A delay in EMI or credit card bill payment can be a costly mistake. It can impact your credit score and put an additional financial burden on you. However, there are some simple tips you can use to avoid late payment penalties on credit payments and save money in the process.
Let’s find out what these tips are.
Use the autopay feature
When you have to pay for multiple things, it is not easy to remember the due dates for all your bills, more so if you still make payments manually. Instead, use the autopay feature for making payments on time.
Adhil Shetty, CEO, Bankbazaar.com, “Delaying your EMIs or credit card bill payments is never recommended. It may sometimes happen, especially if there are multiple payments to be made. Therefore, putting your accounts on the autopay mode is advisable for important payments like credit card bills or loan EMIs.”
It is a good habit to set reminders for payment due dates in case you don’t have sufficient funds. By doing so, you can make timely arrangements for the same and avoid delaying your repayments. This is useful mainly in the case of home loans which may have to be paid out of a specific account on a particular date. You can set these alarms using apps or features on your mobile phone or smartwatch.
Change the payment due date
We often choose a specific date for deducting the EMI or other repayments at the time of borrowing. If there is a change in the flow of funds into your account at a later stage, you can always approach the lender and change the due date to make sure you don’t delay your repayments due to a lack of funds on a particular date.