Query | Maintain a lower credit utilization?

[Hisoka]

Hey everyone
I had a general doubt. I've Axis Ace credit card which gives 2% cashback on all offline transactions. I want to purchase a product of 40k, but my cc limit is only 50k. I purchase it, and i load my credit card with 35k before my statement gets generated.

So when my statement gets generated my overall bill would by 5k. Now I've 2 questions here

1. Will by utilisation by 10% only? Because I paid 35k in advance
2. Will my cashback be 2% of 40k or 2% of 5k?

Also, Does this reward rate situation varies from bank to bank or is same for all banks cards?

Thanks in advance

 

[deep@vie]

Hey everyone
I had a general doubt. I've Axis Ace credit card which gives 2% cashback on all offline transactions. I want to purchase a product of 40k, but my cc limit is only 50k. I purchase it, and i load my credit card with 35k before my statement gets generated.

So when my statement gets generated my overall bill would by 5k. Now I've 2 questions here

1. Will by utilisation by 10% only? Because I paid 35k in advance
2. Will my cashback be 2% of 40k or 2% of 5k?

Also, Does this reward rate situation varies from bank to bank or is same for all banks cards?

Thanks in advance

cashback & credit utilisation are entirely different thing.
if you made a transaction which is eligible for soke cashback,that will be credited even if you make the payment very next moment.

Axis reports credit limit twice,once at month end & again at the time of billing.

 

[Srini]

Hey everyone
I had a general doubt. I've Axis Ace credit card which gives 2% cashback on all offline transactions. I want to purchase a product of 40k, but my cc limit is only 50k. I purchase it, and i load my credit card with 35k before my statement gets generated.

So when my statement gets generated my overall bill would by 5k. Now I've 2 questions here

1. Will by utilisation by 10% only? Because I paid 35k in advance
2. Will my cashback be 2% of 40k or 2% of 5k?

Also, Does this reward rate situation varies from bank to bank or is same for all banks cards?

Thanks in advance

I have tried same on SBI, but I paid as soon as I bought an item. It got reflected in CC app, in less than 1 hour.

In credit score after a month or so - card utilization was showing just pending amount, Not total purchase value.

 

[Srini]

Hey everyone
I had a general doubt. I've Axis Ace credit card which gives 2% cashback on all offline transactions. I want to purchase a product of 40k, but my cc limit is only 50k. I purchase it, and i load my credit card with 35k before my statement gets generated.

So when my statement gets generated my overall bill would by 5k. Now I've 2 questions here

1. Will by utilisation by 10% only? Because I paid 35k in advance
2. Will my cashback be 2% of 40k or 2% of 5k?

Also, Does this reward rate situation varies from bank to bank or is same for all banks cards?

Thanks in advance

I have tried same on SBI, but I paid as soon as I bought an item. It got reflected in CC app, in less than 1 hour.

In credit score after a month or so - card utilization was showing just pending amount, Not total purchase value.

 

[NOOBY]

@Srini if my limit is 100k and I buy a product costing 75k + other/usual spends of 25k but before the bill generation date, I load 70k in the CC, the statement will get generated only for the remaining 30k... but will the CUR be 30% or 100% in credit report ?

If its only 30%, then That's great!!!
Could have saved some blow on my Credit score as the CUR went to 50% in the month of October :\

 

[GodFather]

Utilisation should be 30% cause u have utilised only that much credit limit....