Attention, credit card users! Follow THESE rules to avoid loss

The use of credit cards is becoming common these days. While for some it may be a necessity or a matter of convenience, for others credit card is a status symbol. With credit card, you can buy goods even if you do not have cash with you. You can make payments and deposit bills through credit cards.

You have the option of paying credit card bills later. The biggest advantage of credit cards is that you get up to 50 days of interest-free payment time. The advantages of credit cards are many, but a little carelessness can prove to be harmful for you. If you do not pay the credit card bills on time, you have to pay more interest.

Read | Opting for credit card? Know due date, billing cycle and minimum payment calculation here

Credit card bill payment

While paying the credit card bill, you see three options. First - payment of total bill, second - minimum amount and third - under amount. The law says that the credit card bill should always be paid within time.

This improves your credit score, you do not have to pay extra interest and the biggest advantage is staying away from tension. If you are not able to pay the entire credit card bill due to any reason, then you must pay the minimum amount.

You can avoid fines by making the minimum payment. The minimum amount is 5% of the total bill. In this, the monthly installment payment is different.

If the EMI of any of your goods is Rs 2000 and you have done any shopping worth Rs 5000 during this period, then you will have to pay a minimum of Rs 5200.

However, the EMI amount will be additional. For example, if the EMI of a phone is Rs 5000 every month and you have done shopping for 10 thousand in that month, then the minimum amount will be Rs 5500 (5000 + 500).

Payment cycle

There is an opportunity for credit card payment till three days after the due date of payment. Even after this, if you do not make the payment, then late payment is charged. This charge is very high and this charge is included in the next bill.

Loss in delay of payment

Once the credit card bill is generated, you get three weeks to make the payment. If you make the minimum payment, you will not get the benefit of the free interest period. You will not get the interest free period until the full payment is made. After that every payment will attract monthly interest.

You will have to pay the interest as applicable till you make the full payment. In this way, you can avoid penalty and late payment charges by paying the minimum amount.