the current balance?

 

[Sudarshan61]

Score has nothing to do with utilisation...
Utilisation is used by creditors to evaluate your application for new credit. Main factor impacting score is your credit payments, hard enquiry, written offs and settlements

 

[j1nx]

It's not old accout ..rather how regularly you have paid your CC bills that matters...so even if we close old account all details are still maintained.
CIBIL score will drastically be impacted if CC is closed after settlement or non payments (CIBIL report does mark such closures ).

Cancellation of CC does reduces overall credit available and may increase utilisation. But unless you are spending much should not be thing of concern

Kinda true, paying the bills regularly is obviously the most important factor. But the length of credit also affects the credit score. Closed accounts will remain the file only as reference. [1][2]

Score has nothing to do with utilisation...
Utilisation is used by creditors to evaluate your application for new credit. Main factor impacting score is your credit payments, hard enquiry, written offs and settlements

This is not true. Its very well documented that utilization affects the score. It's one of the major factors in determining the credit score. You can even test it with maxing the limits it almost instantly brings down the score. [3][4][5]


[1] How Closing Accounts Affects My Credit Score | TransUnion
[2] Will Closing a Credit Card Hurt Your Credit?
[3] What is a Credit Utilization Rate? - Experian
[4] https://blog.crifhighmark.com/credit-utilization-ratio-how-it-works-how-to-improve-it/
[5] What is a Debt to Credit Ratio? | Equifax®

 

[royalroy]

Well, CIBIL website and SBI credit card website say to keep utilisation low for a good credit score. It has almost 15% contribution to the CIBIL score, I somewhere read (not sure about the exact percentage).

 

[pujaari]

There is never an end to how much credit one wants or high score one wants to achieve...it'll always be either too little or too much.at the end of the day its your credit. Just enjoy both utilising it to the fullest and paying back on time simple

 

[Sudarshan61]

Kinda true, paying the bills regularly is obviously the most important factor. But the length of credit also affects the credit score. Closed accounts will remain the file only as reference. [1][2]


This is not true. Its very well documented that utilization affects the score. It's one of the major factors in determining the credit score. You can even test it with maxing the limits it almost instantly brings down the score. [3][4][5]


[1] How Closing Accounts Affects My Credit Score | TransUnion
[2] Will Closing a Credit Card Hurt Your Credit?
[3] What is a Credit Utilization Rate? - Experian
[4] https://blog.crifhighmark.com/credit-utilization-ratio-how-it-works-how-to-improve-it/
[5] What is a Debt to Credit Ratio? | Equifax®

I really hope you could have giving some links to support indian context as well. I have both closed my accounts and utilised almost 100% on specific cards...never seen drop in my score (I take CIBIL report twice a months )..hard enquiry is what brings it down
Regarding all this score calculation is all black box kind of ...non of the reporting agency gives how exactly score is calculated...They only publish as to what may impact your scores(again black box here..how much will it impact is unknown ...based on my experience...it hardly impacts )

 

[Jay]

These are from my CIBIL dashboard


Source



Source

If I use 100% of my limit in a month and pay 90% of that before the bill is generated, will the bank report 10% utilization to CIBIL?

Depends on the card. If the bank does not report the credit limit, that card is excluded from the calculation for utilisation.

 

[j1nx]

There is never an end to how much credit one wants or high score one wants to achieve...it'll always be either too little or too much.at the end of the day its your credit. Just enjoy both utilising it to the fullest and paying back on time simple

Meaninglessly chasing behind the score is useless but it always helps to have a good score. For instance when my dad rewrote the house loan he had a score of 74x and he got the interest rate of 7.95% had the score been above 750 he would've got 7.75%

I really hope you could have giving some links to support indian context as well. I have both closed my accounts and utilised almost 100% on specific cards...never seen drop in my score (I take CIBIL report twice a months )..hard enquiry is what brings it down
Regarding all this score calculation is all black box kind of ...non of the reporting agency gives how exactly score is calculated...They only publish as to what may impact your scores(again black box here..how much will it impact is unknown ...based on my experience...it hardly impacts )

These factors remain the same pretty much everywhere. Whenever I max my cards it almost certainly bring my score lol. I could find only CIBIL website with these info but you can read about it any bank/loan provider sites