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7 important things to know about your credit card bill

  • Highlights

  • You have a grace period when you don’t incur interest

  • Failure to pay the entire amount due attracts interest

  • You can pay your bill both online and offline

  • Each payment method has different processing times

Knowing how to make repayments is vital if you want to make the most of your credit card. By paying credit card bills on time, you boost your credit score and save yourself from having to deal with debt in the future. However, since most of your issuer’s information is designed to educate you about credit card features, benefits and reward points, you may remain untutored when it comes to repayment. To help you know the ins and outs of repayment, here are 7 important things you need to know when paying a credit card bill.

You have a grace period during which you do not incur interest

Issuers generally offer an interest-free period of around 20 days or more during which you can pay your bills without attracting any interest. Consider that your billing cycle is set to every 4th of the month and you have a 20-day grace period. In this case, the 24th of every month will be the last date by which you can pay the previous cycles dues, free of charge.

Paying just the minimum amount will lead to build-up of interest

When you get your credit card statement, you will be given an option of either paying the entire bill or an amount above or equal to a minimum amount. Normally the minimum amount is a small fraction of the total. While this tiny payment suffices to keep the card in use, the remaining unpaid amount will incur interest. In fact, when you fail to pay the entire amount for more than one billing cycle you land up paying interest on interest.

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Late fees get attached when you do not pay at least the minimum amount

TIn the event that you fail to pay even the minimum amount you incur late charges and hiked interest rates. As per RBI guidelines, late fees apply only when your dues remain unpaid for more than 3 days. In terms of interest rates, the higher rates apply to transactions made after you have defaulted on repayment.

Failure to pay the entire amount will cancel the grace period for the next cycle

While the grace period is a great blessing, which lessens the financial burden on your wallet, failure to pay your entire bill cancels out the interest-free period. This means that rolling over balance not only incurs an interest, but also shortens the period within which you must make your next payment.

Additional Read: How to check credit card balance online

You can pay your bill via both online and offline channels

Credit card bills can be paid quickly, from your home or office, online. Here are few ways you can make an online payment:
- Net banking
- Bill Desk
- E-Wallets

Additional Read: What is CVV?

However, if you do not have a stable internet connection or prefer pen and paper modes, then you can pay your credit card bill offline as well. Here, are some methods you can use:
- Cheque
- Over-the-counter
- Customer care

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Different payment options have different processing times

When choosing your payment method, one thing to note is that each of them may have different processing times. This factor will be of great importance, especially if you are close to your due date. For example, paying via ATM or net banking happens instantly, paying through NEFT or your banks office requires 1 working day, and paying via cheque requires 3-5 working days.

Paying your credit card bill early gives you a range of financial benefits

While paying your credit card bill late should never be a frequent occurrence, there are certain advantages that you get when you pay your credit card before the due date. Firstly, paying early reduces your credit utilisation ratio. This in turn boosts your credit score. Secondly, you lower your debt-to-income ratio, thereby making it easier to borrow from other sources. Lastly, you free up your credit giving you the potential to make big-ticket purchases easily.

Paying your credit card bills on time gives you a degree of financial freedom. However, in order to pay bills seamlessly, you need to choose a card that offers you a wide range of credit card payment options. One such card is the Bajaj Finserv RBL Bank SuperCard. Here, you can quickly pay your bills via the RBL MyCard App, Bill Desk, Net Banking, NEFT, NACH facility, and cheque. However, this card offers you financial freedom beyond repayment options, as you get the features of 4 cards all rolled into one.

You can use it at an ATM to withdraw cash that remains interest-free for 50 days, to secure a quick 90-day interest-free personal loan, and to make shopping more affordable by converting purchases over Rs.3,000 into EMIs. What’s more, you get a chance to bag jaw-dropping deals and discounts on purchases ranging from air tickets and hotel bookings to apparel and food and also make savings up to Rs.55,000 annually. However, the best part is that you get all of this against simple credit card eligibility criteria.

If you are looking to get your hands on the compelling RBL SuperCard quickly, then the fastest way to apply for one is to first, check your pre-approved credit card offer from Bajaj Finserv. Within a few minutes, you will gain instant approval and a chance to apply via a customised deal.

Additional Read: kisan Credit Card

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