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What, if I miss to pay my credit card dues?

When it comes to a solution to get rid of the financial trouble the first thing arises is credit card. I was getting constant queries regarding credit card dues, many of you might have the same question. What happens if we miss or skip credit card bill payment?

what if i miss to pay my credit card dues or bill
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Well, firstly we need to understand that credit card is a kind of borrowing or credit line provided by the lender ( Bank or NBFC). You may also consider it as short term borrowing, and that means you are liable to pay dues timely. As the credit card comes with limited risk to the borrower, if he stuck in any financial trouble it might get easy to manage funds to repay your dues, but what if we miss those dues?

As mentioned earlier credit card is a kind of borrowing means it gets updated into your CIBIL report also. If you miss your credit bill payment, it would impact your CIBIL history and you would be tagged as delinquent.

To get it update regularly into CIBIL, almost all of the Banks or NBFCs provides you an option of a minimum amount, which is almost 5% of your total outstanding. So, if it gets tough to get out of the financial crisis, it is suggested to pay at least minimum amount dues(MAD).

What if I missed the dues date?

Firstly I would suggest you to pay all your dues timely but still, it would be helpful for you to have a glance of all the impacts apart from CIBIL.

There are some standard Charges or Penalties that might trap you in a Chakravyuh. SO, before making any mistake it's better to be prepared for that.

Late Fee - Applicable when you miss the due date. The amount depends upon the lender, and your bill amount (almost 2% or minimum 400/- to 800/- Plus GST).

AD mandate or Bounce Fee -Applicable if you have provided Auto debit mandate (Permission to debit Bank account against credit card dues Fully or Partly). Charges depends upon the lender, but typically ranges around (2% or  400 minimum + GST).

Over Limit Fee- Let's say Lender has provided you limit of 20000/-, and you have consumed it fully, and now you missed dues, thus you would be charged for other penalties and new bill get generated beyond that credit limit.In such case, you will be charged with an extra penalty called Over Limit Fee. The amount depends upon the lender , usually it gets around (2-3% minimum 400 +GST).

Interest Charges- When you have a borrowing and missed to repay timely, you are atleast liable to pay interst over those dues , which ranges from 3.6% to 4.5% + GST).

After knowing all these facts I would suggest you to not to skip your dues and not at all when it comes to credit card bill.

Repaying dues is the only solution to get away from the financial crisis. Use credit card wisely and live your life at fullest.