When reading about credit card tips and advices, paying your bills on time is often at the top of the list. And if you think that the reasons are quite obvious, this article will emphasize and highlight the reasons why it is important for every credit card holder to take his payment dues seriously. Why should you pay your bills on time? If you think that occasional late payments are okay, read on and be warned:

The longer you linger with debt, the more risk you put yourself in. Most credit card holders are in the habit of submitting only the minimum payment each month. But doing so means stretching your repayment period for a longer time than you’re supposed to. Of course, your credit card company is okay with it since you are being charged with the interest rate anyway. But if you think this is okay, realize that you’re putting yourself at risk of uncontrolled debt sooner or later.

You are badly hurting your credit. Not paying your debts on time damages your credit history. Timeliness of payment makes up 15% of your total credit score so even just a single late payment can make a big difference. On the opposite, paying on time greatly improves your credit score. And everyone knows that a higher credit score is a pass for better rates with lenders.

Late payments forfeit rewards and incentives. Credit cards with reward programs are very strict with their rules. You may be working hard trying to collect your points in your account but just one late payment can put all your hard-earned points to waste. Thus, not only are you disqualified from earning your rewards, you’ll also get penalized with high interest and late charges.

Late payments mean additional charges. Late payment means you’ll be charged with interest rates and late penalty fees. Imagine how much it would cost you if your credit card charges you with 15% interest plus late fee. You could have saved that amount and use it for more important expenses. Why pay these additional costs when you can save your money by paying your bills early?

Late fees could mean interest rate hikes with your other creditors. Have you heard of the “universal default” clause? If not, then you should be more concerned about late payments. Even if you’re up to date with your debts to other creditors, they can still penalized you by increasing your rates without your notice based upon your one credit card account. However, the new Credit CARD law has prohibited creditors from imposing the “universal default” clause. Still, delinquency for 60 days allow creditors and credit card companies to increase the interest rate of the borrower.

Unpaid bills cause headaches and stress. Seriously, not being able to keep up with your bills on time is a great emotional burden. As your late fees add up, you become more anxious, stressed, worried about how you can get rid of your debts. In consequence, your personal relationships are affected, your performance at work is disrupted, your peace of mind – robbed. So why put yourself through all these emotional burden when you can avoid them?