Your credit card bill isn’t the problem; your timing is. Here’s how to fix it

Avoiding late fees on credit card bills is crucial for users to ensure that credit card usage remains a pleasant experience. Such discipline can also help card users to maintain a clean credit profile and a strong credit score.

According to a recent report, over 42% of credit card users spent more than ₹50,000 on festive shopping this year. This points towards the increasing aspiration of credit card users to make expensive purchases and noteworthy financial commitments towards premium products and services.

Furthermore, about 22% of the survey participants spent between ₹50,000 and ₹1 lakh this Diwali, whereas 20% spent more than ₹1 lakh on their credit cards to purchase new products and services.

When celebration ends and bills begin

The problem starts when the celebrations end and the bills arrive. Every card comes with a grace period, a few days after the statement date, to clear your dues. Miss that window, and banks can charge steep late fees and interest, which quietly eat into your savings and lower your credit score over time.

Ways to keep your credit score strong

The following tips will help you maintain a high credit score and a spotless credit history:

1. Set up automatic payments: As soon as you start using your credit card, set up automatic payments for almost all payment due dates. This way, you will never miss any due dates, credit card bill last dates, etc. If enabling auto debit for all fees is not possible due to financial reasons, then at least allow the auto debit feature for a minimum amount or the full bill to ensure timely settlement every month.
2. Plan payments with your salary: Focus on effectively planning pending payments of your credit card bills according to your salary credit date. For example, if your salary is credited every first day of the month, then you should first try to clear out all pending credit card payments to protect yourself from falling into a debt cycle.
3. Use app reminders and calendars: Utilise digital technology to support your financial well-being by activating SMS or email alerts through your bank, or add reminders to your phone’s calendar to never miss a due date or forget an important event.
4. Go through your credit card statement: Check your credit card bills, monthly statements, applicable fees, charges, and any other expenses carefully. The aim should be to take note of unexpected charges. If in doubt, always discuss the same with your credit card issuing financial institution.
5. Always pay a few days earlier: Try to schedule your payment at least 4-5 days before the deadline or the last date. This way, you will have ample time to review your payment, rectify any mistakes, and make the payment again if needed.
6. Definitely pay at least the minimum due: Even if you are currently short on funds, it is essential to pay the minimum due to protect your credit integrity. For larger amounts, consider requesting an EMI conversion with your bank.

Therefore, by utilising technology, planning efficiently, and staying vigilant, you can easily avoid late payment charges on your credit card and ensure that using credit cards remains a pleasant experience for you.

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Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit as it comes with a set of risks, such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.