Credit Card Bills Payment in Time Give You Peace of Mind

The credit card usage in India witnessed an increase with the addition of around 1 million users to the already existing 49 million credit card holders right at the beginning of the current fiscal. The recent surge can be directly attributed to the convenience that credit cards have provided so far.

Customers have found the ‘buy now, pay later’ feature feasible and it is quite evident from the growth in swipe rate at POS terminals, which increased by almost 26% in mid-2019. Further, several lenders have eased the credit card bill payment procedure, which makes timely bill payment easy and aids in financial management. However, managing your credit cards wisely and paying bills prior to the payment due date is critical for your financial standing.

Reasons you should be punctual with credit card bill payment -  

Credit cards bring a lot of advantages when used in the right manner. However, one might end up in a debt trap as well if credit cards are not used with the right approach. As a result, you must make credit card bill payments on time to have your peace of mind.  Hence, it is also imperative to learn about how to repay your credit card debt. 

Nevertheless, the financial benefits associated with paying your bills before the due date cannot be overlooked. They are –

1. Boost your credit rating

When you pay your bills prior to the payment due date of your credit card statement, it reflects on your financial report and directly impacts your credit score. Arriving at a decent credit score above 750 proves your creditworthiness amongst lenders. So, the chances of availing advances in future increase substantially.  

2. Do away with interest charges

Another reason to pay off your bills in time is to avoid interest payment. This extra cost starts to accumulate when you fail to pay off the minimum amount due. 

Few lenders allow individuals with up to a 45-day grace period within which credit card bill payment should be made. Note that any payments made after this grace period can attract interest on the utilised credit limit. Hence, choosing a credit card that offers such benefits like grace period can ease your repayment experience. 

The Bajaj Finserv RBL Plus SuperCard is one such credit card that offers such a prolonged interest-free period. 

Bajaj Finserv also brings you pre-approved offers on credit cards to make the overall application process simplified and less time-consuming. These pre-approved offers are also available for other financial products such as personal loans, home loans, business loans, etc. You can have a look at your pre-approved offer by submitting a few details like your name and contact number.

3. Reduced debt-to-income ratio

Making credit card bill payments in time is likely to increase your chances of availing credit in future. It also helps in keeping the debt to income ratio in check, thus helping you maintain the ideal ratio of 50% or less. It does so by helping to keep a balance between your in hand monthly income and the debt you owe to your lender, thus helping maintain this ratio.

4. Easier budgeting

Paying off your outstanding balances as per the credit card statement will assist you in planning out your monthly budget for your personal finances easily. With the dues cleared in time, you can easily cater to other expenses for the month and also save efficiently. 

By using your credit card wisely, you will be able to manage your monthly expenses more effectively.

Things to look for before paying out your bills - 

Repaying becomes easier when you have chalked out a plan earlier. Follow the below-mentioned tips for an easier credit card bill payment –

1. Prioritise your debts, loans that need to be paid when the month starts.

2. Curb on your extra and unwanted expenses by preparing a list of essentials beforehand.

3. Set realistic goals to repay your dues by planning your monthly expenditures earlier.

4. Monitor your spending habits to keep your credit card transactions within the budget.

Utilising these ways and paying off your dues clears your outstanding credit balances and provides you with an absolute peace of mind. Opt for credit cards that come with rewards and cashbacks to make the most of your credit limit.