Credit card bill payment : Features & Benefits
When the month end arrives, it’s time for all your monthly payments, and many bills are waiting to be paid. One of the most used cards for payments is the Credit Card, which comes with a monthly credit based on your credit score. However, as credit card bill payment is to be done at a particular time, a missed one comes with a price.
Since the evolution of these cards, the purchasing power of individuals has definitely increased. It is a well-known fact that once you receive the credit card bill, you should ideally try to pay off the entire amount before the due date to avoid attracting interest charges on your next bill. If you go with this flow, you will avoid paying off ever-increasing amounts due to various fees added to your bill during each cycle.
Personally speaking, I’ve been using one of the best credit card bill payment app for around seven months, i.e., the Bajaj Finserv. I’m not promoting this organization, but it is highly recommended because it is effortless to use.
Benefits of making a Bill Payment on Time –
1. Save on High-Interest Rates
Credit Cards have the highest rate of interest for any loan product. Surprisingly, this rate can be as high as 35-40% (may vary) every year and is calculated on the outstanding amount and on a daily basis. Therefore, if there is a delay in repayment, your outstanding amount can surge significantly due to the high-interest rate.
2. Save late payment fee
When you fail to pay the minimum amount due on your credit card, a late payment fee is charged. Moreover, it all depends on the outstanding balance, as even if you pay the minimum amount, you will still incur interest charges if you don’t pay the outstanding in full. So, one way out here is to pay as much as you can, even if you cannot pay off the outstanding amount. This reduces your interest burden to some extent.
3. Positive impact on credit score
Doing your credit card bill payment timely ensures your credit score remains high. This positively impacts the credit score because it indicates that you, as a borrower, are creditworthy and prompt with your repayment. This also helps when you apply for a loan or another credit card, as the financial institution takes this into consideration and sanctions a loan much faster or approves a higher amount.
4. Increased credit limit
If you repay your credit card dues on time and in full, your bank may offer a higher credit limit on your card in the future. This acts as a savior in case you need funds in an emergency. Not only this, but a higher limit is helpful to keep your credit utilization ratio low. Remember, the lower your credit utilization ratio, the better the impact on your credit score.
(Note: The ratio here is the difference between your card limit and how much you spend on the card)
How to pay bills via the credit card bill payment app?
- Download the Bajaj Finserv application.
- Sign up after entering your personal information
- On the home page, go to the Bills and Recharges section
- Select Credit Card
- Select Provider and further enter the necessary information
- You are good to go
Missing a bill payment facilitator of such cards results in unpleasant consequences, and most companies levy late payment charges based on the amount of time taken to clear the pending bill. The later the bill is cleared, the higher the charges and penalties associated with it.
If you are not, you should definitely use a credit card bill payment app for timely payment, as it saves time, money, and energy. Nowadays, everyone has an internet-enabled smartphone, and it helps with several tasks, be they professional or personal.