What You Always Wanted To Know About Credit Card Bill Payment 

According to the Internet and Mobile Association of India (IAMAI) bill payment survey, approximately 69% of credit card holders use the internet to pay their bills. While this may be because of the sheer convenience that the online platform offers, there are some essentials about credit card bill payment that customers should know to facilitate the process.



Credit Card Bill Payment: Amount



The first thing to consider about credit card bill payment is the amount that you have to pay. Credit cards provide great flexibility in this regard. Here is some useful terminology that you should know:



1. Minimum Amount Due: When you make a credit card purchase, you do not have to pay all the amount on the billing date. You have an option to make a part payment. The minimum part payment is usually 5-10% of the outstanding amount. This is called the minimum amount due. However, paying only the minimum due amount for a long time leads to accumulation of the interest amount. In case you do not pay even the minimum amount, your account will be in default and your credit score may get affected.

2. Total Amount: You could pay off the total amount on the due date and there would be no interest charge. However, most individuals will make a paymentof an intermediate amount, within the minimum due and the full amount. In this case, the interest is charged on the outstanding account.



3. EMI option: If you are using your credit card to purchase something like expensive consumer durables (for instance TV fridge and so on), then you have the option of getting it converted into a personal loan. In this case, the interest rates charged are much lower and only the EMI is included in your minimum amount due.



Credit Card Bill Payment: Date



Most credit cards will offer you the flexibility of choosing your own due date. While this may seem arbitrary, it has an impact on your bill. By carefully choosing the due dates, you can ensure that you benefit from the full 50 days free credit, provided between two payment dates.



Credit Card Bill Payment: Modes



There are multiple modes of making a credit card bill payment. You can use a drop box, an online payment system, electronic transfer or even get a balance transfer!