It is complex to comprehend that the current spectrum can be running without digital transaction solutions as we are leading toward a paradigm shift. Plastic money has been an essential asset till now, but who has seen the future? That’s why people take full accountability and responsibility while possessing credit cards. To manage your finances, one must be mindful of their card so that an individual doesn’t face any unforeseen scenario later. Additionally, the cardholder must be vigilant or prudent about the due date while paying bills via the ICICI credit card payment option. Otherwise, your credit score might get negatively affected. Since the discussion regarding credit score has emerged, let’s discuss it.
Concept of Credit Score
The credit score refers to a numerical representation that varies from 300 to 900, and it signifies the consumers’ creditworthiness. It enables an individual to repay the borrowed sum and its bureaus present in the country, compute and examine the credit card after strictly adhering to some parameters. These considerations include varying factors, such as credit card history, bill payments, transaction history, and many more. That’s why it is pivotal to emphasize the parameters that influence your credit card score.
How Credit Cards Get Influenced Due to Late Bill Payment?
As mentioned above, it becomes the sole duty of an individual to make bill payments on the due date. Late payment can dramatically diminish your credit score without any warning.
1. Recent research showcased that delinquency of 30 days can drastically affect credit scores negatively up to 100 points. If you delay further, then it will eventually influence the score more.
2. Some of you might have noticed or assessed that different credit bureaus stick to distinct methods for evaluating credit scores as there are no limitations or fixed business models implemented. But one sure thing is that late payment hurts the specific credit card’s score even when you are trying to use a personal loan app.
3. Constant late credit card bill payment execution for consequent months can deplete the value of your credit score. Missing or defaulting in your credit report remains for approximately seven years.
4. Besides affecting your credit score, the late bill payment can also compel you to invest more capital in the form of a late payment penalty fee. Further, your bank auditor or creditor might also expedite the interest rate on your credit card, which implies that you need to pay up extra money.
5. If you can set yourself free from this headache overnight by enhancing your credit card score, you need to understand that payments must be consistent. In line with this, you require lots of time to shoot your credit score as it varies from person to person. There is no definite or fixed duration for it.
How to Escape from the trap of Late Payments?
1. Take your Auto Debit Option into Consideration- If you are facing constant issues while tracking your credit card payment, it is highly suggested to select the auto-debit option. Through this option, an individual can instruct your bank debit regarding the credit card bill amount by a specific date to eliminate the chances of getting late.
2. Set Reminders and Alerts- Another way to remain conscious and prompt regarding credit card bill payment is to set email or text message alerts or reminders. It will help you remain in touch, and you will never forget such a crucial task. Additionally, you can also set a reminder in your phone or desktop calendar as a backup to be extra sure.
3. Supervise Your Credit Report In-Depth- It is conceived as the best method to determine and supervise your credit report time-after-time to avoid errors. Because it is witnessed that sometimes your credit includes blunders. Further, it also assists you in remaining updated about your credit health. Lastly, you gain an attribute to settle those areas where you are lacking but have chances to improve your credit score.
4. Create and Follow Financial Budget- One of the pivotal factors in creating and sticking to the financial budgets. It enables users to restrict the investment in unwarranted expenditures. Besides, it will enable you to make payment on the due date without any hitches.
