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How Much Should You Pay on Your Credit Card?
Posted on Wednesday, July 31st, 2024 | By IndusInd Bank
Managing credit card payments effectively is crucial for maintaining good financial health. Deciding how much you should pay on your credit card each month can impact your credit score and overall financial stability.
It might seem tempting to only make the minimum payment. However, this approach can lead to a cycle of debt.
So,how much should you pay on your credit card each month to maintain a healthy financial profile?
Let’s learn more.
All You Need to Know About Paying on Your Credit Card
Here’s what you need to know about the various credit card payment aspects and their implications:
1. The Minimum Due
This is the least amount you need to pay for the credit card bill by the due date to keep your account in good standing. This option prevents late fees and keeps your account active. However, it is not ideal for long-term financial health. Paying only the minimum means a major portion of your payment goes towards interest, not the principal balance.
2. The Full Due
Paying the entire amount due each month is the best practice for managing your credit card. This means paying off the entire outstanding balance by the due date. Doing so avoids interest charges and helps maintain a healthy credit score.
3. Credit Card Balance
Your credit card balance is the total amount you owe. The balance amount also includes unbilled purchases, fees, and interest. Keeping your balance low relative to your credit limit (known as your credit utilisation ratio) has a positive impact on your credit score.
4. Charges and Fees
Credit cards come with various charges and fees, such as annual fees, late payment fees, and over-limit fees. Understanding these fees is crucial to avoid unnecessary expenses.
5. Interest Rates
Interest rates on credit cards can affect how much you should pay on your credit card. If you carry a balance from month to month, interest is charged on the amount due. Paying the entire due amount each month avoids these interest charges.
Opting for the right credit card makes it easier to manage payments and other dues. IndusInd Bank offers a variety of Credit Cards designed to meet different financial needs and lifestyles.
Also Read: How To Pay Credit Card Bill Using UPI?
Why Apply for an IndusInd Bank Credit Card?
Here’s why you must consider applying for an IndusInd Bank Credit Card:
1. Flexible Payment Options
IndusInd Bank credit cards provide flexible payment options such as EMI and no-cost EMI. This allows you to manage your finances according to your comfort.
2. Competitive Interest Rates
Enjoy competitive interest rates that help you save on interest charges when you carry a balance.
3. Rewards and Benefits
Earn rewards, cashback, and exclusive benefits with your IndusInd Bank Credit Card transactions.
For instance, the IndusInd Bank Platinum RuPay Credit Card helps you earn 2 reward points for every ₹ 100 spent through UPI and 1 reward point for ₹ 100 on every non-UPI transaction. You can also enjoy fuel surcharge waiver (up to a pre-specified limit) and more.
4. Comprehensive Customer Support
IndusInd Bank offers excellent customer service to help you manage your credit card with ease and resolve any issues at the earliest.
Conclusion
Understanding how much you should pay on your credit card each month is vital for maintaining financial health. Whether it is the minimum due, the full due, or somewhere in between, your payment choice impacts your interest charges and credit score.
Consider applying for an IndusInd Bank Credit Card to enjoy a host of benefits while maintaining financial stability.
Apply Now for an IndusInd Bank Credit Card today and take control of your financial future!
Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
