Credit Card: Credit card bill payments Are Sometimes Delayed. Some keep Missing The Deadline Due To Forgetting The Due Date Or Any Other Reason. At That Time Credit Card Users Get Very Confused. But There Is No Need To Worry. RBI is Providing Relief To Credit Card Customers Who Have Missed Their Deadline. This Provision Has Been Brought Recently. But What Is That Provision..? How Is It Useful For Bill Payers?
The Use Of Credit Cards Is Increasing Exponentially. Many People Use Credit Cards For Any Urgent Needs And Big Items. But The Payments Of These Credit Bills Have To Be Paid after Receipt Of The Billing Statement In The Following Month. Lenders impose a deadline for it. Credit card Holders Are Warned To Pay This Bill Within the due Date. People fear That If They Don’t Pay Their Credit Card Bills On time, they will Incur Huge Charges And Their credit Score Will Drop. But Credit Card Customers Need Not Fear That. It is very Important For The Customer To Pay the Credit Card Bills On Time. But Due To Some Personal Emergencies Or Forgetting The Due Date Some Are Unable To Make These Payments. In Such A Case, The Reserve Bank Of India Provides Relief To The Credit Card customers.
Payments Can Also Be Made Within Three Days After The Deadline Without Incurring Any Penalties Or Charges, it said. Recently the Reserve Bank of India (RBI) Has Mentioned This Flexibility in its Master Direction. If The Credit Card Amount is not paid even Within Three Days After The Due Date, The Credit Card Issuing Companies May Impose Penalties.
What Are The Consequences Of Delaying Credit Card Bill Payment?
Late Payment Fee..
If You Pay Your Credit Card Bill after the due Date, The Lender Will Charge A late Payment Fee On The Outstanding Amount. However, The Reserve Bank of India has Directed The Credit Card Issuers To Levy These Late Fees only When The Bill Is Not Paid Within three Days After The Due Date.
Higher Interest Rate..
Companies Charge Interest Rate On Outstanding Credit Card Bills If You Fail To Pay Even the Minimum Amount Within The Due Date. If you default on Repayment Payments And Make Credit Card Purchases, You Will Be Charged Higher Interest Rates.
Withdrawal Of Interest-free Credit Period.. If You Fail To Pay Credit Card Bills.. The Lender Will Withdraw Your Interest-free Credit Period.
Decreasing credit score..
Banks and financial institutions keep Checking Your Credit Score To Know Your Credit Worth. This Score works very well for loan applications. If this score is good, The Loans Will Come Quickly At A Lower Rate. If your credit card repayments are late, your credit Score Will Decrease. Chances of Getting new loans in future are less. However, if The Bills Are Not Paid Even Within Three Days After The Due Date, Your Credit Score Will Be Affected.
Decrease in credit limit..
If You Repeatedly Fail to pay your credit card Dues, The Credit Card Company will Reduce Your Credit Card Limit.