Getting started in my journey

[devsfinance]

Hello everyone I recently made account on the community and participation in discussions.

I got my first ever card, Icici Sapphiro (Alumni) I had no prior credit history of any kind (loans, CC, Pay later, nothing) but due to the Almuni offer I got the card.

After hearing the comments that HDFC is good for pre approved CC I opened my salary account in HDFC.(recently joined the job) This is my first ever account in any bank before that I had an account in co operative bank which is regional.

I want to know basics of how to use this card to get a good credit score. I am not able to understand the process of statement generation etc. Although have no spends as of now so will love to know where should I start to build my score and get different credit cards.

I had also asked for DCB while opening account they straight up denied for even 1rs less salary then 1.75, Really pushed but that guy was not interested in this at all.

So want to know basics of using the card and what to do now with the card, to build a good credit score to build the score as after my first 2 salary credit I will apply for another card cause most of them requires statements.

 

[federer.reddevil]

First thing to know is Credit Limit offered keep the utilisation at or about 30% of total Credit Limit.

Pay your bills in full and not the Minimum Amount Due before the due date (if you are going to use 3rd party apps like PayTM, Mobikwik, Cred then pay the bills atleast 3 days before the due date)

Also dont withdraw cash using your Credit Card. (By default banks would have enabled this but I always disable it)

 

[credit_debit]

Did you get HDFC Platinum debit card with your salary account? It will assure 1% cashback for payment of your credit card bill. That will be good start. Another LTF card in ICICI family is amazon Pay ICICI LTF card. You can think of getting the same. Much better in terms of rewards and the rewards are in the form of Amazon Pay points which can be easily used anywhere.

I really don't know about your financial literacy, but in general, I recommend everyone to use the attached handbook from SEBI. It's good for getting introduced to all financial products. This will really help in financial planning and wealth management.

 

[devsfinance]

Th

First thing to know is Credit Limit offered keep the utilisation at or about 30% of total Credit Limit.

Pay your bills in full and not the Minimum Amount Due before the due date (if you are going to use 3rd party apps like PayTM, Mobikwik, Cred then pay the bills atleast 3 days before the due date)

Also dont withdraw cash using your Credit Card. (By default banks would have enabled this but I always disable it)

Thank you for the tips. I have seen a post of credit score which suggests that keeping the utilisation around 1-9% will give maximum CIbil score so I will try to keep that.

For payment I may be using HDFC if its possible.

I won’t withdraw cash.

 

[devsfinance]

Did you get HDFC Platinum debit card with your salary account? It will assure 1% cashback for payment of your credit card bill. That will be good start. Another LTF card in ICICI family is amazon Pay ICICI LTF card. You can think of getting the same. Much better in terms of rewards and the rewards are in the form of Amazon Pay points which can be easily used anywhere.

I really don't know about your financial literacy, but in general, I recommend everyone to use the attached handbook from SEBI. It's good for getting introduced to all financial products. This will really help in financial planning and wealth management.

Yes I got that platinum debit card but my account isn’t active yet. For some reason they took like 2.5 days and still account isn’t activated. Will it be eligible for paying bills of Icici CC?

Also yes I am planning to get Amazon Icici card but I believe I should be applying after a month or two as I recently got the card. Also sad part is the limit will be merged with my existing card.

Also thank you for giving this guide I will have glance.

 

[credit_debit]

Yes I got that platinum debit card but my account isn’t active yet. For some reason they took like 2.5 days and still account isn’t activated. Will it be eligible for paying bills of Icici CC?

Also yes I am planning to get Amazon Icici card but I believe I should be applying after a month or two as I recently got the card. Also sad part is the limit will be merged with my existing card.

Also thank you for giving this guide I will have glance.

You can use HDFC Platinum debit card to pay your ICICI card bills. Once your HDFC Bank account is active, you can add the ICICI credit card in Bill Pay section by using netbanking. Usually the card gets added instantaneously, but it shows status as 'Inactive' for up to 2 days. Till that time you can't make any payment. Once the status of the card is active, you are set to pay the bill via debit card. You can earn Max cashback up to Rs. 750 per month @ 1% via debit card. Don't apply to ICICI Amazon card immediately. Wait for at least 3 months and during this period, use your ICICI card for general spends.

