CreditCard Payment before billing

[ccuser]

So, we know that we better pay before the bank reports your credit history monthly at different times after bill generation. My question is what happens to our credit when we pay even before the bill generation?

Example:
- CC limit is 100000
- spend 70K on the card
- before bill gets generated pay 70K to the card

Question:
- your credit limit will again reset to 1L?
- will they consider your credit utilisation?
- any negative impact due to usage pattern?
- Paying even before bill generation to keep the 30% threshold or may be to reuse?

 

[Skylar]

So, we know that we better pay before the bank reports your credit history monthly at different times after bill generation. My question is what happens to our credit when we pay even before the bill generation?

Example:
- CC limit is 100000
- spend 70K on the card
- before bill gets generated pay 70K to the card

Question:
- your credit limit will again reset to 1L?
- will they consider your credit utilisation?
- any negative impact due to usage pattern?
- Paying even before bill generation to keep the 30% threshold or may be to reuse?

Its a myth that if you pay in full before the bill generation your utilisation will be low

- Bank will report how much you spent and how much you paid back.
- If you check the report there will be section where it shows "Highest spend on card"

 

[wcgxlr8]

I don’t think it’s a myth, from what I have seen, yes it gets added as high credit on your CIBIL report but it doesn’t affect your score as long as you clear it before the reporting date (not necessarily the bill generation date). Please refer to the post to know dates when each bank reports to the credit bureaus

 

[Skylar]

I don’t think it’s a myth, from what I have seen, yes it gets added as high credit on your CIBIL report but it doesn’t affect your score as long as you clear it before the reporting date (not necessarily the bill generation date). Please refer to the post to know dates when each bank reports to the credit bureaus

Here Banks are reporting how much you spent irrespective of repayments.
- You use 60% for couple of months no effect
- You use 90 to 95% for stright 3 to 4 months then even if you repay the ammount before billgenration your score will be effected.

 

[hitirfan]

Report has High Credit and Current balance...
Credit Ratio would be based on Current balance

 

[wcgxlr8]

Here Banks are reporting how much you spent irrespective of repayments.
- You use 60% for couple of months no effect
- You use 90 to 95% for stright 3 to 4 months then even if you repay the ammount before billgenration your score will be effected.

Nope, it depends on how much is your active balance at the time of reporting. Doesn’t matter how much you use as long as you clear it before the reporting date.

 

[ccuser]

This is the exact confusion... how do we know if this is true "depends on how much is your active balance at the time of reporting. Doesn’t matter how much you use as long as you clear it before the reporting"

 

[wcgxlr8]

This is the exact confusion... how do we know if this is true "depends on how much is your active balance at the time of reporting. Doesn’t matter how much you use as long as you clear it before the reporting"

Speaking from my credit score change trend. I have used my cards more than 80% in some months (especially when travelling), but made sure to clear them before the reporting date. Never affected my CIBIL Score (800+). If others have had a different experience, please let me know