A credit card is the one that is issued by the bank to the card user so that the user can shop using credits. And so, they have a time limit, a duration, during which the bill has to be paid by the cardholder. Now, if you are unable to pay the fees/bill during that period, the bank charges you with a penalty fee. And if you fail to pay the complete bill by the next month, they charge you with interest and this is the main source of income for the credit card companies.
Most of the people can’t maintain a proper credit card score mainly due to their carelessness and as a result, they end up paying more. The interest rates, fee, keep piling up and so a time comes when it becomes difficult to pay even the minimum amount on the card. You can read the detailed instructions given regarding payment inside your bill to get more information about it.
However, by being careful in certain ways, you can completely avoid these extras on your card and so it wouldn’t cost you any extra money. Here are a few tips on how you can keep your score high and your life simple.
1- Follow the bill instructions
They are your best friends when it comes to avoiding penalties. Every little detail is written and you should always read it.
2- Keep a good due date
You should set a payment due date to when it is the most convenient for you to pay when you’re sure you’ll have the money. Do not set it exactly at the day you get paid as it can get delayed and you’ll have a hard time paying it. Chances are, you may not have enough money left and you miss the payment.
3- Pay the minimum amount
If you are unable to pay the complete fees by the time is given, pay at least the minimum amount due. Set it aside so that you won’t get charged with late fees penalty and then pay it. Then if you have more than the minimum, pay that as well so that it reduces the amount you have to pay later.
4- Skip a payment
Now, this is a service that your credit card company may or may not provide you with. And even when it does, you can use it once or twice in a year only so make sure that you use it ONLY when don’t have money and you run out of all other options. That is, only when you really need it. However, this may also require you to pay some amount but it’s worth it.
5- Buy only when you can pay
Many times, people know that they won’t be able to pay the fee for something they’re buying easily, but they still trick their minds into buying it and later regret it when they’re having much difficulty paying it. They trap themselves into something they cannot come out of.
6- Increase your credit card score
When you keep paying on time, your credit card score increases and so you are in a good category in your bank records. If by chance, you accidentally miss a payment and you are fined, you can call the bank and politely ask them to waive the charge. If the customer service representative isn’t cooperating then you can try talking to the supervisor. In most cases, they view your history and waive off the charge.
Other tips are that you must do your research to check which company charges the least penalty/interest, set reminders, maybe set an autopay, etc.
Lastly, If you see any extra fees on your card, try getting rid of it because If you don’t do something fast – it could be the beginning of the end.
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