ICICI PLATINUM Credit Card Query

[Deleted member 78243]

So recently i thought to get ICICI Amazon Pay Card, applied for the application, guy took the documents (pan and aadhar only) and maybe they checked the cibil score so it got rejected.
Cibil Score is not generated since i didn’t had any credit card till now.
I want that Amazon card, so I’m thinking to get that ICICI Platinum FD card. I don’t have account with ICICI, but can open one online.
So anyone have experience that how much time will it require to get me a good cibil score with ICICI Platinum Card?
And will this card get deactivated after when the fd matures?

 

[j1nx]

1. Having a credit card against an FD makes you a low-risk customer. Start with any bank of your choosing and build up a good repayment record.

2. Use that card for availing an unsecured credit card on a card-on-card basis.

3. If you have a credit card based on FD, no matter the maturity date of that FD, that FD is under a lien and automatic renewal. It will never mature while the card is active. If you choose to close the FD, the card will be deactivated along with. If you choose to just deactivate the card, you will either need to clear out the balance on the card or they will liquidate the deposit and recover the money, and then close the card and credit the balance proceeds to your account.

Going the FD route for a credit card is not a fool's errand. It is a great way to get into building your credit line and the bank will not treat you differently for having a secured credit card. For the bank, you are holding two relationships with them instead of one, a fixed deposit and a credit card.

Yeah, pretty much everything in the thread against getting secured card has been either anecdotal or some random guess work. I waited to see if anyone has some source for these info but I couldn't find any. From my personal experience and from what I read from many good sources it's always a recommended to get a secured card first to get a good credit (unless ofc if you're salaried and bank is willing to offer you a card based on that). Also don't close the ltf cards 😛

 

[phoenix10386]

Yes. Do not close your oldest card. If you do, your credit history is only as old as your next oldest card. So if you held a card since 2010, got one more in 2020, and decide to close your older card, your credit history, that was 10 years, is now suddenly an infant of few months.

 

[mhsabir]

Yeah, the only real reason why I am still retaining my HDFC MoneyBack Card .. its now 15 years old.. Was originally a different lifetime free card.... with an initial credit limit of 15000.

 

[Sudarshan61]

Yes. Do not close your oldest card. If you do, your credit history is only as old as your next oldest card. So if you held a card since 2010, got one more in 2020, and decide to close your older card, your credit history, that was 10 years, is now suddenly an infant of few months.

Not true...
All your old cards are still mentioned as closed account in CIBIL...so closing some CC does not adversely impact CIBIL

 

[Kick933]

It's actually that your credit limit decreases and your utilisation increases...

 

[mhsabir]

Well not directly, but it does affect based on what I have read - basically if you have an outstanding of say 10K and your credit limit across two cards was 50K you are using 20% - but if you close say a higher one with 30K limit .. you are now using 10K out of 20K - making your utilization rates higher - And this will imply you are using a lot of your credit.

If you have a bunch of cards & utilization is minimal and you close one, it may not matter much.

As far as age goes, not sure if it affects CIBIL score. But old accounts are generally viewed favorably - I am not sure if the account is shown as voluntarily closed by customer versus say closed due to being delinquent - So not sure how the lack of that information may affect the loan giver's process.

 

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[Sudarshan61]

It's not old accout ..rather how regularly you have paid your CC bills that matters...so even if we close old account all details are still maintained.
CIBIL score will drastically be impacted if CC is closed after settlement or non payments (CIBIL report does mark such closures ).

Cancellation of CC does reduces overall credit available and may increase utilisation. But unless you are spending much should not be thing of concern

 

[royalroy]

If I use 100% of my limit in a month and pay 90% of that before the bill is generated, will the bank report 10% utilization to CIBIL?

 

[Sudarshan61]

Banks report CC limit(100) and High Credit(90)and Current Balance(10) ..in short everything gets reported bro.

 

[royalroy]

So, my score is calculated on the basis of the current balance?

 

[Sudarshan61]

Score has nothing to do with utilisation...
Utilisation is used by creditors to evaluate your application for new credit. Main factor impacting score is your credit payments, hard enquiry, written offs and settlements

 

[j1nx]

It's not old accout ..rather how regularly you have paid your CC bills that matters...so even if we close old account all details are still maintained.
CIBIL score will drastically be impacted if CC is closed after settlement or non payments (CIBIL report does mark such closures ).

Cancellation of CC does reduces overall credit available and may increase utilisation. But unless you are spending much should not be thing of concern

Kinda true, paying the bills regularly is obviously the most important factor. But the length of credit also affects the credit score. Closed accounts will remain the file only as reference. [1][2]

Score has nothing to do with utilisation...
Utilisation is used by creditors to evaluate your application for new credit. Main factor impacting score is your credit payments, hard enquiry, written offs and settlements

This is not true. Its very well documented that utilization affects the score. It's one of the major factors in determining the credit score. You can even test it with maxing the limits 😛 it almost instantly brings down the score. [3][4][5]


[1] How Closing Accounts Affects My Credit Score | TransUnion
[2] Will Closing a Credit Card Hurt Your Credit?
[3] What is a Credit Utilization Rate? - Experian
[4] https://blog.crifhighmark.com/credit-utilization-ratio-how-it-works-how-to-improve-it/
[5] What is a Debt to Credit Ratio? | Equifax®

 

[royalroy]

Well, CIBIL website and SBI credit card website say to keep utilisation low for a good credit score. It has almost 15% contribution to the CIBIL score, I somewhere read (not sure about the exact percentage).

 

[pujaari]

There is never an end to how much credit one wants or high score one wants to achieve...it'll always be either too little or too much.at the end of the day its your credit. Just enjoy both utilising it to the fullest and paying back on time simple😀

 

[Sudarshan61]

Kinda true, paying the bills regularly is obviously the most important factor. But the length of credit also affects the credit score. Closed accounts will remain the file only as reference. [1][2]


This is not true. Its very well documented that utilization affects the score. It's one of the major factors in determining the credit score. You can even test it with maxing the limits 😛 it almost instantly brings down the score. [3][4][5]


[1] How Closing Accounts Affects My Credit Score | TransUnion
[2] Will Closing a Credit Card Hurt Your Credit?
[3] What is a Credit Utilization Rate? - Experian
[4] https://blog.crifhighmark.com/credit-utilization-ratio-how-it-works-how-to-improve-it/
[5] What is a Debt to Credit Ratio? | Equifax®

I really hope you could have giving some links to support indian context as well. I have both closed my accounts and utilised almost 100% on specific cards...never seen drop in my score (I take CIBIL report twice a months )..hard enquiry is what brings it down
Regarding all this score calculation is all black box kind of ...non of the reporting agency gives how exactly score is calculated...They only publish as to what may impact your scores(again black box here..how much will it impact is unknown ...based on my experience...it hardly impacts )