Confusion around credit card bill payment is one of the most common reasons why cardholders end up paying high penalties. To assist you, here we have answered some common queries related to credit card bill payment.
What is minimum due in credit card?
In your monthly credit card statement, you can find the total amount due and the minimum amount due. Though you should always pay the total due on your credit card, if you cannot manage to pay that, card issuers allow you to pay the minimum amount before the due date to avoid paying the late payment charges. The minimum amount due is usually 5% of your total due and it includes EMI amounts, charges, taxes and any other levies.
While it may look easier to pay the minimum amount due and revolve the remaining amount to the next cycle, it is actually quite a costly affair. When you pay any amount less than the total due, the unpaid balance starts attracting finance charges, compounded daily for as long as the dues remain unpaid. Moreover, when there is any overdue amount in your credit card account, all new transactions are no longer eligible for the interest-free period. This means every new purchase you make will start attracting finance charges from the first day. This is the reason why credit card dues quickly multiply and escalate to a bigger amount. It is always advised to pay your total dues in full and on time to avoid paying hefty finance charges on your credit card.
How to pay credit card bill by another credit card?
You cannot use a credit card to pay another credit card’s bill. However, you can use the balance transfer facility on a card and transfer the dues from another card, if you do not have enough funds to clear the dues. You can also consolidate multiple credit card debts by transferring the balance to a single card.
Though this balance transfer facility is chargeable, the interest on a balance transfer is lower in comparison to the general finance and late payment charges. Thus, you can save yourself from paying high penalties that are otherwise associated with missing credit card bill payments. Some banks may also offer credit card balance transfers at a 0% interest rate under the limited period offer or deals, which may change from time to time. Credit Card balance transfer interest rate may change from one provider to another. Processing fee will also be applicable on balance transfers.
You can apply for a credit card balance transfer online via net banking or by contacting customer care directly. The approval on the balance transfer is as per the bank’s discretion and may take up to 2-3 working days.
What is the best time to pay credit card bill?
It is advisable to pay your credit card bill by the due date every month, which is usually 2-3 weeks after your monthly credit card billing cycle ends. If you pay your credit card bill after the due date, you attract late payment fees and finance charges. Also, late payment of credit card bills can impact your credit score negatively.
Note that credit card issuers often provide you the option to pay either the total due amount or the minimum due. Though paying the minimum amount seems like a convenient option, it’s actually not, unless in case of absolute necessity. This is because when you opt for the credit card minimum due payment, you are penalized with finance charges on the outstanding balance, and also on the new transactions, until the payment is received in full. Thereby, it is advisable to make your credit card bill payment in full and on time.
Can I pay my credit card bills through cheque?
If you want to make your credit card bill payment through a cheque, all you need to do is write a cheque payable to the bank that issued your credit card which is followed by a 16-digit credit card number. The format should be-Pay (Bank Name) (Credit Card Number). However, it may differ from issuer to issuer, which is why it is recommended to check the same on the issuer’s official website.
In case the cheque is of the same bank, then avoid mentioning the name of the bank. Also make sure you write a post-dated cheque to schedule payment on a later date. It is recommended that you write your mobile number at the back of the cheque. Once all the required things are done, drop the cheque at any of the cheque drop locations of the bank whose credit card you have or send it by post.
Can I pay credit card bill with cash? Is it advisable?
Yes, you pay your credit card bills via cash. Usually, most of the issuers charge a nominal fee along with GST to avail this service. To make the payment via cash, you can visit your nearest bank branch and deposit the cash to your credit card account.
Certain issuers that do not allow bill payment through cash. In this case, you can pay by cheque or demand draft at the nearest bank branch. All you need to do is fill your relevant details such as the credit card number, amount, etc. and drop the cheque/demand draft at the nearest cheque drop box. It is important to keep in mind that this process might take upto 3 working days.
It is advisable to go for online mode of bill payment and pay the bill instantly for free. You can choose to pay via netbanking, NEFT, UPI, Bill Desk, Mobile Banking, etc. to pay your credit card bill. Click here for more details.
What is credit card billing cycle? When does the due date fall?
A credit card billing cycle is the time period between your credit card billing statements. The length of your billing cycle varies from card issuer to card issuer. Usually, the length of credit card billing cycle ranges from 27 to 31 days. At the end of every billing cycle, your statement is compiled by your credit card provider and sent to you along with the due date.
Let’s understand this with the help of an example:
Assume that your credit card billing cycle is of 30 days and your credit card statement is generated on the 10th of every month. So, your billing cycle will begin on 11th of the previous month and end on the 10th of the current month. All the transactions done within a billing cycle will reflect on your credit card statement, which includes, online payments, cash withdrawals, ongoing EMIs and more.
The credit card due date is calculated based on your credit card billing cycle. The due date is the last date until which you are required to pay your credit card bill. It is usually after 15 to 25 days from the statement date. For example, your credit card statement is generated on 5th of every month and your due date is 25th of the same month. This means that you have to pay your bill till 25th of each month and no charges will be levied if you pay your bill within the given time frame. If you don’t pay the minimum amount due or total amount due, then late payment charges will be levied on your card.