Holding Multiple Credit Cards? Share your payment strategy to avoid missed payments!!

[RaviAglRaviAgl is verified member.]

Why you should think of it –​

While holding multiple credit cards has its perks, one of its biggest disadvantages is missing a payment inadvertently and then ruining your Credit score which takes an ample amount of time to fix.

Many of the smartest and most careful of us, may miss a payment, owing to our busy schedules and maybe unplanned emergencies.

My payment strategy –​

I am pretty stingy with credit card spends and only use them for rewards and cashbacks. Well, most of us here do the same. If I don’t see a benefit, I just use UPI or cash.

I maintain an account in HDFC which I generally keep funded for emergencies. I use this account to pay my credit card bills. So, it doubles up as an emergency fund and since it is funded all the time, any payment that I may probably forget doesn’t bounce.

For HDFC Cards, there is an option in netbanking to autodebit your bank account with your linked credit card bill amount (or minimum amount due, which you should never select) on the due date. In case, you do not see your card then you have the option to link it.

For other Cards, such as SBI Cards, you will be able to find the option of NACH mandate in the SBI Card App. Use this to setup an autodebit of your Credit Card Bill amount with your Bank Account (which can be any bank in India). It is a two minute process, where you will be asked for the 4 digits of your PAN and then login to your netbanking to approve the NACH request. They may also share an agreement with you and ask you to sign it digitally using an OTP received on your registered mobile number.

I have linked all my credit cards except one (ICICI Amazon Pay Credit Card, which I use as a primary card) with HDFC for autodebit and this facility works pretty well.

Now, I also make payments for friends, family and in-laws using my Cards to get and give them the benefits of schemes and rewards. I take a cheque from my friends and directly deposit it to ICICI Credit Card Account. I take a note of the bill amount and after deducting the payments deposited in the Card Account by others, pay the entire bill upto 7 days in advance.

Disadvantages of using Autodebit (NACH) –​

• Firstly, you miss the petty cashbacks which you get while making payments using Amazon and the like. I don’t trust CRED and such apps and just stay miles away from them.
• Your bank may charge a one time fee of Rs 100+Gst (Rs 118) to setup autodebit from our account. Some banks do (PNB does) and some don’t (HDFC doesn’t, maybe because I am an Imperia or preferred customer, I don’t know) charge this fee.
• If your card account has received some cashback credit or even if you pay the credit card bill beforehand, the NACH will trigger and debit the entire bill amount. This will result in some credit balance to your card bill account which you will need to utilize later.
• I would like to make an exception here for SBI. In case of SBI, I have set up autodebit for my SBI BPCL Octane Card and then transferred some small amounts after the card bill date. Say, the bill was Rs 11800 and I paid Rs 400 once and Rs 500 later, SBI smartly picked up Rs 10900 using NACH and not Rs 11800 which was the bill amount.
• In case you have not funded your account, the NACH will bounce and you will have to pay Cheque bounce charges as per Bank policy, thus ruining the whole purpose. So, keep your account well funded at all times.
• In case there is a fraudulent charge to your account, then it may go unnoticed. You need to monitor your credit card account regularly.
• Just one more point to add, your NACH may trigger a day later after the due date. Don't worry about it. It won't be counted as a late payment.

Advantages of Autodebit –​

• You may save a little on account of Saving Bank interest, since the credit card bill amount is debited on the due date and not before.
• You shop without fear knowing that bill payment has already been taken care of.
• Peace of mind, as credit card bill payment is one of the worst liabilities when it starts to affect your credit score.

Other ways to avoid missing payments –​

• Use Reminders from Amazon, paytm or such apps which remind you of your due bills.
• You can setup a recurring calendar event in your phone to remind you of your bill payments.

Drop a comment if you have something to add.

Hit a Like, if you enjoyed this!!

Thanks.

 

[Deathsnatcher]

For me i have cred app
which keep sending alerts and once the statement is generated i pay instantly
dont wait for even a week

 

[vm999]

I usually pay before the bill is generated or immediately after the bill is generated so that I don't need to worry about them

 

[Deathsnatcher]

I usually pay before the bill is generated or immediately after the bill is generated so that I don't need to worry about them

Will Paying even before the bill is generated changes anything
i mean any change in rewards etc etc?

