Credit Score

[Sanjay]

Hello Everyone

I want to ask something. Let's say I have a 75k limit on my hdfc moneyback credit card. And I spent around 30-40k, but before the bill generates, I paid back approximately 50-60% so that my credit utilization ratio is below 30%. Is it good practice or not? As I am a new credit card user and my limit is less, that’s why I have to do this. I am 20 years old. Having this card is enough, or should I apply for more cards. If yes, In which? As I only got the pre-approved offer from hdfc bank.

 

[shubhamaggarwal]

IMO, it's a good practice. But, due make sure you pay before 7-10 days in advance before bill generate, else your cibil score will be affected.
Don't spend more than 75k in a month in total, else you need to pay overlimit charges.

Do checkout OneCard, they have good offers, but it's FD based card. If you are planning to apply, happy to send referral code.

You cannot apply for more cards as most of the banks have age requirement which is 21 years. Apply for new card, when you are 21. This is what I have done.

 

[Sanjay]

Ya ya I pay before b

IMO, it's a good practice. But, due make sure you pay before 7-10 days in advance before bill generate, else your cibil score will be affected.
Don't spend more than 75k in a month in total, else you need to pay overlimit charges.

Do checkout OneCard, they have good offers, but it's FD based card. If you are planning to apply, happy to send referral code.

You cannot apply for more cards as most of the banks have age requirement which is 21 years. Apply for new card, when you are 21. This is what I have done.

Ya, ya, I will pay before the bill is generated. Thanks for the help. In August, I will be 21. Can you tell me how you apply for credit cards? As a student, I don't have any income proof as of now? Is there any other way? And do you have any recommendations for which cards I should look for?

 

[shubhamaggarwal]

Hello Everyone

I want to ask something. Let's say I have a 75k limit on my hdfc moneyback credit card. And I spent around 30-40k, but before the bill generates, I paid back approximately 50-60% so that my credit utilization ratio is below 30%. Is it good practice or not? As I am a new credit card user and my limit is less, that’s why I have to do this. I am 20 years old. Having this card is enough, or should I apply for more cards. If yes, In which? As I only got the pre-approved offer from hdfc bank.

IMO, it's a good practice. But, due make sure you pay before 7-10 days in advance before bill generate, else your cibil score will be affected.
Don't spend more than 75k in a month in total, else you need to pay overlimit charges.

Do checkout OneCard, they have good offers, but it's FD based card. If you are planning to apply, happy to send referral code.

You cannot apply for more cards as most of the banks have age requirement which is 21 years. Apply for new card, when you are 21. This is what I have done.

Ya ya I pay before b

Ya, ya, I will pay before the bill is generated. Thanks for the help. In August, I will be 21. Can you tell me how you apply for credit cards? As a student, I don't have any income proof as of now? Is there any other way? And do you have any recommendations for which cards I should look for?

I'm also a student and don't have income proof. The best alternative is to go through FD based credit card till you make some income.

 

[Sanjay]

Even my credit limit is low. I don't think that this is a good practice. In worst case, bank can even close your CC.

okay. So I should spent only 30% of my limit ?

 

[Sanjay]

Yeah, 30%. Till credit limit is low, use debit cards. HDFC Platinum and Millennia debit cards also have good reward rates. I got good rewards when I used them.

Kk. Any idea what things to do to increase credit limit. Pay on time use 30% limit anytime else

 

[Subhankar]

Hello Everyone

I want to ask something. Let's say I have a 75k limit on my hdfc moneyback credit card. And I spent around 30-40k, but before the bill generates, I paid back approximately 50-60% so that my credit utilization ratio is below 30%. Is it good practice or not? As I am a new credit card user and my limit is less, that’s why I have to do this. I am 20 years old. Having this card is enough, or should I apply for more cards. If yes, In which? As I only got the pre-approved offer from hdfc bank.

HDFC doesn't report the "credit limit", they report only "high credit" which means the maximum utilisation so far in a go. HDFC reports the utilisation data at the end of the month, typically from 28th to 31st of every month, so make sure your credit card limit is fairly available. It's recommended to use the card at max in a go like 70k + then keep the utilisiation lower during CIBIL reporting time.

 

[Sanjay]

HDFC doesn't report the "credit limit", they report only "high credit" which means the maximum utilisation so far in a go. HDFC reports the utilisation data at the end of the month, typically from 28th to 31st of every month, so make sure your credit card limit is fairly available. It's recommended to use the card at max in a go like 70k + then keep the utilisiation lower during CIBIL reporting time.

Thank you so much brother for a proper clear answer. Much Appreciated 🙏🏻😇.