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PAYING THE CREDIT CARD BILLS IMMEDIATELY

In today's world plastic money has overtaken the use of paper money. People now tend to carry more plastic money than cash or paper money as it is safer and also has certain added benefits. But as each coin has two sides, the most widely used plastic money i.e. CREDIT CARD has some advantages and disadvantages. Credit card gives you with the power of buying things on credit i.e. when you don't have immediate cash.

CREDIT SCORE

There is a concept of credit score in the usage of credit cards. It means according to the balance present in your credit card you get some scores. The higher the balance in your credit card the lesser the score and the inference from such a score is that you have not paid the bills of the credit card and thus you are not a good customer for the banks to give loans in future. The lesser the balance in your credit card the higher is your score and you can then get better credit card offers, better interest rates for houses and can also avail bigger loans.

ACCUMULATED DEBTS

As the bank is giving money on credit so it charges some interest on the amount that it has credited. Ultimately there is accumulation of the debts and the amount goes on increasing day by day. You have to pay the credit card debts from your own savings only and that too through 'real money' or 'paper money'. So it becomes an extra burden on your shoulders to clear such debts because it now becomes your liability to pay out the debts. Also there may be some restrictions imposed upon you by the creditor bank such as paying a minimum amount of the credit card debt etc. this shows that

CONCLUSION

As no one needs the added stress of paying the credit card bills and whether they can afford to pay the minimum balance of the card or not, it's better to pay the credit card bills immediately and get relieved of the pain of added liability on your shoulders. Moreover you also get some benefits by paying the bills immediately and by having a good credit score.

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