A credit card is a little rectangular piece of plastic/metal issued by a bank or financial sector company that allows cardholders to borrow funds to pay for goods and services. Credit cards require cardholders to repay the loaned cash in full, plus any applicable interest and other agreed-upon charges, by the billing cycle or over the duration.
Credit cards have a higher annual percentage rate than other types of consumer lending. Interest charges on any unpaid balances charged to the card are typically imposed approximately one month after a purchase is made unless previous unpaid balances were carried forward from a previous month.
Benefits of Credit Cards
- The most significant advantage of a credit card is the simplicity with which credit can be secured. In addition, credit cards operate on deferred payment, meaning you can use your card now and pay for purchases later.
- Credit cards allow you to build up a credit line. This is important since it allows banks to see your active credit history based on card repayments and usage.
- They offer EMI services. If you want to make a significant purchase but don’t want to use your funds, you can put it on your credit card to defer payment. Using EMI to pay for a purchase, such as a television or a high-priced smartphone, is less expensive than obtaining a personal loan.
- Most credit cards come with offers and incentives to use your card. These can range from cash back to reward points acquired with each swipe of your card, which can subsequently be redeemed for air miles or used to pay off your outstanding card amount.
Though it offers numerous benefits to the users, it is extremely crucial to pay the credit card bills on time to protect yourself from falling into a financial trap.
Online Credit Card Bill Payment
So now that you have got a credit card and started using it, the next step is to pay the bill generated by that card. In numerous ways, paying credit card bills via internet banking is preferable to alternative payment methods. It is easy and convenient. Mobile banking, auto-debit, electronic bill payments, debit cards, national automated clearing house, RTGS, IMPS, and NEFT are all options for online banking payments. Each of these online payment methods has its own set of benefits. Following are some ways to pay your credit card bills online:
- Net Banking: Processing time for credit card payments is instant. Using your net banking account is one of the simplest ways to pay credit card bills online. Suppose you already have a savings account with a credit card company. In that case, you can register your credit card in your existing net banking account and make the payment directly, even if you don’t have a savings account with the card.
- Mobile wallets or E-wallets and payment methods: E-wallets and payment systems have begun to offer credit card bill payment options on their platforms. No additional registration is required. Instead, you download the app, link your debit or savings account, recharge the UPI wallet, enter your credit card information, and make the payment.
Advantages of Paying Credit Card Bills Online
- Save Time and effort
Paying your credit card bill online is simple and quick. In addition, it saves you a lot of time you would have otherwise spent going to the bank or ATM.
- Convenience
You can make online payments from the comfort of your own home or office. You can also make payments from anywhere worldwide using your smartphone or computer.
- Safe and Sound
With the IPIN or other methods of validating your identity, you can secure the information saved in the bill payment app. Banks offer security features that protect your privacy and identity. For example, it removes the possibility of losing money or information in the mail or elsewhere.
- Simple Records
When you utilise online banking, everything is recorded promptly and available for examination anytime. All of your information is automatically organised and accessible in one location. This comes in handy while budgeting and filing taxes.
- Eco-Friendly
Paying online conserves paper, cheques, envelopes, stamps, and receipts. When you receive all of your statements and receipts electronically, it also reduces clutter.
With their simplicity of use and handy pay-back possibilities, credit cards have become an integral part of our lives. Platforms like Bajaj Finserv can help you pay your credit card bill. It provides an e-wallet and UPI wallet, which can be used to settle your credit card bills without hassle. Download their online app and enjoy great deals on every bill you pay.
