क्रेडिट कार्ड बिल भरण्यासाठी सर्वोत्तम दिवस | Best Day to Pay Credit Card Bill for 800+ Credit Score

Summary

The video script discusses credit card utilization and its impact on credit scores. It emphasizes the importance of paying off credit card bills before the due date to avoid interest and penalties, and how paying more than 30% of the credit limit can affect one's credit score negatively. The script also covers the varying reporting dates among banks and how understanding these can help manage credit utilization effectively. It encourages viewers to join a credit card community for more insights and tips on maintaining a healthy credit score.

Takeaways

• 💳 Credit card bill of ₹1.5 lakh needs to be paid, with a utilization of 75% on a ₹2 lakh limit.
• ⚠️ Using over 30% of the credit limit can negatively affect your credit score, so maintaining utilization below this level is crucial.
• 📅 Credit card due date is 15 days away; paying before the bill generation date can help boost your credit score.
• 🏦 Different banks report credit utilization data to credit bureaus like CIBIL and Experian on different dates.
• 📊 Keeping utilization below 30% by the bill generation date ensures the credit score doesn’t drop.
• 🏁 For Axis Bank, credit utilization is reported on the bill generation date, while other banks typically report at the end of the month.
• 🔄 Axis Bank reports to CIBIL on the bill generation date but to Experian at the month-end.
• ⏳ SBI reports credit utilization three days after the bill due date, giving some extra time to clear dues without affecting the credit score.
• 💡 Understanding the billing cycle, statement date, and due date is essential to managing credit utilization effectively.
• 🌐 Joining a credit card community like ‘Be Kifayati’ can help track credit card data and improve understanding of the system.

Q & A

What is the significance of maintaining credit utilization below 30%?

Maintaining credit utilization below 30% is crucial as exceeding this limit can lead to a drop in your credit score. Credit bureaus like CIBIL and Experian prefer that you utilize less than 30% of your available credit limit to ensure a healthy credit score.

How does credit utilization affect the credit score?

Credit utilization directly impacts your credit score. If you use more than 30% of your total available credit limit, your score could decrease. Credit utilization is calculated across all your credit accounts, including multiple credit cards and overdraft limits.

When is the best time to pay the credit card bill to boost your credit score?

The best time to pay your credit card bill is before the bank reports your credit utilization data to the credit bureaus. For most banks, this is either on the bill generation date or at the end of the month. Clearing your bill before this date can help improve your credit score.

How does Axis Bank report credit utilization to credit bureaus?

Axis Bank typically reports credit utilization on the bill generation date for CIBIL and at the end of the month for Experian. Therefore, it is recommended to clear your utilization before the bill generation date to avoid any negative impact on your credit score.

What is the difference between the billing date and the due date?

The billing date, or statement date, is when your credit card bill is generated for the month, and the due date is the deadline by which you must pay the bill without incurring interest or penalties. The due date is typically 20-25 days after the billing date.

What happens if you miss the due date for paying your credit card bill?

If you miss the due date, you may incur additional interest and penalties. If the delay exceeds 30 days, your credit score can drop by as much as 50 points. However, RBI offers a three-day grace period after the due date, during which no extra charges apply.

How does SBI report credit utilization data?

SBI reports credit utilization data three days after the due date. If your due date is the 5th of the month, SBI will send the data to credit bureaus on the 8th, giving you a small buffer to clear your utilization before it is reported.

How can you avoid credit score drops with multiple credit cards?

You should monitor your total credit utilization across all your credit cards, not just individual cards. If one card has high usage but your total utilization remains below 30%, your score should not be negatively affected.

Why is it important to track credit card usage daily?

Tracking your credit card usage daily allows you to maintain control over your credit utilization and ensure it stays below the 30% threshold. This proactive approach helps in preventing any unexpected dips in your credit score.

What role does the 'Be Kifayati' community play in credit card management?

'Be Kifayati' is a community where members share their experiences and data on credit card usage and credit scores. This collective knowledge helps users track and manage their credit card utilization more effectively to maintain or boost their credit scores.