If you want to lay a sturdy foundation for your financial stability and well-being, embracing responsible credit card bill payment habits is a must. Beyond the immediate satisfaction of settling your dues on time, such habits even offer tons of advantages that extend way too far into your financial sphere.
Remember that timely payments not only prevent debt but also shield you from unnecessary charges like late fees, ensuring your hard-earned money remains safe in your pocket. Moreover, the impact on your credit score is thorough.
How does the credit card cycle work? How to pay credit card bill online?
You own a credit card and make purchases using it within a billing cycle. This cycle typically lasts for around 30 days.
2. Generation of statement
When the billing cycle ends, a statement of the tenure is generated. It summarizes your transactions, including the total amount owed, along with the payment due date.
3. Grace Period
For around 21-25 days, there’s a grace period. During this term, you can pay the balance in full without incurring interest.
4. Due Date
On this particular date, you’re required to make at least the minimum payment mentioned in your statement. This is to avoid late fees and, most importantly, potential damage to your credit score.
5. Interest Charges
If you fail to pay the balance in full, the interest accrues on the remaining amount. It is based on the card’s Annual Percentage Rate (APR).
6. New Cycle
Once you make the payment, a new billing cycle starts, and the overall process repeats.
Top benefits of timely credit card bill payment
● Maintaining Healthy Credit Score
Timely card payments play a very important role in preserving and enhancing your credit score. Your payment history contributes significantly to this score. Consistently paying your bills on time demonstrates reliability and financial responsibility to the financial institutions.
● Avoiding Interest Charges and Late Fees
By paying your bill on time, you avoid paying any kind of extra interest on the outstanding balance. Keep in mind that credit cards have high interest rates, and if you allow balances to carry over from month to month, it can lead to a massive chunk of substantial additional costs.
● Financial Discipline
Credit cards are the steps to learn financial discipline and management. It encourages responsible budgeting and planning to ensure funds are available to cover expenses when due.
Which is the best way to pay credit card bill for cashback?
If you are still relying on old-school and basic applications for this purpose, then you need to think twice. Personally speaking, I’ve been using the Bajaj Finserv application for over six months now, and believe me, this is one of the best applications to fulfill this purpose. It is super easy to use, and the facilities it offers are just unmatchable. It is highly recommended!
- Download the application on your smartphone
- Sign up with your contact number
- Tap on “Credit Card Bill” under the “Bills & Recharge” section.
- Select your bank and proceed further accordingly.
I pay my credit card kotak bill via this application only.
In conclusion, long gone are the days when people actually used to worry about paying their bills on time and also used to visit the financial institutions for the same. Nowadays, you and your internet-enabled smartphone are more than enough.