Top Things to Remember When Paying a Credit Card Bill

In the current financial scenario, credit cards have gained widespread popularity and have undergone a significant transformation. They provide an unmatched level of convenience, empowering people to conduct diverse transactions, whether in physical stores or across digital platforms, all without the requirement for physical currency.

I have a credit card Kotak, which offers a range of advantages, encompassing rewards programs and safeguards for consumers. Yet, its responsible utilization is of paramount importance, as it can positively impact one’s credit score, whereas mishandling it can result in financial challenges.

What is a credit card?

A credit card is a form of plastic money used for payments across platforms. It is similar to an overdraft facility, which allows you to spend more than you have in your bank account, resembling a loan on which you must pay the interest rate.

Every credit card has an established limit, signifying the highest sum available for borrowing. The card issuer determines this credit limit, considering the cardholder’s creditworthiness.

You can now make the credit card bill payment online with the help of a mobile app.

What is the significance of using a credit card?

●     Building credit score

Your credit score, a numerical representation of your creditworthiness, is pivotal in lenders’ decisions when considering your loan applications. Credit card issuers regularly relay your credit-related actions to credit bureaus, and these agencies utilize this data to compute your credit score.

●     The provision of EMIs

Credit cards offer a convenient way to make purchases by spreading the cost into manageable monthly installments, relieving the pressure of paying the entire amount simultaneously.

●     Record

It is an excellent way of record keeping and managing your transactions accordingly. A monthly statement of your expenses will give you a reality check and keep you well within your credit limits.

What are the top things to remember when paying the credit card bill online?

●     Credit limit

You should always be aware of your credit limit and habitually utilize more than 50% of your limit. This keeps you in check and ensures you don’t fall into the high-interest rate trap.

●     Interest charges

If you don’t make your credit card bill payment on time, the card provider charges an additional interest on the remaining balance, making it intolerable.

●     Avoid minimum payments

Please do not fall prey to the idea of only paying the minimum required balance, as it will lead to increased interest rate charges and make you fall into debt without realizing it!

●     Reviewing statements

You should view your statements regularly to ensure you are spending well within your prescribed limits and check for erroneous charges. In case of discrepancies, contact your credit card issuer.

●     Grace period

You should be fully aware of the terms and conditions of your credit card company, as many credit cards offer a grace period during which you can pay your balance without incurring interest.

How to pay credit card bill online?

I forgot to pay my credit card bill twice a few months ago and had to pay extra interest! Just when I was about to cancel my credit card, a friend suggested the Bajaj Finserv app to pay your credit card from the comfort of your home.

Following are the steps that are required while paying a credit card bill:

  1. Download the application on your smartphone
  2. Sign up with your contact number
  3. Tap on “Credit Card Bill” under the “Bills & Recharge” section.
  4. Select your bank and proceed further accordingly.

I followed the steps mentioned above to pay the due bill for my credit card Kotak, and I have never defaulted on my payments ever since.


To maximize the advantages and avoid potential financial difficulties, individuals can achieve this by comprehending the intricate role credit cards play in personal finance and adhering to prudent financial management practices.

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