Unable to make credit card payments on time!! No worries from now!!
Posted on: 14/Oct/2022 11:34:18 AM
ALL credit holders who are due for payment on their credit cards can now make the payment within 3 days after the due date of payment and avoid penalties!
A universal truth is that whether the credit card is a BOON OR A BANE depends on HOW TH CREDIT CARD HOLDER HANDLES THIS ASPECT!
On the one side, credit cards do enhance the purchasing power of the holder!
On the other side, if not handled properly, they have the power to turn the credit card holder into a DEBTOR!
It is essential that a credit card holder MUST ensure timely payments!
Some credit card holders get confused about the date of the bill and the due date and end up paying late!
Otherwise, when spending more using the credit card, that too with no funds, the cardholder will end up with delayed payments and the due penalties!
In the case of credit cards, though no one knocks on the house door asking for payment (like some debtors do!), the concerned bank officials will act on the penalty behind the scene!
Delayed credit payments lead to a negative effect on the CIBIL Score penalty for the delayed payment apart from the interest, lesser credit card limit, etc.
As informed at the start, in case the credit card is unable to make due payment on time due to some confusion or any personal emergencies, THEY NEED NOT GET ANXIOUS REGARDING THE CONSEQUENT NEGATIVE EFFECTS!
Even if failing to make a credit card payment before the due date, there is a small avenue to avert the consequences!
This avenue is a facility for credit card holders with a failed payment to make the required payment WITHIN 3 DAYS AFTER THE DUE DATE FOR PAYMENT!
As per the guidelines given by the Reserve Bank of India, the organizations which issue credit cards can report "past due" to the Credit Information Companies!
Otherwise, the organizations take action OF IMPOSING PENALTIES only if the payment IS NOT MADE WITHIN THE NEXT 3 DAYS OF THE DUE DATE UNDER THE REPORT `Past due! In other words, the company can penalize the credit card holder with late payment charges and other related charges. Note that the 3 days Grace Period must be considered before taking penalty charges!
This guideline has been given in the Reserve Banks` Master Direction – Credit Card and Debit Card Distribution – and the procedures in 2022.
As per the primary guidelines for the banks, Penalty interest, Late Payment Charges, and the related other charges must be imposed only for the balance amount to be paid as on the due date and not for the total amount. This aspect must be clearly understood by credit card holders as well!
