Everyone enjoys shopping and swiping our credit cards at every chance we get. But sometimes, the real problem arises when you don’t end up paying your credit card bills by the due date. You are not alone – more than 70% of Americans don’t pay their complete balance by the due date. Key reasons? Well, either we are running low on cash or already have a bunch of other important bills to clear.
The urge to put off your credit card payment for a few days can become very risky for you financially. There are many compelling benefits of early credit card bill payment, such as before or on the due date. Continue reading to learn more.
Enjoy Zero Interest on Credit Cards
Always follow the golden rule of thumb to pay your credit card bill in full before the due date for zero interest on credit cards. This simple principle can help you avoid the high-interest charges, impact on credit score, and unnecessary late fees. Also, you could face significantly higher interest rates on your future mortgages or loans once the negative consequences take a hit on your credit score.
There are multiple options to pay for your credit card statement each month, but most of us just pay the minimum balance- as low as $25, for a sigh of relief. You don’t want to pay interest on your balances to the extent possible if you make a complete credit card payment. We often overlook the accrued interest that results in years of debt. Some credit card issuers now display the due amount as only the minimum due, don’t get swayed by it.
Settling the credit payment in full by its due date or even sooner- when you make a purchase- is the best time to pay credit card bill because the balance gets reported to the credit bureaus soon after the due date, which can adversely affect your credit score.
Benefits of Autopay
Are you tired of keeping up with due dates for your multiple credit card bills? Well, Consider setting up Autopay- a free feature offered by most banks/issuers that automatically debit payments due from your checking account, and you never miss a credit card payment. Credit card Autopay also saves you from late fees by ensuring you don’t forget to pay and spares you from all the headaches.
Earn Rewards and benefits without any Additional Cost
Credit cards are the universally accepted model of payment that offers a wide array of benefits such as easy payment, fraud/insurance coverage, as well as building credit, etc. But perhaps earning rewards like Credit card points, Best cashbacks, miles, and discounts without any additional cost is the most lucrative perk. You can redeem these credit card rewards for travel, statement credits, gift cards, online shopping, dining, etc. After all, you don’t want to pay late fees/interest that reduce the net value of credit card rewards you get.
Conclusion
You should pay your credit card bill by its due date every month because a Credit card can break or make your financial future. So no matter the circumstance, Pay in Full, On Time! You can enjoy many benefits, from earning the best credit card rewards to building a great credit score- if used effectively.
Boost your rewards by downloading the Free Uthrive App that maximizes your credit card points on everyday spending. Our innovative approach suggests the ideal card for your purchase and even notifies the best credit card based on your location.
