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.