How To Do Payment Credit

Introduction

Borrowing or credit is an important aspect of our lives because it buys us some time for expensive or costly purchases. It is also useful for everyday purchases as we do not have to carry large wads of money to pay for gas, groceries, or little luxuries. Credit cards are used everywhere from restaurants and supermarkets to paying for hotels and air tickets. However, we need to pay for credit because not only will we be saddled with debts, there are other things that are affected as well such as our credibility, credit history, and the ability to borrow again. Thus, it is vital that we do entire payment credit each month or pay the most before it piles up and gets bigger. Here is how you do payment credit.

Step 1

Keep a tab of your purchases. List everything that you charge on your credit cards even the smallest amounts. Make a spreadsheet on your computer or note everything down in a tiny notebook. Whatever method of record keeping you choose, keeping detailed entries help you keep track of your expenses. Even if you have a spending limit, it is so easy to go over that amount. This way, you won’t be surprised when you get a huge bill and are even charged for stretching the limit of your credit.

 

Step 2

Verify the amount of credit charges that need to be paid off. At the end of the month, you will receive a statement from the credit card company or the issuing bank of your card for charges you have made. The cut-off dates vary in each company or bank. Some will include all the transactions until the 24th of each month while others up to the last day of the month. Thus, you will receive the bill for payment credit during the first week of the following month.

 

 

Step 3

Issue a paper check. One of the ways to make payment credit is to issue a paper check. Fill out the details as to who the check should be made out to, the amount, and date that it should be processed. Mail this and check that your payment appears in your next statement.

Step 4

Make an online payment. An easier way to do payment credit is to make it online. This saves you time and admin charges from the bank. The bank or credit card company will send your log-in details and password when you sign up for online payment credit. Keep these details in a safe place and never divulge them to anyone.

Step 5

Make an automatic debit payment. Another easy way to make payment credit is to set up an automatic debit payment system. This is really a good solution as each time your credit bills arrive, they will automatically be taken off from your debit account. You can choose if you want to make the minimum payment or the entire amount. Bear in mind that interest rates are compounded and you are better off paying the entire amount than paying the minimum. Late fees are also applied if you fail to pay the amounts on time making automatic debit payment as a method of payment credit quite practical and convenient.

Tips

Keep a record of all your transactions such as check stubs and statements. Verify your balances regularly to check if everything is up to date such as payments and debit charges.

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