5 must read tips before paying your credit card bill

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To get rid of credit card bill on time is the best planning one can do. Whatever is your financial goal or situation may be, paying your credit card debt in the right way is what one should always follow. During emergency credit card helps most of us to resolve any financial need but using it in a haywire or only during shopping can lead you to pay high amount of credit card dues. So, it is better to avoid using credit card for every single purchase, condition you have enough cash. Paying late credit card dues can make your CIBIL score bad and can affect your credit score. This is the reason it is extremely vital to keep some important points in mind while paying the credit card bill. Here are the five tips to follow before paying your credit card bill.

1.Make a budget:

Before paying all your debts and spending prepare a budget by writing all your money coming in and going out. By preparing a budget you will be able to curb the extra spending and try to earn by keeping some extra amount to pay your credit card bill timely. Try to check all your spending habits then decide accordingly as how much money you have to pay as due. Track your financial stability and then pay the debt on time. Making a budget is the best way you can write on paper/app to save time and money.

2. Pay your credit cards lowest bill balance first:

If you are going through some financial crisis, and you have to pay the credit card debt then first try to pay the minimum or lowest bill balance of your credit card before the due date. If you fail to pay the minimum or the lowest balance before due date then you may get trap in high rate of interest per day which can be double from the current rate of interest that you normally pay. Also, check your credit card bill with high rate of interest and pay them first. Calculate your bills charges accordingly and then pay the priority one first.

3.Choose EMI option to avoid high interest rate:

Paying your credit card bill with the help of EMI can resolve your debt problem but it should be mathematically correct, else you may have to pay extra hidden charges or pre-closure charges. To pay huge amount of bill one at a time may be not easy for you during financial crisis. But you can opt for EMI option and pay the large amount in different small parts every month. Talk to your bank and opt for EMI option if you are not able to pay the debt on time. Bank will divide your bill amount accordingly and charge interest rate on that monthly amount by keeping your ease in mind.  Calculate all your due amount and then allow banks to convert your debt into EMI. Do Check with your bank prepayment and pre-closure EMI charges before opting for EMI option.

4. Know your billing cycle:

Before paying your credit bill never forget to check your credit card statement and billing cycle regularly. To avoid any extra charges, one must check their outstanding credit card bills on or before due date. Most of the banks also give 28 days’ relaxation period to credit card customers, so that they can pay their bills before the due date as per their convenience in two transactions. Never skip your billing date. If you don’t have whole amount to pay, then pay at least minimum bill amount to avoid any extra charges. Remember, credit card late payment can charge you more than 30 per cent interest rate per day. So, don’t get into this credit card bill trap. Keep an eye on every month billing cycle date (which can be 5th or 10th of every month). Better to mark your calendar with the help of email or phone reminder notification.

5. Consider auto pay facility:

To avoid any late fee or missing fee charges of your credit card bill it’s better to link your bank account to pay credit card payment on time. This auto pay option of paying credit card bill will solve your manual payment tension and make you feel free for reminding about the deadlines of paying the monthly bill on time. Note of caution, auto pay is a good option for people who make a salary that’s reliable and fixed every month in their bank account linked with credit card. If you have monthly income is not fixed and you don’t keep much amount in your bank account, then in that case auto pay is not suggested. One must monitor his or her bank account regularly to make the credit card dues on time, else banks may charge high rate of interest per day.