Paying off credit card debt on time comes with a number of benefits. Apart from lowering your debt, it strengthens your credit profile and helps you in the longer run. Now, with the advent of technology and as financial institutions are going paperless, you no longer receive credit card bills via post.
Now, you get it in your email, and you pay it using the official website of your credit card provider. However, before you make the credit card bill payment, you need to keep a few pointers in mind.
7 things to know before making a credit card bill payment
Here are some pointers that you should be wary of before paying a credit card bill –
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Billing cycle
A billing cycle is a time between the issuance of monthly credit card bills. Now, the billing cycle and its period depend on the credit card provider you choose and based on that, this can be 28 to 45 days.
When you pay the dues within this period, it does not accrue any interest. So, keep a tab on it and make sure to pay the whole amount without fail.
- Different modes of payment
Repaying the credit card bill is not a hassle anymore; you can easily do it online, besides the obvious offline options. So, take note of all the online channels like NEFT, internet banking, etc. and pay your bills on time. Otherwise, you can visit the branch office of your credit card provider and pay the dues.
- Minimum amount due
In case of any financial difficulty, if you cannot pay the total due amount, you can opt for the minimum due amount. This nominal figure will ensure that you are not defaulting on your payment. However, you may have to bear the additional interest on the outstanding balance. You will find this information on your credit card bill, and it will change as per the due amount of a billing cycle.
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Rewards and benefits
One of the major benefits of using a credit card is the availability of reward points and additional discounts. As you make more and more transactions using a credit card, you collect reward points, and you can accumulate and redeem them later at your convenience. This is one of the significant difference between credit card and debit card, among many others.
Now, a point to remember here is that some of these reward points will be eligible for adjustment of the final credit card bill. So, take note of that and use them to your advantage.
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EMI conversion
In case your credit card debt has gone out of hand, there is no need to panic. Rather, talk to your credit card provider, and convert the existing debt into EMIs. This will have two advantages; you don’t need to bear an exorbitant interest rate that typically comes with credit card payment default. Secondly, there will be no defaults in your payment history, which is crucial as it lowers your creditworthiness as a borrower.
- Read the statement/bill carefully
Reading the credit card statement/bill carefully is imperative. You may have automated its payment, but that does not mean there are no errors. So, it is ideal to go through the bill carefully and spot such issues, if any and report them immediately. This will help you save money and improve your credit profile.
- Pay more than required, it’s not an issue
In case you have paid more than what was the due amount, there is no need for the unrest. The amount you paid will not go to waste as it will be adjusted with future bills. However, do not forget to keep track of it.
Also Read: 6 Effective Ways to Pay off Your Credit Card Debt Faster
Final words
These are some pointers you need to remember while paying your next credit card bill. They will help you to read the bill/statement better and make a more informed decision regarding debt management.