If you’re a keen credit card user, then you must be knowing the importance of paying your credit card bills on time. Sometimes, we miss paying the bills on time despite all the good intentions and precautions were taken. You have been through this at least once in your life. The late fees that the bank charges you are around Rs. 100 to Rs. 750 depending upon the bank’s policy. And the most frustrating thing comes here when you miss the due date by few hours or 1 day.
As I told earlier, the late fees that your bank might collect is around Rs. 100 to Rs. 750 depending upon the bank’s policy. And the most frustrating thing comes here when you miss the due date by few hours or 1 day. Banks will levy a GST on late charges as well, that makes the fine charges slightly more than the actual fine. So, you should take care of these things as well.
So, what do you do if you find yourself in such a situation? It may turn out the most frustrating thing for you. Here is the small trick that may help you with the late fine charges.
What will you do? – Just pay the full outstanding amount on your card, including the unbilled amount ASAP, and don’t use the card till your next bill is generated!
Yes, you just need to wait until your next credit card bill is generated. Till then use your another card during that period to avoid the charges of your credit card.
Late Payment Charges:
Let’s see the figure of the credit card late payment charges that your bank may levy according to the outstanding amount. Follow the chart below to understand better.
Above are the example from HDFC Bank, the maximum late payments charges are Rs. 750. In addition, banks may levy you a GST on late payment amount also.
Understand with an Example:
I will try to make it easy with the help of an example.
Say, your outstanding amount is Rs. 10,000 which was generated July 25 and the due payment date is August 10. And you miss the date to pay the bills. Here, the late payment charges of Rs. 10,000 will be Rs. 500, see the table above to know the different rates.
The late payment charges you made is Rs. 10,000 (outstanding amount) + Rs. 500 (late payment charges) + Rs. 90 (GST – 18%) = [Rs. 10,000 + Rs. 500 + Rs. 90] = Rs. 10,590
That means you will have to pay Rs. 590 extra for an outstanding amount of Rs. 10,000. One day or few hours deadline will costs you from Rs. 118 to Rs. 885 (including GST).
How to Save Late Payment Charges:
I hope you understood well the example. Now, here is the catch, it’s the important tips to save or get reversed your paid fees.
Now, you made the payment and also paid the fine to the bank. You don’t have to use your credit card till your next bill is generated. Yes, use you another credit card during this period and put your card in the closet. When your next bill is generated, you will see that your late fees have reversed.
This trick might work more smoothly if your card’s due date falls on a Sunday, and the results may vary from bank to bank.
But you should pay your bills on time and it’s very important to save any type of extra charges.