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There are a lot of benefits to paying business bills using a credit card. It can be a great way to rack up points and rewards, but there are also pesky penalty fees, that you need to be aware of. Splitting your bills into two different payment groups is one way that can help you avoid late penalties and ensure you don’t pay over-the-limit fees.

Avoiding Over-the-limit Fees

Over-limit fees are a penalty imposed by your credit card provider for making a purchase that exceeds your credit limit. The fees are a way for credit card companies to discourage risky spending. Furthermore, if you go over your credit limit, you may be charged a higher annual percentage rate (APR) and your credit score and history will be affected. To avoid these charges, it’s always a good idea to know what your rights are, and your credit limit. 

Over-limit fees are usually not a huge issue for businesses with good credit. If you opt-in for an over-limit protection plan, you can avoid fees. If you don’t, you may be charged a fee, which is usually $25, although some companies charge a smaller amount. Regardless of if you opt-in or not,  you may have to pay a fee for your first over-the-limit transaction, but you can at least avoid having your account closed.

Creating a Budget for your Expenses

It’s easy to keep track of your expenses when you use your credit card, as all of the information is digital and available through your credit card statements. Furthermore, creating a budget for your expenses with your credit card can be a great way to manage your finances. When you create a budget, you can track your spending and redirect money toward financial goals. 

First, determine your monthly income and your expenses. You will want to subtract these from your total monthly income to find out how much you can afford to spend. This is called the expense-to-income ratio.

Once you’ve determined how much you can afford, you should divide your expenses into categories. For example, you may have fixed expenses, like rent or a cell phone bill, and variable expenses, like groceries or gas.

You can use a pen and paper or a budgeting app to keep track of your expenditures. You should also review your spending habits weekly or biweekly. This will help you spot areas where you can cut back. Then use the data you’ve gathered to make adjustments in the future.

Splitting Expenses into Two Payment Groups

If you are in the market for a new credit card, you might be interested in how to split your expenses into two groups. Whether you news to buy a friend a birthday present or you are looking to save a few bucks for a vacation, a credit card can help. Fortunately, there are several options available. Regardless of your budget, your preferences, or your needs, there is a credit card out there that is right for you. The best part is that you don’t have to worry about your credit rating. Luckily, you can get a brand-new card with a low-interest rate and a great rewards program. You just have to know where to look. You can also enjoy a streamlined process for handling payments and account updates. And, you can use your credit card for other things, such as making purchases at your favorite store or online or sending money to a loved one.

Avoiding Late Fees

If you don’t pay your credit card bill on time, you’ll end up paying a lot of late fees. In some cases, you can be charged a fee for every day you’re payment is late. If you make a payment at least a day after the due date, your bank may not charge you a fee.

If you pay your bills late more than once, you can expect to face a hefty penalty. These fees vary based on the size of your balance, your ability to pay your bills on time, and how many times you didn’t pay on time. In some cases, you can negotiate with your bank for a fee waiver. However, the amount of the fee won’t be waived if it is more than the maximum spending limit on your card.

In fact, the average fee on your credit card increases to $35 if you’re late on payments more than once.