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Credit Card Bill Payment: Everything You Need To Know

Your guide to credit card bills and bill payments

By Kirti BhargavPublished 2 years ago 4 min read
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Owning a credit card is definitely a move towards becoming a financial liberal, but just having a credit card does not do the work. You need to be extremely responsible while using a credit card because credit cards are like double-edged swords, on one hand, you can enjoy unlimited benefits but on the other hand, it has its own disadvantages. So using them wisely is the only way to reap the benefits. One of the important aspects of a credit card is credit card bill payments. You can never afford to miss a credit card’s due date as it is capable of affecting your credit card score negatively. To know more about the credit card bill and bill payments keep reading below.

What does my credit card bill contain?

You may wonder what is it all about credit card bills and what does it contain? Well, we have listed below some of the aspects that you will always find in your credit card bill.

  • Previous and purchase history: You will always find your current and previous purchase history on your credit card bill of a current Billing cycle. This makes you aware of all the activities happening on your account. If you find a fraudulent purchase you can report it immediately.
  • Cash advances: If you have swiped your credit card at any ATM for withdrawing cash, you will find that activity on your credit card bill under the cash advance heading. You will be charged a processing fee for this transaction.
  • Balance transfer: On transafering the balance of one credit card to another you will find that transaction under the balance transfer head in your credit card bill. This transaction also attracts a processing fee that you would need to pay.
  • Interest: Another most possible thing that you can find on your credit card bill is the interest charges or late payment fee. This is only possible when you forget to pay your credit card bill on or before the due date.
  • Other charges: Under this head, other charges include foreign mark-up charges, fuel surcharge, etc. These charges will only be shown if you have made any transactions under these heads.

How can I avoid paying interest charges on my Credit Card bills?

You can only avoid interest charges by paying your credit card bill in full on or before the due date. If you think paying the minimum due balance will help you avoid interest charges, then let us correct you. Paying the minimum due amount only helps you to avoid late payment fees and no interest charges.

Do non-payment of credit card outstanding affects my credit score?

Yes, of course, not paying the credit card outstanding balance on time can drastically affect your credit score. Credit card payments play a vital role in building a good credit score. Your credit score can drop down if you keep missing the due date and never pay your credit card bill. You will lend yourself to a serious position i.e. debt trap. You will be blacklisted and you won’t be able to get new credit cards or loans.

Things to remember regarding credit card bills and reports:

You need to keep certain things in your mind like keeping a regular check on your credit card report so that you can identify which transaction is fraudulent or whether you have been charged any hidden fees. You are accountable for your credit card account if you find any error or omission you need to immediately report the same to the credit card issuer so that you do not have to pay for the transactions that you have not made.

Another important that you need to bear in mind is keeping your credit card dues clear and maintaining a low credit utilization ratio. For this, you can register for auto-debit services and set a threshold limit in order to maintain the above-mentioned tips.

Bottom Line:

To summarise, we hope that we were able to address everything regarding the credit card bill payments. This is the most important aspect of credit cards that you can never avoid. Avoiding the payment can affect your credit score and credibility. Keep everything in line so that you do not have to face any issues while using credit cards.

If you have any queries and questions do comment below in the comment section, we would love to answer them.

personal finance
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About the Creator

Kirti Bhargav

Financial Content Writer at Cardinsider.com

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