 

[akshayhs]

I'd say stop applying for any credit cards and put 100% of your spends on your existing card and keep paying it off. Develop this habit for at least 6 months to get a hang of credit cards. Gradually apply for cards once you are comfortable and ensuring you are not overspending or spending on unplanned spends.

By the end of 6th month you should have an idea if credit cards are for you or not. Then take a call. Don't apply for cards just because you see someone else doing the same.

 

[srikant]

Hello everyone I recently made account on the community and participation in discussions.

I got my first ever card, Icici Sapphiro (Alumni) I had no prior credit history of any kind (loans, CC, Pay later, nothing) but due to the Almuni offer I got the card.

After hearing the comments that HDFC is good for pre approved CC I opened my salary account in HDFC.(recently joined the job) This is my first ever account in any bank before that I had an account in co operative bank which is regional.

I want to know basics of how to use this card to get a good credit score. I am not able to understand the process of statement generation etc. Although have no spends as of now so will love to know where should I start to build my score and get different credit cards.

I had also asked for DCB while opening account they straight up denied for even 1rs less salary then 1.75, Really pushed but that guy was not interested in this at all.

So want to know basics of using the card and what to do now with the card, to build a good credit score to build the score as after my first 2 salary credit I will apply for another card cause most of them requires statements.

Hello. You should ask for the billing date. You will typically have 15-20 days after that as the due date.

If your billing date is X. On X of August, you will be presented a bill for spends you made on the card between X of July and X of August. Plus, if you carried a balance on X of July, that charge and a huge interest on it.

You should pay the full due amount by the date the bill states as the due date to avoid interest.

While you should not "target" paying the minimum, you ought to know that paying that avoids late fee and default report on CIBIL. The interest by itself tends to be usurious, and minimum payment won't stop that. The interest is so big that your utilisation will rapidly expand even if you left a small balance.

With ICICI, the CIBIL reporting date matches the statement date, so if you always pay bills on time, the reflected utilisation will be fair - whatever you spend in one month on the card.

In some other cards, the reporting date is end of month. E.g., my IDFC card bills on 17, and gives till 5 of next month. Suppose I make my bill payments on 5th itself. The reporting on 31 July will include my 17 Jun bill amount PLUS whatever I spent been 17 and 31 July on the card.

For ICICI and SBI this problem won't happen. For cards with billing and due date for a cycle in the same month, his won't happen.

Anyway, you don't need to obsess with utilisation if you are almost consistently < 5%. You may choose to micromanage months with heavier expense - or even just shrug off and expect that the average will be all right.

 

[devsfinance]

You can use HDFC Platinum debit card to pay your ICICI card bills. Once your HDFC Bank account is active, you can add the ICICI credit card in Bill Pay section by using netbanking. Usually the card gets added instantaneously, but it shows status as 'Inactive' for up to 2 days. Till that time you can't make any payment. Once the status of the card is active, you are set to pay the bill via debit card. You can earn Max cashback up to Rs. 750 per month @ 1% via debit card. Don't apply to ICICI Amazon card immediately. Wait for at least 3 months and during this period, use your ICICI card for general spends.

Thank you for letting me know about this. I will be adding the card and figure out how to pay.

Also yes even I am thinking to get salary slips of a few months before applying for new card anyway my current limit is great given no salary slips were provided.

Do you know how much time does it take to get preferred in HDFC and what’s the procedure for the same?

 

[devsfinance]

I'd say stop applying for any credit cards and put 100% of your spends on your existing card and keep paying it off. Develop this habit for at least 6 months to get a hang of credit cards. Gradually apply for cards once you are comfortable and ensuring you are not overspending or spending on unplanned spends.

By the end of 6th month you should have an idea if credit cards are for you or not. Then take a call. Don't apply for cards just because you see someone else doing the same.

Thank you that’s actually a great advice I will surely stop applying. Actually I haven’t applied only I had asked for cards verbally only. But in few months because of rewards I am thinking to get Amazon Pay ICICI card.

