5 Must Read Tips Before Paying Your Credit Card Bill
Credit cards are a fairly popular means of making payments given the increased purchasing power they offer. While availing such benefits, it is also necessary to prioritise timely credit card bill payment online. Delaying payments can affect your CIBIL score negatively.
Credit cards also come with a high interest rate, which makes it increasingly difficult for customers to complete payments, once they fail to repay the outstanding amount in full within the stipulated deadline. This calls for more effective money management tips to help individuals avoid this credit card bill trap.
Top 5 tips to manage credit card bill payment
1. Plan your credit card usage
The first thing to consider before initiating credit card purchase is formulating a budget and sticking to it. You can accordingly set your credit card expenditure, which should not exceed 50% of your credit limit. Maintaining moderate card usage can prevent you from burdening your finances by helping curb unnecessary expenses.
Also, carrying high credit card balances over months will result in high interest accrual and hamper your CIBIL score. Limiting your spending can help you plan and set aside money for credit card bill payment on time.
However, before initiating payments, it is recommended to scrutinise the statement for any discrepancies. Often fraudulent charges and expenses can lead cardholders to bear higher financial liabilities. In this regard, one can also opt for a Wallet Care insurance cover from aggregators like Bajaj Finserv under the purview of their Pocket Insurance & Subscriptions. Such a policy comes with a fraudulent charges cover which can effectively help mitigate the liabilities arising from credit card scams and frauds.
2. Pay in EMIs
Making a one-time lump-sum payment can be a burden. One way to not strain your financial reservoir is by splitting your credit card bill payment online into monthly EMIs. Ask your lender to avail the same and negotiate an interest rate and tenor on the monthly payment as per your affordability. Also, make a note to check with your lender for pre-payment and foreclosure charges before opting for an EMI option for your debt payment.
3. Monitor your billing cycle
To avoid a huge penalty of interest rates on the outstanding amount, it is essential that you make all credit card payment before the due date. To do so, you must constantly keep track of your billing cycle. Generally, financial institutions offer individuals a relaxation time of 28 days posts the due date. Making payments after this period can cost you hefty interest charges. Avoid such unwanted fees by setting a reminder, or better by choosing an auto-pay facility.
4. Avoid using credit cards for money withdrawal at an ATM
Just because credit cards allow you to make ATM cash withdrawals, doesn’t mean you should. ATM transactions like withdrawals and cash advances using credit cards can lead you to incur hefty charges. These are only going to weigh heavy on your finances and delay your credit card bill payment online.
Additionally, by using credit cards in any available ATM without a prior inspection, you risk compromising your account details via scamming techniques like card skimming and shimming.
5. Prioritise high interest credit card payments
For individuals handling multiple debts, it is important to have a strategic online credit card payment plan in place. This involves paying off outstanding high-interest dues first. The longer you take to complete such payments, the higher interest you stand accumulate, which is entirely undesirable. Simultaneously keep up with paying minimum dues for other debts.
Apart from these, in case your credit card is stolen or lost, do not delay in filing a report, to reduce liabilities. You can also opt for a card protection plan like handbag assure for instant card blocking besides insurance cover for any financial loss.
Credit cards are a fairly popular means of making payments given the increased purchasing power they offer. While availing such benefits, it is also necessary to prioritise timely credit card bill payment online. Delaying payments can affect your CIBIL score negatively.
Credit cards also come with a high interest rate, which makes it increasingly difficult for customers to complete payments, once they fail to repay the outstanding amount in full within the stipulated deadline. This calls for more effective money management tips to help individuals avoid this credit card bill trap.
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