Why should you pay your credit card bills early? Did you know that missing your due date or delaying your payment by even just one day can put you at risk of bad credit? Even worse, frequent late payments can badly damage your credit score.

Listed below are reasons why you should submit your credit card payments as early as possible.

Late credit card fees hurt your credit.

Your FICO score is calculated based on five main factors, one of which is timely payment. For your information, payment history makes up 15% of your total credit score so even a single late payment may cause your rating to drop by a number of points. On the contrary, consistent prompt payment can improve your credit standing.

Late fees mean high interest rates.

Not paying on time and not paying your balance in full would mean paying additional interest rate charges. Can you imagine how much more you end up paying your credit card company on interest rates alone?

Late fees mean paying late penalty charges. Of course, if you are late in submitting your payment, you will be penalized with a late penalty fee. Why pay more when you can avoid extra costs simply buy following your payment schedule?

Late fees can cost you to lose your rewards.

If your credit card offers rewards, you can lose your points or forfeit your rewards if you miss your payment. Yes, most reward credit cards have very strict rules when it comes to payment submissions. Instead of enjoying your rewards, you may not get rewarded at all.

Late fees mean debts rising.

Missing your credit card payments from month to month would cause your debts to accumulate quickly. What if you encounter unexpected expenses on the following month? Obviously, paying off your credit card debt would become a burden. In fact, many people have fallen in the debt trap as a result of debt mismanagement.

Unpaid credit card debt causes stress.

Needless to say, being stuck in bad debt causes stress and anxiety. By being always on time with your payments, you can avoid the hassle of being chased by your creditors. Paying your debts on time sets you free from possible headaches and pain that bad debt can bring.