What are the best ways to plan for a credit card’s repayment?

By | June 28, 2023

best ways to plan for a credit card's repayment

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Online credit cards are gaining popularity in India since mobile banking apps have allowed customers to sign up for credit cards online. Furthermore, online credit cards offer new-age features. For instance, the IDFC FIRST Bank’s Select Card is a lifetime-free credit card that facilitates instant balance conversion into easy EMIs (Equated Monthly Instalments). This article enlists five tips for repaying your credit card dues on time.

1. Before choosing a card, shortlist cards with a low-interest rate

Rewards should not be the only criterion while selecting a credit card. The lower your credit card’s interest rate, the more you can save during its repayment cycle. Therefore, while browsing credit cards online, you must first shortlist the ones that offer attractive rewards and a low-interest rate.

2. Opt for a lifetime-free credit card with attractive rewards

Among all the types of credit cards, lifetime-free cards help customers save the most in the short- and long-term. A lifetime-free credit card is one that does not charge any annual fee from the customer. IDFC FIRST Bank offers two stellar lifetime-free credit cards – the FIRST Select and FIRST Classic range of cards – that help customers save a significant amount during bill repayment. Additionally, lifetime-free credit cards offer attractive lifestyle and travel-related rewards like access to airport lounges and offers at select restaurant-chains across India.

3. Use a credit card EMI calculator before choosing your credit card

After deciding on your preferred credit card, you should use an online Credit Card EMI Calculator. IDFC FIRST Bank’s calculator helps customers calculate their monthly EMIs (Equated Monthly Instalments) during the repayment period. This calculator helps customers plan for their upcoming expenses by accounting for their credit card repayment. Credit card calculators also help you choose your preferred credit card tenure and calculate the resulting credit card EMI. Choose credit cards with a flexible tenure to ease your repayment procedure.

4. During the repayment cycle, pay your bills on time

To avoid debt, you should pay your credit card bills on time, i.e., before the credit card due date. The tips mentioned below can help you pay your credit card bills effectively:

How to pay a credit card bill?

  • Be aware of your outstanding credit card dues by reading your monthly billing statements.
  • Set a reminder on your phone a day prior to the credit card due date.
  • Pay your credit card dues using an online transfer method. IDFC FIRST Bank customers can use the secure ‘Auto Pay’ or ‘One-Swipe Pay’ modes of transfer.

5. When repayment takes a toll on you, consider opting for a balance transfer

If you have multiple credit card debts to clear and have found a lender who is offering a low-interest rate, you should opt for a balance transfer facility. A balance transfer provision helps customers transfer their outstanding credit card balance to another bank. IDFC FIRST Bank’s credit cards offer this facility. IDFC FIRST Bank offers the special feature of a balance transfer on EMI to help customers convert their outstanding balances into affordable EMIs.

Follow these five tips to plan well for your credit card’s repayment, and to increase your savings in the process.

Also Read: Which Gold Loan is Better for You: Fixed or Jumping Interest Rates?

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