Credit score went down in one month.

awestorr said:
are you sure about the montly limit resetting if i pay the amount before.
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I was in this situation couple of years ago with HDFC. MY card limit was 65k and I already spent some 18k and there was a need to spend 53k or so and I went ahead with the payment and surprisingly it went well and in a couple of minis. I got an sms followed by a call and they levied some taxes/charges but said that if I make the full payment before my billing date, the credit limit will increase as well as the charges will be reversed and I did just that and no issues further.
Joke was, I already had axis and icici with limits more than 2lac yet hdfc capped the limit to 65k dont know what brains they used here as the card was issued based on my earlier owned cards.
 
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awestorr said:
are you sure about the montly limit resetting if i pay the amount before.
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Make sure that the available credit limit resets itself on the app/website after payment, before you make a new purchase. Most issuers will block a transaction if total expense exceeds credit limit. However, some will auto-activate overlimit transactions.

For overlimit transactions, you pay a flat fee + interest on the amount that exceeded the limit on a daily basis. In some cases, you can use this facility to make a purchase that is over your card limit, for example, for a discount and then pay it back the same day, to avoid interest, though you will have to pay the overlimit charge.
honest1 said:
The only thing which is possible is to make immediate payment of your usage and then use it, however, now with BPPS coming in picture, you wont be even able to prepay anything now.
So, nothing can be done now.
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BBPS will generate the bill only on the bill generation date, but I am not sure if it completely blocks paying custom amount before that. Either way, IMPS and NEFT are still valid payment methods and most fintech companies are still using that instead of BBPS. The directive was for all banks to onboard themselves to BBPS.
 
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calvin1719 said:
How does this come into the picture of prepaying CC bills btw?
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Because now CC has to be paid via BBPS platform, where the biller has to report the monthly billed amount. You can pay less than the bill amount but not more than that.
Compare it with mobile postpaid bills, where a user cannot pay more than what has been billed.
There could be still some fintech which may allow prepayments but their days are numbered.

The Reserve Bank of India (RBI) had mandated that starting July 1 all credit card repayments had to be processed through the BBPS platform. This move is aimed at centralising the bill payment process and ensuring greater security.
 
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nRiTeCh said:
I was in this situation couple of years ago with HDFC. MY card limit was 65k and I already spent some 18k and there was a need to spend 53k or so and I went ahead with the payment and surprisingly it went well and in a couple of minis. I got an sms followed by a call and they levied some taxes/charges but said that if I make the full payment before my billing date, the credit limit will increase as well as the charges will be reversed and I did just that and no issues further.
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That was then, since last 1-2 years many banks don't allow spending of more than the card limit in a billing cycle month irrespective of how you prepay.
@awestorr

t3chg33k said:
Either way, IMPS and NEFT are still valid payment methods and most fintech companies are still using that instead of BBPS. The directive was for all banks to onboard themselves to BBPS.
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The directive was to make BBPS the only option for cc bill payments at the backend so any app/platform still using imps/neft/upi is doing it at the frontend only & any payment done through those methods will eventually end up passing through BBPS only.

honest1 said:
Because now CC has to be paid via BBPS platform, where the biller has to report the monthly billed amount. You can pay less than the bill amount but not more than that.
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Correct, paying more than statement billed amount or prepay amt before statement generation is not possible on BBPS.
 
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guest_999 said:
The directive was to make BBPS the only option for cc bill payments at the backend so any app/platform still using imps/neft/upi is doing it at the frontend only & any payment done through those methods will eventually end up passing through BBPS only.


Correct, paying more than statement billed amount or prepay amt before statement generation is not possible on BBPS.
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BBPS at backend is understood as that is the reason all banks have been directed to onboard on BBPS, though it is amusing that the July 1 deadline has passed without extension and most banks are still not onboarded.

However, BBPS by itself doesn't limit the amount or date. For example, Amazon Pay has always used BBPS and has always allowed payment to be done anytime and for any custom amount. The frontend limitation depends on the app provider.

RBI and government is only concerned with streamlining all credit card expenses and it wouldn't be a surprise to see it turn up in AIS in coming years.
 
Update everyone, my credit score is back to normal. Last night I checked on cred and my score went up to 769 points which is from Experian. But my CIBIL is still at 693. Don't know why CIBIL is still low.
 
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