What are the pros/cons if I add money back to (pay) the Credit Card spent amount even before bill generation?

[wolfdalalstreet]

Someone said "Use your credit card like a debit card". What if say I make a purchase of 20000 using a CC (SBI Cashback for example) on 01st. Bill generation is on 20th but on the 05th itself I add 20000 to the card using Cred or Cheq etc so my due amount will become 0 here at the time of bill generation. What are the advantages and disadvantages of doing this? I see that sometimes the rewards are on entire bill amount like in case of Amazon ICICI so that is a disadvantage I guess. But sometimes there are instant cashbacks too (like SBI CB or FK Axis). Also, if bill generated amount is lower, it obviously reflects good on CIBIL. Please share your learnings.

 

[SiddharthR]

Someone said "Use your credit card like a debit card". What if say I make a purchase of 20000 using a CC (SBI Cashback for example) on 01st. Bill generation is on 20th but on the 05th itself I add 20000 to the card using Cred or Cheq etc so my due amount will become 0 here at the time of bill generation. What are the advantages and disadvantages of doing this? I see that sometimes the rewards are on entire bill amount like in case of Amazon ICICI so that is a disadvantage I guess. But sometimes there are instant cashbacks too (like SBI CB or FK Axis). Also, if bill generated amount is lower, it obviously reflects good on CIBIL. Please share your learnings.

Only your Credit Utilisation can be improved if those 20K go beyond 30% of your overall Credit limit

 

[anilkrsh]

Your utilization will remain low but the impact on cibil score is also low.
But lot of banks calculate your potential based on card statement amounts. So by doing this, you may not get LE or card upgrades easily.
If you think, you lack discipline, then everytime you spend, transfer equivalent amount to a second bank account, from where you never spend.

 

[Dragon_slayer]

No Cons; I have been doing it since last year when I got my first CC. There is no impact of Cibil or LE.

 

[SiddharthR]

No Cons; I have been doing it since last year when I got my first CC. There is no impact of Cibil or LE.

No Cons for LE too, means you are getting LE for <5% limit usage?

 

[Dragon_slayer]

No Cons for LE too, means you are getting LE for <5% limit usage?

Yes, no problems with that also. I have an 8L limit now.