Using Credit Card to Improve Credit Score

153°
Deal Captain
Rockstar165

Afternoon,
I've been using my credit card to try and improve my credit score.For example, I have been spending about Rs.7,916.31 a month on it for fuel and then paying it off in full when the statement comes in (comes in on the 15th of the month).

My friend said that I shouldn't be waiting for the statement to come in and that i should be paying the balance off before the statement, thus not incuring any interest.

What is the best thing to do to improve my score? I thought that if I paid it off before the statement, credit scorers wouldnt be able to tell ive been using it, this is why i always wait for the statement and pay about Rs.527.6 interest.

Help appreciated.

Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
Top Comments
Flame Flame
Link Copied

You pay after due date? How interest is being charged to you? Interest is only charged when you fail to pay within due date. 

So, suppose if your statement is being generated on 15th of Month. Then clear the bill on 16 of month. Paying after due date will only decrease your credit score. 

Deal Subedar Deal Subedar
Link Copied
Guy

You need to know the difference between statement date and due date.

Both will be displayed in your statement.

Statement is generated after one month of your spending.

If you got your card on 5th April,

Your statement will be generated on 5th may. This is your statement date.

You will be given 16 to 18 days to pay the amount you owe. This is the due date.


Once your statement is generated, you need to pay BEFORE due date.

So look up your statement, see what the due date is and pay before it.
------


Since you already seem to have defaulted, pay all the amount you have used now. Stop using this card for a month.


Then follow the what I said in the first part from now on.

Hope you understand now.
10 Comments  |  
10 Dimers
  • Sort By
Flame Flame
Link Copied

You pay after due date? How interest is being charged to you? Interest is only charged when you fail to pay within due date. 

So, suppose if your statement is being generated on 15th of Month. Then clear the bill on 16 of month. Paying after due date will only decrease your credit score. 

Deal Subedar Deal Subedar
Link Copied
Guy

You need to know the difference between statement date and due date.

Both will be displayed in your statement.

Statement is generated after one month of your spending.

If you got your card on 5th April,

Your statement will be generated on 5th may. This is your statement date.

You will be given 16 to 18 days to pay the amount you owe. This is the due date.


Once your statement is generated, you need to pay BEFORE due date.

So look up your statement, see what the due date is and pay before it.
------


Since you already seem to have defaulted, pay all the amount you have used now. Stop using this card for a month.


Then follow the what I said in the first part from now on.

Hope you understand now.
Flame Flame
Link Copied
Looking at your DD profile you doesn't look new to all of this. @ Rockstar165

If you don't mind share snapshot of your bill hiding sensitive details. We will help you in knowing statement generation date and due date. 
Helpful Helpful
Link Copied

Simply pay the bill once the bill is generated and once you receive msg and mail saying bill generated.

Also you can use apps like CRED to track the bill payment date and avoid late payment fees.

It looks like your paying interest+GST, avoid that.

Let me know if you need referral for CRED we both get referral rewards(~₹500 I guess).

Generous Generous
Link Copied

If you're paying interest then your credit score is going down not up

Deal Lieutenant Deal Lieutenant
Link Copied

Which card is this?

Charging interest on statement generation.

Deal Subedar Deal Subedar
Link Copied
Good question , weird to see this way for sure
View 1 more reply
Deal Newbie Deal Newbie
Link Copied

For credit card, best to focus on two figures: Total Amount Due (how much you have to pay, irrespective of any other figure) and Due Date (when you have to pay Total Amount Due by irrespective of any other date)

Deal Cadet Deal Cadet
Link Copied

Is the Cibil score that important to you that you are paying interest for?

replyuser
Click here to reply
Reply