 

[tsj49]

• Try to set the cycle such that you can do all the payments on same day. If it's not, try changing the cycle by talking to bank. For me, this eliminates the issue of remembering the due dates for each card. Due dates ranges from 3rd to 10th so I can do all the payments on 1st safely.
• Add all the cards to any app that supports CC bill payments (like cred, paytm etc.)

So if I check my app on 1st of the month, I will know all the payments and if I pay all, I know, I haven't missed any.

 

[Avishma1]

Why you should think of it –​

While holding multiple credit cards has its perks, one of its biggest disadvantage is missing a payment inadvertently and then ruining your Credit score which takes an ample amount of time to fix.

Many of the smartest and most careful of us, may miss a payment, owing to our busy schedules and maybe unplanned emergencies.

My payment strategy –​

I am pretty stingy with credit card spends and only use them for rewards and cashbacks. Well, most of us here do the same. If I don’t see a benefit, I just use UPI or cash.

I maintain an account in HDFC which I generally keep funded for emergencies. I use this account to pay my credit card bills. So, it doubles up as an emergency fund and since it is funded all the time, any payment that I may probably forget doesn’t bounce.

For HDFC Cards, there is an option in netbanking to autodebit your bank account with your linked credit card bill amount (or minimum amount due, which you should never select) on the due date. In case, you do not see your card then you have the option to link it.

For other Cards, such as SBI Cards, you will be able to find the option of NACH mandate in the SBI Card App. Use this to setup an autodebit of your Credit Card Bill amount with your Bank Account (which can be any bank in India). It is a two minute process, where you will be asked for the 4 digits of your PAN and then login to your netbanking to approve the NACH request. They may also share an agreement with you and ask you to sign it digitally using OTP received on your registered mobile number.

I have linked all my credit cards except one (ICICI Amazon Pay Credit Card, which I use as a primary card) with HDFC for autodebit and this facility works pretty well.

Now, I also make payments for friends, family and in-laws using my Cards to get and give them the benefits of schemes and rewards. The payments of which I directly deposit to ICICI Credit Card Account by taking a cheque from them. I take a note of the bill amount and after deducting the payments deposited in the Card Account by others, pay the entire bill upto 7 days in advance.

Disadvantages of using Autodebit (NACH) –​

• Firstly, you miss the petty cashbacks which you get while making payments using Amazon and the like. I don’t trust CRED and such apps and just stay miles away from them.
• Your bank may charge a one time fee of Rs 100+Gst (Rs 118) to setup autodebit from our account. Some banks do (PNB does) and some don’t (HDFC doesn’t, maybe because I am an Imperia or preferred customer, I don’t know) charge this fee.
• If your card account has received some cashback credit or even if you pay the credit card bill beforehand, the NACH will trigger and debit the entire bill amount. This will result in some credit balance to your card bill account which you will need to utilize later.
• I would like to make an exception here for SBI. In case of SBI, I have set up autodebit for my SBI BPCL Octane Card and then transferred some small amounts after the card bill date. Say, the bill was Rs 11800 and I paid Rs 400 once and Rs 500 later, SBI smartly picked up Rs 10900 using NACH and not Rs 11800 which was the bill amount.
• In case you have not funded your account, the NACH will bounce and you will have to pay Cheque bounce charges as per Bank policy, thus ruining the whole purpose. So, keep your account well funded at all times.
• In case there is a fraudulent charge to your account, then it may go unnoticed. You need to monitor your credit card account regularly.

Advantages of autopayment –​

• You may save a little on account of Saving Bank interest, since the credit card is debited on the due date and not before.
• You shop without fear knowing that bill payment has already been taken care of.
• Peace of mind, as credit card bill payment is one of the worst liabilities when it starts to affect your credit score.

Other ways to avoid missing payments –​

• Use Reminders from Amazon, paytm or such apps which remind you of your due bills.
• You can setup a recurring calendar event in your phone to remind you of your bill payments.

