When it comes to financial wellness, financial literacy is absolutely necessary. Just like how overindulging carbs and sweets can sabotage your health, spending more than you can afford can be disastrous to your financial well being. Let us take you through a much needed session on how much balance to maintain and how to pay off your balance and dues.
Already have your slice card? That’s just perfect, you’re one step ahead in the game! Ready to level up on your knowledge? Here’s the scoop on how your slice monthly statement and balance works.
What is your slice balance?
Here are two terms you must know when it comes to understanding the slice app and payments.
Card Balance– This is the amount you’ll see on your app and it displays how much you have left to spend on your card.
Total Spends- The total amount you have spent on your card since your last statement.
When you repay your dues that is, your total spends, your card balance is set back to your credit limit. Throughout the month you can put everyday purchases on your card, anything from groceries to Netflix. Each time you swipe your card, the amount from your card balance will instantly get deducted and is added to your total spends tab.
How much balance do I maintain to improve my credit score.
To understand adequate balance to maintain per month, you need to understand your credit limit and the term credit utilization. In financial terms, ‘utilization’ is the ratio of your credit card balance to your credit limit. There is no set rule when it comes to utilization, however, wise ones say that your outstanding balance should remain below 30% of your credit limit because high utilization can actually do more harm than good. For instance, if you have a credit limit of ₹60,000, you must look to have a total expenditure of ₹18,000 or lower.
Credit Limit to your rescue! To put it in simple terms, every card has a credit limit that you can spend on a monthly basis. As long as you clear off the balance by the end of the month, you have a higher chance of improving your credit score and increasing your monthly credit limit.
Understanding your statement.
A statement is a summary of how you’ve used your card for a billing period. It contains the details of all your completed transactions so you have thorough knowledge about your expenses. Another amazing feature on the slice app is the passbook (link decoding slice app blog) feature. It helps you view all the bills and refunds as well as gain insights on your spending habits.
You will receive a monthly statement on your email with a summary of your expenses of your previous month. For example, your January expenses are summarised in the statement and sent to you in February.
How to pay off your balance?
On the 2nd of every month, you will receive a slice payment reminder email which has all the details of your total spends and expected payments. You can head to the slice app to pay off your bill. You have an option to either pay the entire amount with one time bill payment at no extra cost, or you can convert your bills, in other words, slice it into EMI’s as per your convenience.
However, if you do not select your payment plan before the 8th of the respective month, you will have to pay the full amount without the flexible EMI options.
Once the bill is generated, pay your dues in three easy steps:
– Head to the slice app and click on the “Repay” button in the bottom bar of the app.
– Tap on “Proceed to pay” to repay the amount due.
– You can either pay using UPI modes of payment or add your debit card.
Voila, you’re done!
Now you’re all set to build that perfect credit score. The journey of building credit can take some time, we’re here for you to help you achieve that financial peace of mind! Keep an eye out for more blog content to help you get the most out of slice!