Tips on paying credit cards in the most effective manner should and will fall in to a number of categories. They will have to include how much to pay to the credit cards, when to pay the credit cards and the method by which to pay the credit cards. Making a mistake in any of these respects can lead to hefty interest charges and/or late payment penalty fees being incurred.
When considering paying a credit card bill, the interest rate which is charged on it will be a big factor in determining how much to actually pay to the credit card. If you are perhaps on some form of promotional deal, where you are receiving an interest free period on either your transferred balance from another card and/or purchases, it may be advisable to make only the minimum payment to the card and build any excess up in a savings account to earn on it in the interim. If, however, interest is being charged on the outstanding balance – at quite possibly an exorbitant rate – it is advisable that you pay as much to your card each month as you can.
When you receive each credit card statement, you will be advised of the transactions you have made, your outstanding balance, the minimum required payment and when that payment has to be received by the credit card company. It is very important you remember that the stipulated date is when the payment should be received by the credit card company and not by when it should be sent. Very often, credit card companies will include details of payment methods which the account holder can choose to use on the reverse of the statement and how many days should be allowed in each instance for payment to be received. It is important to adhere to these guidelines timescales if totally unnecessary further costs are to be avoided.
The method selected to pay credit cards should ideally be as secure as possible. This means that payment by post should be avoided if this is feasible and payment made instead either at a bank, or even online via the credit card company’s website. This eliminates the possibility of payments going astray and an argument ensuing over whether late payment fees should or should not apply.
Credit cards are essential tools for most people in the present day. It is important to remember, however, that in order to get the best from them, credit cards have to be paid on time and used in the most efficient fashion possible.