Know Why Credit Card Payment Does not Show up as an Expense

Credit Card Payment

The first quarter of 2019 recorded a payment card usage Rs. 11,261 billion in India. There is a 27% growth in the use of credit cards across India over 2018-19. These cards substantially increase the purchasing power of the user, helping them make short-term expenses on the available line of credit.

The transactions via credit cards are not considered as expenses. Instead, they are denoted as debt that a user owes to a card issuer. Hence, credit card payment is measured as the amount paid by an individual to repay their existing debt.

Credit card bills are a sum of expenditures made by utilizing the card and are accounted for at the end of a billing cycle. Thus, expenses are not immediately followed up by the requirement to pay for it. Despite the availability of a host of such benefits, one needs to be particular about the details of such payment bills and its various aspects.

What do credit card bill statements comprise?

While a credit card brings its users with the provision to enjoy the benefit of cashless transactions, timely payment of its bills helps strengthen one’s credit score. All that an individual requires to do is have a detailed understanding of its various components, checking the credit card statement correctly, and hence make timely payments.

  • The due date for payment:

The latest date of payment. Payments made beyond this attracts hefty charges that include – late payment and interest on your outstanding debt.

  • Credit limit:

3 types of limits are mentioned in the credit card payment bills – cash limit, total credit limit and available credit limit.

  • Account summary:

Shows the summary of credit card balance that comprises of a credit limit, the amount spent in the current cycle, payments made towards this card, and any additional charges made.

  • Total outstanding amount:

This is inclusive of the overall outstanding amount, and various charges levied on it. Card users are ideally expected to pay this entire amount at the end of a billing cycle.

Card issuers usually offer individuals to pay their credit card bills in full or just pay the minimum amount. Card issuers charge interest on the utilised amount only when a cardholder fails to pay the minimum amount.

Tips to manage your credit card payment

Although acquiring credit cards are a convenient affair, using credit cards wisely is equally crucial. It includes checking up on how to manage credit card payment to make the most of the offered window of interest-free time. Here are a few tips to ensure this –

Tip 1: Consider a balance transfer facility

Tip 2: Plan your big-ticket expenses towards the start of the billing cycle

Tip 3: Pay more than the minimum amount

A well-managed and strategically planned out credit card bill payment ensures that you make the most out of your acquired card.

How to pay payment card bills?

Reading into credit statement is followed by going for credit card payment. Keeping in mind the convenience of credit card users, they are provided with multiple payment options including –

  1. Cheque payment
  2. NACH facility
  3. Net banking
  4. NEFT

Additionally, in case one approaches reputed lenders like Bajaj Finserv and acquire Bajaj Finserv RBL Bank SuperCard, they can avail an additional payment mode. It includes the RBL MyCard App. It helps one to

  • Check their card statement
  • Pay bills
  • Manage their credit account, etc.

While such apps come with the advantage of easy accessibility to their card account, this NBFC also provides its existing clients with pre-approved offers. These offers ease the application process to avail financial assistance and are available on numerous financial products. It includes credit cards, home loans, personal advances, etc. You can take a look at your pre-approved offers by providing a couple of essential details.

Credit cards offer its users with benefits like interest-free moratorium period, higher credit limit, opportunity to strengthen credit history, etc. Subsequently, availing them becomes a convenient and lucrative affair as it ensures big-ticket expenses easy.

Know Why Credit Card Payment Does not Show up as an Expense
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Know Why Credit Card Payment Does not Show up as an Expense
Do you know why credit card payment does not show up as an Expense? The transactions via credit cards are not considered as expenses.
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