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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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House Passes Equality Act, Sweeping Bill to Expand Gay Rights

Democrats in the House approved sweeping anti-discrimination legislation Friday that would extend civil rights protections to LGBT people

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Rep. David Cicilline, D-R.I., speaks before a House vote on the Equality Act of 2019, an LGBT rights measure, at the Capitol in Washington, May 17, 2019. The bill later passed the House 236-1. VOA

Democrats in the House approved sweeping anti-discrimination legislation Friday that would extend civil rights protections to LGBT people by prohibiting discrimination based on sexual orientation or gender identity. The protections would extend to employment, housing, loan applications, education, public accommodations and other areas.

Called the Equality Act, the bill is a top priority of House Speaker Nancy Pelosi, who said it would bring the nation “closer to equal liberty and justice for all.”

Sexual orientation and gender identity “deserve full civil rights protections — in the workplace and in every place, education, housing, credit, jury service, public accommodations,” Pelosi said.

The vote was 236-173, with every Democrat voting in favor, along with eight Republicans. Cheers and applause broke out on the House floor as the bill crossed the threshold for passage.

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Speaker of the House Nancy Pelosi, D-Calif., leaves the chamber after passage of the Equality Act of 2019, anti-discrimination legislation that would extend civil rights protections to LGBT people by prohibiting discrimination based on sexual orientation or gender identity, at the Capitol in Washington, May 17, 2019. VOA

The legislation’s chief sponsor, Rep. David Cicilline, D-R.I., said it affirmed fairness and equality as core American values and ensured that “members of the LGBTQ community can live their lives free from the fear of legal discrimination of any kind.”

Cicilline, who is gay, called equal treatment under the law a founding principle of the United States, adding, “It’s absurd that, in 2019, members of the LGBTQ community can be fired from their jobs, denied service in a restaurant or get thrown out of their apartment because of their sexual orientation or gender identify.”

GOP opposition

Most Republicans oppose the bill and call it another example of government overreach. Several GOP lawmakers spoke against it Friday on the House floor. President Donald Trump is widely expected to veto the legislation if it reaches his desk.

At a news conference Thursday, the Republicans said the bill would jeopardize religious freedom by requiring acceptance of a particular ideology about sexuality and sexual identity.

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Rep. Vicky Hartzler, R-Mo., called the legislation “grossly misnamed” and said it was “anything but equalizing.”

The bill “hijacks” the 1964 Civil Rights Act to create “a brave new world of ‘discrimination’ based on undefined terms of sexual orientation and gender identity,” Hartzler said. The legislation threatens women’s sports, shelters and schools, and could silence female athletes, domestic abuse survivors and other women, she said.

A similar bill in the Senate has been co-sponsored by all but one Senate Democrat, but faces long odds in the Republican-controlled chamber.

‘Poison pills’

A Trump administration official who asked not be identified, because he was not authorized to speak publicly about the president’s intentions, said the White House “opposes discrimination of any kind and supports the equal treatment of all. However, this bill in its current form is filled with poison pills that threaten to undermine parental and conscience rights.”

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FILE – Rep. Vicky Hartzler, R-Mo., left, speaks to reporters on Capitol Hill in Washington, March 25, 2014. VOA

Some critics also said the bill could jeopardize Title IX, the law prohibiting sex discrimination in federally funded education programs. Former tennis star Martina Navratilova co-wrote an opinion piece in The Washington Post urging lawmakers not to “make the unnecessary and ironic mistake of sacrificing the enormously valuable social good that is female sports in their effort to secure the rights of transgender women and girls.”

Ahead of the vote, Rep. Jody Hice, R-Ga., called the House bill “horrifying” and said it could cause Catholic schools to lose federal grants for school lunches or require faith-based adoption agencies to place children with same-sex couples.

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FILE – Rep. Jody Hice, R-Ga., speaks on Capitol Hill in Washington, June 17, 2015. VOA

Neena Chaudhry, a lawyer for the National Women’s Law Center, said the bill does not undermine Title IX, because courts have already found that Title IX protects against gender-identity discrimination.

“It is way past time to fully open the doors of opportunity for every American,” said Sen. Jeff Merkley, D-Ore., one of the Senate bill’s lead sponsors. “Let’s pass the Equality Act, and let us rejoice in the bells of freedom ringing for every American.”

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In the Senate, Republican Sen. Susan Collins of Maine also supports the bill, while Democratic Sen. Joe Manchin of West Virginia is the sole Democrat who is not a co-sponsor.

The eight House Republicans who voted for the bill Friday were Reps. Susan Brooks of Indiana, Mario Diaz-Balart of Florida, Brian Fitzpatrick of Pennsylvania, Will Hurd of Texas, Greg Walden of Oregon and New York lawmakers John Katko, Tom Reed and Elise Stefanik. (VOA)