Best way to pay Credit Card

[coinhunter]

Would it have a good impact on CIBIL score if I pay after the statement has been released instead of waiting for the due date?

PS: I always pay in full except of course for EMI transactions.

 

[BMR]

Some banks report dues on the statement generation date but most of them report at the end of the month. So if your due date is in the first week of a month, try paying off the dues in full before the month end.

 

[coinhunter]

How about if I pay off few days before the statement generation date? Would that give some sort of an impact as well?

 

[helloworld]

Ex: ABC Card

Statement Date: 20 (of every month)
Due Date: 10 (of every month)

Total Credit Limit of ABC Card - 20000
Cibil Reporting Date: 30 (of every month)

Current Date: 25
Due Amount: 10000 (as per statement)

-------------
So, Current Utilization Ratio: 50% which ABC Bank reports to Cibil on 30th of that month.

--------------
Few Points:

- One of the primary advantage of credit card is to utilize interest free amount from that ABC Bank Credit Card, and at the same time accumulate some interest on our XYZ Savings Account till that (due date - 5) (adjusted if any issues with bill payment platforms) for that amount.

- One of the factor that affects credit score majorly is Credit Utilization Ratio which can increase or limit new cards/loans on our account.

-----------

If you clear your dues by 29th, then bank reports your utilization ratio as - 0%

If you paid after 30th, then bank reports your utilization ratio as - 50%

(Note: 2nd condition has less impact if you have longer credit history)

---------
Options:

Always pay before due date with any case.

- If your CUR crosses more than 50% frequently, try to pay before month end/bill generation date (depends on bank).

- If CUR not much, then keep that amount in your savings account, increase your MAB then pay of before due date.

- Follow both to reduce CUR and to get some interest in Savings.

-----------
Hope you got some idea. Cibil behavior for score is unknown, above based on internet and personal observation. We can always pay off as soon as paid for that product, if there is some doubt that the amount may not be available at the month end (give high priority to credit card bills or any loan bills).

More information:

 

[coinhunter]

Ex: ABC Card

Statement Date: 20 (of every month)
Due Date: 10 (of every month)

Total Credit Limit of ABC Card - 20000
Cibil Reporting Date: 30 (of every month)

Current Date: 25
Due Amount: 10000 (as per statement)

-------------
So, Current Utilization Ratio: 50% which ABC Bank reports to Cibil on 30th of that month.

--------------
Few Points:

- One of the primary advantage of credit card is to utilize interest free amount from that ABC Bank Credit Card, and at the same time accumulate some interest on our XYZ Savings Account till that (due date - 5) (adjusted if any issues with bill payment platforms) for that amount.

- One of the factor that affects credit score majorly is Credit Utilization Ratio which can increase or limit new cards/loans on our account.

-----------

If you clear your dues by 29th, then bank reports your utilization ratio as - 0%

If you paid after 30th, then bank reports your utilization ratio as - 50%

(Note: 2nd condition has less impact if you have longer credit history)

---------
Options:

Always pay before due date with any case.

- If your CUR crosses more than 50% frequently, try to pay before month end/bill generation date (depends on bank).

- If CUR not much, then keep that amount in your savings account, increase your MAB then pay of before due date.

- Follow both to reduce CUR and to get some interest in Savings.

-----------
Hope you got some idea. Cibil behavior for score is unknown, above based on internet and personal observation. We can always pay off as soon as paid for that product, if there is some doubt that the amount may not be available at the month end (give high priority to credit card bills or any loan bills).

More information:

I must say, best explanation so far. Thank you. I got it now. Appreciate your help.

 

[Tosh]

When does SBI report credit utilisation for its card. Month end or statement generation date?

 

[Rahul Gupta]

When does SBI report credit utilisation for its card. Month end or statement generation date?

statement generation date.

 

[007]

When does SBI report credit utilisation for its card. Month end or statement generation date?

Payment due date + 3 days as per customer care.
Refer this:

Credit Card CIBIL Reporting Date

let me take example of axis(reports to cibil on month end) Bill generation date: every 15th Bill due date: 5th of next month case 1. paying total bill before month end case 2. Most of the payment before month end and remaining lil payment on 1st in both the case what is the amount that axis...

www.technofino.in

 

[Tosh]

Wait I am confused so if my statement generation date is 13th oct my payment due date would be +20 days (for eg) so 3rd oct.

