Any drawback to paying off cc right away?

[cowcoconut]

I have a icici sapphiro LTF that I only use for lounge, bms and bank offers.
I normally don’t wait till bill generation date to pay it off. I pay off balance on it as soon as I spend

Is there any drawback to this? I don’t care about CIBIL score it’s 780 already, nothing to gain from making it higher

 

[sudheerreddy]

I have a icici sapphiro LTF that I only use for lounge, bms and bank offers.
I normally don’t wait till bill generation date to pay it off. I pay off balance on it as soon as I spend

Is there any drawback to this? I don’t care about CIBIL score it’s 780 already, nothing to gain from making it higher

Max No drawback.

 

[alphadark7alphadark7 is verified member.]

There is no drawback

Recommended way would be to have a separate account where you transfer that money and pay when the bill is generated
Would help you earn some extra interest

 

[Zacobite]

I have a icici sapphiro LTF that I only use for lounge, bms and bank offers.
I normally don’t wait till bill generation date to pay it off. I pay off balance on it as soon as I spend

Is there any drawback to this? I don’t care about CIBIL score it’s 780 already, nothing to gain from making it higher

no drawback except for notional opportunity loss of the credit period..

 

[lightwaves]

I have a icici sapphiro LTF that I only use for lounge, bms and bank offers.
I normally don’t wait till bill generation date to pay it off. I pay off balance on it as soon as I spend

Is there any drawback to this? I don’t care about CIBIL score it’s 780 already, nothing to gain from making it higher

No drawback.

In fact, since you're making your outstanding as Zero by the time bill is generated, your CIBIL is positively affected. This helps in improving the score!!

 

[cowcoconut]

Thanks a lot guys.
One last question I had was, will a card stay active if no statement is generated? i.e. If I wanna keep an unused LTF card active, can I topup 10 rupees in mobile and pay it off right away. Or should I wait for statement?

 

[Kumar93196]

Thanks a lot guys.
One last question I had was, will a card stay active if no statement is generated? i.e. If I wanna keep an unused LTF card active, can I topup 10 rupees in mobile and pay it off right away. Or should I wait for statement?

Just use the card once or twice a in every 2/3 months rest will be oky.

 

[lightwaves]

Thanks a lot guys.
One last question I had was, will a card stay active if no statement is generated? i.e. If I wanna keep an unused LTF card active, can I topup 10 rupees in mobile and pay it off right away. Or should I wait for statement?

Yes, this is okay.

Some banks report to credit bureau even if there was no transaction on the card.

where as some banks like ICICI report only if there was some transaction(doesn't matter if its paid before or after the bill is generated).

 

[cowcoconut]

Just use the card once or twice a in every 2/3 months rest will be oky.

Once a year is sufficient no?

 

[bing1309]

See. There is no drawback for cibil
Drawback comes only when you apply for a credit card
In cibil there are some understanding you have to learn
Banks report your usage for the month, the total payment paid, and due left. So govt or bank monitor this and when applying for new card other banks don't see you have paid or not but also see how well are you using the card. By seeing monthly high credit use they will guess that you are using card just for offer and there are chances of denial. Request you to use and let bill generate then pay. Clearing bill early also shows you don't need a cc but taking just offers of the bank. It also depends on card variant type purpose. But yes drawback is there. (it depends on bank which you apply and who approves monitors it)

 

[cowcoconut]

See. There is no drawback for cibil
Drawback comes only when you apply for a credit card
In cibil there are some understanding you have to learn
Banks report your usage for the month, the total payment paid, and due left. So govt or bank monitor this and when applying for new card other banks don't see you have paid or not but also see how well are you using the card. By seeing monthly high credit use they will guess that you are using card just for offer and there are chances of denial. Request you to use and let bill generate then pay. Clearing bill early also shows you don't need a cc but taking just offers of the bank. It also depends on card variant type purpose. But yes drawback is there. (it depends on bank which you apply and who approves monitors it)

I'm using my cashback and millenia regularly for high amounts.
Don't want to mentally keep track of 3-4 cards when I've used 200rs on one card for bms bogo, some on icici for bank offer etc.