Impact of CIBIL drop on existing credit cards

[Lobogris]

If a person has a good CIBIL score, say 790 to 800 and has obtained several credit cards with high limits including top tier cards and has maintained a good payment and utilisation record and then for some reason, his score dips to 700 or lower, would the banks in question close the cards or reduce limits even if the payments are on time and the utilisation is low? Has anyone experienced this? It hasn't happened to me but I am curious about what would happen in such a scenario.

 

[FinoGuy]

No. as long as that person is paying dues on time, he's good

 

[amitr29]

If a person has a good CIBIL score, say 790 to 800 and has obtained several credit cards with high limits including top tier cards and has maintained a good payment and utilisation record and then for some reason, his score dips to 700 or lower, would the banks in question close the cards or reduce limits even if the payments are on time and the utilisation is low? Has anyone experienced this? It hasn't happened to me but I am curious about what would happen in such a scenario.

No, you will continue to enjoy the card and benefits

 

[bvc19296]

No. as long as that person is paying dues on time, he's good

No, you will continue to enjoy the card and benefits

One more point to be added. If you just maintain good profile and payments for the next 1.5-2 years, in future after 2 years also there wont be any problem.

 

[deep@vie]

If a person has a good CIBIL score, say 790 to 800 and has obtained several credit cards with high limits including top tier cards and has maintained a good payment and utilisation record and then for some reason, his score dips to 700 or lower, would the banks in question close the cards or reduce limits even if the payments are on time and the utilisation is low? Has anyone experienced this? It hasn't happened to me but I am curious about what would happen in such a scenario.

If utilisation isn't too much & all payments are done on time then it won't affect.
Every bank does review the credit limit assigned after few quarters but they don't see cibil,just the utilisation if the utilisation isn't higher side for a longer period of time,then they might decrease the limit,HDFC is doing so,I personally have seen many cases.
To be on safer side,don't ask for manual limit enhancement as well.

 

[sidp]

for some reason, his score dips to 700 or lower, would the banks in question close the cards or reduce limits even if the payments are on time and the utilisation is low?

If utilization is low, bank can decrease, especially if limit is >5L, but that also depends on your card type. Higher variant will have higher limit. E.g your infinnia wont go below 8L, but if you had millenia with same cl and utilization is low, it might decrease. Also depends on issuer Yes is stingy with cl. Recently many Scapia and some hdfc customer faced same problem. Whereas these things are less common with icici/axis.
And they check your account with them periodically. Only if you apply for upgrade/manual LE, they would do hard enquiry and see the drop in credit score. And then they might decrease cl.

 

[er.jaisingh]

bank will not close or consider it closing only if you are not using it for commerical benefits..

 

[shinchan]

then for some reason, his score dips to 700 or lower,

Genuinely wanted to know the reason, just curiosity

 

[moneyMaker]

Inter est ing

 

[deep@vie]

If a person has a good CIBIL score, say 790 to 800 and has obtained several credit cards with high limits including top tier cards and has maintained a good payment and utilisation record and then for some reason, his score dips to 700 or lower, would the banks in question close the cards or reduce limits even if the payments are on time and the utilisation is low? Has anyone experienced this? It hasn't happened to me but I am curious about what would happen in such a scenario.

One late payment & score can come down by 70 to 110 points

 

[moneyMaker]

One late payment & score can come down by 70 to 110 points

How much time does it take to restore it?

 

[deep@vie]

How much time does it take to restore it?

Depends on number of credit accounts available at that time

 

[akshayhs]

then for some reason, his score dips to 700 or lower

Unless there is a solid reason a person with a score of 790-800 getting dropped to 700 especially in CIBIL is unlikely.

 

[Lobogris]

Genuinely wanted to know the reason, just curiosity

It hasn’t actually happened to me. My score is perfectly fine. I was just curious to know if banks monitor the score reg and then take appropriate action on existing cards.

 

[Lobogris]

Unless there is a solid reason a person with a score of 790-800 getting dropped to 700 especially in CIBIL is unlikely.

Let’s say the person misses a payment.

 

[akshayhs]

Let’s say the person misses a payment.

That's why I clearly said "unless there's a solid reason".