Do you have a credit card and are you worried about its bills? Then, this post is for you! It will help you know about the best times to make credit card payments.
Timing is everything, and it also applies to your credit card payments as well. If you pay your credit card bills late, you will cough up extra interest fees. Also, it will hamper your Credit Score, a major thing to consider while looking for future loans.
If you are confused about making the credit card payment, let’s know about the best times to do that.
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Before the due date
You should ensure to make at least the minimum payment due on your credit card by the due date. It will help you keep your accounts in the good standing and keep off late payment penalties. Missing your credit card payment by 2-3 days after the due dates will lead to a late fee. Also, making delayed payments can also forfeit any rewards that you may have earned.
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Before the account statement closing date
Do you want to ensure that a lower credit card balance is reported to the credit bureau this month? You should ensure to make your credit card payment before the account statement closing date. It is because having a high credit card balance on the credit report can increase your credit utilization and lead to a lower Credit Score. Having a robust Credit Score is vital if you are planning to apply for a loan in the future.
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Earlier in the billing cycle
Did you know that paying the credit card bills early in the billing cycle can reduce the penalty amount? Yes, you if you don’t make any purchases during the billing cycle, you can achieve it. It is because your bank probably uses either the average daily balance method or the daily balance to calculate your finance charge. Also, having a lower balance for more days during the month may cough up lower payment charges.
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Immediately after getting your salary
Making the credit card payment right after you are paid can ensure that you can afford the payment. It also keeps off the chances that you will have a returned payment. To have a peace of mind that your payment is covered, you can send your payments even if the due date isn’t for several days.
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Before you make a big-ticket purchase
Did you that making a big purchase on your credit card can raise your credit utilization and also affect your CIBIL Score? Yes, when you already have a balance, it can affect your Credit Score. Hence, paying the balance before making large purchases can help. It can help the credit utilization from hiking and even protect your Credit Score from taking a dip.
Paying off the credit card bills by the due date is the best time to do. If you are ready to enroll for a credit card, you can apply for the Bajaj Finserv RBL Bank SuperCard.
Bajaj Finserv also offers some pre-approved deals on credit cards, home loans, personal loans and more. It is to make the entire loan processing a hassle-free affair.
To get started, you can check out your pre-approved offers now by sharing some of your basic personal details.
