Do you have a credit card? then this article is for you. Not paying the credit card bill on time attracts not only penalty but also late fee. Not only this, but your credit score also has a negative impact. That’s why it’s important to pay bills on time to keep your credit score better. Credit card users usually get an interest-free period of 45 to 50 days to pay their bills after the statement is generated. If you miss the deadline, interest will start charging, and the card issuer also charges a late fee. Paying a credit card bill on time offers several benefits. If you are paying your credit card bill on time every month, it helps you maintain a strong credit history and a good credit score. A good credit score is always helpful in getting a cheap loan.
When is the best time to pay bills?
So the question is, when is the best time to pay a credit card bill? Credit card companies report your balance to the credit bureaus every month. If you make payments a few days before your statement date, it can reduce your credit utilization. Low credit utilization helps you increase your credit score or maintain good credit. However, if the card issuer reports zero balance every month, it can have a negative impact on your credit score.
Therefore, it may be advisable to avoid paying the entire balance or pay a few days before your statement date to make some new purchases on your card. You can also consider making payments multiple times throughout the month to keep your balance low. For example, if your balance is close to the recommended limit of 30%, you can avoid it being too high by paying it out. Additionally, you can make payments whenever you receive a payment.
Conclusion
If you also have a credit card that you should know, it is important to pay credit card bills on time so that you can avoid late fees, high interest rates, and the negative impact on your credit score. By following these tips, you can pay bills on time and avoid penalties. Set up Auto Pay, buy only the essentials, use the mobile banking app, set reminders, pay more than the minimum amount, and pay your bills on time. These measures will help you manage your credit card bills effectively and improve your financial situation.
