What You Need to Know about Credit Card Payment

What You Need to Know about Credit Card Payment

When making a credit card payment, two of the things you obviously need to know are the amount you need to pay, and the due date for that payment. However, knowing some of the other details is just as important, not only for your convenience but also for better credit card management.

One of things you need to know is to be able to differentiate your total balance payable, and your minimum payment due. The total balance payable on your credit card is simply the entire balance on your credit card that you need to pay off. You have to option of paying off the entire balance or just pay the minimum amount due. The minimum payment required is determined by the credit card company and is reflected on your statement. As the term indicates, paying this minimum amount on or before the due date will satisfy the credit card company, so that you will not be charged late fees. However, remember that by paying only the minimum payment required, a large fraction of your balance is left on the account, which incurs an interest. The interest on the balance on your account is compounded, which means that the longer you pay off your balance, the more you are paying in interest. Hence, it is always a good idea to pay more than the minimum payment required.

Another thing you should take note of is the available payment methods. The best credit cards offer a whole variety of payment options including paying at a post office, sending in a check, direct debit, telephone banking, and online payment. Note though that each payment option has a different processing time. Always apply credit card payment method processing dates to your computation when making a payment so that you do not end up sending in your payment too late. Do not wait till the actual due date to send your payment but do so days in advance. For example, if you are going to send in a check by post, you need to send the check at least 7 days in before the due date so that the payment will get to your credit card company in time for the due date. If your check payment is to be sent outside Ireland, you need to send it even earlier. On the other hand, setting up a direct debit payment will mean that the credit card will automatically apply credit card payments to your bank account on or before the due date, so that you do not need to worry about the processing time. You just need to make sure that there are enough funds on your bank account for the payment to go through.

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