Credit Card Tips- Have you not filled the credit card bin, then know the rules of RBI
There was a time when people used to think a lot about buying something expensive due to lack of money, if they still had to buy something important, then they often borrowed from others. Many people are still facing financial constraints, and the availability of credit cards has made it possible for individuals to make purchases even without immediate funds. Credit cards give you convenience, but it also brings some responsibilities.
When you make a purchase using a credit card, you have a period to repay this amount without interest, usually around 50 days. If you fail to pay the credit card bill by the due date, the consequences can be severe.
Immediate action by the bank:
The bank that issued your credit card will start reminding you through messages and calls to pay the bill before the due date. Failure to pay on time attracts a penalty.
Penalties and interest accrual:
Continued non-payments attract additional penalties and interest on the outstanding amount. This can quickly increase your total outstanding amount.
Impact on credit score:
After six months of non-payment, the bank may classify you as a defaulter and deactivate your credit card. This action significantly damages your credit score, making it difficult to obtain loans or credit in the future.
Legal consequences:
If declared a defaulter, the bank may take legal action against you to recover the outstanding amount. This may include seizing your property or garnishing your wages to settle the debt, plus penalties and interest.
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