Credit score down because credit card not used in last month even for single transaction

[suraj singh]

My score dropped 24 points to 748 i have a credit history of 11 month with on time payments , no recent enquiries , credit utilisation under 30%.
But last month before reporting by bank to credit bureaus my credit outstanding is in negative as i have already paid due before due date
Is it possible that not using credit card affect credit score(CIBIL) NEGATIVELY

 

[srikant]

So as you told me i checked through pdf obtained through airtel thanks app but i didn't find any thing that could affect my credit score drastically
No credit enquiries in last 8 months, 11/11 ontime payments, and a negative outstanding balance of rs -253
Should i raise issue with cibil ?

First of all, you probably paid before billing date - paying before due date is something we basically always have to do!

Even this shouldn't result in this negative balance, unless you paid in excess. I can understand rounding up the due amount (or in your case, the outstanding) a bit - like 243.43 to 244, but how did this excess of INR 253 happen? Did you get some refund or cashback?

Anyway, I think 748 is still not at all a worrisome score with 1 year and 1 credit card. I'd suggest waiting a month or two and maybe taking one more. Hopefully you'll be more than 750 by then. Having multiple accounts helps prevent freak events like this. Note that two IS multiple here: and with just 1 year history, don't add 4 more cards in a month!

Avoid gymnastics like paying before billing date for couple of years. Get the bill, then pay it. That means you keep the utilization low FOR REAL. If you have a purchase bigger than 50% of your limit to make, use your bank account (debit card, cheque, cash). You could do such gymnastics after say 3 or 4 years' credit history (or more!), with 2-3 accounts.

That said, this STILL doesn't make any sense to me. Most banks report 0 when you have a negative balance, and CIBIL scoring algo SHOULD have the sense to not treat negative debt negatively!

But I stand by what I said:
1. Avoid paying before billing date for some years. Pay the total due shown in bill between billing date and due date.
2. Keep utilization low.
3. Wait a couple months and check score again, if it looks decent, get one more credit card.

Don't freak out and raise a dispute with CIBIL for this. At least just yet.

 

[vaibhav111]

So as you told me i checked through pdf obtained through airtel thanks app but i didn't find any thing that could affect my credit score drastically
No credit enquiries in last 8 months, 11/11 ontime payments, and a negative outstanding balance of rs -253
Should i raise issue with cibil ?

So in all my CC you own, nothing is out of ordinary if that the case.. wait for 1/2/3 month and then check.. wait you only have one cc in 11 month so you're new. So use your card for another couple of months like 6 more month and the point will be stable and will increase. You can even apply for pre approved card too.

 

[iamnisanth]

On a different context, I read a news yesterday that banks are going to stop allowing overpaying your credit card bill - https://www.google.com/amp/s/m.time...erpay-card-dues/amp_articleshow/103676677.cms

 

[vivdwive]

Although this shouldn't be true but I can think of one reason that having just 1 credit card in your credit mix and not even using it's credit and having negative balance may be seen you as not using and managing credits well.....like if one doesn't have any credit product it is not seen that good and score is zero

 

[suraj singh]

Then I will wait for few months

 

[Deleted member 5552]

I don't think negative balance will decrease score. It will increase our score as our dues become negative or we give loan to credit card bank. 😁

 

[deep@vie]

I don't think negative balance will decrease score. It will increase our score as our dues become negative or we give loan to credit card bank. 😁

Yeah, you're right.
His score will come back up soon.
This fluctuation is there because he has only 1 card which is only a year old.

 

[tanujsheoran]

Wait for 3 months your score will be increased not as previous one but will increase

 

[srikant]

Then I will wait for few months

Hang on, now I think it's making sense.

Why did you pay before the billing date? Is it because you had a high utilization? Maybe that's why this is happening.

 

[deep@vie]

Here utilisation means,utilisation reported.

Hang on, now I think it's making sense.

Why did you pay before the billing date? Is it because you had a high utilization? Maybe that's why this is happening.

 

[Ad.Astra]

So as you told me i checked through pdf obtained through airtel thanks app but i didn't find any thing that could affect my credit score drastically
No credit enquiries in last 8 months, 11/11 ontime payments, and a negative outstanding balance of rs -253
Should i raise issue with cibil ?

