Cred rent payment failed from hdfc bank cc.

[kochiro]

My card limit is almost nil as I am trying to show Max limit in my cibil. I made payment of 15000 through cred and after few mins tried ordering a phone. The transaction got declined because the money was never added into a card. Now my question is will they charge me for overlimit spending even if the transaction was declined? I had my entire limit bill yet to generate so will they add that overlimit fee according to my outstanding?

 

[prc1990]

My card limit is almost nil as I am trying to show Max limit in my cibil. I made payment of 15000 through cred and after few mins tried ordering a phone. The transaction got declined because the money was never added into a card. Now my question is will they charge me for overlimit spending even if the transaction was declined? I had my entire limit bill yet to generate so will they add that overlimit fee according to my outstanding?

If your limit is 15K and you have used that amount entirely and then paid the amount back (to restore the limit) prior to statement generation and then again use 10K (let's say) within the same statement cycle, then basically you're using 15K+10K=25K in a statement cycle as against the 15K limit which is not good at all. Kindly avoid doing so as it triggers excessive high utilisation ratio (more than 100%).

 

[kochiro]

If your limit is 15K and you have used that amount entirely and then paid the amount back (to restore the limit) prior to statement generation and then again use 10K (let's say) within the same statement cycle, then basically you're using 15K+10K=25K in a statement cycle as against the 15K limit which is not good at all. Kindly avoid doing so as it triggers excessive high utilisation ratio (more than 100%).

its one time thing to show proper limit on cibil. Let's say your limit is 1 lac but you spend 10k only then cibil will show 10k as your limit and your score will drop if you spend 15k next month even though limit is 1 lac. Thats how it is for hdfc.

 

[prc1990]

its one time thing to show proper limit on cibil. Let's say your limit is 1 lac but you spend 10k only then cibil will show 10k as your limit and your score will drop if you spend 15k next month even though limit is 1 lac. Thats how it is for hdfc.

That I know but if your limit is very low and if you're using amount (like the one I explained above) more than your limit in a statement cycle, trouble is evident.

 

[kochiro]

That I know but if your limit is very low and if you're using amount (like the one I explained above) more than your limit in a statement cycle, trouble is evident.

I did this for sbi hoping to get LE. Nothing happened so I just stopped using the card mostly.

 

[ujjawal]

It may also count as fraud/money laundering ... Pre-payments ...

Even I was naive and I did it but now that I now I suggest everyone never to do this ... Don't pay a single rupee before the bill generation date

I don't think it is fraud or money laundering as long as one is making payment online because banks can always trace the source of fund. If the payment is made in cash then it could be issue.

If you are salaried or getting paid directly in bank account then it won't be an issue, you can pay before bill generation to maintain your credit utilization.