While it may be overstated, there’s a lot of truth to the fact that people ruin their credit scores by missing payments and paying their credit card bills late. Before you know it, the fees pile up, the interest rates grow, and after a while, you can’t even make the minimum payment. If you don’t act soon – this could be the beginning of the end.
To make sure this doesn’t happen to you, you should always pay your bills on time, and always avoid missing payments. Sometimes it’s hard to pay on time, although you should always do what you can to make sure you stay on top of things. Below, you will find some tips to help you with your credit card payments.
As mentioned above, you should always pay your bills on time. If something happens and you are not able to pay, you will be penalized. While you may think something has gone wrong to justify a late payment, it does not justify your means in the eyes of your credit card company. In your statement, you will find detailed instructions about making payments. You should follow these instructions as precisely as possible, pay where and when you are supposed to, and pay on time.
If you simply can’t afford to pay the entire bill, you shouldn’t worry about it – instead, pay the minimum amount possible. Even if you may pay more later, you should pay at least the minimum amount. Then, when you have more money, you can always increase your minimum payment by sending additional payments.
The easiest way to do this is to always put the minimum payment aside so that once your credit card bill comes in, you have it. Once you are confident that you will not be penalized or charged any late fees, you should consider paying a higher amount than the minimum balance. By paying the minimum amount, you can also make sure that no other charges are added to your next credit card bill.
Another option includes skipping a payment, although you will need to check if your credit card company offers this service. This service will allow you to ask for a waiver regarding your payment if something comes up and you don’t have the money to pay the bill. If you have this service, make sure that you use it wisely as it can only be used once a year. Therefore, you should always make sure that the situation is really an emergency and that there are no other options. This service will also usually have a fee that you will need to pay the following month.
While credit cards can have many benefits, you should always know your interest rates and have a good overall idea of what your bill will be before you make a purchase. Too often, those with credit cards will make purchases knowing they won’t be able to pay – and then not be able to pay when they get the bill.
Any time you have a credit card, you should make sure you have enough money to pay the bill, or the minimum amount, the moment it arrives. This way, you will remain in good standing with your company and your credit score will continue to improve. If you simply can’t afford to pay, you should contact your credit card issuer immediately to see if you can work something out.