Reasons for Paying Your Credit Card Bills on Time

Reasons for Paying Your Credit Card Bills on Time

Paying your credit card bills, or any bill, on time is not just a matter of responsibility but also practicality. While putting off paying your credit card bills might be enticing at times, especially when you are on a tight budget and are having a hard time juggling bills, in the end, it will make better sense to prioritise credit card bills among the first ones to pay every time your pay check comes in.

One of the most obvious reasons for paying your credit card bills on time are the steep penalties or fees that are levied each time you miss your deadline. These fees will add to your existing balance, and will end up bloating your monthly minimum payment, if you regularly miss payments and get penalty after penalty.

Aside from the penalties, interest will also accrue on your existing balance. Each Irish credit card, even the best credit card, adds a compounding interest on your unpaid balance. In many cases, this interest is only added after a certain period. If you pay your balance on time, you will not only avoid the late fees but also the interest. Remember the interest and the late fees compound, which is the reason why people who regularly miss their payments end up in credit card debt.

Another good reason for paying your credit card bills on time is your credit score. Keeping a good credit score is very important because it will affect not just your dealings with your credit card company, but every financial transaction in the future. If you have a bad credit history, banks and other financial institutions will be more cautious in granting you loans. Making big purchases, such as buying a car or a new home, will also be harder since you might be required to make a bigger deposit or outright be turned down if you don't pay in cash. Remember that each time you do not pay your credit card bill on time; your credit score will take a hit. This might not sound much but each hit will stay on your credit history for a long time and will show lenders that you can not be relied on to pay bills when they are due.

So the next time you feel like putting off paying your credit card bill, remember the consequences. Pay your bills on time and save yourself some money while keeping your credit history clean.

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