How to Setup Credit Card Auto-Payments for Credit Card Bills?

Credit Card Bills

Do you wish to choose the most convenient way to clear credit card bills? 

Setting up Auto credit card payments can make it simple for you to make repayments without any delays and penalties. Most payment delays occur due to forgetfulness or confusion between due dates. Auto payments automatically debit your account as per your bill amount on the selected date, eliminating any such window for errors. Here’s all you need to know about setting up credit card payments.

What is a credit card billing cycle? 

A credit card billing cycle is the period between the two billing dates. It can range from 30 to 45 days. For instance, you started using the credit card on 3rd December, and you are billed on 4th January. The billing cycle is that period between the dates, for which you receive periodical credit card statements. 

How to automate credit card payments for credit card bills? 

To automate payments for credit card bills, here are a few prerequisites: 

  • You must hold a savings/current account with the respective credit card issuing bank. 
  • You need to fill and submit an Auto-debit Authorization Form.
  • You can choose to instruct auto-debit with the minimum amount due or the total amount due of the monthly outstanding bill. 
  • Minimum amount payments can attract interest. Make yourself aware of the interest rate, 0% interest period (if applicable), and interest periodicity. 
  • The auto-setup execution may take a Turn Around Time (TAT) of 4 working days. Every credit processing may take a TAT of up to 24 hours. 

Auto-debit facility for credit card payments

Here are three easy steps to set up an Auto-debit facility for credit card payments: 

Using net banking

  1. Click on the “credit cards” tab. 
  2. Select the “Value Added Services” section.
  3. Choose the “Auto-debit” option. 

Using mobile app 

  1. Click on the “credit cards” panel.
  2. Select the “credit card Service Requests” section. 
  3. Choose the “Auto-debit” option

Using Bill Payments service

  1. Log in to your mobile banking app or net banking
  2. Click on the “Bill Pay/Recharge” tab
  3. Select the “Add/Manage” section
  4. Click on “Add Biller” and enter credit card biller details under the AutoPay option 

Points to remember while choosing an auto-debit facility

Here are three important pointers to remember while choosing an auto-debit facility for credit card payments:

  • The payment processing starts on the due date of the billing cycle.
  • The payment becomes successful only if you hold an adequate balance in the account. 
  • If you miss a payment, you will be levied a charge of ₹500 plus GST.
  • It could take up to 4 working days to reflect any modifications done to Auto-debit set up (activation, deactivation, changes). 

Benefits of setting up auto credit card payments

  • Time saver

A manual bill payment requires the aspect of remembering the date periodically. It also consumes time in making the payment during every billing cycle. 

Automating payments for credit card bills is an efficient solution for the timely payment of dues. 

  • Cost saver 

A credit card payment missed or delayed incurs a fee. If bills are missed periodically, the charges keep accumulating. 

Automated credit card payments ensure timely and prompt clearing of dues. It can save you from incurring extra fees such as late payment penalties and high-interest charges. 

  • Credit discipline 

Automating payments for credit cards cultivates a credit discipline. It develops the consistent practice of repaying what you have borrowed. 

Clearing recurring credit card bills on time can foster a healthy credit routine, practice, habits, and management. 

  • Credit score 

A credit score is a reflection of your credit habits. It is a 3-digit number that indicates your creditworthiness. Best practices with credit cards can boost your credit score. 

Financial institutions evaluate loan and further credit cards eligibility based on your credit score to trust for repayment capacity. A score above 700 is considered good while 750-900 is considered excellent. 

Automated payments can enable you to have a stable history of clearing dues. A good history of credit card payments is a strong factor of a good credit score. 

  • Credit limit upgrade 

A consistent track record of credit card bill payments can navigate to an option to upgrade your credit limit. 

Automated payments can pave the way to upgrade your credit limit through consistency and promptness of clearing dues. 

  • Rewards 

A periodical bill payment practice can reap rewards as a bonus. Setting up automated bill payments can help you with this. You can collect and redeem rewards as per the terms and conditions. Rewards may be in the form of miles, coupons, vouchers, cashback, etc. 

Points to keep in mind while payments are automated

Here are two important points to remember while credit card bill payments are automated: 

  • It is highly recommended to read and review the credit card statement while payments are automated. It can help in identifying errors, frauds, and any other mismatch. 
  • It is advisable to check and maintain your bank balance for the availability of adequate funds for auto-debit to clear credit card bills. 

Automating Credit card payments for credit card bills can be a stitch in time that saves nine.

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About the Author: Abhay Choubey

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