The recent surge in credit card usage increased the number of cardholders by more than 10 million YoY as on May 2019. The primary reason for this growth is the features and benefits that credit card providers are adding to their products. Additionally, companies have also introduced various methods of online credit card payment, which have eased the process of bill clearing.
Paying off your credit card bills before the due date is essentially a good practice as it proves your creditworthiness to the lenders.
Importance of paying credit card bill before the due date
Clearing your credit card bill before the due date will essentially help you in managing your finances easily without stressing on the same.
The credit card statement is generated for every billing cycle extending up to 30 days. The bill generated in one billing cycle includes transactions you have made using the card within that period.
Timely payment of these bills eliminates attracting any unwanted interest on the bill. Therefore, to save extra expense, you need to make credit card bill payment within due date. Timely payment of bills is also important as it impacts a person’s credit score.
Tips to pay credit card bill before statement due date
It often becomes difficult for individuals to keep a track of the payments and statements and they sometimes miss out on the due date. In addition to being smarter with a credit card in your pocket, the following tips will help you in paying your credit card bill before the due date.
It is important that you know how to read your statement correctly to understand all the details and avoid any future discrepancies. The credit card statement provides you with an overview of the details that include the following –
Most importantly, keep the pay due date in mind and always pay the total payable amount to improve your credit score.
It is the most important factor to consider when using your credit card. Since your online credit card payment is to be made within the specified grace period, set it as a priority and make the payment as soon as you receive the statement.
As you continue to use your credit card for your regular spending requirements, set a target of your monthly expenses at first that is achievable. Plan a monthly budget if possible and spend accordingly, and likewise, make sure that you have adequate funds at hand for online credit card payment of the bills.
You can also opt for a standing order facility, where an amount is directly debited from your savings account towards regular payment. This can be highly beneficial to pay your credit card bills as you will be under less stress due to the automatic payment.
To make the most of credit card usage, you must look for products with the features that suit your lifestyle. In this regard, you can choose the likes of Bajaj Finserv RBL Bank SuperCard, which combine the features of four different types of cards in one. These cards also come at competitive interest rate along with an interest-free payment window of up to 45 days.
Timely payment of your credit card bills become exceptionally important as it can save you a lot of extra expenses that might be incurred if you fail to make it in time. Most importantly, a timely online credit card payment also improves your CIBIL score.