Drop a comment if you have something to add.

Hit a Like, if you enjoyed this!!

Thanks.

I go completely opposite to you and pay the bills usually in last week through mobikwik, paytm, cred, etc. Very rarely used netbanking. Never missed payment in last 9 years and earns around 1000 to 1500 every month by paying bills

 

[Deathsnatcher]

I go completely opposite to you and pay the bills usually in last week through mobikwik, paytm, cred, etc. Very rarely used netbanking. Never missed payment in last 9 years and earns around 1000 to 1500 every month by paying bills

would like to know how do you earn that much just by paying cc bills

 

[vm999]

Will Paying even before the bill is generated changes anything
i mean any change in rewards etc etc?

No. It doesn't, payments qre tracked separately by bank so it's not a problem

 

[RaviAglRaviAgl is verified member.]

I go completely opposite to you and pay the bills usually in last week through mobikwik, paytm, cred, etc. Very rarely used netbanking. Never missed payment in last 9 years and earns around 1000 to 1500 every month by paying bills

I did follow this till the last 2 years, but after covid, I am using this method. I generally paid all my credit card dues, as soon the bill was generated.

I know that most of the members will be opposed to this strategy and it is completely acceptable.

I am talking about one the rare events which may cause you to miss.

Thank you for reading.

 

[Avishma1]

would like to know how do you earn that much just by paying cc bills

My monthly cc bills is around 4-5 lacs every month. Postpe gives 1k monthly.. Hdfc debit card gives 750 monthly. Then paytm around 300-400 using multiple accounts

 

[Shrinit Padwal]

I have a habit to check my gmail every morning - any new statement generated - Go to Billpay/Mobikwik and pay it off.

 

[Shrinit Padwal]

Other ways to avoid missing payments –​

• Use Reminders from Amazon, paytm or such apps which remind you of your due bills.
• You can setup a recurring calendar event in your phone to remind you of your bill payments.

This is really nice, will definitely try to use this

 

[vaibhav111vaibhav111 is verified member.]

Why you should think of it –​

While holding multiple credit cards has its perks, one of its biggest disadvantage is missing a payment inadvertently and then ruining your Credit score which takes an ample amount of time to fix.

Many of the smartest and most careful of us, may miss a payment, owing to our busy schedules and maybe unplanned emergencies.

My payment strategy –​

I am pretty stingy with credit card spends and only use them for rewards and cashbacks. Well, most of us here do the same. If I don’t see a benefit, I just use UPI or cash.

I maintain an account in HDFC which I generally keep funded for emergencies. I use this account to pay my credit card bills. So, it doubles up as an emergency fund and since it is funded all the time, any payment that I may probably forget doesn’t bounce.

For HDFC Cards, there is an option in netbanking to autodebit your bank account with your linked credit card bill amount (or minimum amount due, which you should never select) on the due date. In case, you do not see your card then you have the option to link it.

For other Cards, such as SBI Cards, you will be able to find the option of NACH mandate in the SBI Card App. Use this to setup an autodebit of your Credit Card Bill amount with your Bank Account (which can be any bank in India). It is a two minute process, where you will be asked for the 4 digits of your PAN and then login to your netbanking to approve the NACH request. They may also share an agreement with you and ask you to sign it digitally using OTP received on your registered mobile number.

I have linked all my credit cards except one (ICICI Amazon Pay Credit Card, which I use as a primary card) with HDFC for autodebit and this facility works pretty well.

Now, I also make payments for friends, family and in-laws using my Cards to get and give them the benefits of schemes and rewards. The payments of which I directly deposit to ICICI Credit Card Account by taking a cheque from them. I take a note of the bill amount and after deducting the payments deposited in the Card Account by others, pay the entire bill upto 7 days in advance.

