How To Pay Credit Card Bill Without Penalty And Not Affecting Credit Score After Due Date – News18

It becomes difficult to keep track of the due dates on multiple credit card bills. Customers often tend to forget the due dates of their credit card payments and if they miss the deadlines, the bank charges a heavy penalty. But guess what? But there is one solution to this problem that allows you to give zero penalty and your credit score also doesn’t get affected.

The Reserve Bank of India (RBI) states that if you miss your credit card bill payment due date and you clear the bill within three days, the banks can’t charge a penalty to you. For instance, if your due date is July 4 then you will not be required to pay the penalty till July 7.

If you complete the payment within the timeline, then your credit score would also not be affected. Though if you still fail to pay within the deadline, your credit score would be affected and you might face difficulty in taking loans in the future. If you fail to pay within three days after the due date, the late fee will be added to the next billing cycle. The higher the billing amount, the higher will be the amount of late fee.

The penalty is charged depending on your bill. In the case of SBI cardholders, a penalty of Rs 400 would be imposed if your outstanding amount ranges from Rs 500 to Rs 1,000. On the other hand, if your outstanding amount is more than Rs 1,000 but less than Rs 10,000 you would be charged Rs 750. A penalty of Rs 1,100 would be imposed if your outstanding amount is more than Rs 25,000 and less than Rs 50,000 but if it is more than Rs 50,000, then Rs 1,300 would be charged as a penalty.

The RBI rules state that the number of days past the due date and late payment costs are calculated starting from the payment due date listed on the credit card statement. The late charges, the penalty interest and other charges will be issued only on the outstanding amount after the due date and will affect the total amount.

According to experts, it is always advisable to clear your credit card bill unless it is an emergency or a financial crunch.