Missing your credit card payment due dates and not paying your EMIs timely will take a hit on your credit score or CIBIL score adversely. You will end up paying the due amount with an interest rate applicable to it.
In Which Case Not To Worry If Credit Card Payment Due Date Was Missed?
There are times when you intend to pay the credit payment on time but fail to do so because of an emergency or either because you forgot about it or a technical issue occurred. So, the question is, if there is a possibility of relief or the bad impression cannot be reversed?
The answer is yes, there is a chance of reversing your bad impression into a good one and preventing your CIBIL score from falling further. If you pay the due amount within three days of the missed due date then you will be saved from getting noted down in the red books of lenders.
As per the RBI, “credit card issuers can report an account as “past due” to credit information agencies or levy any penalty only if the credit card account remains “past due” for over 3 days.”
“Card-issuers shall report a credit card account as ‘past due to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains ‘past due for more than three days”, reads RBI’s master direction for “Credit Card and Debit Card – Issuance and Conduct Directions, 2022”.
“The number of ‘days past due and late payment charges shall, however, be computed from the payment due date mentioned in the credit card statement, as specified under the regulatory instructions on ‘Prudential norms on Income Recognition, Asset Classification and Provisioning about Advances’ amended from time to time”, it further adds.
With RBI’s master direction this is another relief that the borrowers get. Master Directions from RBI says, any type of charges like late payment fee, interest levied, and other fines are only applicable after 3 days of missed due date and will on be levied on the outstanding amount instead of the total amount.