Credit Card Payments
Credit Card Payments As A Mode Of
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
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
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
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
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
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