As many as 8.4 million credit cards were issued in India between the period of August 2017 and August 2018. The spike of credit card usage in this period was largely due to the significant number of individuals opting for e-commerce services. Various benefits introduced by the card-issuers have also provided an impetus to this growth.
However, you must be aware of how to pay credit card bills on time to avoid a massive financial blunder. Regularly missing out on due dates can come with enormous consequences resulting in a negative impact on your financial health.
Here are a few reasons why you must pay down your credit card debt on time –
- Effect on credit score
Card issuers determine your creditworthiness with the help of your CIBIL score. Late payments are recorded to the credit bureau, which can subsequently affect your CIBIL rating. This negative impact can affect your future credit applications considerably.
- Late fee
Card issuers charge a late fee whenever you fail to pay a minimum amount within the due date. This penalty is added to the credit card bill of your next month. However, according to the RBI guidelines, card issuers can charge a late fee if an individual fails to pay the bill within 3 days of the due date.
- Heavy interest amount
It is always advisable to pay the maximum outstanding instead of the minimum payable amount as mentioned on your credit card statement. If you pay only the minimum amount, the remaining outstanding will be subjected to interest charges. Hence, you must be aware of how to pay credit card bills on time to avoid such charges.
- Reduction of the grace period
A grace period is a maximum period offered by a credit card issuer to clear your outstanding dues without charging interest on it. Usually, this period ranges around 45 days. No interest is charged on the transactions repaid within this period.
- Decreased credit Limit
Card issuers can reduce your credit card limit if you fail to clear your outstanding multiple times. It will considerably restrict your spending capacity and increase credit utilization ratio which will subsequently reduce the credit score.
How to pay credit card bills online?
Here are a few convenient ways to pay your credit card bills online –
- Net banking
You can use your savings account to pay credit card bills. You are required to initiate the payment via net banking. However, you can only use this facility if you have already registered for it.
Once you have registered for this facility, follow the steps mentioned below to pay your credit card bills through net banking.
Step 1 –
Log in to your credit card account and refer to the payment page. Select a suitable option among the various net banking options available.
Step 2 –
Enter the user ID and password to authenticate your action. You will receive an OTP on your registered mobile number. Enter the password to proceed further. In some cases, you may need to enter the CVV number of your card for further verification.
- Mobile app
Card issuers have now introduced various mobile platforms to ensure excellent user experience for the cardholders. For instance, if you are using the Bajaj RBL Bank SuperCard, you can quickly pay off your credit card dues with the help of their mobile app platform. Along with convenience, it also offers a plethora of benefits including interest-free ATM withdrawal up to 50 days.
You can add your credit card account as a beneficiary in your savings account to pay your credit card bills via NEFT. Enter the necessary details like your card number and CVV to complete the payment. However, it is to be noted that transactions via NEFT may require a working day to process. Hence, plan your payments to avoid missing your due date.
Pay off your credit card bills on time to avoid penalties and a negative impact on your CIBIL score. You can also automate your payments to avoid such mistakes.