Paying the SBI Cashback card outstanding amount before the bill generation date and start using

[Neo]

Hi,

I have a SBI Cashback credit card with very low limit .i.e. 20k . Since the limit is low, I want to pay the outstanding even before the bill generation date and start using the recharged limit. Will there be any downside to this practise? Will there be any issues with my cashback amount?

Also if I do the same practise with other credit cards, will there be any impact to the reward points for those cards?

 

[SSV]

Hi,

I have a SBI Cashback credit card with very low limit .i.e. 20k . Since the limit is low, I want to pay the outstanding even before the bill generation date and start using the recharged limit. Will there be any downside to this practise? Will there be any issues with my cashback amount?

Also if I do the same practise with other credit cards, will there be any impact to the reward points for those cards?

Absolutely no issues..with regard to rewards or whatsoever..
I do this always I.e.paying off the bill before statement generation..

Note: I don't have an issue like having a very low credit But I do pay my bill before statement generation..

However there is one downside to this approach. i.e.
there is an attribute called " High Credit" in Credit bureau report, That will be always 0. This plays some role in the determination of Credit score, every bureau has their own formulae, so the significance of this attribute differs among different bureaus.

To counterattack this impact, you need to have some high outstanding balance for ONE billing period. I repeat Only ONCE is enough..

All the best

 

[Deleted member 11974]

Hi,

I have a SBI Cashback credit card with very low limit .i.e. 20k . Since the limit is low, I want to pay the outstanding even before the bill generation date and start using the recharged limit. Will there be any downside to this practise? Will there be any issues with my cashback amount?

Also if I do the same practise with other credit cards, will there be any impact to the reward points for those cards?

if yours spends are real thrn you will be able to justify it so shouldnt be a problem

 

[SSV]

Absolutely no issues..with regard to rewards or whatsoever..
I do this always I.e.paying off the bill before statement generation..

Note: I don't have an issue like having a very low credit But I do pay my bill before statement generation..

However there is one downside to this approach. i.e.
there is an attribute called " High Credit" in Credit bureau report, That will be always 0. This plays some role in the determination of Credit score, every bureau has their own formulae, so the significance of this attribute differs among different bureaus.

To counterattack this impact, you need to have some high outstanding balance for ONE billing period. I repeat Only ONCE is enough..

All the best

Hi,

I have a SBI Cashback credit card with very low limit .i.e. 20k . Since the limit is low, I want to pay the outstanding even before the bill generation date and start using the recharged limit. Will there be any downside to this practise? Will there be any issues with my cashback amount?

Also if I do the same practise with other credit cards, will there be any impact to the reward points for those cards?

However, if your spends are genuine and for personal purposes only, then if you repeat the same behavior of spends, If SBI asks, you can easily tell them that is because your a very low limit then this may become a basis for your Limit Enhancement.
Absolutely no problem with cashback..

 

[Neo]

However, if your spends are genuine and for personal purposes only, then if you repeat the same behavior of spends, If SBI asks, you can easily tell them that is because your a very low limit then this may become a basis for your Limit Enhancement.
Absolutely no problem with cashback..

Thanks for the fast feedback.