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How to Pay Credit Card Bills in Cash and How it Affects Your Credit Score

In February 2019, approximately 47 million credit cards were in operation in comparison to some 36 million credit cards in February 2018. This data shows promising growth in the popularity of the credit cards. The reason is there are a few benefits attached to using credit cards.

Credit score usually improves when you pay your dues within the grace period and use only 40%-50% of your credit limit. Credit cards bills can be paid by different means such as mobile payments, online banking, NEFT/RTGS, etc. You can also pay credit card bills in cash. It is one of the offline modes of payments, others being cheques and demand drafts.

How to pay credit card bills with cash?

When paying your bill with cash, it incurs a charge of Rs. 100 along with 18% GST which brings the fee to Rs. 118.

Generally, every credit card issuer facilitates bill payments through cash. You need to walk into your nearest offline facility, fill a form, enter your credit card details and pay the amount along with the charge of Rs. 118. This charge varies in a few banks.

Another method of using cash to pay credit card bills is to have the bill paid via customer service who will send a representative to your location as per your convenience. It does away with the hassle of going to a branch to pay credit card bills in cash. This method also entails an additional charge. Note that such features may not be available with most financial institutions, just what you should always check before availing the card.

Does it affect your credit score?

If you want to avail loans or higher limits on your credit card, it is crucial to how you use it to improve your credit score. The score usually depends on these two few factors as far as credit cards are concerned –

  1. Spending habit: Every credit card type has a specified credit limit. This is the line of credit made available to you for usage with the card by the user. If you expend more than 50% of your available limit, it reflects badly on your credit score as you are deemed as a credit-hungry individual.
  2. Repayment history: It also checks how promptly you have responded to loan or credit repayments in the past. If you have maintained a steady repayment history, it reflects positively on your CIBIL score. The RBL Credit Card comes with in-built instant personal loan facility. Loans can be availed against the existing unutilised credit limit and repaid in as less as 3 EMIs with only a flat 2.5% processing fee.

They also have pre-approved offers which essentially make availing cards or loans fast and simple. These offers are provided on several financial products including credit cards, home loans, business loans, personal loans, etc. You can know your pre-approved offer by providing your name and phone number.

Other than these two major factors and a few other factors such as credit mix, loan servicing term, requests for a higher credit limit can affect your credit score. It remains unaffected if you pay credit card bills in cash.

Other repayment methods

There are a few more ways by which you can repay your credit card debt:

  1. Cheques/demand drafts: You have to issue a cheque or demand draft in favour of your credit card company and drop it at an offline branch.
  2. Net Banking: If you have a savings account, you can pay from it via the mobile app. In this case, you have to register your credit card account as a beneficiary into the app to directly transfer the amount to your card company.
  3. Mobile wallets: This method is growing popular with the increasing usage of mobile wallets almost everywhere. It is not required to register your credit card with any mobile wallet to pay.
  4. NACH facility: It is an extremely convenient way of repaying bills. You can link your savings account with your credit card and every month the payment will be transacted automatically.
  5. MyCard app: You can make your Bajaj Finserv RBL bank credit card payments directly through the MyCard app.

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