Improve Credit Score - Full bill pay before statement generation

SayonB@97

KF Ace
Hi,
My credit score took a hit due to a mistake on loan documentation from the bank's side.
Anyway, I have recently got myself a credit card; to use that and pay in time. My main objective is to improve my credit score.
I am aware that paying late would adversely affect my credit score. So just to be sure what I do is, whenever I use my credit card somewhere, I tend to immediately pay that amount to my credit card that day itself. So my statement at the end of the month comes Rs 0.
I want to understand that when this statement is shared with the credit bureaus, will they see this as me not at all using the credit card and in turn then my score wont improve? Or they will get to see all the transactions from my credit card and see that I had already paid before the statement generation date? And will this help in improving my credit score then as it should?
 

17ysaurabh

KF Mentor
In my opinion, paying the outstanding amount before the billing date is fine. But you should not pay the whole amount.
Otherwise, your Credit Utilisation would be 0% and will not affect your credit score.

If you want to increase your credit score, I would suggest:
1. Maintain a low credit utilisation 1-30% is fine (for each card).
2. Get another credit card or get your credit card limit increased.
 

SayonB@97

KF Ace
In my opinion, paying the outstanding amount before the billing date is fine. But you should not pay the whole amount.
Otherwise, your Credit Utilisation would be 0% and will not affect your credit score.

If you want to increase your credit score, I would suggest:
1. Maintain a low credit utilisation 1-30% is fine (for each card).
2. Get another credit card or get your credit card limit increased.
Yes that is what I am concerned about precisely - Credit Utilisation.
So you are saying that if I pay full bill before billing date, my credit utilisation would be 0%.
I totally want to avoid that. The main goal of taking this CC was improving my Credit Score by good Credit Utilisation. So, I wont pay before the bill date any more then. Thanks!
 

17ysaurabh

KF Mentor
Yes that is what I am concerned about precisely - Credit Utilisation.
So you are saying that if I pay full bill before billing date, my credit utilisation would be 0%.
I totally want to avoid that. The main goal of taking this CC was improving my Credit Score by good Credit Utilisation. So, I wont pay before the bill date any more then. Thanks!
Yes. Just make sure, the credit utilisation is less than 30%.
 

Vijay

KF Rookie
Hi,
My credit score took a hit due to a mistake on loan documentation from the bank's side.
Anyway, I have recently got myself a credit card; to use that and pay in time. My main objective is to improve my credit score.
I am aware that paying late would adversely affect my credit score. So just to be sure what I do is, whenever I use my credit card somewhere, I tend to immediately pay that amount to my credit card that day itself. So my statement at the end of the month comes Rs 0.
I want to understand that when this statement is shared with the credit bureaus, will they see this as me not at all using the credit card and in turn then my score wont improve? Or they will get to see all the transactions from my credit card and see that I had already paid before the statement generation date? And will this help in improving my credit score then as it should?
Mere ko ye puchna tha agar i use credit card for under 500rs expense toh use credir score me help hoga ?
 

17ysaurabh

KF Mentor
Mere ko ye puchna tha agar i use credit card for under 500rs expense toh use credir score me help hoga ?
Yes, Vijay.
Even with just Rs. 500 expenses via credit card, you can build/increase your credit score. You just need to make payments on time.
 
Simple. Use card within 30% and pay most of bill (90%-95%)before statement generation .pay remaining after bill gets generated.

you will see improvement in scores gradually.
 
I prefer to get more credit cards and call customer care to increase my credit limit if not increased even after 6 months. Because Credit card score checks the total limit across all the credit cards combined. so having multiple credit cards will eventually grow up your credit limit and you can still utilise the card. Still I personally never cross the 30% limit on a single card.

Most of the time I do not pay 90-95% before bill generation because I want to track my spend and it is easier for me to track all my credit cards whenver I'm paying the full amount after the bill generation date.
 
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