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Late Credit Card Bill Payment: Everything You Should Know




Credit card or plastic money is a handy tool to avoid the cash crunch, especially during times of emergency. It indeed is an excellent asset if you hate carrying cash with you. There are several other credit card benefits offered in the form of credit card rewards. These credit card offers are an attractive tool to make your transactions related to purchase, going for leisure activities etc. In this article you will study more about credit card bill payment and its further uses. 

An excellent tool a credit card is, however, if it is not used judiciously, it can harm in you many ways. Here are some reasons why a lot of people fall victim to plastic money.

·        Overspending: A lot of the people have a behaviour of squandering the money, and it is no doubt these shopaholic people hardly pay any heed towards credit card payment. Consequently, overspending behaviour quickly makes them prey to late credit card payments.

·        Multiple credit cards: Most of the people have multiple credit cards in their pockets. These multiple credit cards create confusion about the payment dates, and sometimes it is a possibility that they may forget to make the credit card payments.

·        Unexpected delays: There are some situations in life which may arise unexpectedly. For instance, you may lose your job, or there is some medical emergency in your family. In all these situations, the user of a credit card holder may forget to make the credit card payments.

·        Last-minute payment: It is no surprise that we Indians have the habit of performing tasks at the last hour and no wonder why we make late credit card payments.

Does making one late credit card payment affect you? What are the consequences of forgetting the credit card payments

Every single credit card payment affects the creditworthiness of the credit cardholder. While there has been a delay in making credit card payments once for a one or two months, it may not hurt your credit score that badly. However, you need to ensure that you don't miss several credit card payments as it can have an adverse effect on your credit score.

Here are some consequences of making a late credit payment.

·        Credit score:  The most apparent impact of a late credit card payment is that it will affect your credit score. Repayment of credit card payment is an essential factor for determining the credit score.

·        Higher interest rates: Late credit card payment also signifies that the lending institution will provide credit cards at a higher rate of interests in the future. It can become a considerable burden on your pockets.

·        Increased expenses: If you fail to make credit card payments on time, then you may have to pay the penalty fees charged by the credit card provider. As you come in the bad books of the lending institution, it may also result in waiver of specific offers.

·        Loss of earned rewards: Credit card rewards on purchase transactions, movie tickets, leisure activities are some of the most vital credit card benefits for which people may get a credit card. Failure of making credit card payments on time can lead to loss of all those earned rewards and credit card benefits.

·        Loss of the card: If you don't make multiple payments for several months, then the credit card provider may eventually take away access to the credit card. Having lost access to the card can also impact your credit score severely.

Thus, it is crucial that if you fail to make the credit card payment on time, then you immediately repay the payment. If you have good terms with the credit card provider, you can also negotiate for a waiver of late payment charges.

Summary: Late Credit Card Bill Payment: Everything You Should Know

Credit card or plastic money is a handy tool to avoid the cash crunch, especially during times of emergency. An excellent tool a credit card is, however, if it is not used judiciously, it can harm in you many ways. A lot of the people have a behaviour of squandering the money and consequently, overspending behaviour quickly makes them prey to late credit card payments.

Here are some consequences of making a late credit payment.

·        The most apparent impact of a late credit card payment is that it will affect your credit score. Repayment of credit card payment is an essential factor for determining the credit score.

·        Late credit card payment also signifies that the lending institution will provide credit cards at a higher rate of interests in the future.

·        If you fail to make credit card payments on time, then you may have to pay the penalty fees charged by the credit card provider.

·        Failure of making credit card payments on time can lead to loss of all those earned rewards and credit card benefits.
·        If you don't make multiple payments for several months, then the credit card provider may eventually take away access to the credit card.


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