Paying credit card bills and loan EMI on-time is the only way to prove your credit worthiness. Every month, credit lenders submit an individual’s loan or credit card details to Credit Information Bureau Limited (CIBIL) who maintains every individual’s credit card or loan payment record based on which individual’s are assigned a credit score or CIBIL score. Higher the score, higher are your chances to get a loan or credit loan and vice versa. And in order to be in a good book of CIBIL remembering to pay your monthly bills fully and on-time without even a single miss is essential. Check out how to get credit card for bad credit score in India.
But even if you have been an on-time payer, many a times it might happen that you go through a financial crunch/forgot to pay bill because of which you may not be able to pay your bills on-time. So how can you prevent yourself becoming from a credit worthy to credit defaulter? Read tips on improving credit score.
Listed below are the ways which can help you in not missing credit card bill payment and various alternatives to make payment:
- Auto-debit: If you have sufficient balance in your bank account and remembering the due date is a tough task, then opt for an auto-debit facility. This is the most convenient option as it also saves time. With this, on a pre-fixed date before the due date the credit card due amount / minimum balance (as selected by you) will be auto-debited from your bank account which is linked to the credit card with no extra charge. But always make sure that you check credit card bill before the money is auto-debited. In case of any dispute with regards to erroneous debit, there is a time period given by the banks to settle the same. So make sure everything is check beforehand in order to avoid any problems.
- SMS alert/reminder apps/calendar: As discussed above, if forgetting is your habit (many of us have it:) then simply set an SMS alert on your phone or download reminder app on your smartphone or encircle the date on your calendar. Although every month lenders send an SMS/E-mail alert when the due date is nearing sometimes these alerts go unnoticed.
- Pay on date of purchase/immediate next day: Once you swipe your card and the same is reflected on the account either on the same day or on the next day. So make a habit to make the payment on the next day itself instead of waiting for the due date to arrive.
- EMI: If credit card is overspent and you think that re-payment won’t be possible, then instead of delaying the payment and hurting your credit score, ask card issuing bank to allow equated monthly instalment (EMI) option. Although this would also involve a processing fee and a credit limit is reduced, burden and impact of EMI is very small compared to delayed or non-payment. But first check whether this facility is provided by the issuer or not.
- Pay minimum balance: As discussed above, if a huge due amount is haunting you and EMI option is not feasible then pay minimum balance. But this too has a disadvantage, as you would end of paying higher interest rate.
- Ask your friend: Last option is to ask your dear relative or friend to lend you money and then use the same to re-pay the due amount.