If you have got a credit card then every month, they will send you the balance amount of credit to be paid. After that, they offer nearly one month’s time to make the payment. Many people often pay immediately once they receive the bill. What is the right time to pay the bill?
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How to manage your credit card bills?
- Pay completely on time
The best way should be to pay the complete bill well in time so that no balance is left. Paying the minimum amount every month attracts interest on the balance amount and also it affects your credit score too.
Avoid as much as possible any late fee or penalty.
- For maximizing financial return, you may pay later
Late-cycle payers can probably afford to use all of the credit available to them in each month. The total bill will remain constant over the length of your billing cycle, but cardholders can take advantage of the “time value of money” applied to the amount outstanding.
- Pay sooner to improve your credit score
It is better to pay sooner than later the credit card bill and that can offer you some benefits in the form of a better credit score.
- Pay immediately for paying less interest
More you delay the payment of your bill for credit card, you will keep accumulating interest on them. Therefore, paying the bill immediately can save you from paying unnecessary interest charges.
Few other tips to manage your bill
The following are a few pointers to managing your bill for a credit card:
- Maintain a certain budget for keeping a proper track of all your spending. You’ll avoid spending more compared to what you can really afford to pay in a month this way.
- To stay on top of your balance and billing due date, sign up for your text or email alerts.
- If the due date of your bill’s conflicts with your normal pay schedule, call your issuer to have it moved.
- Every month, carefully review your statement. This will assist you in detecting and correcting any unlawful charges that may occur.
- Set up recurring payments. This may help you to avoid missing a payment deadline unintentionally.
Always pay your credit card dues in whole and on time. As the payments are completed within the normal billing cycle, the return on credit can be maximized or a credit score can be improved. To get the most out of the money you borrowed, keep it in an interest-bearing bank account for a longer period of time and pay bills right before interest starts to accrue.
Pay ASAP to keep credit utilization rates lower and raise your credit score. However, remember: if at all possible, avoid carrying a balance.