Many users open their credit report and get shocked:
“I haven’t taken any loan or new credit card. Why is my CIBIL score falling?”
You're not alone—and it's more common than you think.
At Vizzve, we’ve broken down the top hidden reasons behind this puzzling drop.
🔍 7 Real Reasons Why Your CIBIL Score May Drop Without Borrowing
1️⃣ 📉 High Credit Utilization
If you use more than 30-40% of your credit card limit, CIBIL sees it as financial stress—even if you repay on time.
Example: Using ₹45,000 out of a ₹50,000 limit.
2️⃣ ⏳ Delayed or Missed Credit Card Payments
Even a 1-day delay in card or loan EMI can impact your score. You may have auto-debit failures or partial payments without realizing it.
3️⃣ 💳 Closure of an Old Credit Card
If you’ve recently closed an old credit card with long history, your credit age drops—affecting 15-20% of your CIBIL score calculation.
4️⃣ 📥 Multiple Credit Inquiries (Hard Pulls)
Every time you apply for a loan or card, lenders pull your report. Too many inquiries—even if you don’t accept the offer—can lower your score.
5️⃣ 📈 Changes in Lender Reporting Practices
Sometimes, banks revise past reports or data based on their internal audit or system upgrades. This may reflect changes like overdue status or updated credit limits.
6️⃣ 🧾 Co-signed Loan or Joint Account Issues
If someone you co-signed a loan with missed a payment, your score gets hit too—even if you weren’t directly responsible.
7️⃣ 🛠️ Errors in Your Credit Report
Wrong PAN linkages, incorrect overdue tags, or even duplicate accounts can appear due to reporting errors by lenders. These false red flags damage your score silently.
🧠 What Can You Do to Fix It?
Vizzve’s Action Plan to Repair a Falling Score:
✅ Check your credit report monthly via CIBIL, Experian, or CRIF
✅ Maintain credit usage below 30%
✅ Don’t close your oldest credit card
✅ Pay before due dates, not just on due dates
✅ Raise a dispute if you see wrong entries
✅ Avoid frequent loan applications in a short span
💬 FAQ: CIBIL Score Drops
Q1. Is it bad if my score drops by 20–30 points?
Not always—but consistent drops should be investigated.
Q2. Can I get a loan from Vizzve if my CIBIL score dipped recently?
Yes. Vizzve looks at alternate credit signals like income flow, digital behavior, and transaction stability—not just traditional credit scores.
Q3. How often does CIBIL update scores?
Usually every 30–45 days after lenders send updated data.
🚀 Final Thoughts from Vizzve
Don’t panic if your credit score drops suddenly.
Instead, act early, investigate, and correct the cause.
With Vizzve’s judgment-free lending, real financial advice, and 24x7 support—we help you build back credit confidence the smart way.
Published on : 12th July
Published by : SMITA
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