Why should you choose automatic payment of your credit card bill? 8 main reasons explained

If you hold two or three credit cards then you will always have multiple credit card cycles to keep track of. Also mobile bill, internet bill etc. There may be other payment dates as well. Wow! There are too many things to remember, right? While keeping track of all these deadlines, someone missed the payment deadline credit card bill It could cost you dearly.

As you know, banks usually charge interest of 2 to 3 percent each month on the outstanding amount, as well as late payment fees. In order to avoid paying these charges and interest, credit card users are recommended to set up automatic payment of their credit card bills in online banking.

In particular, setting up direct debit offers a number of advantages, so good credit history and avoid unnecessary financial stress.

8 key reasons why you should consider direct debit:

1. Avoid late payment: Banks impose high penalties for late payments. Automatic payment avoids these fees by ensuring bills are paid on time.

2. Credit score: Paying bills regularly helps keep your credit score high. On the contrary, late payments can negatively affect your life. CIBIL scoremaking it difficult to access loans or better credit card offers.

3. Save time and effort: When you set up automatic payments, you don’t have to remember due dates or go through the hassle of making manual payments every month.

4. Interest charges: If you miss a payment, not only will late fees be added, but interest may also accrue on the outstanding amount. You can avoid this scenario by setting up automatic payment.

5. Minimum or full payment: Banks usually let you choose between: full payment or minimum maturity. It is noteworthy that making the minimum payment will help you maintain a good credit score, although interest will continue to accrue on the outstanding balance.

6. Financial discipline: By setting up direct debit, you can keep your finances in order and reduce the risk of overspending or neglecting bills.

8. Blessing for those who use more than one card: if you manage several credit cardsDirect debit prevents you from missing any payments, which could otherwise be very difficult to keep track of.

Note the following:

1. Sufficient bank balance: Make sure you have sufficient bank balance: If you don’t have enough money in your account, payments may bounce, resulting in penalties. Set reminders to maintain adequate balance.

2. Review your statements: Check your monthly credit card statement for any discrepancies or unauthorized charges, even with automatic payment.

3. Payment settings: Review and update your automatic payment preferences regularly, especially when you switch from minimum payment mode to full payment mode.