Thursday, 12 May 2011

How can you payback your credit card bill with profit

The uses of credit card are common and convenient. You can purchase anything or pay bills without having money in your pocket. The convenience and credit facility makes credit card popular. But you should handle with care with all credit cards. Whether it is a visa card or master card you have to have a special attention with the Credit Cardstransactions you made with credit card and should remember to pay off the full bill in due date. Otherwise the magic card which helps you to buy anything will help you to disappear all your hard earned money from your pocket.

If you could not pay off the bill amount within the due date you have to pay interest around 3% per month and interest for all further purchase till you pay off completely. The credit card itself offers you some acceptable schemes to pay off the bill completely in time.

Pay the credit card fully in time. This is first and foremost method of paying off any credit card bill. If you pay the balance fully in time you can avoid so many headaches and can gain a good amount of money. At the same time you can increase you’re creditworthy. You can again continue interest free purchase only if you pay full in time. When you pay off credit card, my personal opinion is that you pay from net banking account, so that you can ensure timely payment. If you pay by cheque, there may be chances to dishonor the cheque and you have to pay penalty and other charges of the late payment.

Balance Transfer: This is a facility offered by credit card is that you can transfer the outstanding money of one credit card to another credit card on or before the due date and physically you can get an extended repayment period. This process will take around 10 working days with a processing fee around 2%. There may be a low interest rate for balance transfer. But some credit cards allow you to transfer balance with zero processing fee and zero interest with EMI option. But you have to check about any possible hidden charges and the period at which the credit card allowed you to repay the amount without interest etc. The balance transfer allows only a portion of your credit limit. Check all these before you nod for transfer the credit card balance to other credit card.

Equated Monthly Installments. You can switch over to EMI option, if you could not pay off the entire bill in one go. Here interest rate will be lower (1 to 2%) than the interest charging for nonpayment and you can enjoy interest free purchase for further purchases also. You may be charged a onetime processing fee for converting the transaction to EMI and you must be care full about the interest on EMI and if there is no interest you may also have to check the time period of EMI without interest. You should confirm from the bank about processing fees, interest rate, prepayment charge and flexibility in time periods, if you could not pay any installment the interest rate may be higher.

But always remember that the credit card market is highly competitive and you have chance to bargain with them for any of the above convenience and conditions. Use the credit card conveniently and spend only just like you pay real money, not paper money. Then you can control the expenses and can use credit card with planning and wisdom.

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