Credit Card Help Desk: Answers to Your Questions!

[honest1]

Although this is primarily a tech forum, I know that many of you are either currently using or considering using credit cards. Navigating the world of credit cards can be complex, and I understand that it comes with its own set of challenges and questions.

As someone who has been using credit cards for over a decade, I have gained a wealth of knowledge and experience in this area. I am excited to share this expertise with you and help demystify any aspects of credit card usage that you may find confusing or daunting.

To that end, I am happy to open this thread as a dedicated space where you can ask any questions you have about credit cards. Whether you are curious about choosing the right card, understanding rewards programs, managing your credit score, or dealing with common issues, I will try to provide clear and helpful answers. I would also request others to contribute with their knowledge !!!

Feel free to post your queries, and let’s work together to make credit card use easier and more beneficial for everyone.

 

[nRiTeCh]

Count me as well to the expertise bench (though not that much of an expert) as been using CC for a decade so might add my two cents! Yet, everyone has their own unusual rare scenarios which can help us learn and solve things amicably!

 

[animishticomb]

I will ask a question... Any website or apps that gives the 4 digit mcc for various transaction merchants

I know of various cumbersome ways like calling or emailing bank etc but do you know of a self serve method?

 

[calvin1719]

Although this is primarily a tech forum, I know that many of you are either currently using or considering using credit cards. Navigating the world of credit cards can be complex, and I understand that it comes with its own set of challenges and questions.

As someone who has been using credit cards for over a decade, I have gained a wealth of knowledge and experience in this area. I am excited to share this expertise with you and help demystify any aspects of credit card usage that you may find confusing or daunting.

To that end, I am happy to open this thread as a dedicated space where you can ask any questions you have about credit cards. Whether you are curious about choosing the right card, understanding rewards programs, managing your credit score, or dealing with common issues, I will try to provide clear and helpful answers. I would also request others to contribute with their knowledge !!!

Feel free to post your queries, and let’s work together to make credit card use easier and more beneficial for everyone.

This is a very good thread, sincerely, but I would add a disclaimer saying questions are answered on a best effort basis and don't consitute legal or financial advice.

 

[badwhitevision]

I will ask a question... Any website or apps that gives the 4 digit mcc for various transaction merchants

I know of various cumbersome ways like calling or emailing bank etc but do you know of a self serve method?

Adding to this, is this same across Card Issuers or do they vary per issuer? If it's similar, it would only take a few days for so many people on the forum to make contributions and we can end up having a comprehensive list. I can create a view only database from this list.

 

[honest1]

I will ask a question... Any website or apps that gives the 4 digit mcc for various transaction merchants

I know of various cumbersome ways like calling or emailing bank etc but do you know of a self serve method?

A common list is available here but unfortunately networks have their own codes.

Merchant Category Code

www.npci.org.in

This is a very good thread, sincerely, but I would add a disclaimer saying questions are answered on a best effort basis and don't consitute legal or financial advice.

I am sure people here do understand that any opinion or advise given is based on best effort basis and cannot sue each other in court of law
But many thanks, will add the disclaimer !!!

 

[awestorr]

When should one clear the card bill and does it affect cibil score?
For example, whats the difference between
1) paying the billed statement before the last date
2) after a day of bill generation
3) even before the bill is generated

 

[Slayer69]

When should one clear the card bill and does it affect cibil score?
For example, whats the difference between
1) paying the billed statement before the last date
2) after a day of bill generation
3) even before the bill is generated

Paying the bill on the last date and 1 day after bill generation is the same

If you pay bill before statement generation then bank reports 0 spends made by you to credit bureau which adds no value to credit score per se, the main thing which people say on the internet is that having credit utilisation ratio of less than 30%.

This % is calculated basis of all credit cards you hold so in my case, as I have total credit limit of 32L across a few cards - I can spend spend the max limit on two cards and keep that value less than 30% and my score would not be affected much.

 

[nRiTeCh]

When should one clear the card bill and does it affect cibil score?

After statement generation and before or on the due date!

For example, whats the difference between
1) paying the billed statement before the last date
2) after a day of bill generation

Both are fine and doesn't affect cibil in anyway. You first receive an sms intimation even before the bill generation and after passing the billing period date you get an email, so even when you prefer paying just after receiving the sms or post email statement both are fine as far as you aren't crossing the due date.

Even paying on the exact last date doesn't affect the cibil negatively even if the bank receives money after a few days but better-off paying a few days in advance.

3) even before the bill is generated

Not advised!

I have experimented with various paying parameters all these years while closely watching the cibil post payments and hence my conclusions!

