Why you should not delay payment of Credit Card Bill

Last updated by BankersClub on July 29, 2016

Credit Card is a widely used method of payment these days, as it allows to shop now and pay later. So, in way, you postpone the actual payment of your expenditure or shopping. All the spending of the month is billed and you are required to pay the credit card bill upto a defined date called due date. However, as matter of ignorance or due to non availabilty of funds, you may not pay the credit card bill on due date. So, have you ever thought what will be the consequences? Yes, given below are the consequences of not paying your credit card bill on time:
It negatively affects your CIBIL

All the banks report the credit facilities like credit cards and loans to CIBIL (and other Credit Information Companies too). All the defaults in payment are also reported. So anytime later, when you go to a bank for a loan (housing, car, personal or business) or even for a credit card, they extract CIBIL report to see your credit worthiness. A default in payment of credit card would be reflected in your CIBIL report and which will lower your CIBIL score. That means you’ll face it dificult to get loan due to your late payment of credit card bill

Late fee

Bank will charge you a late fee, if you do not make payment of minimum amount due before due date.


Apart from late fee, you’ll need to pay interest, which is on a very high rate ranging from 18% to 30%. You’ll pay the interest not only on the last bill but on all the spendings thereafter. This means no interest free credit will be allowed to you and you need to make payment of previous bill as well as all the spending after that immediately otherwise interest will be charged on that.

Loss of credit limit

In case of frequent defaults, Bank may reduce or restrict your credit limit, so you may not be freely spend through credit card and the advantage of having a credit card would be lost.
Recovery agents will be after you

If you do not make payment upto a certain period, bank’s recovery agents will be after your everywhere i.e, you residence or office, which means a reputational loss for anyone.

Categories: Misc.