There are quite a few errors you can make when it comes to paying credit card bills and one of them is opting for irregular credit card payments way too often. Why? It’s actually very easy to explain: this type of payment can lead to adverse implications that can affect your overall financial status.
In the following minutes, we’re going to talk about some of the main reasons why you should try to avoid, as much as possible, making payments in this way.
It can attract additional fees and charges
Each time you fail to make the minimum payment by the due date, the credit card issuer will automatically consider a late payment fee. Also, in most cases, they keep 5% of the total bill amount, representing the minimum due amount. But that’s not all…
Additionally, if you have any Equated Monthly Instalments on your credit card, some applicable charges will be added to the minimum amount due. So think about all these before making irregular credit card payments.
It has an impact on your credit score
Given the fact that your credit score is based, among other aspects, on your credit repayment history, it’s obvious that irregular credit card payments can pull it down. As a matter of fact, even a single late can have an impact on your score, since it’s one of the most crucial scoring factors, being able to even deny you a credit in the future.
It will make you ineligible for pre-approved loan offers
Most lenders can provide pre-approved loans, as well as credit card offers, based on both your credit profile and, of course, credit card score. However, if irregular credit card payments are spotted on your profile, you might as well be ineligible for such offers. And it would be a shame to miss them, as they have lower processing times and overall lower costs.