Credit card is payment card that allows borrowing pre-approved funds in order to complete a purchase. Instead of debit card, credit card is having lots of benefits like sign up bonuses, reward points, safe payments, Grace Period, building credit score, if you use credit card responsibly it will give grate benefits for you. This is about credit cards and its repayment bill.
All bank credit cards having similar bill repayment methods. Turnaround Time (TAT) takes 40 to 50 days to communicate. It varies from bank to bank. But,
How it actually works?
Example –Let’s say a credit card bill is generate on 1stJune 2017 so the payment should make by 19thJune 2017. Now the bill that is generated has the transactions details from 1st May 2017 to 31st May 2017. if you actually calculate the number of days to make the repayment it is 19 days, therefore within 19th June the bill have to pay.
Principle and policies:
All credit cards repayment tenure work on the same principle and policies, Now a wise tips to you, the next day, after bill generated use your card , if you do, you will have almost 50 days to make the repayment. Think about it.
if the credit card limit is Rs.1, 00,000 and you making a transaction of Rs.10, 000 on 02nd May 2017 after that you did not make any transactions then the bill amount Rs.10, 000 will generate on 1st June 2017 and 19th June 2017 is the repayment date, Now if you actually calculate the days its 47 days to make the repayment.
Billing Example 1:
credit card Billing Period – 1st May 2017 – 31st May 2017
Transaction of Rs. 10,000 is done on 02nd May 2017 (Only one transaction for whole month)
Bill Generation Date – 1st June 2017 (Bill Amount is Rs.10, 000)
Bill repayment Date – 19th June 2017 (Amount going to pay Rs.10, 000)
Total days to repay credit amount – 47 days. (To make repayment of Rs.10000)
Billing Example 2:
Billing Period – 1st May 2017 – 31st May 2017
Transaction of Rs. 10,000 done on 02nd May 2017
Transaction of Rs. 10,000 done on 22nd May 2017
Transaction of Rs. 10,000 done on 28th May 2017
Bill Generation Date – 1st June 2017 (Bill Amount is Rs.30, 000)
Bill repayment Date – 19th June 2017 (Amount going to pay is Rs.30, 000)
Total days to repay credit card- 21 days
The last transaction Rs.30, 000 is done on 28th May 2017 and days to make repayment is calculated from last transaction date till the bill payment due date.
So the best day to make big transactions using credit cards is the next day after bill generated. I recommend first 5 days to making transactions after the bill is generated.
Credit card eliminate need to carry cash, that used around the world. Card holders also get cash advances through ATMs with many credit card types. Use it wisely, heres my conclusion Keep Calm and repay your credit card credit card