Credit cards have become an integral part of day-to-day life, primarily because of the high purchase value it comes with. However, credit card bill payment is a big responsibility since factors like credit score and repayment track record, etc. depend on that. With several facilities like online bill payment and UPI transactions, individuals can pay the bills on the due date or eleventh hour.
However, it is advisable not to hold off paying the credit card bills until the last minute as that also impacts one’s repayment track record. As a matter of fact, paying the bills prior to the due date comes with a lot of advantages. Below is a list of conveniences one can get by making the payment before due dates.
Benefits of making an early credit card payment
When it comes to making the bill payment, it is essential to pay attention to the card statements when they arrive every month. In most cases, lending institutions impose late payment fees, which should be considered. Additionally, you ought to check the charges you may incur due to unauthorised transactions from illegal activities like cloning, skimming, etc. A fraudulent charges insurance cover helps to mitigate that issue by providing complete coverage.
Nevertheless, below-mentioned are a few reasons why you should schedule your credit card bill payment before due dates.
Avoid interest charges: Late payment inevitably invites interest charges on the unpaid amount. This cost can be substantially high as it is charged on a daily basis. Thus, if the amount you have to repay is considerably high, consider settling a portion of it ahead of the date. This saves you the burden of repaying the amount at once and also minimises the risk of failing to make good dues on time.
Improves creditworthiness: As a responsible borrower, you should not only prioritise on paying the bills every month but also trying to make your credit score better. This further ensures that your next loan gets easily approved and you can easily obtain a large sum based on your previous repayment track record.
Managing other liabilities: Apart from improving your credit history, making the credit card bill payment before due dates also help you handle other liabilities properly. Especially while making large purchases, you get more room to spare in your card when you have strategically repaid a sizable sum from your credit limit.
Digitalization has made things easier since borrowers get to use various online credit card payment methods to clear their bills before the due dates. However, it is advisable to check the portal from which you are initiating the payment. As digitalization gains prominence, the numbers of black hat hackers have also increased. To be extra cautious, you can consider keeping in place a Wallet Care insurance policy from Bajaj Finserv under Pocket Insurance & Subscriptions. A cover like this can ensure you receive financial protection up to Rs.2 lakh should you fall victim to any credit card fraud.
Insurance aggregators are also coming up with relevant plans like a cybersecurity cover where it safeguards you from monetary losses due to simjacking, cyber-attacks, phishing, etc. Therefore, make sure you use only official websites to complete the credit card bill payment online process and avoid using other links for transactions.
