The Benefits of Paying Your Credit Card Bill on Time

It’s human nature to be tempted to put off your credit card bill payment for a few days, especially when you’re facing a financial crunch and have a bunch of other bills coming your way. But, unfortunately, such a circumstance results in a late fee, an increase in penalty rate or worse, damages your credit score.

However, it’s time to put these negative thoughts aside and, instead, think about the perks of paying your bill on time. Now, be it a credit card bill or electricity bill, paying it on time is generally considered a good habit and saves you a lot of trouble.

Credit Cards tend to serve various kinds of needs. From regular shopping to paying utility bills to withdrawing cash in an emergency, it is a saviour.

Benefits of doing a Credit Card Bill Payment on Time –

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1.   Save on High-Interest Rates

Credit Cards have the highest rate of interest for any loan product. Surprisingly, this rate can be as high as 35-40% (may vary) on an annual basis and is calculated on the outstanding amount and on a daily basis. So, if you don’t pay your credit card dues on time, your outstanding amount can surge to a significant amount due to the high-interest rate.

2.   Avoid late payment fee

The late payment fee is charged if you fail to pay even the minimum amount due on your credit card. It all depends on the outstanding amount. This is because even if you pay the minimum amount, you will still incur interest charges if you don’t pay the outstanding in full. So, one way out here is to pay off as much as you can afford to, even if you are unable to pay off the whole outstanding amount. This will ultimately reduce your interest burden to some extent.

3.   Beneficial impact on your credit score

Doing your credit card bill payment timely ensures that your credit score remains high and is a positive element for your credit history. This is because it indicates that you, as a borrower, are creditworthy and prompt with your repayment. So in future, when you apply for a loan or another credit card, the financial institution will take this into consideration and sanction your loan much faster or maybe approve a higher amount. 

Utilizing RixLoans is your best option if you find yourself in a situation where you are in need of cash to pay off your credit card debt.

4.   Increased credit limit

It is a well-known fact that if you repay your credit card dues on time and also in full, your bank may offer a higher credit limit on your card. This acts as a saviour in case you need funds in an emergency. Not only this, but a higher limit is helpful to keep your credit utilisation ratio low (The ratio here is the difference between your card limit and how much you actually spend on the card). So, the lower your credit utilisation ratio, the better the impact on your credit score.

Keep in mind that there are several tips like setting up autopay, payment reminders and changing your payment due date to make your credit card bill payment timely. Undoubtedly, a missed credit card payment comes with a price. However, the impact of these late payments depends on how late that payment is and the terms of your credit card.


Nobody intentionally pays the bill after the due date. However, if you find yourself in such a situation, always remember the perks of depositing it way before time. I hope this article helps you and you are on track with timely payments.

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