Why pay more than minimum amount to boost mycibil

Paying for your credit cards and other loans month-after-month can become a bit overwhelming. Many among us repay their credit card balances at one go, while many struggles paying even the minimum amount. There could be many among us who could belong to the second category and in the process, it is the crucial ‘mycibil’ that gets affected. The constant effort to remain on top of your scores is draining and exhausting after some time. 

Before we move on, let us understand what is meant by paying a minimum amount. A minimum balance on the credit card is the percentage of the outstanding balance that is used to calculate the cardholder’s minimum payment every month. Financial gurus time-and-again have advised cardholders to make it a habit to pay more than the minimum due amount. 

Credit cards and mycibil’ scores go hand-in-hand. If you have been paying only the minimum amount and making additional purchases on your card each month, your credit score is bound to suffer because your balance keeps on growing. Keep in mind you are responsible to take care of your scores and keep them growing rather than making them shrink. So, we are here to tell you why it is important to pay a little extra every time. 

• You are considered a good borrower: A person who pays more than the minimum amount is considered as a low-risk borrower. Lenders think of him as someone keen to repay the balance amount and a person with a sound financial background. It is important to stay in the good books of the issuer.
• Helps get a loan in future: When such good borrowers apply for credit in future, their chances of credit getting processed is much higher than someone who pays the minimum balance. Issuers feel such payers are less likely to falter while making loan payments. 
• You save on interest: When people concentrate just on the minimum due amount, they end up paying more. This is because they are paying the interest rate which is quite high and often they do not realise it. Paying the interest for months takes a toll on your purse and eventually on ‘mycibil’. Hence, you must pay a little extra every month to save yourself from paying those high-interest rates. 
• You clear debt soon: Paying just the minimum dues keeps the cardholder in debt for a longer period. Ultimately, along with the interest rate, the cardholder ends up paying much more than they are supposed to pay.  

The bottom line is that while it is important to repay the credit in time and regularly, it is equally important to set your priorities with credit cards. This will do well for your scores and your overall financial health. Stay with us at https://civilscores.com/civil-score-calculation.