Summary of this article
Paying credit card dues on time help you in many ways.
Automate your payments to make it easier for yourself.
Go through credit card statements.
The timing of your credit card payment has a bearing on your credit score, and late payment of your credit card bill will be one of the major reasons why your credit card score could be low. Indeed, there is a right time to pay your credit card bill. Avoiding late fees on credit card bills is crucial to ensure that your credit card usage remains a pleasant experience. Paying your credit card dues is a crucial part of financial planning and building discipline, including building a healthy credit score.
There are many reasons why you should pay your credit card bill on time and in full. One reason is to avoid steep interest charges the bank will levy on your outstanding balance, which is typically around 3-4 per cent per month or around 36-48 per cent annually. Even part payments won’t help much, because of the steep interest on the remaining balance and the new purchases that are made, which will be included in the new billing cycle.
How to Keep Your Credit Score Healthy
Here are a few ways in which you can keep your credit score healthy.
Automated payments:
As soon as you get yourself a credit card, make it a priority to set up an autopay option for it. This way, all your dues will be paid for, and you will never miss any due dates, even accidentally. If your financial situation does not allow for a full payment, you can switch to paying for a minimum amount of the full bill.
Plan payments with your salary:
Your focus should be on effectively planning your payments with your monthly income. Ideally, once the salary is credited, people choose to pay off credit card bills. This helps you stay protected and from falling into a debt trap.
App reminders:
You can also use in-app features to set up reminders. This is a safer option when it comes to bills and payments, so that you don't miss out on anything and get penalised for non-payment of your card bills.
Pay a few days in advance:
It is ideal to pay your payments at least a couple of days before the deadline or the last payment. This way you will get the biggest share or due of your total bills paid without any last minute hassles.
Check credit card statements:
Check your card for any unexpected charges, applicable fees, or any other charges that may have been applied. It is simply to be conscious of your expenditure.
By using technology, efficient planning, and being vigilant, you can pay off your bills without late payment charges and not ruin your credit score in the long run either.
