In today’s era, the use of credit cards has become very common. Apart from the metro city, now people in Tier-2 and Tier-3 cities are also paying shopping, travel, hotel booking and other expenses with credit cards. This is due to facilities provided by credit cards such as cashback, reward points and shopping discounts. But the rapid use of which its use is increasing, the same pace has also increased the incidence of delay in bill payment and default, which are directly affecting the credit score.
Many questions arise in people’s minds
Many questions arise in people’s minds while using credit cards. The biggest question is that if we pay our credit card bill on the last day of the billing bicycle, it has a negative effect on the credit score? Many people are confused about this and due to lack of right information, they start worrying unnecessarily.
If you also use credit card and want to know the answer to this question, then this information can prove to be very useful for you.
If you pay on the day of date, no harm
If you are paying your credit card bill on its 7 -date day, it is perfect and this does not have any negative effect on your credit score. Actually, credit card companies and Credit Bureau keep a record of whether you paid on time. If you have drew the entire arrears till the date, then your record is recorded as “On-Time Payment”, which makes your credit score strong.
Payment causes harm after pay date
If you pay the bill after a date date, then the problem starts. Late payment not only costs late fees, but this information is also sent to the Credit Bureau, which can reduce your CIBIL Score or other credit score. Repeatedly paying your score may fall even faster, which can make it difficult to take a loan or get a new credit card in future.
Credit score is not related to mobile and electricity bills
It is also important to know that the payment of mobile bill, electricity bill or other utility bill has not been included in the CIBIL score yet. Only payments related to credit cards such as credit card bill, home loan, personal loan, car loan etc. are counted in the credit score at the time of EMI.
So if you do not pay only mobile or electricity bills on time, then it will not have any effect on your credit score. But if the credit card bill or loan EMI does not fill in time, it directly affects your score.
Keep these things in mind while using credit cards
If you want to keep your credit score better, then some important things should be taken care of:
Pay on time: Always try to make a complete payment of the bill before the date or at least the day of the du date.
Keep in mind the credit limit: Do not spend more than 30-40% of your credit limit. Using more credit can also have a negative effect on the score.
Pay the full outstanding: Instead of paying the minimum amount, pay the entire arrears. Making minimum payment increases interest rates and the score also falls gradually.
Spread the balance on the multiple card: If you have more than one card, do not put the entire expenditure on the same card, but balance it on different cards.
Do not apply for a new card again and again: Applying too much credit card can also spoil your score.
conclusion
If you pay a credit card bill on the day of date, there is no need to worry. Your credit score will not be spoiled by this. Rather, by paying on time, your credit history becomes strong and you can get better deals if you need loans or credit in future.
In today’s time, financial discipline is very important. If you use the credit card properly and pay on time, then not only will you get the facility in shopping and travel, but your financial future will also be strong.
