What if we told you that not paying your credit card bill on time will impact your credit score in ways you cannot imagine or ignore. (Don’t say, we didn’t warn you!?)
Here are 7 things that get affected due to late credit card bill payments.
Getting a mobile phone
Yes, read that again. Something as simple as buying a mobile phone can be affected due to bad credit. Smartphones these days have become rather expensive. Therefore, buying one on credit does make sense. You need to simply shed out $50 a month to own that iPhone you really like. However, if you have a damaged credit score, your spending limit on the credit card goes down, and you might not be able to buy it. Also, most telecommunications providers check your credit history before offering a postpaid phone contract.
Renting an apartment
Whether you’ve just made the big move, or have been around for a while, renting seems like a great option. Until your finances allow you to buy that dream house, renting a house may require you to show your credit history to your landlord or property management company. A poor credit score may lead to a higher security deposit or non-approval at all. Can’t live in an Airbnb forever, can you?
Landing a job
When you apply for a job in the U.S. some employers might access your credit history. What’s noteworthy here is that they don’t have access to your credit score, which limits access to certain personal information. However, in some states, a credit history check by employers is permitted to help them understand your creditworthiness. So if your credit history is damaged, it could mean that you might come onboard with a debt burden and the company certainly isn’t ready for that.
Buying a car
While automobile loans in the U.S. are available as freely as air, interest rates on these can sometimes be determined based on your creditworthiness. If you have paid your credit card fees later than the due date for months back to back you might see a surge in interest rates on your application for a loan.
Paying for insurance
When it comes to health and life insurance, the premium amount directly depends on your health - this is a no-brainer. But did you know that insurance premiums also depend heavily on your credit history? If you have a long-standing history of paying your bills on time, the one thing that really lowers down is your premium over time.
Diminishing credit limit
One of the primary reasons you got yourself a credit card was to be financially independent. Uhm, who are we kidding? It was definitely to buy things we couldn’t afford to with the money we already had in hand. But if you are not able to pay your credit card bill on time over prolonged periods, your credit card limit will surely take a hit. The lender is notified about this and may regard your inability to pay on time as a drawback to your credit history.
Crushing entrepreneurial spirits
Unless you’re Bill Gates or own a garden full of money plants (quite literally), you would require funds to start up a new business. With a bad credit score, borrowing from banks, and other NBFCs (Non-Banking Financial Companies that lend and advance loans) could prove to be an uphill task. Lenders are known to hesitate in processing your business loan applications due to your poor credit history and impending dues.
Now that you know what’s at stake (which literally spans across everything in your day-to-day life), how do you ensure you pay those bills on time?
How do you ensure that you clear your credit card bills on time?
In case you’re looking to save up on time, money and effort apply for the Zolve U.S. Credit Card, download the Zolve app and we make sure your money runs on auto-pilot.
- Set a reminder
The Zolve app sends you regular reminders about bill generation and payment due dates. - Track your spending
Nothing easier than tracking where you’ve spent your money, so you know what’s due when. And Zolve lets you do exactly that!
