Amongst all the banking cards that are used, the credit card is one of the most popular ones. There are plenty of reason why this card is popular, ranging from a large access to funds, flexible credit card payment and reward system amongst many others.
But while the credit card will provide you with the means to access plenty of funds, you will also need to keep in mind, that at some point in time, you will need to repay back these funds. Additionally, depending on the time you will pay back the funds, you may also need to repay back an interest rate. Any delay in this repayment will attract additional fees.
So how do you avoid any additional fees or delays when it comes to this repayment? You only need to create a flexible repayment plan. Here are a few pointers you can take into consideration when doing so:
Lump sum vs.installments
One of the facilities that a credit card shares with a loan is the fact that you can use a large number of funds to facilitate your transaction. You can even repay back the borrowed funds just like the loan, in fixed installments. However, this depends on the amount you have borrowed. If the amount is large, you can divide it into installments that you can afford and pay off the borrowed funds over time. But, during this time, you may have to pay an additional amount as interest. Alternatively, if the amount you have borrowed is low, you can opt to repay back the funds in one lump sum. This will help you avoid any additional funds as interest.
Create an auto pay system from your account
Another credit card payment system you can opt for is the auto pay system. Most lenders offer this facility, especially if you have attached your credit card to an account, wherein which, the funds of the account are used to pay off any borrowed funds. By creating an auto payment system, the funds from your account will automatically be deducted in order to pay the bill. This is extremely beneficial for those who use their credit cards on a regular or monthly basis. During this time, you will be required to select the date and amount that needs to be deducted until you will be required to change it.
Keep track of the interest-free payment period
Another way to repay back funds borrowed through a credit card is through the interest-free period. Unlike loans, most lenders offer an interest-free credit card repayment period. However, this offer is only limited to certain conditions, such as new credit card joiners as well as loyal customers. This can also be offered as a promotional scheme for and upgrade on your credit card.