Learning how to manage your credit card bills is imperative for comprehensive financial planning. When you use a credit card in tandem with your financial capacity, it allows you to avoid accumulate debt accumulation and provides room to manage your monetary obligations conveniently. This is particularly important if you are using a credit card for the first time.

Efficiently managing your credit card bill also contributes to the improvement of your credit score. It is the quantified representation of your creditworthiness.

During its calculation, several factors are taken into account which constitutes credit card bill payment trend, credit history, credit utilisation ratio, etc.

How to efficiently manage credit card bills?

In order to manage credit card bills effectively, there are multiple measures which you can take. These strategies will enable you to navigate through your card dues with ease. A few of those methods are discussed below –

1. Spend at the beginning of your billing cycle

The billing cycle for a new credit card starts on the date of its activation and continues over to the subsequent month. For instance, if a billing period starts on the 15th January, it shall continue till the 14th February.

All the payments you make using your credit card during a billing cycle is posted on that respective period’s bill statement. Nevertheless, it is not the date by which you need to make your credit card bill payment.

Card issuers provide a grace period, which is usually 15 days from the date of bill statement generation, by which you need to pay at least the minimum due balance to avoid late fee penalty.

On that account, when you make a purchase in the first few days of your billing cycle, it provides you a longer period for repayment. Hence, if you have any major expenses to conclude using your credit card, you can consider making it at the beginning of your billing cycle. It is one of the ways how you can use your credit card wisely.

2. Convert to EMI

Several credit card issuers provide the facility of EMI conversion on credit cards. Such a process involves the conversion of any high-end expense an individual has made using a credit card into convenient EMIs.

For instance, with a Bajaj Finserv RBL SuperCard, expenses above Rs.3000 can be converted into EMIs to make repayment even more convenient. In order to avail this credit card apply online at the financer’s official website or mobile app.

Financial institutions such as Bajaj Finserv also provide pre-approved offers on credit cards which ease the application procedure. These offers apply to a host of credit facilities such as credit cards, personal loans, home loans, business loans, etc. You can check your pre-approved offer by providing your name and phone number.

Regardless, if you make any large expense using your credit card, you can choose to convert it into EMIs in order to avoid any financial strain.

3. Consider your spending habits

Credit cards come with customer loyalty programmes, wherein card users can earn reward points on their expenses. You can earn reward points on every purchase you make using your credit card; however, different types of credit cards provide accelerated reward points on certain types of purchases.

For instance, travel credit cards provide accelerated reward points on purchases related to air tickets, hotel bookings, etc.

Hence, when you are applying for a credit card, you should consider your spending habit to maximise your reward points.

4. Redeem accumulated reward points

The reward points you earn on your credit card can be redeemed to avail discounts, cashbacks, and vouchers or can be converted to reduce your credit card dues.

Thus, when you have accumulated substantial reward points, you can choose to redeem those during your credit card bill payment to lower your financial obligations.

5. Know the partnered outlets

You can also earn accelerated reward points when you use your credit card in partnered outlets or select websites. Hence, know the outlets and websites with which your respective card issuer has tied up with to maximise your benefits from a credit card and reduce your financial obligations.

6. Balance transfer

You can also choose to transfer your outstanding balance for a respective billing period to a different credit card which levies a lower rate of interest to reduce your financial obligation or provides accelerated reward points accorded with your spending habits. You can choose a balance transfer credit card apply online.

In addition to these points, you can also opt for the automatic payment options in order to avoid missing due dates for payments and maintain consistency of repayment.