It can be difficult to keep a track of all the different due dates of multiple bills each month. If you have more than one credit card, you can easily forget when a credit card payment is due. If you have missed your credit card payment due date, don't panic. The Reserve Bank of India (RBI) has told banks and credit card issuers that they can charge late payment fees only after three days following a missed payment.
According to the Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022, released on April 21, 2022, the RBI said, "Card-issuers shall report a credit card account as 'past due to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains 'past due for more than three days."
So, if you have missed your credit card payment due date, you can make the payment within three days of the due date and avoid late payment penalty. Moreover, your credit score will most likely not get affected if you clear payments within the mentioned time limit.
Know the latest credit card late payment rule and charges
A late payment fee is charged if the credit cardholder fails to clear dues even after three days past the due date. The late fee is typically added to the next billing cycle. Banks or credit card issuers decide the quantum of the late payment charges.
Banks and credit card issuers usually charge a fixed amount as the late payment fee depending on the outstanding amount. The higher the bill amount, the higher would be the late fee. For instance, SBI Card levies a late payment fee of Rs 400 if the outstanding amount is more than Rs 500 and less than Rs 1,000; Rs 750 if the outstanding amount is more than Rs 1,000 and less than Rs 10,000; Rs 950 for the outstanding amount of more than Rs 10,000 and Rs 25,000; Rs 1,100 for the outstanding amount of more than Rs 25,000 and less than Rs 50,000; Rs 1,300 for the outstanding amount of more than Rs 50,000.
Do note that the number of days past due and late payment charges will be calculated from the payment due date mentioned in the credit card statement, the RBI mentioned.
The regulator has also said that the penal interest, late payment charges, and other related charges will be levied only on the outstanding amount after the due date and not on the total amount.
Clear credit card dues on time
Experts advise credit cardholders to clear dues on time unless there is some emergency or financial crunch. There could be serious consequences if cardholders miss the credit card bill due date. "Until the outstanding amount is paid off in full, the interest-free period on your credit card will also become ineligible which means fresh purchases will also attract finance charges," said Sachin Vasudeva - Director & Business Head, of Paisabazaar.
Your credit score will take a huge hit and your credit account will be marked on the credit report as a defaulting one. "Consequently, chances that your loan or credit card application may be rejected are always higher and so is the likelihood of getting a loan at an increased interest rate," said Pankaj Basal, CBO, BankBazaar.com.
FAQs
If your payment is less than 30 days past due, you can avoid it hitting your credit report. And if it's more than 30 days past due, you can still minimize the damage by paying at least the minimum as soon as you can. If this is your first late payment, chances are good that your card issuer may waive the late fee.
How can I get my credit card late fee waived? ›
Contact Your Credit Card Issuer
There are many scenarios where the late payment is understandable, and your credit card issuer may be willing to work with you. Apologize for the late fee, and explain why it happened. Make sure to highlight your history as a good customer and ask if they'll be willing to waive the fee.
How to avoid credit card late fees? ›
6 Ways to Avoid a Credit Card Late Fee
- Sign up for monthly bill reminders via text or email. ...
- Skip the mail and make payments digitally—or over the phone. ...
- Set up auto-pay at least for the minimum amount (or however much you can reasonably afford) each month. ...
- In case of emergency, ask for a pause in payments.
Credit card issuers can waive late fees on a case-by-case basis. You may apply to have your late fee waived by using the credit card issuer's automated services either via phone or the respective mobile application, or by calling in and chatting with a customer service officer.
How to ask a credit card company to forgive a late payment? ›
Ask the lender to remove it with a goodwill letter
In some cases, creditors are willing to make a goodwill adjustment if your payment history has been good or if you have a good relationship with them. The process is easy: simply write a letter to your creditor explaining why you paid late.
How to write a letter to waive late fee? ›
I truly believe that it doesn't reflect my creditworthiness and commitment to repaying my debts. It would help me immensely if you could give me a second chance and make a goodwill adjustment to remove the late [payment/payments] on [date/dates]. Thank you for your consideration, and I hope you'll approve my request.
How do I ask to waive my credit card fee? ›
Contact your card issuer
Start with a retention call by calling your card's customer service line. The number can usually be found on the back of your card or on your monthly statement. Politely explain that you would like to have your annual fee waived.
What is the new late fee rule? ›
Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck. On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.
What is the new law for credit card fees? ›
Under the new regulations, credit card issuers, including Bank of America, Capital One, Citibank and JPMorgan Chase, cannot charge more than $8 for a late payment unless they can explicitly point to data showing they must impose higher fees to make up for losses.
What is the #1 reason that people give for paying their credit card bill late? ›
Question of the Day: What is #1 reason that people give for paying their credit card bill late? Answer: They forgot! Questions: Why do you think that so many people forget to pay their credit card bill?
What happens if the credit card bill is paid 1 day late? If the credit card bill is paid only 1 day late, then your credit score won't be affected by this. However, you might or might not have to pay a minimal late fee as per your bank's guidelines.
What happens if I am 3 days late on my credit card payment? ›
Even a single late or missed payment may impact credit reports and credit scores. But the short answer is: late payments generally won't end up on your credit reports for at least 30 days after the date you miss the payment, although you may still incur late fees.
What is the grace period for credit card late fees? ›
What is a credit card grace period? A grace period consists of the days between the end of your credit card's billing cycle and the payment due date, by which you can pay off the balance without any interest or late fees. This is typically between 21 and 25 days.
How do you convince a creditor to remove late payments? ›
In the letter, you typically:
- Explain the circ*mstances that led to the late payment or issue.
- Express remorse and your intention to pay on time going forward.
- Request that the creditor consider removing or adjusting the negative item.
When is a payment marked late on credit reports? A payment will typically need to be 30 days late before it's reported to the credit reporting bureaus. An overlooked bill won't hurt your credit as long as you pay before that 30-day mark, although you may have to pay a late fee.
How to recover from missed credit card payments? ›
There are a few steps you can take.
- Make all of your payments on time going forward. A consistent payment pattern can only help your credit score. ...
- Limit spending. ...
- Pay down your debt amounts. ...
- Get a secured credit card or a credit-builder loan. ...
- Become an authorized user. ...
- Check your credit report.
Unfortunately, an actual late payment is nearly impossible to remove from your credit report even if you were able to convince your card issuer to waive any fees you may have been charged.
Will credit one waive late fee? ›
Certain Fees and Finance Charges Waived During Benefit Period: During a benefit period, the monthly Program fee and any late payment fee that may be incurred during the benefit period will be waived. Any annual fee due to be billed during the benefit period will be waived.
Can credit card fees be waived? ›
You might be able to get your credit card's annual fee waived by contacting your card issuer to ask for an annual fee waiver or retention offer. Active-duty military members may also receive fee waivers.