Disadvantages of using Autodebit (NACH) –​

• Firstly, you miss the petty cashbacks which you get while making payments using Amazon and the like. I don’t trust CRED and such apps and just stay miles away from them.
• Your bank may charge a one time fee of Rs 100+Gst (Rs 118) to setup autodebit from our account. Some banks do (PNB does) and some don’t (HDFC doesn’t, maybe because I am an Imperia or preferred customer, I don’t know) charge this fee.
• If your card account has received some cashback credit or even if you pay the credit card bill beforehand, the NACH will trigger and debit the entire bill amount. This will result in some credit balance to your card bill account which you will need to utilize later.
• I would like to make an exception here for SBI. In case of SBI, I have set up autodebit for my SBI BPCL Octane Card and then transferred some small amounts after the card bill date. Say, the bill was Rs 11800 and I paid Rs 400 once and Rs 500 later, SBI smartly picked up Rs 10900 using NACH and not Rs 11800 which was the bill amount.
• In case you have not funded your account, the NACH will bounce and you will have to pay Cheque bounce charges as per Bank policy, thus ruining the whole purpose. So, keep your account well funded at all times.
• In case there is a fraudulent charge to your account, then it may go unnoticed. You need to monitor your credit card account regularly.

Advantages of autopayment –​

• You may save a little on account of Saving Bank interest, since the credit card is debited on the due date and not before.
• You shop without fear knowing that bill payment has already been taken care of.
• Peace of mind, as credit card bill payment is one of the worst liabilities when it starts to affect your credit score.

Other ways to avoid missing payments –​

• Use Reminders from Amazon, paytm or such apps which remind you of your due bills.
• You can setup a recurring calendar event in your phone to remind you of your bill payments.

Drop a comment if you have something to add.

Hit a Like, if you enjoyed this!!

Thanks.

nicely put together, didn't knew of NACH mandate, for me i do fear i will miss payment after i let go of cred and stupid annoying notification and email , cause i use hdfc billpay for 1% cb on all of card expect 1/2 that i pay using cred sometime. i keep track of email when statement arrive i have Excel and all my cc name, statement and due date. there is always a chance you might miss a bill cause we all are human , i haven't though yet in my 8 yr and 5 months but you never know. i wish there was no charges for NAC Mandate and they opt something like onecard does i find that easier within the app.

 

[phagocyte536]

Though i have 10-15 cards, monthly only 3-4 have bills generated.

I pay as soon as I get the message.

Some months if spending is high, i pay to card as soon as any big ticket spending is done.

I lose the petty interest for 15odd days but my mind is free.

 

[Walter White]

I have 2 categories of cards: For day to day usage and for occasional offers. For the cards with occasional offers, I make the payment immediately as I don't keep a track on them due to low usage and a high probability of missing out on the payment.

For daily usage cards, the difference in billing date is hardly 1-2 days, I make the payment the day after I get my salary credited.

 

[sourpai]

Create a new / dummy gmail account ----> Auto forward all the bank statements from main account to this dummy account. ----> Give access to cred for this dummy account ----> Voila! All the statements automatically get populated with due dates in Cred! Cred also sends email 4-5 days before due dates... Of course, use other apps to pay the bills like HDFC Bill pay and Cheq etc.

As extra layer of security, add payment reminders 3-4 days before due date in Apple reminders and set this as monthly recurring event. You can hardly miss them. I am a big reminder / calendar guy. Got used to it due to corporate habits 🙂

 

[brightknight]

My monthly cc bills is around 4-5 lacs every month. Postpe gives 1k monthly.. Hdfc debit card gives 750 monthly. Then paytm around 300-400 using multiple accounts

Any post explaining about this postpe method?

 

[srichaitanya]

Simple strategy, pay the credit card bill as soon as its generated instead of waiting till due date.

 

[purush]

Create a new / dummy gmail account ----> Auto forward all the bank statements from main account to this dummy account. ----> Give access to cred for this dummy account ----> Voila! All the statements automatically get populated with due dates in Cred! Cred also sends email 4-5 days before due dates... Of course, use other apps to pay the bills like HDFC Bill pay and Cheq etc.

As extra layer of security, add payment reminders 3-4 days before due date in Apple reminders and set this as monthly recurring event. You can hardly miss them. I am a big reminder / calendar guy. Got used to it due to corporate habits 🙂

This is cool

 

[plastikman]

I have 10 cards but mostly use use 1 or 2 only. So no hassle with payments 😛