How multiple credit cards affect your credit score

Photographs: Rediff Archives

In an online chat with Get Ahead readers, Harshala Chandorkar of CIBIL answered queries on various aspects of using credit cards, payment defaults affect your credit score.

Here are the unedited excerpts:

dilip i shinde: how can i know my cibil report

Harshala C: You can access your credit score and report on CIBIL's website in 3 easy steps: Step 1: Fill online form- Visit http://rediff.ly/1gsxk and duly fill in the online request form; Step 2: Payment – Make payment of Rs. 470 via Net banking / Debit / Credit / Cash Card; Step 3: Authentication – Answer 2 questions based on your credit history

If you are successfully authenticated you can download your credit report consisting your credit score and also receive it via e-mail. If you fail the authentication then you can upload scanned copy of your identity proof and address proof on CIBIL's website. The report will then get delivered to you via express delivery

srikanth gajula: when our score in CBIL is poor, what is the process further to maintain good score

Harshala C: You can maintain a good credit history and score by following these steps: Always pay your loan/ credit card dues on time Maintain a healthy mix of credit Apply for new credit in moderation Monitor your co-signed, joint accounts monthly.

Monitor the loan accounts for which you have stood as a 'guarantor' Review your credit score and history frequently

Nagesh: How do we get our CIBIL credit report? Can you let us know the process?

Harshala C: You can access your credit score and report on CIBIL's website in 3 easy steps: Step 1: Fill online form- Visit http://rediff.ly/1gsxk and duly fill in the online request form Step 2: Payment – Make payment of Rs. 470 via Net banking / Debit / Credit / Cash Card Step 3: Authentication – Answer 2 questions based on your credit history

Navin Shah: How to keep maintain an Healthy credit history?

Harshala C: You can maintain a good credit hitory bu following these steps Always pay your loan/ credit card dues on time Maintain a healthy mix of credit Apply for new credit in moderation Monitor your co-signed, joint accounts monthly

Monitor the loan accounts for which you have stood as a 'guarantor' Review your credit score and history frequently

shriram Bapat: why cibil report is not updated and displays loan outstanding even years after they have been completely paid up?S.L.BAPAT.

Harshala C: The information in your credit report is as submitted by the bank. If this information is not updated please raise a dispute with CIBIL online giving details of the accounts which are not updated. We will coordinate with the bank to have this information updated.

anil jadhav: Neither i have credit card nor have any kinds of loans .Will you tell, whether i have any kinds of CIBIL report

Harshala C: If you don't have any credit cards, have never taken any loans and have not applied for any loans or credit cards CIBIL will not have your record and will not be able to generate a credit report on you

Naresh Mishra: is cibil score is must for home loan

Harshala C: Most of the banks access CIBIL report and CIBIL TransUnion Score as part of the loan evaluation process

surya prasad: Does paying the minimum amount against the outstanding amount of credit card affects the CIBIL score?

Harshala C: If you have made the minimum amount which is due on your credit card, the balance amount is not shown as overdue and will not negatively impact the score. But do remember that your bank will charge you interest on the amount that is outstanding.

prasann chitnavis: is there any certain period that name with CIBIL OR IT IS LIFE LONG

Harshala C: CIBIL has to maintain the records for a minimum period of 7 years since it was last reported.

tummala niranjan: how to know the status of payments and also dues o be paid

Harshala C: Your credit card statement will show the dues to be paid. After you have made a payment against your dues you can check with the bank if the amount is received by them. Additionally, your CIBIL Report has a month on month record of all the loan-related EMI (home loans, personal loans, automobile loans and so on), credit card or overdraft payments.

amol takalkar: how can i know my cibil report

Harshala C: You can access your credit score and report on CIBIL's website in 3 easy steps: Step 1: Fill online form- Visit http://rediff.ly/1gsxk and duly fill in the online request form Step 2: Payment – Make payment of Rs. 470 via Net banking / Debit / Credit / Cash Card Step 3: Authentication – Answer 2 questions based on your credit history

shailesh verma: I have got my cibil report which is showing a low score because the bank has not closed my credit card transactions even after paying my dues. what should be done to remove the wrong posting and improve my scores

Harshala C: Please raise a dispute online on CIBIL's website Log on to CIBIL's Dispute Resolution webpage: http://rediff.ly/22npj Provide your name, address, date of birth, report Control Number (CN) and the nature of the dispute CIBIL's Dispute Resolution Department will analyze and route the dispute to the lending institutions for confirmation

Please remember that CIBIL can only make changes to your report, once the lending institutions submit the updated/ corrected data.

subbu: My CIBIL score is 847 but it also has many card settlements. How will it impact my credit worthiness? What is a good CIBIL score to enable one to get personal loan or house loan or fresh credit card?

