Mustakim Deshpaik
KF Rookie
Agar me credit card ka bill, bill generate/ statement generate hone k pahle bill pay kiya to cibil score badhega ya nahi? Credit card ka bill pay kab karna chahiye please reply
About Credit card
- Thread starter Mustakim Deshpaik
- Start date
Skylar
KF Master
If you pay your credit card bill before the statement is generated, it won't directly increase your CIBIL score. However, it's still a good practice as it helps keep your credit utilization ratio low, which is an important factor in maintaining a healthy credit score.
Personal Finance by Nish…
KF Mentor
Paying your credit card bill before the statement is generated can indeed have a positive impact on your credit score. Here's why:
1. *Reduced credit utilization ratio*: By paying your bill before the statement is generated, you're reducing your outstanding balance, which in turn reduces your credit utilization ratio. This ratio is the percentage of your available credit being used. A lower ratio is generally considered good for your credit score.
2. *Timely payments*: Paying your bill before the due date shows lenders you're responsible and capable of managing your debt. This can lead to a positive impact on your payment history, which is a significant factor in determining your credit score.
3. *Interest charges*: If you pay your bill before the statement is generated, you might avoid interest charges on your outstanding balance. This can save you money and also reduce the amount you owe.
Now, about paying your credit card bill after the statement is generated:
You can still pay your bill after the statement is generated, but it's essential to make the payment before the due date to avoid:
1. *Late payment fees*: Missing the payment due date can result in late payment fees.
2. *Negative impact on credit score*: Late payments can negatively affect your credit score.
3. *Interest charges*: You'll still be charged interest on your outstanding balance if you don't pay the full amount.
To maximize the positive impact on your credit score:
1. Pay your bill before the statement is generated, or at least before the due date.
2. Try to pay the full amount to avoid interest charges.
3. Monitor your credit utilization ratio and keep it below 30% for all credit cards.
By following these best practices, you can maintain a healthy credit score and enjoy better financial flexibility.
1. *Reduced credit utilization ratio*: By paying your bill before the statement is generated, you're reducing your outstanding balance, which in turn reduces your credit utilization ratio. This ratio is the percentage of your available credit being used. A lower ratio is generally considered good for your credit score.
2. *Timely payments*: Paying your bill before the due date shows lenders you're responsible and capable of managing your debt. This can lead to a positive impact on your payment history, which is a significant factor in determining your credit score.
3. *Interest charges*: If you pay your bill before the statement is generated, you might avoid interest charges on your outstanding balance. This can save you money and also reduce the amount you owe.
Now, about paying your credit card bill after the statement is generated:
You can still pay your bill after the statement is generated, but it's essential to make the payment before the due date to avoid:
1. *Late payment fees*: Missing the payment due date can result in late payment fees.
2. *Negative impact on credit score*: Late payments can negatively affect your credit score.
3. *Interest charges*: You'll still be charged interest on your outstanding balance if you don't pay the full amount.
To maximize the positive impact on your credit score:
1. Pay your bill before the statement is generated, or at least before the due date.
2. Try to pay the full amount to avoid interest charges.
3. Monitor your credit utilization ratio and keep it below 30% for all credit cards.
By following these best practices, you can maintain a healthy credit score and enjoy better financial flexibility.
