Yes, Penalty Charges Apply

• Missing your payment due date results in penalty fees.

• Penalties are added in the next billing cycle automatically.

• Charges apply even if you miss the minimum due amount.

• The fees are in addition to regular interest on the balance.

• Repeated misses may lead to card suspension or downgrade.

Late Payment Fee Details

• Late payment charges vary by outstanding amount.

• Typically range from ₹100 to ₹1,000 or more.

• Higher the unpaid bill, higher the late fee charged.

• Most banks display fee slabs in their credit card terms.

• Fees are subject to GST as per government regulations.

Interest Accrual Alongside Penalty

• Interest continues to apply on unpaid dues daily.

• The grace period is lost until full payment is made.

• New purchases attract interest from the transaction date.

• This increases the overall repayment burden quickly.

• Compound interest worsens the balance if left unpaid.

Impact on Credit Score

• Late payments are reported to credit bureaus.

• Even a single missed due date can reduce your score.

• A history of missed payments shows financial irresponsibility.

• A lower credit score affects future loans and card eligibility.

• Timely repayments help maintain a strong credit profile.

How to Avoid Penalty Charges

• Set auto-debit for at least the minimum due amount.

• Use reminders or banking app alerts to track due dates.

• Pay early if your billing cycle falls near holidays or weekends.

• Always aim to pay the full balance to avoid both fees and interest.

• Review your statement every month for pending amounts.