 

[devsfinance]

Hello. You should ask for the billing date. You will typically have 15-20 days after that as the due date.

If your billing date is X. On X of August, you will be presented a bill for spends you made on the card between X of July and X of August. Plus, if you carried a balance on X of July, that charge and a huge interest on it.

You should pay the full due amount by the date the bill states as the due date to avoid interest.

While you should not "target" paying the minimum, you ought to know that paying that avoids late fee and default report on CIBIL. The interest by itself tends to be usurious, and minimum payment won't stop that. The interest is so big that your utilisation will rapidly expand even if you left a small balance.

With ICICI, the CIBIL reporting date matches the statement date, so if you always pay bills on time, the reflected utilisation will be fair - whatever you spend in one month on the card.

In some other cards, the reporting date is end of month. E.g., my IDFC card bills on 17, and gives till 5 of next month. Suppose I make my bill payments on 5th itself. The reporting on 31 July will include my 17 Jun bill amount PLUS whatever I spent been 17 and 31 July on the card.

For ICICI and SBI this problem won't happen. For cards with billing and due date for a cycle in the same month, his won't happen.

Anyway, you don't need to obsess with utilisation if you are almost consistently < 5%. You may choose to micromanage months with heavier expense - or even just shrug off and expect that the average will be all right.

Thank you for letting me know this.

Yes I checked my current cycle
Is 15 Aug but I have option to change it. What would you prefer and why?

I mostly will spend whatever I have in bank with card (to build the score and keep utilisation low) and hence pay the bill in full only.

About the other point as the bill time is 15 Aug on top of the time left I will get more 10-12 days after 15 Aug to pay the bills right?

About the utilisation as my current spending is low and the limit is quite high considering it’s my first and only credit card I will be keeping my utilisation around 8-9% only. If it is beneficial to keep it below 5% I can also do the same what will be your suggestion?

 

[credit_debit]

Thank you for letting me know about this. I will be adding the card and figure out how to pay.

Also yes even I am thinking to get salary slips of a few months before applying for new card anyway my current limit is great given no salary slips were provided.

Do you know how much time does it take to get preferred in HDFC and what’s the procedure for the same?

No point in getting preferred account. You are already getting most of the services with Zero balance salary account with Platinum card. Why you want preferred account? If it is for CC, then I don't think the type of account will matter much in getting HDFC CC.

 

[devsfinance]

No point in getting preferred account. You are already getting most of the services with Zero balance salary account with Platinum card. Why you want preferred account? If it is for CC, then I don't think the type of account will matter much in getting HDFC CC.

Oh no because I have salary account I had heard that after sometime we get preferred status without any charges and yes I thought preferred customer doesn’t need to give salary slips for CC.(I saw this on technofino YT channel) So I am thinking I may get paid DCB pre approved after a few months if I am a preferred customer.

 

[credit_debit]

Oh no because I have salary account I had heard that after sometime we get preferred status without any charges and yes I thought preferred customer doesn’t need to give salary slips for CC.(I saw this on technofino YT channel) So I am thinking I may get paid DCB pre approved after a few months if I am a preferred customer.

Wish you best luck!! I hope you will get it.

 

[AritraSaha]

Hello everyone I recently made account on the community and participation in discussions.

I got my first ever card, Icici Sapphiro (Alumni) I had no prior credit history of any kind (loans, CC, Pay later, nothing) but due to the Almuni offer I got the card.

After hearing the comments that HDFC is good for pre approved CC I opened my salary account in HDFC.(recently joined the job) This is my first ever account in any bank before that I had an account in co operative bank which is regional.

I want to know basics of how to use this card to get a good credit score. I am not able to understand the process of statement generation etc. Although have no spends as of now so will love to know where should I start to build my score and get different credit cards.

I had also asked for DCB while opening account they straight up denied for even 1rs less salary then 1.75, Really pushed but that guy was not interested in this at all.

So want to know basics of using the card and what to do now with the card, to build a good credit score to build the score as after my first 2 salary credit I will apply for another card cause most of them requires statements.

Hey, i remember you(from are salary account post).

Having a deja vu moment..

Congrats for the new cc!

