Credit card penalties are a great worry with most of credit card users. Most of the times customers do not even realize how and why the penalty is earned. Some of us are even tricked by technical terms and jargon and to add more to the agony, banks use slightly different terminology to confuse us and this makes it worse.
Surveys have revealed that the most common penalty forced down a customer’s throat is the “late fee” that one incurs because of paying late or missing one of the due dates.
There are some very simple things that you can remember to save yourself from those ugly figures appearing on your bills and those small loses to your budget. Read further, it is worth it!
Read more- Axis Bank to launch festive season offers on its auto loans and credit card offerings
1. Know your monthly payment
The first thing to keep in mind for any credit card holder is to know about the amount of your monthly payment, also known as monthly payment which is a percentage of the total amount due on the card. To accomplish this, you have to take a look at your bill for sure and it is not as difficult as it sounds. It is the easiest thing to do!
2. Remember the due date
Another thing to check is the payment due date. Usually the date remains the same but the day of the week changes and make sure that you’ve got this one right. If the due date falls on a weekend, pay the bill on a week day to avoid penalty.
3. Don’t wait for the last moment
When you have to pay the bill in a month, you better pay it early. Why let the payment wait when it has to be sent out someday. Make it early and save the late fee. Last minute preparations go wrong at times.
4. Try auto debit
This one will make your life easy. Set up an automated payment and the bank will send out the minimum or total payment (whatever way you want it) and pay the bill on time. Saves you from all the penalties.
5. Overdraft helps here
When you choose a bank account to make an automated payment, try to opt for an account that offers an overdraft limit. This way your checks won’t bounce back and the amount will also be exact. Definitely one of the best options!
We all know that along with the financial losses, these penalties at times also reflect negatively on your credit reports and jeopardize your credibility. Therefore, it is absolutely important to know all about credit card management as soon as you get one.
Related Reading- Financial Calculators