Credit cards have become one of our daily essentials, and there are many people who use the interest-free period for early repayment to earn time for their next repayment. But is it really necessary to repay before the bill repayment date?min pay In fact, in the following situations, there is no need to repay before the bill repayment date.
We all know that there are two important dates for credit cards, one is the billing date and the other is the repayment date.ofw quick cash loan online Credit card repayments must be made before the repayment date, and the statement date is not a reference time for repayment.
The billing date is the date when the bank generates the credit card statement. From the last billing date to the day before the next billing date,debt consolidation any consumption or cash withdrawal in this range will be reflected in the current bill. Consumption or cash withdrawals after the bill date will be calculated into the next month's bill.
In fact, the bill date is not the reference date for repayment. Repayment must be made before the bill date, that is, before the bill is generated, which is equivalent to early repayment.
Whether or not to use advance bill payment depends on the type of transaction.
There is no need to rush to pay back consumer transactions. If it is a consumer transaction, since credit card purchases enjoy the interest-free period, which ranges from 20 to 56 days, there is no need to rush to repay. Your money can be kept to earn interest or be used for other purposes without having to repay in advance. . Just pay it back one or two days before the due date. However, if you want to repay via inter-bank transfer, it is best to repay one day in advance to avoid being unable to repay the money on the same day due to special circumstances.
If you withdraw cash by credit card, there will be interest or handling fees. At this time, the sooner you pay back the money, the better. You can save interest or handling fees by paying it back as soon as you have money in hand, without having to wait for the billing day or the repayment day.
If you have already made an installment transaction, ask for it before paying it back. For transactions that have been billed in installments, you need to confirm with the card-issuing bank how the installment fee will be calculated if the payment is made in advance. If the installment fee is still charged according to the original standard, there is no point in repaying the loan in advance. If you can reduce the handling fee, you may consider repaying the loan early.
However, the following groups of people are reminded that it is necessary to repay in advance:
Card-supporting type: This type of people basically pay bills every month with empty cards, tearing down one wall to make up for the other. This long-term operation will lead to an excessively high debt ratio, which may range from no increase in credit limit to a lower limit in worst case. !So you need to repay before the bill date to reduce the debt ratio!
Card-raising credit limit category: This type of person may pursue a high credit limit, but their qualifications are limited, and the bank's approval limit is not very satisfactory, so they need to raise a card to increase their credit limit, but their credit limit is limited and can be used up in a few transactions. At this time, you need to repay the loan in advance and continue to use it, so that the total amount of your card payments far exceeds your credit limit to increase the chance of a credit limit increase!
Excessive debt category: This type of person may have a loan plus a credit card credit limit that is too high, causing the bank to disapprove their application for a credit card. Therefore, they also need to reduce their debt by repaying before the bill date to increase the chance of card approval.
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