For cc tips follow the community!😊

 

[avishj]

Oh no because I have salary account I had heard that after sometime we get preferred status without any charges and yes I thought preferred customer doesn’t need to give salary slips for CC.(I saw this on technofino YT channel) So I am thinking I may get paid DCB pre approved after a few months if I am a preferred customer.

If you do not meet the salary criteria for DCB, get the DCP in the meanwhile. It is included in the alumni offer as well.

 

[srikant]

Thank you for letting me know this.

Yes I checked my current cycle
Is 15 Aug but I have option to change it. What would you prefer and why?

I mostly will spend whatever I have in bank with card (to build the score and keep utilisation low) and hence pay the bill in full only.

About the other point as the bill time is 15 Aug on top of the time left I will get more 10-12 days after 15 Aug to pay the bills right?

About the utilisation as my current spending is low and the limit is quite high considering it’s my first and only credit card I will be keeping my utilisation around 8-9% only. If it is beneficial to keep it below 5% I can also do the same what will be your suggestion?

If you have just one card (one billing date), the billing date doesn't matter. With more cards, you can try to maximise interest-free window on spends by adjusting billing cycles. While I am generally not very sharp with rewards and stuff, I do know that higher rewards can easily trump interest-free window, especially now when interest rates are quite low.

Note that keeping too many different billing cycles can make tracking payments more difficult - and again remember the low interest rates. So keep 2 or MAX three billing cycles.

Maxing interest-free window is done by using your most recently-billed card for a new spend. I.e., if you have two cards, A with billing date 1st, B with 15th, use A for spends in first half of the month, and B for spends in the second half. The thing is, if you're, say dining, on 17th, and A has extra rewards for dining, you might still be better off using A for that bill.

15 Aug is a decent billing date for ICICI. Since most other cards report end of month, it'll be good to be able to shove any unexpected end-of-month expense under it, without getting a huge utilization reported. Maybe even make it further towards end of month.

If you're planning to get an HDFC card soon - you can either keep the billing for it 15th (convenience), or make the billing date 1st for that, (max out interest-free window).

 

[devsfinance]

If you do not meet the salary criteria for DCB, get the DCP in the meanwhile. It is included in the alumni offer as well.

Yeah but I have seen in few other posts that it isn’t easy to upgrade later.

 

[devsfinance]

Hey, i remember you(from are salary account post).

Having a deja vu moment..

Congrats for the new cc!

For cc tips follow the community!😊

Oh yes. Thank you for replying there as well. And I has a deja vu moment with your reply as well. Yes I will be following the community posts, still figuring out everything as you know pretty new to all this.

 

[devsfinance]

If you have just one card (one billing date), the billing date doesn't matter. With more cards, you can try to maximise interest-free window on spends by adjusting billing cycles. While I am generally not very sharp with rewards and stuff, I do know that higher rewards can easily trump interest-free window, especially now when interest rates are quite low.

Note that keeping too many different billing cycles can make tracking payments more difficult - and again remember the low interest rates. So keep 2 or MAX three billing cycles.

Maxing interest-free window is done by using your most recently-billed card for a new spend. I.e., if you have two cards, A with billing date 1st, B with 15th, use A for spends in first half of the month, and B for spends in the second half. The thing is, if you're, say dining, on 17th, and A has extra rewards for dining, you might still be better off using A for that bill.

15 Aug is a decent billing date for ICICI. Since most other cards report end of month, it'll be good to be able to shove any unexpected end-of-month expense under it, without getting a huge utilization reported. Maybe even make it further towards end of month.

If you're planning to get an HDFC card soon - you can either keep the billing for it 15th (convenience), or make the billing date 1st for that, (max out interest-free window).

Thank you for giving detailed information. I will not apply for CC for now( as many have suggested that) In 2-3 months I will be getting ICICI amazon pay card and/or try for HDFC DCB.

I had also seen a kotak card with massive benefits in some posts but don’t know the name of that card. So may be in these 2 month figure out which are good cards for me. As I don’t have any spends as of now mostly I spend in movies , dining, some small shopping on amazon/flipkart, some small bill payment of electricity.