Credit Utilisation Ratio

[SarthakModak]

Suppose here is a situation-There is a credit card with credit limit 1,00,000 and the bill generation date of that credit card is 20th monthly.
If someone uses 80,000 with that credit card and pays 70,000 on 15th before the bill generation date(20th).
So the bill generated will be 10,000 and the credit utilisation ratio will be 10%.Am I right?

 

[prc1990]

Suppose here is a situation-There is a credit card with credit limit 1,00,000 and the bill generation date of that credit card is 20th monthly.
If someone uses 80,000 with that credit card and pays 70,000 on 15th before the bill generation date(20th).
So the bill generated will be 10,000 and the credit utilisation ratio will be 10%.Am I right?

Ideally yes as it reports the balance on the day of reporting.

 

[Batmanbaba]

The reporting time and bill generation day maybe different for your card provider.....

Some providers report the limit utilised on last date of month rather than bill generation date....

So on reporting date if utilisation is 70%.. That will be reported.... Its best to keep the utilisation low on last date of month and bill generation day to be safe... You can predict the trend by seeing detailed report of 2-3 months

 

[TechnoFinoTechnoFino is verified member.]

Suppose here is a situation-There is a credit card with credit limit 1,00,000 and the bill generation date of that credit card is 20th monthly.
If someone uses 80,000 with that credit card and pays 70,000 on 15th before the bill generation date(20th).
So the bill generated will be 10,000 and the credit utilisation ratio will be 10%.Am I right?

watch this video -

 

[SarthakModak]

watch this video -

Dada I saw this video the day you uploaded it but the confusion that is arising is whether the credit card issuer reports on the last day of the month means the month in which the bill is generated or the previous month's last day.
For example someone spends 1000 from their credit card and the bill generation date is 20th May.So if the cc issuer reports to the credit bureaus on the last day of the month means they will report on 30th April or 31st May? I am not getting this point only.

 

[SarthakModak]

The reporting time and bill generation day maybe different for your card provider.....

Some providers report the limit utilised on last date of month rather than bill generation date....

So on reporting date if utilisation is 70%.. That will be reported.... Its best to keep the utilisation low on last date of month and bill generation day to be safe... You can predict the trend by seeing detailed report of 2-3 months

When does OneCard(SBM Bank) reports to the credit bureaus?

 

[Sub]

Do bear in mind that many banks also report peak utilization, and not just utilization on the date of reporting. So it doesn't really matter when you pay, as the peak will always get reported.

 

[TechnoFinoTechnoFino is verified member.]

Dada I saw this video the day you uploaded it but the confusion that is arising is whether the credit card issuer reports on the last day of the month means the month in which the bill is generated or the previous month's last day.
For example someone spends 1000 from their credit card and the bill generation date is 20th May.So if the cc issuer reports to the credit bureaus on the last day of the month means they will report on 30th April or 31st May? I am not getting this point only.

I have listed banks & their reporting dates

 

[Batmanbaba]

When does OneCard(SBM Bank) reports to the credit bureaus?

Month end...... Like 30th,31st and 28th for feb

 

[Bob78900]

I have listed banks & their reporting dates

Please share with us

 

[prc1990]

Please share with us

Credit Card CIBIL Reporting Date

Hello everyone, If you are holding multiple credit cards, and wants to keep your credit utilisation ration under 30% then you should know, on which date your card issuers report your card uses data to CIBIL. To know more about how to maintain credit utilisation ratio under 30% or lower watch...

www.technofino.in

 

[SarthakModak]

Do bear in mind that many banks also report peak utilization, and not just utilization on the date of reporting. So it doesn't really matter when you pay, as the peak will always get reported.

Thanks for telling I actually never heard of it.Can you name a few banks coz I gotta keep it in mind before taking credit cards of those banks?

 

[TechnoFinoTechnoFino is verified member.]

Thanks for telling I actually never heard of it.Can you name a few banks coz I gotta keep it in mind before taking credit cards of those banks?

HDFC