It is often not advised to delay your credit card bill payments as the bank may levy extra charges. You don’t want to pass through that phase. Besides, it may hamper your credit card score and limit your spending.
Recurring messages and emails remind you to pay the credit card bill, and you find yourself juggling with thoughts of how to escape the embarrassment. Your bank may not show up at your doorstep, but they’re likely to alert you about it in different ways.
Consequences of Missing Credit Card Bill Payments
Your credit card payment is late when you surpass the due date to make the payment. In other cases, if you happen to deposit the amount less than the minimum amount asked to deposit. Here’re the consequences that you have to bear if you miss out or delay your credit card bill payments:
1) You may receive next month’s statement with levied charges if you fail to make a timely payment. The month could be heavy on your pocket. The extra amount incurred depends on your credit card’s policy on late fees. The extra charge varies between new users and regular users. If you’re a new user, you may be charged a little less than the others who have been using the credit card for at least six months or more.
2) There are specific rules and regulations that the banks adhere to the interest on late credit card bill payments. If you delay the payment by 60 days or more, you may be charged with increased interest in your payment. It is decided considering the penalty rate, which is the highest rate of interest on your credit card. This makes your payment heavy on your wallet, as you may have extra expenditure on the given month.
3) If you want to avail loans or another credit card, a delay in payment may hinder the process. Your late payment is added to your credit report of you pass the 30-day period of making the payment. This is shown as a new entry in your credit report, and banks may show less interest in dealing with you thereafter.
4) As mentioned earlier, your credit score may take a dip due to untimely payment. Your payment history shows 35 percent of the credit score. It makes up to that percentage to make you applicable for a further loan or other transactions.
5) Different banks offer different rewards on timely credit card payment. Some offer discounted movie tickets while others allure you with exciting shopping vouchers. You may miss on such deals if you delay your credit card payments.
How to Avoid Late Credit Card Bill Payments?
Set Payment Reminders: Payment reminders can save you a great deal. Ask your bank to subscribe you to the payment reminder alerts. It can be messages or emails, depending on the user’s convenience. You can also set up a reminder of the due date on your smartphone.
Pay on the Go: You can pay on the card issuer’s site to make the credit card payments. Set up an electronic payment mode and enter the required details. This would make the process fast and easy. This way, you can also make the payment on the go through your smartphone.
Remove Unfair Charges: If you find that you’ve been charged unfair or extra, you can call the bank and ask to remove the fee. Doing this, you can make an on-time payment. The best way to deal with such scenarios is to keep the payment proof with you.
Credit cards have become a need if not a lifeline for many digital users. It goes easy on your pockets only if you know the rules of the game. Making a timely payment can help you with rewards and shop for your favorite things as and when you want them.