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  1. sikkandar
  2. Finance, Insurance
  3. Monday, October 14 2013
Hi, I hold 3 credit card and my application for 4th card also got approved. I also hold a personal loan with one of these bank. I am making the payments on time for all my cards and loans.

My question:- Having more credit card will affect my CIBIL score or credit rating?
I also hold a education loan for which I have not paid regularly will this affect my CIBIL score or credit rating in my future.Having these cards will increase or decrease my CIBIL score. Advise me so that I can plan accordingly
Gagan Modi Accepted Answer

Lets bifurcate the query in 2 parts:-

A) Impact of Multiple Active Accounts

To the best of my knowledge - Holding multiple cards and repayments can impact a CIBIL Score when :-

a) Accounts (i.e loan or cards) been applied in short term or at frequent short interval (say you have taken 3 cards in last 1 yr) and have just got a new card

b) When despite making the regular payments - the amount outstanding keeps on mounting i.e high credit amount. Suppose you start paying Minimum amount rather than full payment on your cards for more than 2-3 month in row

c) When you apply with Multiple Banks - so the loan or card application will show in Enquiry String of CIBIL. It will display how many times applicant has applied for secured or unsecured lending

However - if the cards are seasoned enough with regular timely payments and you have recently applied for a new card - it wont make much of difference in CIBIL scoring

In respect to other query
B) Delayed Payment in Education Loan
Yes, it will hamper your CIBIL Rating. If you have active accounts i.e your Education loan and cards - suggest to make timely payment till closure of loan and continue with timely payments on your cards. A good repayment string if build up for 12 month - will definitely improve your credit score and enhance ability for further lending. Till then - you should ideally avoid making any fresh application for loan / card.

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  1. more than a month ago
  2. Finance, Insurance
  3. # 1
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