If you are a credit card user, you probably know the importance of timely credit card bill payment. Unfortunately, many times, people who use this card often take it in a very leisurely manner and end up in a tussle of dues. One of the top tips to save money on payment is to immediately pay the credit card bill and avoid delay.
Remember that if you have balance on your card, you’ll be charged interest on the outstanding balance until it is paid in full. However, if you make only a minimum payment, you will be charged interest on the remaining balance and also may incur additional fees/
What is a credit card?
As the name suggests, a credit card is a plastic card that allows the cardholder to borrow money from a bank/financial institution to make purchases or pay for goods/services. When borrowers use a credit card, they borrow money they promise to pay back with a certain interest amount within a specific tenure.
These cards typically have a credit limit, the maximum amount of money one can borrow on the card. And this limit is determined by the lender and is based on certain factors such as credit score, income, and credit history.
How does its bill cycle work?
The exact length of the billing cycle totally depends on the credit card issuer, but it typically lasts for about a month. During this cycle, one can use the card to make purchases or obtain cash advances, and the lender records all these transactions.
When the billing cycle ends, the lender generates a billing statement that summarizes all of the transactions that occurred during that particular period. After the statement is generated, one has a grace period of a few weeks to pay the balance in full without any interest.
How to save money on your credit card bill payment?
Keep in mind that if you are making a late payment, a penalty fee will be incurred, which adds up over time. So, to avoid this, it is essential to set up automatic payments or reminders to ensure you pay the bill on time.
(Tip: Late payments also negatively impact your credit score.
Negotiation of Interest Rate
If you have a good credit score, you are in a position to negotiate a lower rate of interest with the lender. This helps lower your monthly interest charges, saving you much money over time.
Now, we all know that credit cards require a minimum payment every month. However, it is always wise to pay more than the minimum as it helps reduce the interest you accrue over time.
Abstain from cash advances
Cash advances via this card come with a high fee and rate of interest, so the best thing you can do is avoid them! So, in case you need cash, try to use a debit card.
Which application to use for credit card bill payment?
In my personal experience, Bajaj Finserv is one of the best applications to use for this purpose. I’ve been using it for over six months; believe me, they make the whole process seamless.
- Download the application on your mobile device
- Sign up with your mobile number
- Go to the Credit Card Bill under the Bills & Recharges section on the home page.
- Choose your bank and enter your credit card details.