Credit cards are your saviour when it comes to purchasing expensive products. You can avail EMI options to purchase various goods and reap the benefits your credit card company offers. However, you need to clear your credit dues on time to avoid paying off heavy interests and also increase your CIBIL score.
Many companies in the market propose exciting deals that come with their credit card.
Above all, it is crucial to ensure that you pay off your bills on or before the due date. Now, take a look at a few ways to make the repayments faster.
- Set a goal
Besides the credit card dues, if you have other debts like home loans or overdraft, you should start by setting a realistic goal. Target one debt at one time, preferably beginning with your credit card’s dues as this card incurs higher interest rates compared to others.
- Use your card wisely
Prevent increasing your credit dues by restricting the card’s usage for a while. At the same time, be cautious about your spending pattern when you’re using your card. The reason being you need to cut down a few monthly expenses to clear all debts. Consider using your card once you’ve cleared all outstanding amounts.
- Pay an extra amount
You may consider paying a little extra than the minimum amount due. It’ll help you reduce both the stipulated amount and time. Another advantage is you’ll notice an overall decrease in your interest amount.
- Apply the snowball method
One of the best credit card dues payment options is applying the snowball method. Here, you start by paying the smallest due amount if you’re able to manage some extra cash in that month. Concentrate on the next small amount once you repay the previous one you targeted.
However, this method is in contradiction to the first method suggested here. You can choose the one with which you are most comfortable with.
So, now that you know the tactics of paying your credit dues faster, let’s see some of the significant benefits that you can get from the same.
Advantages of paying your credit dues:
- Saves your money
You can’t ask for any better reason to pay off those credit debts faster. Repaying the credit dues can lower your interests significantly. You can feel its effect in the long run on your savings accounts.
- Frees up your line of credit
If you plan to purchase anything expensive again, you may want your credit card to have its maximum credit limit. Hence, paying your credit bills before time, frees your line of credit making way for purchasing other products.
- Improvements in credit score
As mentioned earlier, your credit score improves if you pay your credit debts either on or before time. Improvement in the ratings increases one’s chances to avail loans or the best credit card with higher limits in future. You can also apply for higher loan amounts with a good credit score and credit history.
Once you have a high credit score, you can avail some of the best credit cards in the market like the Bajaj Finserv RBL Bank Supercard that offers flexible EMI options and easier repayment of credit dues.
When you plan well to pay your credit dues on time, you can avail the maximum benefits that your financial company offers.
Nishant is a passionate blogger. He has expertise in writing finance articles.He have been serving society as a financial adviser. He loves keeping himself up-to-date with the news and happenings around. He is always open to learning and shares his experiences on Greetings of the Day.