People with credit cards have to sit down at the month end to do the calculation of how much should you pay on your credit cards?. That may be the minimum statement amount or the total statement balance or some other amounts. You need to calculate it wisely.
You need to aware of credit card debt and the interest that needs to pay for the maintaining balance in the credit cards. Also, you should be aware of common credit card mistakes done while paying the credit bill. You also need to gain knowledge about credit card utilization.
Table of Contents
1) How much should you pay on your credit cards?
A credit card will be a mysterious payment tool if you won’t use it properly. Every time you swipe the card, remember that you need to repay it to the banking institutions and the credit card companies within the due date.
Otherwise, you pile up on credit card debt. To avoid these circumstances you need to know How much should you pay on your credit cards every month?. Following are some of the methods of paying credit card bills.
1.1) Paying the complete balance in the credit statement
The first option to choose how much should you pay on your credit cards? Is paying your full balance mentioned in your credit card statement. You will receive a credit card statement before the end of every billing cycle.
Paying the total balance has acquired several benefits. Below are the advantages gained for paying the complete balance:
- You should be provided with a credit card grace period. It allows you to pay the upcoming balance without interest even after the end of the billing cycle.
- This won’t allow you to make the credit cards debt.
- They will leave your credit limit open. So that you can make new purchases with that credit limit.
The main disadvantage of not paying your full balance is you will be charged additional interest for the balance you kept. This will goes on multiply if you keep on increasing the balance.
1.2) Paying the minimum amount in the statement
We can’t properly handle the money all the time. Sometimes we could face any emergency. So that you could be run out of money that month. At the same time, you also need to pay the credit bill statement within the due date.

In these circumstances, they have offered you to pay the minimum amount mentioned in the statement to avoid the issues of late fees on the credit report. The late fee on the credit report will affect your credit score. This feature is impossible if you have a charged cards. It will apply only to those credit cards.
This option is only advisable when you don’t have a positive financial situation. Even if you are unable to pay the minimum amount, kindly contact the credit card issuer to sort out these issues. They will provide additional possible ways to get free of late fees.
1.3) Paying between the utmost and at least
If both the above options are not convincing you can pay between the total balance and the minimum amount. Though it can’t able to reduce the interest to 0%, it will reduce the interest based on the amount we pay.
Your rate of interest will be low. It will help you to clear the balance in a shorter period. Choose the amount you can arrange in the month-end without the financial strain. Pay that amount to reduce your credit card balance.
1.4) Paying off debt
When you own multiple credit cards, it becomes a little more difficult to manage. Combine these two strategies while for multiple cards. Pay the full balance on the card which has a higher late fee. Pay the minimum amount to the remaining cards.
This will be an effective way to reduce your credit debts over multiple cards.
2) What are the steps to be followed for paying credit bills?
- First, get the credit statement and look for the statement balance. Find how much you need to pay according to your bill. The statement consists of the total balance and the minimum amount to be paid to avoid additional charges.
- Look for the due date in the statement.
- Simply pay off your total statement balance within the mentioned due date.
- It will save you from charging interest.
- For Example, if you have received the statement on August 1 and your due date is on October 1. You need not pay the total balance in a single payment within October 1 or on October 1. You can pay it in ⅓ terms or ¼ terms. The number of payments within the due date is not matters. What matters is paying off the total balance within the due date.
Paying late to the bank might get effects badly your credit score, and your borrowing power. It would be a negative impact while going for auto loans, car loans, and housing loans. All these limits can be easily managed by having the credit card utilization less than 30%
3) What are the credit card myths you need to focus on?
Certainly, credit card has a lot of myths. Due to these myths, you can affect your credit score. Below mentioned are some of the myths which you should keep in mind to build a good credit score and to be a successful crest card user.
3.1) Credit utilization
“Paying off more than your minimum will be fine”. This is also a myth. Your credit and credit usage are based on your utilization of your available credit utilization. In simpler terms, you can determine your credit utilization by how much you owe? And the total credit card limit.

It will be better if you keep your utilization limit below 30%. Lower the limit better the utilization. For Example, 50,000 is your credit card limit, then 15,000 will be the better credit card utilization amount.
3.2) Carrying a balance in the card is good
You may come across hearing this statement. “Carrying the balance on the credit card every month will be good enough”. This is completely a myth. Surely you are going to give your money to somebody else if this happens.
You will be charged interest every month for the remaining balance on your credit card. Try to pay off those balances and save your money.
This must be a big factor in credit score. Use it wisely don’t get distracted by myths.
To know more about: Top advantages of using credit card

Hereby concluding that always utilize the credit utilization below 30% which will be the primary tip to manage your credit card. In this way, adopting these strategies pay your credit bills at your convenience. Clear all your debts by paying the bill on a regular basis. Use this credit card tool in a beneficial way.
FAQ
The three reasons are you need to pay the interest amount for the credit balance, secondly, you need to pay it for a longer period, and finally, it becomes hard to borrow.
In the event that you keep a Visa account balance month to month, making different little or more payments can decrease your interest rate. That is due to premium builds dependent on your normal everyday balance during the charging time period. The lower you can keep the equilibrium step by step, the less interest you pay.