**But never part-pay or only prefer to pay the minimum due amount, it does affects your cibil even if bank says it wont and after making a part payment banks will keep on harassing you for the entire payment.

 

[honest1]

Just a clarification, utilisation limit is calculated both on per account basis and overall basis. CIBIL algorithm may treat the impact differently for 30+ % utilisation at both levels.

 

[awestorr]

Thanks guys.
This is my first cc (Sbi simplyclick).
I was told during the application process about the "Autodebit feature"
Which is supposed to auto debit the balance from my saving acc in case i forget to pay the bill manually.
Is this good incase i forget about the bill?

 

[variablevector]

When should one clear the card bill and does it affect cibil score?
For example, whats the difference between
1) paying the billed statement before the last date
2) after a day of bill generation
3) even before the bill is generated

No difference between 1) and 2). Technically you can even pay it after the last date, as you get a 3 day grace period according to RBI rules. I've forgotten to do it and been saved by that rule a few times.

Paying it off right away i.e before the bill date is good practice if you're the type to use credit cards for expenses you can't afford / go over budget frequently but in that case, you should probably not be using credit cards in the first place as it is a quick way to end up in serious debt. I don't use credit cards in that way so I prefer to wait and pay it after the bill date simply because the longer the money stays in my account, the longer it earns some small fraction of interest for me and not for my CC issuer.

 

[Slayer69]

Just a clarification, utilisation limit is calculated both on per account basis and overall basis. CIBIL algorithm may treat the impact differently for 30+ % utilisation at both levels.

No it does not, source - my friend is working on Transunion CIBIL India Commercial Credit Scorecard Model

 

[honest1]

Thanks guys.
This is my first cc (Sbi simplyclick).
I was told during the application process about the "Autodebit feature"
Which is supposed to auto debit the balance from my saving acc in case i forget to pay the bill manually.
Is this good incase i forget about the bill?

Yes, its a good thing to ensure that you will never miss the payment. However, you need to ensure that you have enough balance in your bank account on that day!

 

[variablevector]

Thanks guys.
This is my first cc (Sbi simplyclick).
I was told during the application process about the "Autodebit feature"
Which is supposed to auto debit the balance from my saving acc in case i forget to pay the bill manually.
Is this good incase i forget about the bill?

It can be a good feature for newbies. I personally just use apps like Cred/Mobikwik to remind me. The problem with auto debit is that if they ever try to debit your account and it doesn't have the funds in it for whatever reason, you'll be charged fees. Something like 2-3% of the amount.

 

[honest1]

No it does not, source - my friend is working on Transunion CIBIL India Commercial Credit Scorecard Model

I have seen cases where the score dropped because of over utilisation on couple of accounts but which are well below 30% on overall basis.

Anyways, can you ask your friend what are the secrets of good score and how to dodge the algo ? ?

 

[nRiTeCh]

Thanks guys.
This is my first cc (Sbi simplyclick).
I was told during the application process about the "Autodebit feature"
Which is supposed to auto debit the balance from my saving acc in case i forget to pay the bill manually.
Is this good incase i forget about the bill?

Nope, cancel that auto-debit thing. What if you get wrongly billed one fine day for say a 1lac and your account has just 70k balance?
This also amounts to cibil impact and then you have to keep fighting with the bank for getting wrongly charged, late chatrges, charges for less balance etc. differs from bank-bank!

Every bank urges for auto-debit crap but its always better to analyze your spends and bills before making payments and if anything suspicious you can deny the payment and negotiate with the bank.
I have done that many times with axis and icici.

 

[PunkX 75]

Thanks guys.
This is my first cc (Sbi simplyclick).
I was told during the application process about the "Autodebit feature"
Which is supposed to auto debit the balance from my saving acc in case i forget to pay the bill manually.
Is this good incase i forget about the bill?

Correct, auto-debit happens from your linked savings account if you do not manually pay.

Just make sure you maintain sufficient balance in your a/c, in case that happens. It will, otherwise, go into a negative balance state. When that happens, your CC will likely be temporarily blocked until you bring it back to a positive balance (for your linked bank account).

I would recommend you cancel auto-debit. It's a pain in the ass.

 

[Slayer69]

I have seen cases where the score dropped because of over utilisation on couple of accounts but which are well below 30% on overall basis.

Anyways, can you ask your friend what are the secrets of good score and how to dodge the algo ? ?

Last 36 month payment vintage, CUR less than 30%, CUR should fluctuate too much as in it should not be 6% for one month and then the next month it is 26%, having secured loan
Do all these and 820+

 

[ibose]

Transunion CIBIL India Commercial Credit Scorecard Model

Is there a Retail Credit Scorecard model as well ? Asking as the nomenclature may imply different customer segments and products.