Harshala C: While each bank will have its own credit scoring cut-off based on the credit sanctioning policies, it has been observed that most banks are lending to consumers with a credit score of 750 and above.

NANDAKUMAR KURUPPATH: how to remove the cases showing and pending in CIBIL after paying off completely. I had paid my Credit card balalnce in Last Oct, still appearing as due in CIBIL. How long it will take, whom should i contact to remove it.?

Harshala C: Please raise a dispute online on CIBIL's website: Log on to CIBIL's Dispute Resolution webpage: http://rediff.ly/22npj Provide your name, address, date of birth, report Control Number (CN) and the nature of the dispute CIBIL's Dispute Resolution Department will analyze and route the dispute to the lending institutions for confirmation

Please remember that CIBIL can only make changes to your report, once the lending institutions submit the updated/ corrected data.

minakshi.sunil: Hi...I had a credit card anf some time a request to close it. Now I m applying for new credit card. But no bank is accepting my application. I checked with cibil, its showing my score as NA. What does it mean.. ?Now I dont have any credit card and I never taken any loan in past.Is saving account which not being used from 2years also impact to credit score

Harshala C: A Score of 'NA' or 'NH' would mean one of the below: a) You do not have a credit history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system b) You do not have any credit activity in the last couple of years c) You have all add-on credit cards and have no credit exposure

Since you have no loans and don't have a credit card you score is NA. Please ask the bank for the reason for rejecting your loan application.

Harsha-Vardhan JN: Does our credit score get affected if we have multiple credit cards?

Harshala C: The credit score is calculated based on the following factors in your credit history: 1. Credit Utilisation: how much credit is this consumer using? 2. Defaulting: how many accounts are past due -- by how many days and by how much? 3. Number of inquiries: has this consumer applied for additional credit lines?

4. Trade attributes: How old are this consumer's lines of credit? What type of credit does he have? Does the consumer have a good mix of credit or is it all credit cards, for example.

Debasis Roychoudhury: After paying Rs 470 online, how long I can see credit report? Or Rs 470 is for one time?

Harshala C: Rs 470 is an one time payment for your report and score.

KAPOPARA KANTIBHAI: HOW TO READ OUR CO'S CREDIT REPORT ON CIBIL WHICH SCORE CONSIDERED TO BE BETTER?

Harshala C: The Company Credit Report is similar to the credit report of an individual. The Company Credit Report will have all the loans taken by the company. There is no score generated for a Company Credit Report

DIVYA MANU: HOW TO GET CIBIL REPORT AFTER CREDIT CARD PAYMENT HAS BEEN SETTLED, HOW LONG DOES IT TAKE TO CLEAR THE NAME FROM THE CIBIL REPORT

Harshala C: You can access your credit score and report on CIBIL's website in 3 easy steps: Step 1: Fill online form- Visit http://rediff.ly/1gsxk and duly fill in the online request form Step 2: Payment – Make payment of Rs. 470 via Net banking / Debit / Credit / Cash Card Step 3: Authentication – Answer 2 questions based on your credit history

You cannot 'clear' your name from the CIBIL report. CIBIL maintains information of loans and credit cards. You can improve your credit history by making timely payments on all your loan EMIs and credit card dues

mathan prakash: in some cases banks are misusing CIBIL rating as a weapon for instance credit card guys for their Annual maintenance charges non-payment. Will CIBIL consider these kind of defaults also. How we can approach CIBIL and correct it

Please read the Most Important Terms and Conditions that the bank may have given to you when you availed of the credit card. If you are liable to make the annual payment and you don't make it they may report the same to CIBIL.

kamlesh Bhansali: I received very light link cibil reportYour info@cibil.com support desk is too slow

Harshala C: I apologise the inconvenience caused to you due to the print quality of the CIBIL. Please send me your Service Request Number to send you your credit report.

