If you are a credit card user, then you might be well aware of the term “credit card interest rate”. One of the prime reasons why interest is charged upon such credit facility is late payment. This means if you are unable to pay your bill before the due date, you’ll have to pay an extra interest amount along with your due bill.
Around a month back, when my credit card bill came, I was unable to pay it on time due to disrupting finances. So, when I was finally able to deposit my bill, that was with an extra amount of interest. Therefore, I’d like to share my personal experience here on how to avoid interest charges on such payments.
What are credit cards?
These are basically financial tools that allow individuals to make purchases on credit. They are issued by financial institutions, and when you use these cards, you are essentially borrowing money from the card issuer to pay for the goods and services.
Furthermore, they come in the form of physical cards with a unique card number, expiration date, and security code. These are linked to a revolving line of credit, which determines the maximum amount you can borrow.
What are credit card bill payments?
It refers to the process of repaying the outstanding balance or the amount you, as a borrower, owe on your credit card. Every month, your credit card issuer will generate a statement detailing the transactions made during the billing cycle, the total amount owed, the minimum payment required, and the due date.
What are the ways to avoid credit card interest charges on Credit Card Bill Payments?
● Pay the full balance amount
To completely avoid interest charges, pay off your balance amount in full before the due date. With this, you won’t carry any debt forward to the next month’s billing cycle.
● Monitor your spending
Be aware of your spending habits and avoid making purchases you can’t afford to pay off in full. By keeping your credit card balance low, you, as a borrower, basically reduce the risk of accumulating high-interest charges.
● Make timely payments
Late payments not only incur late fees but can also trigger interest charges. So make sure you make your credit card bill payment on or before the due date.
● Payment reminders
Setting up such reminders will also help you to avoid interest charges. Utilizing the reminder facility, whether through your credit card issuer’s online account management system or mobile applications, helps you stay organized and doesn’t miss any payment deadlines.
How to pay credit card bill?
Well, long gone are the days when people used to travel to financial institutions to deposit bills. Nowadays, you just need your internet-enabled smartphone and the right application installed in it. Personally speaking, I’ve been using the Bajaj Finserv application for my credit card Kotak payment for quite a long time. Believe me, this is one of the smoothest applications to use.
- Download the application from Play Store/App Store per your device preference.
- Sign up using your mobile number
- On the home page, go to the Bills and Recharges section
- Select Credit Card
- Select Provider and further enter the necessary information
- You are good to go
