credit card utilization % doubt

[ltf4ever]

beginner question:
the utilisation percentage that is reported to credit bureaus - is it based on statement balance, or is it based on maximum utilisation at any point in time?

eg if credit limit is 1 lakh, i make transactions equal to 90,000 but pay 80k before statement is generated, the will the utilisation % reported be 90% or 10%?

 

[Deleted member 5552]

beginner question:
the utilisation percentage that is reported to credit bureaus - is it based on statement balance, or is it based on maximum utilisation at any point in time?

eg if credit limit is 1 lakh, i make transactions equal to 90,000 but pay 80k before statement is generated, the will the utilisation % reported be 90% or 10%?

10%

But it depends on reporting date. Some banks report on last date of month. So, you have to pay by month end to decrease utilisation ratio in cibil

 

[Alex292929]

any idea about the reporting date for icici cc?

 

[Dr-green69]

Well it depends on when ur bank reports to cibil and on what date u did the transaction for example ur bank reports to cibil on 15th and u did the transaction of 90k on 14th and paid 80k before ur billing date than ur utilisation will be 90% as when ur bank reports to cibil ur outstanding was 90%. Icici reports on billing date and axis reports on last day of every month

 

[Dr-green69]

any idea about the reporting date for icici cc?

Billing date of ur cc.

 

[NOOBY]

Well it depends on when ur bank reports to cibil and on what date u did the transaction for example ur bank reports to cibil on 15th and u did the transaction of 90k on 14th and paid 80k before ur billing date than ur utilisation will be 90% as when ur bank reports to cibil ur outstanding was 90%. Icici reports on billing date and axis reports on last day of every month

If this information is true, then that means we can not have max utilization while keeping CC stmt as as minimum in case of ICICI ?

As in, If I want to report 100% utilisation for my ICICI while keeping the stmt amount as negligible (like 2-3k), this wont be possible as ICICI would report it on the day of bill generation ?

 

[Deleted member 5552]

any idea about the reporting date for icici cc?

Statement date

 

[Dr-green69]

If this information is true, then that means we can not have max utilization while keeping CC stmt as as minimum in case of ICICI ?

As in, If I want to report 100% utilisation for my ICICI while keeping the stmt amount as negligible (like 2-3k), this wont be possible as ICICI would report it on the day of bill generation ?

I use my apay card a lot and my billing date is 28 so i use my card like crazy but on 27 i pay 95% in advance so my bill never exceeds 5k which keep my utilisation in 2% to 3%

 

[drakesri]

CIBIL also tracks your overall credit limit across all credit cards, and shows utilisation on the current outstanding based on the statements. To maintain healthy score it is always advisable to keep overall utilisation below 20%

 

[Card_Crafter]

Well it depends on when ur bank reports to cibil and on what date u did the transaction for example ur bank reports to cibil on 15th and u did the transaction of 90k on 14th and paid 80k before ur billing date than ur utilisation will be 90% as when ur bank reports to cibil ur outstanding was 90%. Icici reports on billing date and axis reports on last day of every month

Are you sure about Axis reporting on the last day of every month? Because so far for me the statement amount only reflecting in the CIBIL every month not the utilised amount at month end. My guess is they report on month end but the statement amount only they report.

Edit: my statement generation date is 10th

 

[NOOBY]

I use my apay card a lot and my billing date is 28 so i use my card like crazy but on 27 i pay 95% in advance so my bill never exceeds 5k which keep my utilisation in 2% to 3%

but does your xredit utilization gets shown in CIBIL or is it just 5k reported ?

as that is what the discussion is all about..

Lets take your example: You use 7.99L of your 8L credit limit on your apay card till 27th, and on 27th you pay 7.94L in advance so that your generated bill is 5k only..

You pay the 5k amount but after lets say 2-3 months, what is the Highest credit utilization shown in your cibil report... as your your logic, it should show 7.99 right ?

As, people tend to do it with HDFC (as they never report credit limit to any scoring platform)

 

[Dr-green69]

but does your xredit utilization gets shown in CIBIL or is it just 5k reported ?

as that is what the discussion is all about..

Lets take your example: You use 7.99L of your 8L credit limit on your apay card till 27th, and on 27th you pay 7.94L in advance so that your generated bill is 5k only..

You pay the 5k amount but after lets say 2-3 months, what is the Highest credit utilization shown in your cibil report... as your your logic, it should show 7.99 right ?

As, people tend to do it with HDFC (as they never report credit limit to any scoring platform)

Bro it will never show 7.99L as u have already paid 7.94l and ur bill was generated for 5k so it will only show 5k used. Bro they dont show how much u use ur card they only show how much ur outstanding was at the time of reporting suppose u have 10L limit u use 13L out of it but just 1 day before ur cibil report date u pay all 13L then it will show 0% use in ur cibil and yes banks dont report every month some banks report once a month some reports once every 2 months. And i dont know about hdfc as i only got hdfc card this month do i dont have any experience with hdfc yet

 

[NOOBY]

Bro it will never show 7.99L as u have already paid 7.94l and ur bill was generated for 5k so it will only show 5k used. Bro they dont show how much u use ur card they only show how much ur outstanding was at the time of reporting suppose u have 10L limit u use 13L out of it but just 1 day before ur cibil report date u pay all 13L then it will show 0% use in ur cibil and yes banks dont report every month some banks report once a month some reports once every 2 months. And i dont know about hdfc as i only got hdfc card this month do i dont have any experience with hdfc yet

Thanks, things got cleared now (and same as what I was expecting)

You will see in case of HDFC that they would never report your credit limit to any credit bureaus. So, even if your credit limit is 30L but max you have spent is 2L, then as per CIBIL and other reports, your max utilization would only be 2L which some applications might treat as Credit limit which would prevent you from getting higher cards.

So, what some people usally do is that they use 100% limit of there card, the score drops for 3-4 months and comes back up with timely payments. This process takes time but high limit starts showing in your reports.