DIVYA MANU: Does the name appear in CIBIL for ever as being stated by the collection agents, or will it be removed once the dues are settled

Harshala C: CIBIL maintains a credit history of loan and credit cards availed by a consumer. If you have defaulted in past but have now started making payments on time the credit report will reflect the same. You cannot remove your name from CIBIL but can improve your credit history by making timely payments.

Rajesh: Dear Mam we are paying minimum amount fo rCC payment however there are bunk for 4-5 month. what is the impact on CIBIL report

Harshala C: If you make the minimum amount due payment on your credit card the bank will not report the outstanding amount as 'Amount Overdue'. But please remember that the bank will charge interest on the outstanding amount.

Ramakrishna Reddy: Madam I have recently applied and got my credit rating as 801 out of 900 from cibil, though my record is completely clean and without any defaults why the score is 801 only

Harshala C: Some of the factors which affect the credit score are : 1. Credit Utilisation: how much credit is this consumer using?2. Defaulting: how many accounts are past due – by how many days and by how much?3. Number of inquiries: has this consumer applied for additional credit lines?
4. Trade Attributes: How old are this consumer's lines of credit? What type of credit does he have? Does the consumer have a good mix of credit or is it all credit cards, for example?

uday kiran: Hi, I have availed a Home loan in 2008 from Indian Bank Hyderabad. I somehow see in my CIBIL report that same entry for that loan is made twice. Sanctioned date & loan amount are same for both entries. While one entry reflects right outstanding amount as of June 30th 2013, the other entry shows some old data as of June 2011.Can something be done ?

Harshala C: Please raise a dispute online on CIBIL's website - http://rediff.ly/22npj We will coordinate with Indian Bank to make corrections to the inaccuracies in your credit report. Please remember that CIBIL can only make changes to your report, once the lending institutions submit the corrected data.

mvsmadhavarao: I have not taken the transunion score but took the credit report and paid the credit card due. Now has my credit score would have improved?

Harshala C: You have to maintain a good credit history for your score to improve. DO make timely payments on all you loans and credit card dues.

Kamal: Applying for credit card reduces the points in CIBIL even though we dont get the credit card. Is that true? Where can we get our Cibil detail

Harshala C: Enquiries on your credit report has a marginal impact on your score. You can access your credit score and report on CIBIL's website in 3 easy steps: Step 1: Fill online form- Visit http://rediff.ly/1gsxk and duly fill in the online request form Step 2: Payment – Make payment of Rs. 470 via Net banking / Debit / Credit / Cash Card Step 3: Authentication – Answer 2 questions based on your credit history

Ramakrishna Reddy: how this rating of 801 viewed is bad or good

mvsmadhavarao: I have not taken the transunion score but took the credit report and paid the credit card due. Now has my credit score would have improved?

Harshala C: You have to maintain a good credit history for your score to improve. DO make timely payments on all you loans and credit card dues.

Ramakrishna Reddy: How this rating of 801 viewed is bad or good

Rajesh Kumar: I have been going through a rough time in the recent past, which reflects in the CIBIL SCORE of 595. I previous two months i have cleared 2 of the 8 cards i have fully, in next 3-4 months all the balance 6 cards will be cleared with no settlement. I would like to know will this increase the score immedialely or will it take time.just now

Harshala C: You have to build a good history for the score to show improvements. After you make payments on all the credit card overdue amounts, do ensure that you make timely payments month-on-month for the score to improve.

shashi kotian: [SKB] can you help me to improve my cbil score, as i do not have any outstanding now only one homeloan with nkgsb bank is runnung and i am timely repayinh the emi for last 4-5 years

Harshala C: You can improve you credit history by following these steps: Always pay your loan/ credit card dues on time Maintain a healthy mix of credit Apply for new credit in moderation Monitor your co-signed, joint accounts monthly.

Monitor the loan accounts for which you have stood as a 'guarantor' Review your credit score and history frequently

Tags: CIBIL , HDFC , Harshala Chandorkar , India

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