Ways In Which Paying UPI & Credit Card Dues Can Be Rewarding

Credit cards and UPI money transfer can cater to numerous needs and requirements, from routine shopping to paying utility bills to withdrawing funds during times of contingency. In a sense, it is a short-duration unsecured form of instant loan.

You won’t be charged any interest or penalties if you can pay diligently and on time. Let us investigate more details about paying the credit card dues or making UPI payments on time.

Lets you save on high-interest rates:

  • Credit cards are known for carrying the highest interest rate for any loan product. The rate of interest ranges from around 35-40% every year.
  • It is estimated on the outstanding amount, and this is done daily.
  • If you cannot pay your credit card bill or settle payments through UPI transactions on time, your outstanding amount can accumulate to a big sum.

Avoid late payment charges:

  • This fee is incurred if you fail to pay even the bare minimum amount due on your credit card, which depends on the outstanding amount.
  • As you can keep the late payments at bay if you pay the minimum amount well on time, you will still be required to pay interest charges if you are not paying the outstanding amount in full.
  • One solution to this concern is to make sure that payment is made on time on the amount you can afford to pay off the outstanding amount. Thus, this will let you decrease your interest burden to a certain extent.

Available credit limit stays high:

  • Each credit card comes with a total credit limit set by the bank according to your income, credit base, employment status and other factors; you can spend up to your set credit limit.
  • Also, an available credit limit refers to the amount available after swiping your card.

Favorable effect on credit score:

  • Making payment of your credit card bills on time in full provides you with an assurance that your credit score remains on the positive side and is also good for your credit history.
  • This means that you, as a borrower, are creditworthy enough and quick with your repayment.
  • When applying for a loan or other credit card, the bank will consider and approve your loan more quickly or even might approve a higher amount.

Bank might improve your credit limit:

  • After making your credit card repayment on time and in full, your bank might provide you with a greater credit limit on your card, which can be of great help if you require money during emergencies.
  • A greater credit limit can also help since it can keep your credit utilization ratio on the lower side. This ratio refers to the difference between your credit card limit and the amount you can spend on your card.
  • If you have a high credit limit but use only some part of it and redeem it daily, this is positive and might let you boost your credit score and history.
  • The lesser your credit utilization ratio, the better will be the effect on your credit score.


When you pay using your credit cards or UPI banking wisely, you may reap more rewards and save better on your expenses. Credit cards have great earning potential in cashback, offers, discounts, etc.

However, it would help if you stay alert when utilizing the card or using an app such as BHIM UPI  since it might cost you greater when making payments on certain portals.