Credit Card Payments

Credit Card Payments As A Mode Of Purchase

It is of little surprise how credit cards have become an essential part of every-day financial life. The ease at which very many of us can buy something today and pay for it at a later date, is part of the bigger attraction of credit card credit.

This convenience in itself however, can make it all too easy to get carried away and lose track of just how much you are spending. Until, that is, the credit card bill arrives and you are expected to make the required credit card payments.

Just about every business, shop or service now seem to be accepting credit card payments. Moreso, with the explosive growth of the Internet, we are seeing an increase in number of Internet-based merchants, credit card services and credit card processing payment systems. This network of merchant services, credit card payment processors and credit card payment systems, all have the capability to accept credit card payments and process them online.

This of course make it all the more easier to get carried away and not pay attention to how much you are spending. Not to mention of course, the big issue of how you will re-pay credit card bills when they become due.

Having a credit card is a huge responsibility, and, one you should not take on lightly. Bottom line - if you do not use credit cards appropriately and with care, you run the risk of spending more than you can comfortably afford to re-pay on your credit card account. Think! Before you get drawn by the temptation of the 'we accept credit card payments' logo.

Apart from getting yourself into serious credit card debt, you risk damaging any credit card credit worthiness you have managed to establish for yourself. You also run the additional risk of seriously harming your credit card credit report score in the process.

Don't either be lured into a false sense of security offered by the credit card minimum payment option, unless you are fully aware of how to manage and use to your advantage the minimum payment facility. Many people opt to only pay the required credit card minimum payment by the specified date. However, this in itself can be a false economy if you don't know what you are doing.

Making Credit Card Minimum Payment

When you make purchases from merchants who accept credit card payment online or off-line, the credit card supplier sends you credit card bills detailing your purchases.

You will get a grace period, which is the time you have to re-pay credit card in full before interest is charged. This grace period will vary from lender to lender but can be anywhere from 10 to 30 days or more in some cases.

You can either pay off your credit card bill fully or alternatively, make the credit card minimum payment requested. If you pay off your credit cards in full, you will not have to pay any interest on your borrowing if paid within the grace period.

If however, you opt to pay the minumum payment, then you will be expected to pay the pre-agreed rate of interest on any outstanding credit card balance. You must always ensure you pay at least the minumum required payment, since failure to do so will incur late payment credit card fees.

You will have been given a pre-approved credit limit, that you should not exceed. Once you reach this limit, you will not be be able to spend more in any case, unless of course you repay more than the minimum amount, so as to increase your available credit.

When you are ready to pay your credit card bill, you can either pay your credit card bill on line or you can choose one of several other methods, such as paying by cheque.

If you are using cheques as your credit card payment method, do bear in mind that a cheque will take a number of days for funds to be cleared - (up to seven working days in many instances). You must ensure that you submit your cheque payment, allowing ample time for it to clear.

Remember, if you go over the grace period, you will incur a late payment credit card fee and interest on the full amount. Additionally, if you tend to spend up to your maximum credit limit, a credit card fee for late payment could effectively push you over your credit limit and may land you with even greater credit card fees to pay.

Making Credit Card Payments On Line

Many people prefer the ease of making an online credit card payment. You can do this by simply diverting monies from your current account or any other of your personal accounts, to your credit card credit account. As well as making on line credit card payments, you can also transfer credit card credits from one credit card account or checking account to another.

As with any other form of agreement, it is essential that you carefully read the small print on your credit card agreement. Do also pay particular attention to clauses that relate to your credit card payments and late payments fees in particular.

You might well find that there simply is no limit on the amount a credit card company can charge you for missing a payment or even for being less than a day late with making your credit card payment.

The content on this site is purely for information purposes only and is not intended to replace your seeking professional financial advice.

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