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utility bill concept and credit score

Utility bill concept and credit score. How are they related?

Utility Bills concept is often considered overwhelming. While it adds up to the monthly expenditure, it also makes everyone’s life much easier by offering several benefits. Some of them include improvement in the credit scores, faster loan approvals, and so on. It’s safe to say that regular utility bill payment saves everybody a huge deal of trouble.

Thus, let’s begin by understanding the importance of these regular bill payments in much detail.

Why make timely payments?

 At times, many people often fail to pay their utility bills on time for several reasons. Some of these include willfully avoiding the payment, running short on cash, or simply forgetting the due date. Nevertheless, it’s never a great idea to forego paying monthly bills. Doing so can adversely affect your credit rating!

A history of late or missed bill payments results in a poor credit score. And hey, when you have a poor credit score, you will most definitely struggle to get a loan from financial institutions. Even if you somehow manage to secure one (despite the low credit score), they will charge you with a relatively higher rate of interest. Either way, it will only make things difficult for you!

Thus, it is important to ensure that all your bills including those of electricity, water, gas, internet, or cell phones are paid on time without fail.

So, we’ve listed down some of the best and easy tips to help pay your bills at regular intervals. Here, take a look:

Understand the billing cycle under utility bill concept

The first thing that you need to do is understand your billing cycle. So, go through all the past bills and identify the due dates. Once you’re able to crack it, you’ll instantly notice that the due dates are classified into two groups:

  • Bills that are due earlier in the month (for instance, 5th of every month)
  • Bills that are due later in the month (for instance, 20th of every month)

Many providers make the task easier by sending bill payment reminders. For instance, Airtel Thanks usually sends notifications whenever the bill is generated.

Set reminders and alerts

It is one of the easiest ways to ensure timely bill payments. So, make it a habit to either set up phone calendar reminders or email and text alerts. Besides, you can also check out the various financial applications that allow in setting monthly reminders on your device.

Choose an auto-debit option

Are you struggling to track your credit card payments? Well, in that case, the auto-debit option will work the best for you! Why? When you choose an auto-debit option, your money will instantly be deducted from your credit card.

Track your credit report

Well, this is quite important! It is a vital piece of information that determines your overall financial health. Thus, see to it that you monitor your credit report from time to time. Doing so will help you fix all the grey areas in your reports and boost your credit score in return.

Maintain a monthly budget

Many people often spend money impulsively on unnecessary items. Such impulse purchases, although trivial, can end up exhausting the savings. So, the only thing that actually works here is to have a well-crafted monthly budget. Once you have a budget in place, see to it that you abide by it in order to control your impulse buys in the future.

In a nutshell, bill payments are an essential factor to boost credit scores. Now that you have understood the utility bill concept in entirety, make sure you pay all your monthly bills before the due date by following the above-mentioned tips. Another way to ensure that you never skip the payments is by downloading the Airtel Thanks app. It sends reminders as well as allows you to track the payments!