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?

 

[Jay]

These are from my CIBIL dashboard


Source



Source

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?

Depends on the card. If the bank does not report the credit limit, that card is excluded from the calculation for utilisation.

 

[j1nx]

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😀

Meaninglessly chasing behind the score is useless but it always helps to have a good score. For instance when my dad rewrote the house loan he had a score of 74x and he got the interest rate of 7.95% had the score been above 750 he would've got 7.75%

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 )

These factors remain the same pretty much everywhere. Whenever I max my cards it almost certainly bring my score lol. I could find only CIBIL website with these info but you can read about it any bank/loan provider sites

 

[phoenix10386]

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

No, not talking about adverse impact on CIBIL. It is just that your credit history becomes as old as the second oldest credit line on the account. A closed credit line only suggests that you were given a credit line between the years that line was active. However, an active line for 15 years shows a far better track record. If I was given a credit card in 2005 and I closed it in 2010, and I have another card that was issued to me in 2019, I think creditors would say my repayment history is 1 year old and not 15 years old. I could be wrong.

 

[royalroy]

So, can I get an HDFC regalia against an FD of about 2L?

 

[Lobogris]

No, not talking about adverse impact on CIBIL. It is just that your credit history becomes as old as the second oldest credit line on the account. A closed credit line only suggests that you were given a credit line between the years that line was active. However, an active line for 15 years shows a far better track record. If I was given a credit card in 2005 and I closed it in 2010, and I have another card that was issued to me in 2019, I think creditors would say my repayment history is 1 year old and not 15 years old. I could be wrong.

It has some impact. However your credit history would still be 15 years long and that would have a positive impact. Only your oldest open account would be impacted. People often close old accounts and open new ones. As long as you don’t close all at once, it won’t be a major issue.

 

[Lobogris]

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®

There are a lot of misconceptions about credit utilization in India it seems. If the bank only wanted me to use 5k max, why would they give me a credit limit of 10 lakhs? Banks want you to use that limit and they want you to not pay it off each month as that is how they make money from the high interest rates. Now if you have a total limit of say 10 lakhs and you are using 9 lakhs or above constantly then that can have a small impact on your score. Some banks would then hesitate to lend more to you unless you have high income. It doesn’t mean using say 1 or 2 lakhs out of that total10 lakhs is bad as otherwise what is the point of having it? Having worked in the industry in the US, I can tell you, banks love people who use their cards and carry balances. Of course an extreme is not desirable but there is no need to be paranoid about it. All these things that people list have very marginal impact on your score As long as pay your bills and have a mixture of credit like cards, car loans, mortgages etc. Even a hard enquiry only lowers your score by about 10 points and only for around a month or two.

 

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[Lobogris]

I don't have my credit card as of now. So, I was just researching how to get one, I'm a student BTW. I am planning to get an SBI Unnati card (against an FD of around Rs 75000 on auto-renewal. SBI needs you to have an FD of min Rs 25K). It is free for the first 4 years and I'll get a credit limit of more than Rs 50K. After six months, when I have a healthy credit score, I will apply for the ICICI Platinum on a card-to-card basis by visiting the branch since I cannot furnish income docs. I will need to give ICICI a photocopy of my SBI card front page (not the back page/ CVV) and the last 3/6 months (depends on the branch official) card statement. It is important to keep the billed amount as low as possible with the SBI card in all these six months. I'll probably just use the SBI card for a mobile recharge every month and pay the bill on time. This will show ICICI that I am not credit-hungry and that SBI wants to give me credit but I don't need much. I'll tell the ICICI official that I am self-employed (private tuitions) (it's important as they will reject you if you say you are a student.) Now, ICICI platinum is an entry-level CC. They'll see that I have the SBI CC with a decent limit, low credit utilization ratio, and a clean credit history. So, they will approve the ICICI platinum card. Once I get my platinum card, I'll close my SBI card (don't hotlist/block it, ask SBI to close the credit card permanently) after one/ two months. My credit score will surely tank as my credit history with SBI will be gone, but I don't care. I won't be applying for a loan anytime soon. ICICI platinum is a trash card. I'll just leave it in my cupboard once I get another card in the future. It is a lifetime free and won't cost me anything. However, it will positively influence my credit history for the rest of my life. It's important to get your first credit card a lifetime free one so that you never need to close it and lose your credit history. The only purpose of that SBI card is to get me my unsecured ICICI lifetime free card. Sure it will hurt my score a little when I close my SBI CC but it's better this way from a long-term perspective.

Let us know if that worked out. ICICI reports cards against FD as secured cards. They will help build your score but I doubt other banks would issue a card against them as it is marked as secured card on credit reports. In addition, no credit limit is shown for such cards on your credit report. Yes Bank is the same. Good banks for this purpose are RBL and Indusind as they report secured cards as normal on credit reports.

 

[Smh]

In the long run just use your card without worrying about the score. Pay bills on time.

However if you are self employed and may need business loans or something, it is a good idea to check regularly and maintain a healthy score.