Credit Score Dropped

[Deekshith]

Hello everyone,

Recently my credit score dropped from 834 to 753 (Experian score). It happened after Paytm closed my Paytm Pay Later Lite account with Rs.2000 credit limit which was issued by Aditya Birla finance. I was actively using that pay later service for around 3-4 years and they suddenly closed that account with any notice. I had 100% on time payments on all of my pay later and credit cards.

Is there any possible way that I can raise disputed against it on Cibil so that I can gain my credit score back ? If Yes someone please explain how it can be done.

Thank You

 

[wcgxlr8]

Sorry to hear that. Firstly, could you please confirm if this drop is due to the account closure alone? I feel there maybe something else that's pulling the score down. Do you have any other loans/cards? Also, you can dispute this through Experian itself but only if there is a valid reason. In this case, closing your old card can have a small drop but not by this margin

 

[Deekshith]

Sorry to hear that. Firstly, could you please confirm if this drop is due to the account closure alone? I feel there maybe something else that's pulling the score down. Do you have any other loans/cards? Also, you can dispute this through Experian itself but only if there is a valid reason. In this case, closing your old card can have a small drop but not by this margin

Yes it may be only reason for the drop. It happened 2 months ago.

Paytm pay later account is the only account that is closed in my whole credit history. That was closed and this drop happened. I have 100% on time bill payments on all my credit cards and pay later accounts. There is no new credit enquire or new credit accounts created during this score drop. And even my credit utilization never went above 20%.

So there is not a single other reason for drop i guess.

 

[Skylar]

Hello everyone,

Recently my credit score dropped from 834 to 753 (Experian score). It happened after Paytm closed my Paytm Pay Later Lite account with Rs.2000 credit limit which was issued by Aditya Birla finance. I was actively using that pay later service for around 3-4 years and they suddenly closed that account with any notice. I had 100% on time payments on all of my pay later and credit cards.

Is there any possible way that I can raise disputed against it on Cibil so that I can gain my credit score back ? If Yes someone please explain how it can be done.

Thank You

The first thing the change in Experian Score is cause recently, they implemented a new algorithm that aligns their scoring system more closely with the CIBIL score. This change aims to provide a consistent credit assessment across different bureaus.
.
Keep in mind that credit scores can vary slightly between bureaus due to differences in data sources and scoring models.

'
Your PayTm Pay later is closed but its history won't be deleted
- Paytm closed your PayTm Pay Later account, the account itself is no longer active. However, the historical data associated with it remains in your credit report.
- Closed accounts are typically listed under the “Closed Accounts” section. Even though the account is closed, its payment history (including any missed payments or defaults) continues to impact your credit history
- They do not delete those cause if you missed any payment or any defaults that history will be deleted so they keep it under the closed accounts section.

 

[wcgxlr8]

The first thing the change in Experian Score is cause recently, they implemented a new algorithm that aligns their scoring system more closely with the CIBIL score. This change aims to provide a consistent credit assessment across different bureaus.
.
Keep in mind that credit scores can vary slightly between bureaus due to differences in data sources and scoring models.

'
Your PayTm Pay later is closed but its history won't be deleted
- Paytm closed your PayTm Pay Later account, the account itself is no longer active. However, the historical data associated with it remains in your credit report.
- Closed accounts are typically listed under the “Closed Accounts” section. Even though the account is closed, its payment history (including any missed payments or defaults) continues to impact your credit history
- They do not delete those cause if you missed any payment or any defaults that history will be deleted so they keep it under the closed accounts section.

I heard about this new system, but my CIBIL and Experian scores are 40 points apart (one >800 and other <800), so they clearly have more work to do xD

 

[Skylar]

I heard about this new system, but my CIBIL and Experian scores are 40 points apart (one >800 and other <800), so they clearly have more work to do xD

Mine is just 9 points different.

 

[wcgxlr8]

Mine is just 9 points different.

Interesting, I'll wait for 2-3 months and see how the trend fares.

 

[Bharatiya Nagrik]

I heard about this new system, but my CIBIL and Experian scores are 40 points apart (one >800 and other <800), so they clearly have more work to do xD

Mine is 15 points. It will never be equal due to their calculations and algorithms being different.
You just need to make sure all your payments are on time and no unknown loans open in your name. That is all that matters. It will stabilize in due time.

 

[wcgxlr8]

Mine is 15 points. It will never be equal due to their calculations and algorithms being different.
You just need to make sure all your payments are on time and no unknown loans open in your name. That is all that matters. It will stabilize in due time.

Yes, that's a check! Also, I am planning to close some accounts and get new ones, might cause some fluctuations in the short term.

 

[Skylar]

 

[Bharatiya Nagrik]

View attachment 1166

 

[Deekshith]

The first thing the change in Experian Score is cause recently, they implemented a new algorithm that aligns their scoring system more closely with the CIBIL score. This change aims to provide a consistent credit assessment across different bureaus.
.
Keep in mind that credit scores can vary slightly between bureaus due to differences in data sources and scoring models.

'
Your PayTm Pay later is closed but its history won't be deleted
- Paytm closed your PayTm Pay Later account, the account itself is no longer active. However, the historical data associated with it remains in your credit report.
- Closed accounts are typically listed under the “Closed Accounts” section. Even though the account is closed, its payment history (including any missed payments or defaults) continues to impact your credit history
- They do not delete those cause if you missed any payment or any defaults that history will be deleted so they keep it under the closed accounts section.

Okay that's why only my Experian Score dropped 81 points something.

.
But still my Experian score is 40 points less than Cibil score and 50 points less than Equifax. Back then Experian Score was the highest among all

.
But I still don't understand why PayTm pay later account was closed. I never missed any payments or anything. Still it was closed without any notice

So now where should I open dispute, in Experian for dropping my 81 points or in PayTm for closing the account that caused this drop

 

[Deekshith]

View attachment 1166

Is this OneScore app?

 

[Skylar]

Okay that's why only my Experian Score dropped 81 points something.

.
But still my Experian score is 40 points less than Cibil score and 50 points less than Equifax. Back then Experian Score was the highest among all

.
But I still don't understand why PayTm pay later account was closed. I never missed any payments or anything. Still it was closed without any notice

So now where should I open dispute, in Experian for dropping my 81 points or in PayTm for closing the account that caused this drop

See this Experian new algorithm hit every user not only you. Everyone got big drips from 60 to 90 points. In the last 6 months. You can't complain about it to RBI.

- Coming to Paytm RBI ordered for the Clouser and you want to complain to RBI Good Luck with that.

 

[Skylar]

Is this OneScore app?

Yes.

 

[Deekshith]

See this Experian new algorithm hit every user not only you. Everyone got big drips from 60 to 90 points. In the last 6 months. You can't complain about it to RBI.

- Coming to Paytm RBI ordered for the Clouser and you want to complain to RBI Good Luck with that.

Ah that's bad I was very happy with my 834 score now it will take ages to reach that score again

 

[Bharatiya Nagrik]

Ah that's bad I was very happy with my 834 score now it will take ages to reach that score again

Anything above 780 is in the best score. So don't worry about it.

 

[Deekshith]

Anything above 780 is in the best score. So don't worry about it.

Yeah but RN it is 750

 

[hitirfan]

Experian is not updated. I got Credit Card in April, it still hasn't been updated in Experian. It has been updated in CIBIL, CRIF, Equifax

 

[hitirfan]

Yeah but RN it is 750

What's your CIBIL Score