Prepayment of credit card
- Thread starter Abhiuday
- Start date
Gigachad
KF Mentor
Yeah..
If you spead more then 30%of the credit limit. It better to settle before bill date..
As if won't affect your score
SayonB@97
KF Ace
But then will it help the credit score improve?? CIBIL will think 0% utilization of card right or not ??
Why would u want to do that ?. It defeats the whole purpose of having a Credit card. The usage of a credit card is to manage your outflows through optimum utilisation of your credit period. Prompt repayment of your O/S before the due dates would ensure a correct CIBIL score as well.
17ysaurabh
KF Mentor
Pre-paying the outstanding amount before bill generation is fine. But this way your credit score won't change at all. It'll neither increase nor decrease.
Tip: If you want to pay the bill, don't pay the whole amount. Keep your credit utilisation somewhere between 1% to 20%. This will help you increase your credit score.
Tip: If you want to pay the bill, don't pay the whole amount. Keep your credit utilisation somewhere between 1% to 20%. This will help you increase your credit score.
Thanks
Pahulpreet Kaur
KF Mentor
I would suggest to make payment of only the amount above 30% of your credit limit before bill generation. And keep the remaining 30% in your bank account as that would generate interest in your account for next 15-20 days i.e. till due date
