Do you miss credit card dates again and again? If yes, then you must have damaged your credit score very well. Not only have you been given high penalties, but you also have deteriorated your creditworthiness in the eyes of lenders.
How to Avoid Penalty and Save Credit Scores After Missing Credit Card Bill?
Credit card users frequently encounter difficulties paying their bills on time, particularly those juggling multiple cards. Managing cards from various banks becomes challenging, and some payments are inevitably forgotten, leading to substantial penalties imposed by the issuing banks. These penalties, in turn, hurt the user’s credit score.
Nevertheless, a simple and effective solution exists for individuals who have missed the due date on their credit card bills. This solution helps them evade penalties entirely and ensures that their credit score remains as healthy as a horse.
As per the guidelines of the Reserve Bank of India (RBI), users who miss the due date for their credit card bill payment have a grace period of three days after the missed deadline to clear the outstanding bill. By doing so within this three-day window, banks are prohibited from charging any penalties, and the user’s credit score remains intact.
The Consequences of Missing the Deadline
If the user fails to settle their credit card bill within the 3-day grace period after the due date, it will result in a penalty imposed by the issuing bank and hurt their credit score. A poor credit score may restrict the consumer’s ability to secure loans in the future until their credit score improves.
Late payments made after the 3-day grace period will incur a late fee charged by the bank, which will be added to the user’s next billing statement.
According to the regulations set forth by the RBI, the number of days past the due date and the corresponding late payment costs are calculated based on the payment due date mentioned in the credit card statement. Late fee charges, penalty interest, and other applicable fees will be levied solely on the outstanding amount after the due date, thus influencing the total payable amount.