Credit cards are convenient and rewarding — until you miss a payment.
A simple delay of even a few days can cost you late payment fees, extra interest, and even damage your credit score.
Many people don’t realize how one missed due date can snowball into bigger financial problems.
In this blog, we’ll explain what late payment fees are, how they affect your finances, and the smartest ways to avoid them.
A late payment fee is a penalty that your credit card company charges when you don’t pay the minimum due amount by the due date.
Even if you pay your full amount a few days late, you’ll still be charged a late fee.
These fees are set by each bank or card issuer, and they usually depend on your outstanding balance.
| Outstanding Amount (₹) | Typical Late Fee (₹) |
|---|---|
|
Up to 1,000 |
0 – 100 |
|
1,001 – 5,000 |
400 |
|
5,001 – 10,000 |
750 |
|
Above 10,000 |
1,000 or more |
(Actual fees vary by bank — check your card’s terms for details.)
1. You Pay a Late Payment Fee
This is the most immediate effect. The bank will add the late fee to your next statement, increasing your total balance.
So, if your due amount was ₹8,000 and your late fee is ₹750 — your next bill will start at ₹8,750 or more.
2. You Lose the Interest-Free Period
Normally, when you pay on time, you enjoy up to 45–50 days of interest-free usage.
But once you miss a due date, interest starts applying immediately on all new purchases — until you clear your entire balance.
3. You Pay High Interest on the Unpaid Amount
Credit card interest rates are very high — often between 30% to 45% per year.
Even a small unpaid balance can grow quickly if you delay payments for a few months.
Example:
If you owe ₹10,000 and delay it for 3 months at 3.5% monthly interest — you’ll pay ₹1,050 extra just in interest!
4. Your Credit Score Gets Affected
Payment history makes up 35% of your credit score.
Even one missed payment can reduce your score by 50–100 points — making future loans and cards harder or costlier to get.
5. You May Lose Offers or Rewards
Some banks cancel your reward points, cashback eligibility, or special benefits if you have a late payment record.
In short — you lose both money and perks.
1. Set Payment Reminders
Mark your due date on your phone calendar or banking app. Most banks also let you set SMS or email alerts.
2. Enable Auto-Pay
The easiest option — link your credit card to your savings account and set up auto-debit for at least the minimum amount due every month.
This ensures you never miss a payment, even if you forget the date.
3. Pay a Few Days Before the Due Date
Banks sometimes take 1–2 days to process payments, especially from other banks.
Paying 2–3 days early ensures your payment reflects on time.
4. Use Mobile Banking Apps
Most credit card apps show real-time due dates, outstanding amounts, and auto-reminders.
Checking them weekly helps you stay updated.
5. Pay More Than the Minimum Due
Paying only the minimum due avoids late fees but still adds heavy interest on the remaining amount.
Always pay the full bill whenever possible.
6. Talk to Your Bank if You Miss a Payment
If it’s your first delay, call customer care immediately.
Many banks waive the late fee once as a goodwill gesture if you have a good payment record.
Pro Tip
Try to keep your credit utilization (the amount you spend compared to your limit) under 40%.
This makes it easier to repay on time and keeps your credit score healthy.
Example Scenario
Let’s say:
After 1 month:
If you continue delaying, interest will keep compounding.
So, what started as ₹8,000 can quickly become ₹10,000+ in just a few months.