If you have a credit card and you have more than one credit card, then this question must have come to your mind that I wish I could bill one credit card for another? But let me tell you –
In India, it is generally not possible to pay one credit card bill directly with another credit card. But some banks provide such credit cards using which you can pay your other credit card bills. But it all depends on your credit score (what is credit score and how to check it) and your credit card limit.
But you can pay the credit card bill in other ways. So let’s talk about that too.
Popular Methods to pay Credit Card Bills
To pay your credit card bill, you can use several other methods such as:
1. Online Banking: If your credit card is in the same bank in which you have your account, then you can easily pay the bill using net banking.
2. Auto-debit: You can use an auto-debit arrangement option. In which you can activate the option of auto-debit in your bank account, the money will be deducted from your account as soon as your credit card bill arrives.
But I avoid using this option myself. I don’t know how much money should be deducted and I want to make the payment only after looking at my credit card bill. This is my own personal view.
3. Cash Payment: It is also possible to pay your credit card bill in cash if you prefer that method. You can pay off your credit card balance by making a deposit at a bank office or an ATM.
4. Check Payment: Another old-fashioned way is to write a cheque payment to your credit card account and send it to the bank or card provider. Make sure the cheque is filled out correctly to avoid delays in processing.
5. UPI Apps: Thanks to digital payment tools like Google Pay, PhonePe, and PayTM, you can now easily pay your credit card bills with UPI apps. You can easily make a payment through the app by linking your credit card account.
Clear doubts on Interest on credit card
As you look into these payment choices, it’s important to remember to make payments on time to avoid late fees and keep your credit score high. Not making payments on time can hurt your credit score and cost you extra fees, so it’s very important to stay organized and stick to payment due dates.
There are banks who charge 2-3% per month interest on your delayed payments. If you are thinking that by paying the minimum amount dues of your bill amount, you will be waived from paying interest. Then, you are WRONG. You will be waived from paying late fee charges or penalty but not from the interest part. Interest keeps accruing on the remaining part, until you don’t pay it.
The interest rate is very huge so wisely spend and utilize the credit limit of your credit card and it should be within the limit which you can pay in the next billing cycle without getting penalized or paying interest on the delay payment.
This way you can also manage a healthy credit score which will ultimately help you in getting further loans and increase your credit card limit.
Tips to buy a credit card
Before registering for a credit card, it’s also a good idea to look at the different choices that different banks offer. To choose a card that fits your financial goals and lifestyle, you should think about things like interest rates, points programs, yearly fees, and other perks.
Let’s take example, I am a frequent flier and book flights frequently, so I need a credit card which can fulfill my needs. There are a variety of cards which offer discounts on flight booking as well as free airport lounge and free ticket on affiliated airlines in India. But, all these are with terms and conditions.
Similarly, you need a card which can reward you on online shopping and provides good cashback and reward points, so you can choose that credit card and the bank providing it.
By knowing the different ways you can pay, making payments on time, and choosing the right credit card, you can better handle your money, use credit cards to their full potential, and avoid fees and fines that aren’t necessary.
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