Credit card payment is precise, as the name suggests, the liquidation of a debt digitally. It is one of the oldest payment methods, where you repay later for your spends. So, your credit card usage provides you a credit period with a pay-by-date specified in the statement generated according to the billing cycle.
But, proper card management is about paying credit card bills on time. For example, timely SBI card payment online fetches you points for a good credit score. Contrarily, a low credit score stares you in the face if you struggle with your credit card bill payments.
Understanding Credit Card operations:
It is hard to imagine a world without plastic money, but you must be mindful of your spending behavior. Credit card usage generates short-term credits from banks, which demands immediate payments. So, it is essential to remember the monthly bill’s due dates to clear them. Consequently, default leads to the imposition of interest in addition to other penalties and impacts your credit score. So, let us now explore what it means.
Understanding Credit Score:
The credit score measures your financial behavior expressed in three-digit numbers from 300 to 900. The country’s credit bureaus like CIBIL maintain the credit score after evaluating your credit report containing your repayment pattern. For example, prompt SBI card payment online is a factor that improves your credit score significantly. That leads us to explore how you can pay credit card bills timely to avoid default and protect your credit score.
Making Credit Card Bill Payments:
You can access multiple options for making credit card payments maintained by a sponsor bank. But, payments using digital wallets are emerging as the most convenient mode to pay regular bills. More so, the pandemic has compelled users to embrace digital payments as a preferred option. All you need is to download a digital wallet like MobiKwik on your smart device from the Google Play store and start using their interface for recharge and bill payments.
Advantages of Using Credit Card Bill Payment App:
The credit card bill payment app is nothing but a digital wallet using payment methods to route your transactions. For example, SBI card payment online routes the transaction by recharging the wallet utilizing an array of options, including debit cards and net banking. In addition, you get the following advantages while using the mobile app.
- Exclusive Offers: Every digital wallet provides an option for credit card bill payment. Using the service is beneficial as you enjoy deals, cashback offers, and discounts helping you to save money.
- Transaction Security: Digital wallet platforms are safe for credit card payment transactions. Moreover, the payment gateway protects using several layers of internationally recognized security protocols. In addition, tokenization protects your card-related information.
- Seamless Credit Card Payments: You can use digital wallets to pay credit card dues of many banks under tie-up with it. Thus, the interface is a one-stop destination meeting all your financial needs comprising payments and investments.
Ways to Improve your Credit Score:
By now, you have enough insight into the fundamentals of credit card payments and the credit score. Thus, using a digital wallet like the MobiKwik for timely credit card payments can impact your credit score favorably. More so, banks and financial institutions rely on credit scores from reputed bureaus to evaluate loan applications. So, applicants with a bad credit history often stare at the rejection of their proposals. Yet, you can strengthen your CIBIL score using prudent measures. Let us check how.
- Explore Alternative Payment Methods: Most people make large purchases to pay off their debt over time. But it can negatively affect your CIBIL score if you falter your repayment schedule. Besides, you pay hefty interest on the outstanding balance. The best possible solution is to use credit cards sparingly and instead use debit cards and net banking to replenish the wallet balance for transacting SBI card payments online.
- Credit Cards for Regular Bill Payments: You can derive a positive credit history by paying regular utility bills using your credit card. The repeated credit card transactions, albeit small amounts, leave a positive impression on your credit score. In addition, since the standard bills are relatively small, paying them off in time does not stretch your pockets much.
- Make a Habit of Repayment: Not missing a due repayment date is crucial to ensuring a healthy credit score. So, even if you cannot repay the entire credit card due on the pay-by-date, you can still avoid default by paying the minimum stipulated amount in the credit card bill. Usually, the minimum payable is 5% of the outstanding amount. Thus, you can display your intent about not reneging on your repayment commitment to ensure a reasonable credit risk in the long run. Moreover, paying credit card dues is a recipe for an improved credit score.
While credit card bill payment “apps” are a tool to embrace for timely liquidation of dues, it is still important to remember the due date to avoid default. Credit card dues are effectively short-term loans and are, therefore, a factor in evaluating your credit score. So, flawless credit management ensuring timely SBI card payment online fetches you a consistent CIBIL score above 800 and certifies your creditworthiness and financial health status.