Cibill score impact due to limit

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suplex_city

My friend has limit of 3L for Amazon Icici card

But in July month he made 8L worth transaction 

Because this credit score is down

First he exhausted entire limit around 2.5L

He paid the bill immediately before bill generation 

Again 2L he used and later immediately before Bill generation

Will cibil is down Because of above transaction.

cibil is down because of this reason?


He done rotation for marriage purchase 

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Deal Cadet Deal Cadet
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Yes. Generally the rule is to keep transaction under 30% to main the good cibil score.

Deal Lieutenant Deal Lieutenant
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If the amount was still due on 31st of the month then yes. They report the use % on 31st of the month, not the billing date

Deal Lieutenant Deal Lieutenant
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Just maintain 30% for bill amount the nothing to worry, keep paying bills with 30% every month and your score will be superb

Critic Critic
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He was able to do it because it was before BBPS was made mandatory for cc bill processing in which such advance/immediate payment is not possible. Also, whatever the cc utilization was on the day it is reported by bank is what matters not other days.
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Deal Subedar Deal Subedar
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Cibil etc also checks what is your montly credit limit and how much you used it in total.

Deal Cadet Deal Cadet
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Okay. So, I am sharing my personal experience.

I previously had a very low Credit Limit 2-3 years back but I had to make multiple purchases. So, I used almost that entire limit then repaid and followed that same process. And, before bill generation I always kept the due between 10-20%. This way my credit score was never hampered and gradually I developed a strong credit score.

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