Tuesday January 28, 2020
Home Business Why you Shoul...

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.

0
//
credit card
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

credit card
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.

money
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.

Next Story

Here’s how Cyberbullying Leads to Depression Among Youngsters

Online bullying more horrifying, leads to depression in youths

0
Online bullying depression
Cyberbullying amplifyies symptoms of depression and post-traumatic stress disorder in young people. Pixabay

As researchers have found that cyberbullying amplifyies symptoms of depression and post-traumatic stress disorder in young people, health experts here also stressed that in some cases it can be far more horrifying than physical bullying.

According to the experts, cyberbullying is when a child, teen or youngster becomes a target of actions by others — using computers, cellphones or other devices — that are intended to embarrass, humiliate, torment, threaten or harass.

It can start as early as age eight or nine, but the majority of cyberbullying cases take place in the teenage years, up to age 17.

The new study, published in the Journal of Clinical Psychiatry, addressed both the prevalence and factors related to cyberbullying in adolescent inpatients.

Online bullying depression
From setting beauty standards and norms to trolling every act has a significant effect on the psyche of internet users, especially on youth and children, it leads to stress and depression. Pixabay

“Even against a backdrop of emotional challenges in the kids we studied, we noted cyberbullying had an adverse impact. It’s real and should be assessed,” said study co-author Philip D. Harvey, Professor at University of Miami in the US.

According to the researchers, children with a history of being abused were found to be more likely to be cyberbullied.

The study of 50 adolescent psychiatric inpatients aged 13 to 17 examined the prevalence of cyberbullying and related it to social media usage, current levels of symptoms and histories of adverse early life experience.

Conducted from September 2016 to April 2017, the research team asked participants to complete two childhood trauma questionnaires and a cyberbullying questionnaire.

Twenty per cent of participants reported that they had been cyberbullied within the last two months before their admission.

According to the researchers, half of the participants were bullied by text messages and half on Facebook.

Transmitted pictures or videos, Instagram, instant messages and chat rooms were other cyberbullying vehicles, the study said.

Online bullying depression
Children with a history of being abused suffer from depression. Pixabay

Those who were bullied had significantly higher severity of post-traumatic stress disorder (PTSD), depression, anger, and fantasy dissociation than those who were not bullied.

According to findings, participants who reported being cyberbullied also reported significantly higher levels of lifetime emotional abuse on the study’s Childhood Trauma Questionnaire than those who were not bullied.

The internet not only covers the huge part of our lives nowadays, rather it actually dominates today’s generations’ lives, according to the expert.

“From setting beauty standards and norms to trolling every act has a significant effect on the psyche of internet users, especially on youth and children, it leads to stress and depression as well,” Mrinmay Kumar Das, Senior Consultant, Department of Behavioural Sciences, Jaypee Hospital in Noida, told IANS.

Also Read- Full Vaccination of Children Reduces the Risk of Hospitalisation: Study

To reduce the risk of falling in this trap, Das suggested: “Keep an eye on the people you interact with online, keep your personal information or private details safe. Also keep in mind that your children who apparently act normal may also be dealing with cyber bullying.”

“Hence keep communicating with your children, rather than scolding them and forcefully limiting their internet use, support them to come out of this depressing phase, encourage them to indulge in other activities like games, music, etc,” Das added. (IANS)