6 Tips to Avoid Credit Card Bill Payment Late Fees
Avoid Late Fees: Tips for Timely Credit Card Bill Payment
For a lot of us, Credit Cards are an essential commodity. Whether you are shopping online or in stores, the card helps you pay monthly utility bills, fuel, access exclusive deals while ordering food & more. Credit Cards have made buying things easy and worth rewarding. Apart from the convenience Credit Cards also allow users to avail cashback, discounts and other special offers.
When used responsibly and smartly, a credit card can earn back some of your money for you. On the other hand, this financial tool can become an inconvenience and a major liability if used carelessly.
You must be mindful of the finances, understand the working of the card and know when to pay the due. Missing a Credit Card payment can lead to penalties like late fees, high-interest charges and a drop in your credit score. To avoid all this, cardholders must make timely credit card bill payments.
In this blog, we will discuss some tips to help you avoid late fees and pay your Credit Card bills on time.
Tips to avoid late fees on a Credit Card
1. Set up automatic payments
One of the easiest ways to avoid late fees is by setting up automatic Credit Card bill payments. Most banks and Credit Card issuers offer this facility, which allows you to set up a recurring payment from your bank account to pay your Credit Card bill on a certain date every month. This way, you don't have to worry about missing the payment date or paying late fees as a consequence.
You can opt for either paying the minimum amount due or the entire outstanding balance through these automatic payments. It is necessary to maintain a sufficient balance in your linked account to complete the payment and ensure that your credit card payment due date is never missed.
2. Use mobile banking apps
Mobile banking apps have made banking services accessible. For instance, you can use iMobile Pay to check your Credit Card statement, pay your Credit Card bill and set up reminders for the due date. The app will send you notifications before the due date and remind you to pay your Credit Card bill on time. You can also make a payment through the app, saving you time and effort.
3. Set reminders
A lot of customers don’t use automatic payments. Instead, they set reminders for themselves to pay their Credit Card bill. You too can use your smartphone's calendar or set reminders through the mobile banking app you use. Set the reminder a few days before the due date. This way you will not forget to make the payment and also avoid late fees.
4. Pay more than the minimum amount due
Paying just the minimum amount due may seem like a convenient option. However, it can result in high-interest charges and debt accumulation. One way to avoid this is by trying to pay more than the minimum amount due. This will not only help you reduce your outstanding balance but also save you from interest charges.
5. Avoid using your Credit Card for unnecessary purchases
It is not advisable to use a Credit Card for unnecessary purchases. Spending on things that are not budgeted for or buying things that are simply too expensive can result in a high outstanding balance and make it difficult for you to pay the dues on time. Try to use your Credit Card for necessary purchases and use cash or Debit Cards for other expenses. By doing this, you will be able to keep your outstanding balance low and pay off your Credit Card bill on time.
6. Pay your bill early
Paying your Credit Card bill before the due date will help you avoid late fees and high-interest charges altogether. Most Credit Card issuers calculate interest daily, which means that the longer you take to pay your bill, the more interest you will need to pay. By paying your Credit Card bill early, you can avoid these charges and improve your credit score as well.
A few tips to avoid overspending on your Credit Card
Digital banking systems try to ensure customers pay all their arrears on time by sending reminders via text message, email and app notifications. When cardholders don’t pay their bills on time they get alerts for that in much the same way. After this, they can make their payments and be late by a day or two at best.
Overspending on Credit Cards is perhaps the most prevalent cause of non-payment and here’s how you can avoid it:
Create a monthly budget to keep track of your expenses. Allocate a specific amount of money for different expenses such as groceries, utilities, entertainment and so on. Stick to the budget and avoid using your Credit Card for purchases that exceed your monthly budget.
Most Credit Cards will let you set limits on the amount of money you can spend using your Credit Card each month. Setting this up can help you avoid spending above your means and keep your expenses under control.
Use cash or a Debit Card for purchases as this will only limit you to the amount of money you have. This means that you cannot overspend and avoid Credit Card debt.
Avoid impulsive purchases as they can increase your Credit Card debt significantly. Before buying something, try and ask yourself if you need it or if it is an impulse buy. If it’s the latter, avoid it and save your money for something better.
Use the rewards Credit Cards offer to earn on your purchases. Choose a programme that suits your spending habits and use it wisely to save money.
Timely Credit Card bill payment is necessary to avoid late fees, high interest charges and an adverse impact on your credit score. By following these tips, you can make timely bill payments and avoid penalties.
Set up automatic payments, don’t buy what you don’t need to, use mobile banking apps, set reminders, pay more than the minimum amount due and pay your bills on time. These steps will help you manage your Credit Card bills effectively and improve your finances.