Apr01
What you should know about Credit Card Payments
The most important thing to consider when managing your credit cards is the payment. When it comes down to it, if you don’t understand the payment system, you may find yourself either deep in debt or in over your head with late payments and finance changes. Either way, it is up to you to understand the process of managing your credit card payments so you will build a strong credit history – not destroy it.
When managing your credit card and the payments associated with it, there are a few things to consider:
- The minimum payment – Before writing the check to your credit card company, pay close attention to the minimum balance payment if you are unable to pay off the card’s entire balance. If you fail to pay at least the minimum balance, you will likely get caught with late payment fees, which therefore hurts your credit. Even if you think you know your card’s minimum payment amount, check it each month, as it may change according to your credit card balance. In addition, many creditors have begun implementing higher minimum payments as a result of the CARD Act, so you may find that your card’s minimum payment is higher than it used to be.
- The payment due date – In addition to understanding your credit card’s due date, consider that it takes time to receive and process a credit card payment. In particular, consider the time it may take for your payment to arrive in the mail or get processed through your bank or credit card online payment system. Keep in mind, also, that your credit card company may charge you a fee for making a rush payment through their online payment system, so record your card’s due date in your smart phone or organizer.
- How you pay – There are a number of ways you can pay on your credit card each month, including through your bank’s online banking system, through your credit card’s website, through the mail or even by phone. If you want to make sure your payment reaches the creditor on time each month, it is probably best to pay your credit card through an online bill system or through your credit card’s website.
