PLCC: Personal Loan on Credit Card (Interest Rate, Proc. Fee, and Offering Banks)

[koinahi]

I have noticed similar things. Wheather it's become part of utilisation or part of loan outstanding impact is same. This is my personal observation and experience. That's not gonna change.

In last one year itself any given point of time I had about 40-70 lakh personal loan outstanding plus utilisation changed drastically from 3% to 65% then hovering around 50% for long time. So I learnt it myself.

Another thing I usually say to everyone that people should not worry much about credit card utilisation. I have seen score rising even though my cc utilisation rate was constantly above 40% for many months, provided the cibil is old and have no negetive remarks.

Even though my cc utilisation was rising, but because my loan outstanding was reducing every passing month (payment of emi), so cibil score was stable (also increased) throughout. Now my score is stable near 780-790. Even though my outstanding is still huge, utilisation still high.

Another point, in April 2-3 new cc account opened in cibil with new credit limit that brought the cc utilisation lower by 10-15% even then score didn't increase. It's almost at same place.

New information for me, I was under impression that, if total utilisation is below 5% then not harmful.

 

[2025]

New information for me, I was under impression that, if total utilisation is below 5% then not harmful.

Simply saying, utilisation is a very important aspect if you do not have much of other types of loans and old active accounts.

But if u have all of them together, then it's not a major factor.

 

[hender]

I have noticed similar things. Wheather it's become part of utilisation or part of loan outstanding impact is same. This is my personal observation and experience. That's not gonna change.

In last one year itself any given point of time I had about 40-70 lakh personal loan outstanding plus utilisation changed drastically from 3% to 65% then hovering around 50% for long time. So I learnt it myself.

Another thing I usually say to everyone that people should not worry much about credit card utilisation. I have seen score rising even though my cc utilisation rate was constantly above 40% for many months, provided the cibil is old and have no negetive remarks.

Even though my cc utilisation was rising, but because my loan outstanding was reducing every passing month (payment of emi), so cibil score was stable (also increased) throughout. Now my score is stable near 780-790. Even though my outstanding is still huge, utilisation still high.

Another point, in April 2-3 new cc account opened in cibil with new credit limit that brought the cc utilisation lower by 10-15% even then score didn't increase. It's almost at same place.

Are you serious 🤔🧐, new account won't effect much or credit utilisation??

 

[2025]

Are you serious 🤔🧐 new account or credit utilisation...

As always.

Both affect to some extent. But, they are not so important. People can ignore them to some extent if have large number of active accounts.