Credit Cards: If you also use credit cards then do not make this mistake, otherwise you will suffer losses.
In today's time, most people use credit cards to meet their needs. Using a credit card helps in getting 45 45-day interest-free loans, reward points on purchases, and building a credit history. However, managing multiple bills and remembering to pay them on time can be challenging. If you don't enable autopay for your credit card payments, you may forget to pay your bill, which can cause problems.
Consequences of delay in credit card bill payment
Not paying your credit card bill on time can lead to serious problems. Earlier, late payment charges were minimal, but now these charges have increased significantly. Here's an overview of the time given to pay your credit card bill and the penalties charged by companies for late payment.
Time allowed to pay credit card bills
Typically, you have between 14 and 50 days to pay your credit card bill. If you fail to make payment within this period, you will be charged a fee. Some banks offer a grace period during which you can make purchases without interest being charged.
What happens if you miss the payment deadline?
The longer you delay paying your credit card bill, the more you will be charged. If you miss the payment deadline, you will not only be charged a penalty but will also be charged daily interest on the outstanding amount.
How is interest calculated?
In India, interest on credit cards is calculated not every month but on an annual rate. However, interest on monthly expenses is calculated based on monthly rate (MPR). Both the annual percentage rate (APR) and MPR vary depending on the bank and type of credit card. It is important to ask the bank about the APR applicable to your card when applying.
Impact on credit score
As per government rules, 18% GST is levied on this interest, which increases the total interest amount and can have a negative impact on your credit score. Getting a loan becomes difficult due to low credit score. To avoid penalties and protect your credit score, it is important to pay your credit card bills on time.
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