I would settle the bill on or before that to avoid late payment meaning if I don't spend anything between the next 3 days (upto October 6) my utilisation would be reported 0%?

 

[BMR]

I paid my HDFC credit card bill yesterday via CRED and it is still not reflected in HDFC. This has never happened earlier, the acknowledgement was instantaneous earlier. Anyone else noticing the same behaviour ?

 

[coinhunter]

I paid my HDFC credit card bill yesterday via CRED and it is still not reflected in HDFC. This has never happened earlier, the acknowledgement was instantaneous earlier. Anyone else noticing the same behaviour ?

I did before, and that is why I pay a week before my due date if I use third-party payment method.

 

[Deleted member 5552]

I paid my HDFC credit card bill yesterday via CRED and it is still not reflected in HDFC. This has never happened earlier, the acknowledgement was instantaneous earlier. Anyone else noticing the same behaviour ?

I paid some amount on Saturday through cred app to hdfc card. Till now amount not credited. Almost 3 days gone. I was in good mood to pay all outstanding amount and close hdfc moneyback card.

 

[BMR]

I paid my HDFC credit card bill yesterday via CRED and it is still not reflected in HDFC. This has never happened earlier, the acknowledgement was instantaneous earlier. Anyone else noticing the same behaviour ?

The credit was reflected after 2 days.

 

[cch]

I paid my HDFC credit card bill yesterday via CRED and it is still not reflected in HDFC. This has never happened earlier, the acknowledgement was instantaneous earlier. Anyone else noticing the same behaviour ?

I'm facing same issue with Axis, 5 times my payment got reverted to bank acc after paying on cred.

 

[swiftlysingh]

Recently I started paying with kotak pvr debit card. Although the rewards are very minimal, I have still able to collect and watch some free movies.

 

[jack333]

Ex: ABC Card

Statement Date: 20 (of every month)
Due Date: 10 (of every month)

Total Credit Limit of ABC Card - 20000
Cibil Reporting Date: 30 (of every month)

Current Date: 25
Due Amount: 10000 (as per statement)

-------------
So, Current Utilization Ratio: 50% which ABC Bank reports to Cibil on 30th of that month.

--------------
Few Points:

- One of the primary advantage of credit card is to utilize interest free amount from that ABC Bank Credit Card, and at the same time accumulate some interest on our XYZ Savings Account till that (due date - 5) (adjusted if any issues with bill payment platforms) for that amount.

- One of the factor that affects credit score majorly is Credit Utilization Ratio which can increase or limit new cards/loans on our account.

-----------

If you clear your dues by 29th, then bank reports your utilization ratio as - 0%

If you paid after 30th, then bank reports your utilization ratio as - 50%

(Note: 2nd condition has less impact if you have longer credit history)

---------
Options:

Always pay before due date with any case.

- If your CUR crosses more than 50% frequently, try to pay before month end/bill generation date (depends on bank).

- If CUR not much, then keep that amount in your savings account, increase your MAB then pay of before due date.

- Follow both to reduce CUR and to get some interest in Savings.

-----------
Hope you got some idea. Cibil behavior for score is unknown, above based on internet and personal observation. We can always pay off as soon as paid for that product, if there is some doubt that the amount may not be available at the month end (give high priority to credit card bills or any loan bills).

More information:

Which option is better to increase cibil score if my utilization is less than 30%, pay before month end or next month
@007 @TechnoFino @helloworld

 

[007]

Which option is better to increase cibil score if my utilization is less than 30%, pay before month end or next month
@007 @TechnoFino @helloworld

No one can answer this with surety. But according my experience it's the number of timely (here timely means before due date) payments which matter the most. If you have 5 credit cards try to do a spend (even if it is for ₹10), this will increase the number of payments reported. Secondly, if your credit utilization is well below 30% (I take this ratio as 20%) it shouldn't matter if you pay before month end or not. I pay as soon as the bill is generated for my mental peace, and I think one should clear their bill atleast a week before due date to avoid any payment related issue. Most banks report to bureaus at month end hence folks try to clear their dues before it's reported, that's all. Lastly, don't bother much if your score is above 750!