Credit Card Late Payment Charges: If you do not make the credit card payment by the due date i.e. the last date for submitting the bill, not only will a penalty be levied, but daily interest will also be charged.
Late Fees on Credit Cards: There are many benefits of using a credit card. By using a credit card, you get a loan without interest for about 45 days, you get reward points on shopping and a credit history is also built. But managing many bills and remembering to pay them on time can be difficult. At the same time, if you have not turned on autopay for credit card payment, then you may forget to pay the bill. In such a situation, if you are not able to pay the card bill on time, then trouble can arise.
Yes, you can get into big trouble if you pay the credit card bill late. Earlier there was a small penalty for late payment, but now these charges have increased considerably. Here we are going to tell you how much time you get to pay the credit card bill. Along with this, we will tell you why the company charges you a penalty on the credit card and how it is calculated.
How much time is available for credit card bill payment?
First of all, know that usually 14 to 50 days are given to pay the credit card bill. But even in this period, if the credit card payment is not made, a charge is levied on the credit card. Apart from this, many credit card companies including ICICI Bank give you a chance to avoid interest. This is called Grace Period. This is the time when you make purchases with a credit card, but you do not have to pay interest on it. In ICICI Bank, this grace period is usually between 18 to 48 days.
What will happen if you do not pay your credit card bill on time?
In such a situation, charges will be levied according to how late your payment is and what are the rules of your card. The more late you make the payment of your credit card bill, the more the interest rate will increase. If you do not make the payment by the due date, then not only will you be charged a penalty, but you will also be charged interest every day.
How is the interest charged on your credit card decided?
In India, the interest charged on credit cards is decided according to the annual rate (Annual Percentage Rate – APR). This is not the interest for the month, but the interest for the whole year. But, the interest charged on every month’s expenditure is calculated according to the monthly rate (Monthly Percentage Rate – MPR). Both APR and MPR keep changing according to different banks and the type of your credit card.
So, when you apply for a credit card, definitely ask the bank how much APR will be charged on your card.
It will have a bad effect on the credit score
According to government rules, 18% GST will also have to be paid on this interest. This will increase the interest and your credit score may also fall. The lower the credit score, the more difficult it will be for you to take a loan. If you want to avoid the penalty on the credit card, then do not forget to pay the bill on time. If you want to take advantage of the credit card, then it is best to pay the bill on time.
