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Why you Should Make your Credit Card Bill Payment on Time: 5 Reasons

All of these outcomes can be avoided when you pay your credit card bills on time. Hence, opt for a card that offers you multiple payment options like the Bajaj Finserv RBL Bank SuperCard.

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When you fail to make your credit card bill payments, not only does your credit score take a hit, but you also show bad repayment capabilities.

Reports show that credit card usage in the country has witnessed an average year on year growth of well over 30% through 2018. Additionally, the value of all transactions by 2018’s fourth quarter amounted to Rs.1,431.3 billion. Given these numbers, it is important to know that every time you use a credit card, you borrow money from your financier to carry out the transaction. At the end of your billing cycle, your financier issues a statement containing your total outstanding amount and giving you the option of making a minimum or full repayment.

 

Figures show that close to 92% of Indians consider making timely credit card bill payments vital to their financial success. Wondering why this is regarded as a valuable habit? Read on to know more.

 

Late fees and a higher rate of interest start piling on

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Putting these together, late payment of bills makes for an poor credit history on the whole. This decreases your credit score. Pixabay

As per your billing cycle, you have to make payments by a particular date. If you fail to pay the balance or make the minimum payment, you incur a late fee and at times a higher rate of interest as well. As per an RBI notification of 2015, a late fee is applicable only if your payment remains outstanding for more than 3 days past the due date. The higher interest rate incurred may apply to the outstanding amount and also to transactions made during the time you have not paid your credit card bill. This can be costly to repay.

 

Compounding of your outstanding amount can pinch your pocket

 

A negative compounding effect is created if you fail to clear your credit card debt in its entirety. Consider that you have an outstanding bill of Rs.20,000 and a minimum repayment of Rs.5,000. While making the minimum repayment is good, it also means that you will incur interest on the remaining Rs.15,000. The following month, you will have to clear transaction costs of the past 30 days as well as pay the Rs.15,000 with interest. In this way, if you continue making only minimum repayments, you land up paying interest on interest. The same holds true in case you have not paid your bill entirely.

 

Higher monthly expenditures will keep recurring

 

Since delayed payments imply an increasing outstanding amount, you will only carry an additional financial burden every month. When faced with an accumulating outstanding amount, it is important that you clear it at the earliest. This means that for a few months you will have to add an amount dedicated solely towards tackling credit card debt to your budget.

 

Your credit score takes a beating

 

Rating agencies consider your history of bill payments when determining your credit score. Another is the manner in which you handle debt. Putting these together, late payment of bills makes for an poor credit history on the whole. This decreases your credit score. A poor credit score implies that you will have a harder time availing loans and other forms of credit in the future, especially at affordable terms.

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The higher interest rate incurred may apply to the outstanding amount and also to transactions made during the time you have not paid your credit card bill. Pixabay

You lose out on chances to increase your credit card limit

 

When you fail to make your credit card bill payments, not only does your credit score take a hit, but you also show bad repayment capabilities. The baggage of these two factors will make it hard for you to obtain an enhanced credit card limit, should you require it.

 

All of these outcomes can be avoided when you pay your credit card bills on time. Hence, opt for a card that offers you multiple payment options like the Bajaj Finserv RBL Bank SuperCard. Here you can make your credit card bill payment via the RBL MyCard App, Bill Desk, NEFT, net banking, NACH and cheque.

Also Read: AI, Social Media Regulation Find Prominence in Poll Manifestos

The RBL SuperCard comes with other features that make it economical. You benefit from deals, discounts, and offers on products and services ranging from gadgets and accessories to food and travel. Further, this card gives you a 90-day interest-free loan, and allows you to make 50-day interest-free cash withdrawals at ATMs. You can get started availing these benefits in moments. All you need to do is check your pre-approved credit card offer. Doing so gives you instant approval and access to customised financial solutions.

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Realme Aims to Become Top Online Smartphone Player in India During Festive Quarter

According to the firm, it is also investing in offers worth Rs 300 crore for its prospective buyers in the upcoming festive seaon

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Realme, Online, Smartphone
Surface-mount technology or SMT is a method for producing electronic circuits wherein the components are mounted or placed directly onto the surface of printed circuit boards (PCBs). Pixabay

Armed with a quad camera-system smartphone in every price segment along with an investment worth Rs 300 crore for its surface-mount technology (SMT) lines, Chinese handset maker Realme aims to become the top online smartphone player in India during the festive quarter, the company’s India CEO said on Friday.

“We have just invested Rs 300 crore towards eight new SMT lines this quarter for Diwali season to make sure that this festive season people keep getting unprecedented supply of stocks,” Madhav Sheth, Chief Executive Officer, Realme India, told IANS.

Surface-mount technology or SMT is a method for producing electronic circuits wherein the components are mounted or placed directly onto the surface of printed circuit boards (PCBs).

According to the firm, it is also investing in offers worth Rs 300 crore for its prospective buyers in the upcoming festive seaon.

Realme, Online, Smartphone
Armed with a quad camera-system smartphone in every price segment along with an investment worth Rs 300 crore for its surface-mount technology (SMT) lines, Chinese handset maker Realme aims. Pixabay

“We are also the only brand offering quad-cam phones under Rs 20,000 in India,” noted Sheth.

Realme currently shares a facility with its parent company OPPO in Greater Noida and will continue to share the same facility for manufacturing its upcoming portfolio of handsets.

“With the new SMT lines, our current manufacturing capacity which is 1-1.2 million devices a month will more than triple to 3-3.5 million,” Sheth told IANS.

Almost two-third of the online sales during this festive season is likely to be driven by Realme and Xiaomi, according to Tarun Pathak, Associate Director, Counterpoint Research.

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“They have a good momentum which is likely to continue. Last year’s festive season was a record quarter for India. This year too, we’re anticipating that the online channel would do well in the festive season. Brands that are doing well online like Realme would drive the online festive sales,” Pathak told IANS.

The Shenzhen headquartered handset maker became the second-largest player in the online segment, driven by a strong online push and good performance of its affordable series — Realme C2, Realme 3, and Realme 3 Pro, according to Counterpoint Research’s Q2 report.

“They are covering the price tiers fast… The online segment is growing so I think they are at the right place at the right time,” noted Pathak.

The handset maker currently has a retail presence in cities including Mumbai, Hyderabad, Surat, Ludhiana and Chandigarh, and is also expanding footprint to meet the growing demands of customers.

Realme, Online, Smartphone
We have just invested Rs 300 crore towards eight new SMT lines this quarter for Diwali season to make sure that this festive season people keep getting unprecedented supply of stocks. Pixabay

The company launched its first smartphone with 64MP camera — the Realme XT — in India last week.

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The phone comes in three storage variants — 4GB+64GB, 6GB+64GB, and 8GB+128GB — priced at Rs 15,999, Rs 16,999 and Rs 18,999, respectively. (IANS)