7 Reasons why you should always pay your credit on time

With so many needs to take care of, it’s no surprise that many people choose to take out credit. Taking credit can be a smart move as long as you manage and use it wisely.

One clear sign of a healthy financial life is whether or not you can pay your credit on time. Why is that so important? Well, here are 7 reasons why paying your credit on time really matters. Let’s dive into it!

1. Avoid late payment fees on your credit card

First thing first, before you even apply for a credit card, you should know whether it comes with late payment fees or not. Just so you know, late payment fees are different from credit card interest.

That means you’ll still be charged extra fees on top of the interest that’s already applied. Sounds like a pain, right? Most credit card providers do apply late payment fees that vary depending on their policy.

But it’s a different story with Honest Card. Honest doesn’t charge any late payment fees at all. Honest only has one fee, a monthly admin fee. But don’t let that be your excuse to skip paying your bills on time. Even though there’s no penalty fee, interest will still keep adding up if your payment isn’t complete.

2. No interest if you pay in full

Most credit cards charge interest if you only pay part of your total bill. But here’s the good news: no interest will be charged as long as you pay your bill in full and on time. So, it’s not just about paying on time, you also have to make sure you don’t leave any remaining balance.

For example, say your credit card bill is IDR 2,000,000. The minimum payment you can make is IDR 100,000 (5% of your total bill). You plan to pay that IDR 100,000 on time, and that’s totally allowed.

However, that means you’ll still have unpaid debt from your remaining balance. To avoid extra charges like interest, it’s best to pay the full amount of IDR 2,000,000 or continue with installment payments until it’s all cleared.

Here’s a bonus: if you use Honest Credit Card and always pay your bill in full and on time, your monthly fee could be refunded. It’s Honest’s way of rewarding users who manage their finances wisely!

3. Keep your credit history in BI Checking safe

Ever wondered why some people get rejected when applying for a loan or a credit card? One major reason is a poor credit history, especially when checked through BI Checking (Indonesia’s credit information system).

Bad credit scores often happen when you don’t pay your credit card bills on time. The system will mark you as someone who doesn’t handle debt responsibly. As a result, banks and credit providers might hesitate to trust that you can pay your bills reliably.

So, if you want to maintain your credit score and keep your future loan applications smooth, paying your credit on time is the way to go!

4. Higher chance of getting a credit limit increase

Your credit limit won’t go up just because you want it to. One of the key factors that banks and credit card providers consider is how consistently you pay your bills on time.

The earlier you pay, some even pay before the bill is generated, the better your chances of getting a credit limit increase. And what does that mean for you? More room to make transactions!

For example, Honest Card offers users the chance to increase their limit each month just by paying on time. Even minimum payments are considered toward eligibility. Pretty awesome, right?

Of course, any credit limit increase will still depend on the agreement between you and your credit provider.

5. Helps you manage your money more effectively

Paying credit on time helps you build a more organized financial routine. Why? Because it gets you used to staying disciplined with payment schedules and helps avoid surprise charges like interest or penalties.

Even better if you use the auto-debit feature from your bank account to your credit card. That way, the system takes care of it. Your payment gets deducted automatically each month, and you don’t risk forgetting. It’s efficient, practical, and keeps you on track with your monthly budget.

6. Avoid collection calls and legal action

You’ve probably heard stories about debt collectors or bank reps showing up at someone’s home or even the issue escalating to legal action. One major reason that happens is people failing to pay their credit on time.

If you’ve been given flexibility or relief options and still don’t fulfill your payments, the bank has every right to take further steps including contacting you directly. You definitely don’t want it to come to that, right?

So just keep it simple, always pay your credit card bill on time.

7. Not all cards give rewards, but Honest rewards the wise

Not all credit cards reward users who consistently pay on time. Most of the time, rewards like cashback, points, or discounts only apply to specific transactions, not because you’re disciplined about paying your bills.

But it’s a different story when you use Honest Card. Honest gives real appreciation to responsible users through two key programs:

• Admin fee refund
  If you pay your bill in full and on time, your admin fee will be refunded directly to your balance. So you can feel the savings right away.
• Automatic credit limit increase
  If you pay on time, whether in full or partially, you have the chance to get a limit increase every month. That way, your transactions become more flexible and convenient.

These two benefits are Honest’s way of rewarding you for managing your finances wisely. So paying on time doesn’t just give you peace of mind, it also gives you real, tangible perks!

Now that you know the 7 reasons why paying your credit on time is so important, there’s really no more excuse for falling behind. Build a healthier financial future by managing your spending and credit payments wisely.