You too may probably be aware that it takes 2 to 3 months to reflect effect of any transaction on your credit report. So may be decrease in credit score is due to old transactions?

 

[suraj singh]

Hang on, now I think it's making sense.

Why did you pay before the billing date? Is it because you had a high utilization? Maybe that's why this is happening.

I ordered something on emi and cancelled emi and paid immediately due amount from hdfc app but as amount i have to pay is rs 16371 something but app shows 16328 so I can't pay from app fully so i paid from third party app (mobikwik) and next day processing fees also get debited in card and i paid that also on the same day from hdfc app thats how i end up getting negative balance in my credit card
My card details:-
Billing date- 21
Transaction date-25
I paid - 27,28
And end of month i have negative balance and my statement is not yet generated but i have done more transactions and now i have around 1000 amount due
Let's see in the next credit report i will check next month

 

[ray8285]

Yes, if it's in negative, it impacts.

Wrong.

My friend’s mother has 2 credit cards both in negative balance. She makes a payment on them cards the next day if and when she uses any of the cards. She has a score of 817 in TU & 874 in Experian.

 

[D₹V]

Wrong.

My friend’s mother has 2 credit cards both in negative balance. She makes a payment on them cards the next day if and when she uses any of the cards. She has a score of 817 in TU & 874 in Experian.

Maybe, all I'm saying is from experience.

No one knows the exact working method of CIBIL.

Anyway, her CIBIL is 817? Unbelievable 🤩

Can you give more info about her credit profile like accounts, mixture of loans, credit age, etc?

 

[ray8285]

Maybe, all I'm saying is from experience.

No one knows the exact working method of CIBIL.

Anyway, her CIBIL is 817? Unbelievable 🤩

Can you give more info about her credit profile like accounts, mixture of loans, credit age, etc?

She is 62 now.

Just the 2 credit cards & both were literally forced to her by the bank (ICICI WEALTH & AXIS BURGUNDY PRIVATE ACCOUNTS with very high TRVs). HDFC offered her a card too but she declined (again imperia account).

One Consumer loan prior to this (3 accounts in total shows up in cibil) which she had taken 8 years back to generate CIBIL. So the oldest credit account is 8 years.

Point to note is NO PL shows up in her Cibil as she never took a PL ...

 

[D₹V]

She is 62 now.

Just the 2 credit cards & both were literally forced to her by the bank (ICICI WEALTH & AXIS BURGUNDY PRIVATE ACCOUNTS with very high TRVs). HDFC offered her a card too but she declined (again imperia account).

One Consumer loan prior to this (3 accounts in total shows up in cibil) which she had taken 8 years back to generate CIBIL. So the oldest credit account is 8 years.

Point to note is NO PL shows up in her Cibil as she never took a

Great 😃👍.

Also, points to note here is she never had enquiries after those 2 cards, also repayments no. went adding & credit score going up.

So it's obvious, while we apply cards/products any day.

 

[Riya]

My score dropped 24 points to 748 i have a credit history of 11 month with on time payments , no recent enquiries , credit utilisation under 30%.
But last month before reporting by bank to credit bureaus my credit outstanding is in negative as i have already paid due before due date
Is it possible that not using credit card affect credit score(CIBIL) NEGATIVELY

non utilization doesn't cause CIBIL to drop so much... check your report thoroughly.....

 

[Zacobite]

My score dropped 24 points to 748 i have a credit history of 11 month with on time payments , no recent enquiries , credit utilisation under 30%.
But last month before reporting by bank to credit bureaus my credit outstanding is in negative as i have already paid due before due date
Is it possible that not using credit card affect credit score(CIBIL) NEGATIVELY

no.. it won't drop your score so quickly.. credit score is usually updated with a 2-3 months lag so whatever chgd is a little older and not the immediate month behavior

 

[techt]

My score dropped 24 points to 748 i have a credit history of 11 month with on time payments , no recent enquiries , credit utilisation under 30%.
But last month before reporting by bank to credit bureaus my credit outstanding is in negative as i have already paid due before due date
Is it possible that not using credit card affect credit score(CIBIL) NEGATIVELY

Its been 4 months. What's the score now?

 

[suraj singh]

Its been 4 months. What's the score now?

774 cibil score