What to do when you miss your Credit Card payment?

18 May 2022 by Team FinFIRST

Apply Now

Credit cards allow you to purchase on credit and enjoy attractive rewards on each spend. They have a billing cycle, and once the bill is generated, you must pay within the due date to avoid interest payments. Since the interest charges are considerable, no cardholder wishes to miss their bill payment. But sometimes, life happens! In a financial emergency or crunch, you might miss out on your credit card payments.

Missing out on credit card bill payments has three serious repercussions:

You incur interest charges
You incur a late payment fee (when you eventually pay)
Your credit score suffers

However, there are ways in which you can salvage the situation. Here are some things to do after you miss the payment:

Pay immediately

If you have missed the due date, don’t delay the payments. Try and pay off the debt immediately. This way, you can limit the additional costs on interest and late payment charges.

Credit Rating and Credit Score: What is the link?

Is investing in a travel Credit Card a good idea?

Automate your payments

Automating your payments ensures that you don’t miss due to forgetfulness. Set up a direct debit mandate on your bank account so that your credit card bill is automatically debited as and when it is generated.

When it comes to credit card bills, they should be made a priority because delaying them would incur additional costs and a bad credit score. Use your card wisely and make payments regularly to avoid interest charges and maintain your credit score for future loans. Also, spend within your means and take advantage of discounts and reward points. The IDFC FIRST Bank Credit Card gives customers 10x reward points that never expire.

Opt for debt consolidation or balance transfer

If you have multiple credit cards and each carries a pending payment, you can opt for debt consolidation. Avail of a personal loan to pay off your credit card debts. Personal loans have lower interest rates compared to credit cards. Moreover, having consolidated your debt, you don’t have to manage multiple debt payments. For this, you can avail of balance transfer. You can transfer the balances of your existing credit cards to a single credit card, which offers a lower interest rate like the IDFC FIRST Bank Credit Cards. Opting for a Balance Transfer can thus help you save on the total interest you pay.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.