We’re human. Whether it be working out in the gym or clearing bills on time, we just can’t resist the lure of ‘I’ll do it later’. That’s exactly why we recommend you to bookmark these benefits of paying your Credit Card bills on time:
- Improves financial health: Timely Credit Card bill payment is a crucial component of overall financial health. It helps build good credit habits and avoids costly mistakes that can lead to debt and financial stress. By staying on top of Credit Card payments, you can exert greater control over your finances and set yourself up for long-term financial well-being.
- Helps in maintaining a good Credit Score (improves it as well): Paying Credit Card bills on time helps in maintaining and improving your credit score. However, if you miss a payment, your Credit Score will take a hit. You’d have to do it all over again, as a late/missed payment will lead to a more severe point drop, especially if you have an excellent Credit Score (it unlocks the best deals on loans and Credit Cards for you). Remember that, typically, a missed payment will remain on your credit report for seven years.
- Savings on late payment and high interest charges: If there is a due date, there is a late payment fee, that’s a given. Also, the interest on Credit Card bills grows exponentially once you are past the due date for bill payment. So, paying your bill on time can help you avoid these unnecessary charges.
That’s it. We hope we have given you enough reasons to set up autopay, use alerts, schedule reminders, and do whatever it takes to pay your Credit Card bills on time. Having said that, we know Credit Card bill payment can be overwhelming at times. In such situations, you can always split the bill into easy, affordable EMIs here.