Aditi Ahuja
by on November 6, 2020
Individuals opting for credit cards should determine how to pay credit card bill beforehand to ensure responsible use of credit. Doing so is integral to minimizing debt while also improving credit ratings. However, potential applicants need to grasp how credit card statements are raised and how bills are settled. Here are some essential aspects to consider related to such payments.

1- A credit card statement is generated based on the billing cycles. Such a cycle represents the period between the generation of one credit card statement and another. Any expenses you incur through this card in a particular month are raised at the end of its billing cycle via the monthly statement.

2- Individuals who clear the dues every month restore their credit limit on the card. However, those who cannot pay the amount will need to service the same in the next month’s statement.

3- Delaying payment of such dues continuously can hamper your credit ratings, preventing you from availing loans or credits in the future. Thus, it is better to service bills in full every month, instead of simply clearing the minimum amount due.

Impressive credit history will encourage your card issuing company to take note and increase the pre-sanctioned limit on your card. Some cards, such as the SuperCard, allow for easy conversion of outstanding amounts into EMIs, further easing repayment.
Posted in: Finance
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