Why You Should Make Credit Card Payment Timely?

You must have felt a little bit hesitant when a banking official offers you a credit card. It’s because you know that you’ll end up spending more than you earn. Eventually, leading to default in credit card bill payment. Only if you are confident that you can manage your credit card expenses and pay the bills on time, then only take one. You’ll end up paying excruciating amounts of interest rates if regular default in credit card payment is made. You’ll be shocked to know that the interest rate on credit card can go upto 30% per annum, which is maximum in the case of any lending product. Upon this, you also have to pay late payment charges. Thus, credit cards can be beneficial or a wreck depending on how you manage it.

What are the Challenges you may Face due to Delay in Credit Card Payment?

Card Blocked: If you don’t make the time in the stipulated time frame offered by the banks, the banks block your card, restricting you from the usage of the rest of the credit limit. As a result of this, you will face difficulty in making daily payments from expenses and cutting down your lifestyle.

Credit Score: Most amount of damage that is done by non-payment of credit card bill is to your credit score. You will not realize the magnitude of maintaining a credit score until there comes a situation in your life where you have to take a loan from the bank. Credit score is a major factor that banks check mandatorily before giving out loans. And due to delay in credit card payment, your credit score will be very low resulting in rejection of loans.

Legal Action: Obviously, it’s someone else’s money you are using to live your lifestyle. So, if the money isn’t returned on time, the organization has full right to sue you. Due to log in payment, your account may be denounced as delinquent by the banks and legal notices will be sent to you. Post which, legal actions will also be taken against you.

High Interest Rates & Other Charges: Default in payments leads to an increase in your credit card bill. You will probably ignore it saying that it is okay to delay the payment by just 4 months. But in the long run, if you see, the interest rate you will pay may go upto 30% per annum. Not only you’ll have to pay the interest rate, you will also have to pay late payment charges by the bank every month.

How to Pay the Credit Card Bill Payment?

After reading the repercussions of defaulting credit card payment, you might be scared and know how can you make payment. Banks for the convenience of their credit card customers have launched a series of online payment and offline modes that help them clear their bills within minutes.
Online:

Net Banking: Netbanking is really a popular mode of credit card payment among the that has gained popularity due to digitisation in India. All you need to do is link the credit card to your net banking account and easily pay your credit card bills.

Auto Debit: You can give your bank SI (standing instructions) to debit a certain amount every month from your savings bank towards your credit card account.

Mobile Banking: In this day and age, everyone is glued to their smartphones watching their favourite shows or listening to banging music or reading something. So, banks decided to offer you the convenience of paying the bill due through you smart phones. All you need to do is download the app of your banks from the Play Store or the App Store.

Offline:

Branch: The branch of every bank offers credit card payment facility to their customers. All you have to do is take the payment slip, fill in the beneficiary details as your credit card number and write the bill amount. Deposit the amount with the slip to the teller, and that’s it.

ATM: Visit the nearest ATM. Press on the credit card bill payment  tab, enter the bill amount and you’re done.