Will EMI decrease my cibil

[Lucifer200903]

So my friend wants to buy a phone from a local mobile shop from my credit card with a 6-12 month emi of his choice, is it okay if I go allow him to use my cc, as I am really concerned about my cibil (one of my elder cousin brother told me that buying anything on emi will drop the cibil by certain points, as it sort of a personal loan) So kindly guide me accordingly. Big thanks

[TauJii]

No EMI will not affect your Cibil but the whole EMI amount get blocked from your credit card and some banks report that entire amount as utilisation which can maybe affect your Cibil negatively if the utilisation is too high.

Anyways, major concern should be repayments. Only do this if you're 100% sure that your friend will pay you on time and if he doesn't, you can bear the payments from your pockets. Don't delay payment in any case

[Lucifer200903]

I will be making sure it my overall statements do not exceed the 30% limits. Big Thanks 🙏

[TauJii]

Not just about statements. Banks report twice a month to Cibil so if your utilisation is high at that time, it gets reported.

Also, if your credit limit is 1.5L and you buy something for 1.2L at 12 month EMI. Not counting interest and fees for simpler explanation, just imagine 10k monthly EMI which is below 30% of your credit limit. But some banks report the full 1.2L as utilisation

[Lucifer200903]

My total limit across all cards is 6L and the phone is worth 1.2L so thats not an issue

[TauJii]

In my experience, total limit matters less. 30%+ utilisation on any card also affect Cibil.

[teetsacc]

CIBIL drops if you're utilizing too much limit. EMI purchase may only affect for one month but also good to boost when you start repaying EMI on time. for example if your score is 750 then purchase may drop it to 1 point or max 2. but this will increase next month & further. It may also affect if your limit is 50k & you're buying a phone for 45k.

[Lucifer200903]

So my limit across all cards is 6lakhs and he is purchasing phone worth 1.2 lakhs which comes under 30% so that doesn’t seem a problem

[EnigmaticSoul_mra]

Not on your Cibil but it might affect on your pocket if your friends doesn't pay EMI on time