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.
Is the Cibil score that important to you that you are paying interest for?
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)
Which card is this?
Charging interest on statement generation.
If you're paying interest then your credit score is going down not up
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).
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.
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.
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.
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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.