When you use a credit card to pay for a purchase, the amount is paid by the issuing company on your behalf. You can transact any amount within the credit limit assigned to the card. At the end of the month, the issuer sends you the bills of the preceding month. You need to complete the credit card bill payment within the due date time to avoid incurring applicable interest rates on the outstanding credit utilized by you.
Extra charges on credit card interest rates could come as a financial burden for a cardholder. To avoid experiencing such unforeseen expenses affecting your monthly budget, you must know how to pay credit card bills timely. It is essential to keep in mind the due dates to paying the bill so that you can arrange your finances accordingly.
It could take up to 48 hours to process a payment. Thus, you must initiate the credit card bill payment at least 3 days prior to the last date to avoid missing the due date.
Reasons why paying credit card bills on time is important
You can pay credit card bills conveniently through net banking, mobile app and Paytm other than conventional offline payment.
Here is a list of several reasons why timely bill payment of credit cards is important –
- Avoiding interest rates – You can enjoy zero interest rates on credit card usage if you ensure to pay off the credit card bills before the due date. Credit card interest rates are only applicable post the 30 day repayment period and an additional grace period. withdrawals for a certain period of time.
- Improving credit score – When you pay your bills on time, it reflects on your credit history. Consistent on-time bill payments will make financers and credit bureaus rate you as a financially responsible individual. Note that as much as 35% of the CIBIL score is based on whether the individual pays his/her credit card bills before the due date.
- Reducing the financial burden of the following month – When you fail to pay the credit card bill on one particular month, the sum adds up to the next month along with the applicable interest rates. This increases the financial burden of the following month.
Responsible usage of the credit card is essential so that you can pay the bills easily at the end of each month.
Ways to pay your credit card bills on time
Here are some tips that can help you to pay credit card bills timely –
- Set proper reminders of the deadlines
You can set reminders on your calendar or cell phone to be aware of the payment dates. Accordingly, you start preparing yourself for the credit card bill payment.
- Decide the amount you are willing to pay
In cases where you are not required to pay the bill in full, you can pay a part of it. But it is important to decide the amount you want to pay so that you can organize the funds accordingly.
- Opt for automated payment facility
Planning your funds is an important step before you go on to apply for a credit card from your desired company.
You can refer to leading credit cards such as the Bajaj Finserv RBL Bank SuperCard brought to you by Bajaj Finserv in association with RBL Bank. This card offers numerous industry-first benefits such as 50-day interest-free ATM cash withdrawals, attractive reward points, discounts, and vouchers, etc.
A cardholder must also make sure to check the credit card statements properly before initiating the bill payment. Credit card bill payment can be made from several online platforms, such as net banking, mobile wallets, NEFT, NACH, Bill Desk, and so on.