25 May 2021
Using a credit card can help you in building a strong financial foundation. It’s not just about getting quick access to the money right now, but maintaining that access for the rest of your life! By paying your credit card bills regularly, you’re also usually eligible to obtain credit card rewards and will also be able to obtain a good credit score.
That’s how credit cards work! But here’s the broad idea, explained:
Your credit utilization ratio, which is how much you owe currently compared to your actual credit limit, accounts for about one-third of your score. A higher ratio, especially when combined with bad payment history, will severely affect your credit score and make it impossible for you to further obtain credit or loan.
Credit cards are known to charge some of the highest interest rates, especially when there are late payments. The interest is not even tax-deductible, therefore, you will be paying a hefty price for the money that you had borrowed.
EarlySalary is now offering Smart Pay options to repeat customers, via which you can clear off your credit card debts easier than ever before. Now you no longer have to pay the minimum due amount on your credit card and accumulate huge interest on the balance unpaid amount. Rather, with your approved EarlySalary limit, pay off your entire credit card outstanding via a simple journey on our app, and your new EarlySalary loan will be created @50% lesser interest than what you would have paid on your credit card.
The payment of your credit card debt will be reflected in your account within 2-3 working days. Right after this is done, your SECC loan account will be created with low interest rates, at your preferred tenure.
By using Smart Pay, you will not only clear your credit card debt but will also be paying half the interest amount that you would be paying the bank. For example, with an outstanding credit card bill of Rs. 50,000, generally you would be paying an interest amount of Rs. 13,931 for 12 months, but by using Smart EMIs credit card debt payment, you will be paying only Rs. 6,375 for 12 months. You will be saving approximately Rs. 7,196, that is almost 50% of your interest.
While that stands out as the main reason to opt for Smart Pay, there are other advantages of using it too. They are:
To be eligible to obtain the smart pay option, you just have to check these boxes off.
It’s easy to fall into the trap of credit card debt, but it can get hard to find a way out of it. Always plan to pay more than the minimum monthly payment amount, and if you’re running a substantial balance, focus on paying it off as quickly as possible through an instant loan. The longer it takes to pay off the debt, the more money it will end up costing you.
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