credit cards

Do’s and Don’ts of Making Credit Card Payments

If you are a credit card holder, you must have been considerate in using the credit card and regular with the repayment. While regular repayment boosts your creditworthiness, making it easier to enjoy credit products in the future, bad credit history will ruin the entire prospect in this regard, in addition to exposing you before legal formalities. Therefore, Regular Credit Card Payments should be on your priority list. Paying credit card bills is simple; you can set auto payment instructions to trigger payment on the due date. Here is your guide to handling credit card bill repayment. 

Always remember the payment due date. 

The first step towards regular credit card bill payment is remembering the due date. Credit card holders often miss the payment on the due date for not remembering it. Therefore, it will help if you set up payment reminders and auto-payment instructions with your bank. 

It will ensure auto-debit from your bank account for payment toward your credit card. Thus, you can spare the need to remember the payment due date every month and still ensure bill payment within the due date. 

Ideally, it would help if you staffed sufficient balance in your bank account at least 48 hours in advance smooth transactions for credit card bill payment by the due date. 

It would help if you never failed to pay the bill within the interest-free period. 

In case you miss the repayment of the credit card bill within the interest-free period, that entire balance gets carried over to the interest-effective period, and the issuer will start charging interest on the bill from the first day onwards. Thus, the entire amount will accumulate significantly higher, which might make the repayment a tough job. 

Once you start accumulating debt on the credit card, it will keep attracting interest on a compounded basis, and the debt will pile up to an unmanageable amount within the shortest time. The only way to escape the debt trap is to pay the outstanding within the interest-free period. 

It will help you clear the outstanding balance completely on the due date. 

It would help if you never allowed debt accumulation on the credit card as it keeps attracting interest on the unpaid amount retrospectively. The credit card issuer company will be happy if you pay at least the minimum amount due on the due date. It might sound like a lucrative proposal, but it is where the problem keeps growing. If you pay the minimum amount due, the outstanding amount will attract interest from the first billing day. 

Consequently, the entire amount outstanding for the second cycle gets added to it, and the entire sum will subsequently attract interest. Therefore, if it does not turn inevitable, please ensure you pay the entire outstanding amount on the due date. It will help you escape the pilling of the debt, eventually making it impossible to complete the repayment. Keep this in mind before you apply for credit card

If you have made a high-value purchase, convert the outstanding into an EMI scheme. 

What if you have made a high-value purchase with your credit card and are unsure if you can repay the amount on the due date? In such situations, please request the issuer to convert the purchase into an EMI scheme. 

Conversion to the EMI scheme enables you to escape the compulsion of paying the entire outstanding amount at once. You will get a longer time to pay back through equated monthly instalments. It will help you to escape the pilling of debt, making the repayment practically impossible. 

Consider a balance transfer if you have exhausted the introductory interest period. 

Once you exhaust the introductory interest period, the credit card company will likely charge higher interest on all transactions. It will trigger the faster accumulation of debt on your credit card account. So, if you have completed this phase, it will help if you consider transferring the balance to a new credit card company. For such transfers, the new company will likely offer lower interest rates and greater benefits than the existing credit card. 

Suppose you have a high amount outstanding on your credit card. In that case, the new credit card company will likely convert it to EMI upon balance transfer. It will fetch you a long time to complete the repayment. 

Maintain a cash reserve for paying your credit card bills. 

Having a credit card never empowers you for irresponsible borrowing. Rather, you should utilize a nominal portion of the total available credit limit and maintain a cash reserve for paying your credit card bills on the due date. Any practices contrary to it will only accumulate more debt, shattering your financial position and snatching your mental peace.

Please be regular with your credit card payment to easily access various financial benefits in the forthcoming times. Bajaj Finserv RBL Bank Credit Card users keep earning significant rewards for paying credit card bills within the due date.