A credit card is a loan program provided by a bank. With this card, customers can buy goods and services they want without having to drain their savings or use cash.

But just like other banking loan programs, customers must also pay off their credit card loan. Fortunately, installment payments for this loan facility can now be done online without having to go to a branch office directly.

Below are the ways to pay Honest credit card installments and the benefits of paying credit installments on time.

How to pay credit card installments

Paying Honest installments only takes less than 1 hour. Here are the steps:

1. Open the Honest app
2. Select the pay menu.
3. Determine the installment amount you want to pay by sliding the point on the line to the right.
4. If it is correct, click confirm payment amount.
5. Select the payment method. Honest credit card installments can be paid through 3 methods: online bank transfer, using an ATM machine, and paying the bill at an Indomaret cashier.
6. Click the payment method you choose. For payment using an online bank transfer, you can copy the account number listed in the payment instructions and paste it into the transfer menu of your mobile banking application. If you use Indomaret services, show the payment barcode to the cashier and deposit the amount of money corresponding to the bill amount.
7. Honest will send a notification when the installment payment has been received.

Tip:

1. Download the payment instructions by clicking the "Save as screenshot" menu so you don't need to open the Honest App again to find out the payment code. This is especially useful if you are paying off the installment using an ATM machine.
2. Avoid minimum credit bill payments for better credit scores and financial management.

Benefits of paying credit card installments on time

1. Potential for zero interest charges

Slightly different from other types of credit, credit cards have a period called the grace period. The grace period is the time interval between the credit card bill statement date and the credit card bill due date. If you pay off your entire credit card bill during this period, the bank will not charge any interest.

For example, your credit card bill statement date is January 31, while the due date is February 21. Then, you pay off all your credit card bills on February 15. In this case, you do not have to pay interest on the loan you took out.

If you can only pay off part of the credit card bill, you will still be charged interest. However, the interest amount you have to pay will not be as large as if you didn't pay off the loan at all.

For example, you have an Honest credit card bill of Rp1,000,000 with an interest rate of 1.75% per month. When the grace period arrives, you can only pay Rp800,000. In this case, you only need to pay interest on the remaining loan (Rp200,000), which is Rp3,500.

2. Maintaining a credit score

Another benefit of paying off credit card installments (and other types of credit) on time is that your credit score at OJK will remain good. This is because the credit score is determined by the customer's ability to pay installments. The more diligent a customer is in paying installments, the better their credit score will be.

A credit score is one of the main factors for a bank to approve a loan to a customer. So, if your credit score is good, you will certainly find it easier to access other banking loan programs.

3. Potential for limit increase

Want to get a larger credit limit? Pay your installments on time! This is because paying installments on time directly indicates that the user is capable and willing to pay off the credit card bill. Consequently, the trust of the bank or card issuer in the customer will increase.

The Honest credit card has a maximum limit of 100 million rupiahs; it would be a shame if you couldn't get this limit, right?

4. Greater peace of mind

In the general credit card scheme, late installment payments incur not only interest but also late fees. Consequently, the amount of the installment you have to pay will also become larger and burden your mind.

The Honest credit card does not charge late fees. However, paying Honest installments after the grace period ends will certainly incur interest, and the longer you take to pay off the debt, the larger the loan amount you have to pay will be. So, to avoid stress, it is best to pay credit card installments on time.

Get the maximum benefit from your credit card by using this payment facility wisely. Avoid using this card for unnecessary things and pay your bills on time so you don't have to pay interest and stress about your financial condition in the future.