Follow these easy steps to keep your Credit Card bills in check

Since the pandemic, the popularity of digital transactions has soared and Credit Card spending is catching up once again. The RBI’s decision to hike the limit for contactless transactions to Rs 5000 from Rs 2000 effective from 1st January, 2021 is also partly responsible for this turnaround. Though, many people spiral into debt because of reckless, unchecked usage of Credit Cards, if you know how to use them responsibly and settle Credit Card bills smartly, they can be very beneficial, especially in the long run.

Here are some ways to help you keep a check on your Credit Card bills:

Pay off the entire bill every month

Many people have the habit of paying only the minimum amount every month. This is a bad financial practice because what they fail to realise is that every month they will continue to be in debt. Since interest will keep accumulating on the balance amount, with every passing month, your debt will increase. There are different slabs for different types of transactions- cash advances attract higher interest than other transactions. If you are overdue on your payments, it will eventually reflect badly on your credit score.

Always check your bill thoroughly

Many a times people do not pay much attention to their monthly Credit Card bill. There could be erroneous charges or miscellaneous charges levied by the bank that may skew your Credit Card's due amount. You can dispute these charges only if you’re aware of them. And without scanning your bills thoroughly, you will never spot these. For example, the interest rate on your Credit Card fluctuates routinely with changes in the Prime Lending Rate. So, it is important to monitor your bill closely.

Read more on how to understand your Credit Card statements.

Manage all your debts

If you have multiple Credit Cards or loans that you have to pay off, tracking and managing your finances should be the top priority. You may be tempted to first settle the low-interest debts. But this decision might actually end up hurting your finances. Although the amount may be more, always clear the high-interest debts first. By doing this, you will end up saving on the interest that you would otherwise have to pay.

Track your expenses

As a rule of the thumb, ensure at all times that you use only 30% to 40% of your credit limit. Use Credit Cards for emergency payments or for paying one or two monthly bills. If you do use up more than 40% of your credit limit, make sure the charge you’re putting on the card is worth it. Although you do not have to pay immediately, you do have to settle these amounts at the end of every month. You should also track your expenses to ensure you aren’t making frivolous purchases. This way you will be able to find avenues to cut down on your expenses. A variety of expense tracking mobile apps are now available online and are free of cost, so you can take advantage of them.

Set up an automatic payment

If you forget to pay your Credit Card bills on time, you may be charged a late payment fee. Also, you will have to pay interest on the outstanding amount. Eventually, you’ll have to pay a much larger amount, and on top of all this your credit score may take a hit. Setting up an automatic payment system is a simple solution that eliminates the hassle of late payments. With this in place, you allow your Credit Card company to deduct the bill amount from your bank account on a set date every month.

HDFC Bank makes it extremely convenient for their customers to pay their Credit Card bills. If you have an HDFC Bank account, you can easily pay your bills through HDFC Bank NetBanking or the HDFC Bank MobileBanking App.

Even If you don’t have an HDFC Bank account, you don’t have to worry when it comes to paying your HDFC Bank Credit Card bill. You can settle it via the NetBanking facility of your current bank account, NEFT, or any other payment options offered. If you’d prefer to go to a branch of HDFC Bank, you can make your payment in cash or by cheque.

With all these convenient facilities at your disposal, you can easily keep a check on your Credit Card bills and ensure they are always paid on time!

Looking to apply for an HDFC Bank Credit Card? Click here to get started!

*Terms and conditions apply. Credit Card approvals at the sole discretion of HDFC Bank limited. Credit Card approvals is subject to documentation and verification as per Banks requirement.