I recently closed my home loan and noticed a sudden drop in my credit score from 802 to 754. Despite having a credit history of almost 6 years with no late payments and a credit utilization of -1%, the closure of my home loan seems to have impacted my score. I am concerned about this drop of 50 points and would like to know how long it will take for my score to increase.
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Credit score dropped by 50 points after closing home loan.
- Thread starter zaid_2913
- Start date
Solution
It will jump fast .. back up
Thanks, is it okay to apply for any new credit cards with this credit score?
Apply anything .. 750+ is good.
If u have other card in cibil with limit .
Mostly cibil basis card are being processed
Anon1
TF Premier
Yes you can apply, but also maintain low credit utilisation.
Whats ur take on low utilisation.
How much %
Anon1
TF Premier
Less than 10%. If possible we can maintain 1% by paying the outstanding amount at month-end will be great.
Anon1
TF Premier
Yes it's drop due to home loan close only, so in order to increase your score you can maintain same low utilisation
Ziya7000
TF Buzz
This is because you have closed a Secure Loan which created an imbalance between Secure and Unsecure Loans.
akshayhs
TF Ace
My guess is probably a secured loan was closed/matured and hence the drop. Anytime a loan is closed, there will be noticeable variations. Also you may not have any other secured loans which knocked off the balance between secure and unsecure loans in your account.
What is your current open portfolio in your CIBIL?
A bit more details about different credti products their age , limits etc
Now only have credit cards, no secured loans. 2 years ago gold loan closed and home loan closed a month back.Have multiple cards from Hsbc, scb, amex, axis, hdfc, icici etc. All of them have more than 5 lakhs limit. Oldest card age is 6 years.
This is my cibil profile. 🥱
okay good.. your score will recover pretty quickly.. my guess would be in about 3 months.
As you are maintaing -ve utilization.. and have more than 5 years of history in the open accounts, you are fine.
Make sure each account is in -ve / 0 balance not just overall utilisation is -ve... This is very key point here..
Its just an after shock event after you closed your home loan.. You will be fine in 3 months time and back to near 800 again pretty soon.
Good luck
All these have to go ... at some stage ..
As you had the mother of credit product line (i.e. Home Loan) until now all these extra artists ( BNPL personal loan consumer loans) were coverd untilnow.
As the mother gone. all these extra artists were exposed.. so until you do something about these don't expect anything near 800..
