In today's time, credit cards are used in a very big way. We pay with credit cards to fulfill every big need. But when it comes to paying for the credit used, we often become lazy. Often we think that we will pay the credit card on the last date, but do you know how bad this thinking of yours is for financial health, so let's know whether paying the credit card bill on the last day spoils the credit score.

Paying the credit card on the last date

In today's busy life, we often postpone some important tasks for later. One of these postponed tasks is paying the credit card bill. Usually, people think that there is time till the 'due date' to pay the credit card bill, and they will pay it comfortably. But do you know how bad this 'last minute' habit of yours can prove to be for your financial health, especially your CIBIL score? So let's know why you should change this habit.

What is the CIBIL score and why is it so important?

First of all, it is important to understand what is CIBIL score (or any credit score) is. CIBIL score is a mirror of your financial status, a 3-digit number (usually between 300 to 900) tells how responsibly you have paid your previous loan or credit card. With a good score, you can get a loan easily and at a lower interest rate, however, a bad CIBIL score can also get your application rejected.

Disadvantages of paying bills on the 'due date'

Now you must be thinking what is wrong if we pay the bill on the 'due date'? Well, technically it is not wrong, but it is believed that there can be many risks behind doing this.

1- Delay in payment processing

If you pay your credit card bill on the last date, then many times it happens that the payment is not updated in the credit card company's account immediately, because it can take 1 to 3 days, especially if it is a weekend or a bank holiday. In such a situation, due to this delay, the system can record it as a 'late payment', even if you have made the payment on time.

2- Technical glitches
If you make a payment on the last date, you may have to face technical glitches. You may have to face technical problems (such as server downtime, and internet connectivity issues) while making credit card online payments. That is, if you are waiting for the last day to make a credit card payment, then you are making a mistake.

3- Late payment fees and interest
If your credit card payment is recorded after the due date, then in such a situation the bank can charge you a hefty late payment fee. Apart from this, interest will also be charged on the remaining amount, which will be quite high in terms of credit card.

4-Impact on CIBIL score
If you are making payment on the last date, then the biggest loss is to your CIBIL score. Yes, every payment history is reported on the credit bureau. This is the reason that there is a risk of points falling if you delay paying even a single payment.

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