When there isn’t enough cash, you can still buy your favorite products online and offline, and enjoy massive discounts by using a credit card.
Plus, you get to earn reward points which you can utilize later for making purchases without any worry for available finances. Not only shopping, you can also get extra reward points on specific transactions like travel and fuel. So, choose a card that fits your purpose and then applies for a credit card online. Make sure to select a credit card depending on your nature of expenditures so that you earn the maximum benefits.
Financial institutions issuing the card usually offer a grace period of up to 45 days within which you can repay the dues. Late payments of credit card bills bring several negative consequences. Some of these consequences include –
- You will have to pay high interest
Credit cards accrue high-interest rates which you have to pay if you miss the payment due date. You can pay the minimum amount due in case you don’t have enough cash and want to avoid additional interest.
- Your credit score will fall
One of the significant disadvantages of late payment – your credit score will go down. Low credit score will lead to low credibility making it difficult for you to avail credit in the future on both cards and loans. So, apply for a credit card online only after ensuring you have regular income for the repayments.
- Your credit report will also show the late payment
Credit reports include every late payment details which can reduce your chances of getting loans or even credit cards in the future. A lender will check your credit report to decide on your application’s approval.
- Your credit limit will be reduced
Another consequence that you can invite with late payment is a reduction in your credit limit.
Note: Never utilize the full credit limit as it will lower your credit score. Keep your purchases within 30% – 60% of your limit.
How to ensure you never have late payments with credit cards?
You can follow these steps to pay your credit card dues in time:
- Convert debts to EMIs:
Few credit cards give you the option to convert your outstanding payment into easy EMIs. Thus, you can get more flexibility in repaying the dues.
- Auto debit from your salary account
You can instruct the financial institution to auto-debit your salary account on a fixed date for the minimum or full amount.
Ensure you pay your credit card bills on time to increase your CIBIL score. Your lender may also increase your limit if you maintain a healthy repayment history.
If you are looking to apply for credit card online, then the Bajaj Finserv RBL Bank SuperCard can provide some immense benefits. It brings several industry-first features and combines the power of 4 cards in one.
You can get an interest-free loan and ATM cash withdrawal for up to 90 days and 50 days respectively. Plus, you can shop for products with No Cost EMI on the Bajaj Finserv EMI Network. You can also avail pre-approved offers on credit cards, personal loans, home loans, business loans, EMI product financing, and other financial services. These offers make the finance availing process quick and straightforward. You can take a look at your pre-approved offer by providing few of your necessary details.
So, using the credit card wisely can bring you various beneficial features to manage your finances well.