How can Consumer Loan / Personal Loan impact CreditScore?

[Extrovert🌃]

As i wasn't eligible for any Credit cards in past because of my age and No income proof, i had to choose the path of NBFC for just the sake of building something out of -1 or 0 as i had seen my relations go through how Imp CS is... so i had applied for the following

Paytm Postpaid - 10k- Aditya Birla Finance & Clix Finance

LazyPay - 20k - Payu money

Zest Money - 40k - Ghalla Bhansali & Incred Finance

Flipkart PayLater - 40k - IDFC Bank

Freecharge PayLater - Axis Bank (Closed)

Amazon Pay later - Capital Float (Closed) (2 delayed emi at 1st COVID Wave)

Slice - 15k - Quadrillion Finance

as i just got approved for Axis FK & Neo , i was wondering what to do with the above Personal/Consumer Durable Loan accounts. i'm currently focused on building Credit Score afresh as i might need it for auto or 10-15 years down the line Home Loan.

Score took a hit as i had applied for quite a few cards as i had just turned 21YO...

 

[Extrovert🌃]

I was at your stage.

I also thought that using Paytm postpaid will help build Cibil. These show as CDL/personal loans and are actually bad for Cibil in the long run. They hamper Cibil from going above 750.

Get a secured CC and use it instead. If you can get an unsecured CC, then also it's good.

When I used to use Paytm postpaid, I used to have Cibil below 750, never went above 750. When my CC showed up on my Cibil and I stopped using Paytm postpaid, my Cibil went above 750 for the first time, it was 754.

So, I suggest using secured/unsecured CCs to build Cibil for first time and not accounts similar to Paytm postpaid/Flipkart paylater etc.

Thanks for such a detailed explanation

one more question,

as you can see in the above pics my credit portfolio there are three categories "CDL" "Personal Loan" & then "Other"

whats the "Other" and how can it impact?

thanks

 

[Cosmicgaze]

Some years back, I defaulted on a credit card payment for 3 months due to health issues, I quickly cleared the dues of in 2 weeks, but I lost the card and my cibil score tanked to under 720 or lower I don’t remember it shows 3 deleyyed payments on that account, but account is listed as closed and no dues. I did not apply for any cards or loans. Neither secured.
Was offered Paytm postpaid when Paytm themselves were giving out but not reporting to cibil. Later clix finance and then Aditya Birla.
I used them but tried not to go more than 40% of the limit or I did repay before the 3rd week of the month. My score went up, I did not take any other bnpl
I noticed one thing in the credit reports if say your loan sanctioned amount is say 10,000 and you used your limit it will decrease score by few 5-8 points But if it shows a low outstanding balance it will increase, so based on their reporting date time before that would try and keep the balance low.
My score is now 810 without any credit cards or loans besides Paytm postpaid.
Last year I tried one card but they offered me only secured card. Now they keep sending pre approved sms.


I believe these paylater are good for building credit scores provided you limit your self to only one of them and try to keep balances low or just take but use once in a while to show activity. If you have access to credit cards that’s much better.