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6 reasons why you should avoid late credit card payments

Gowrish Babu
Failing to do so can attract penalty.
Here are six reasons why you should avoid late credit card payments
Late fee: You will have to pay a late fee if you pay your bill after the due date.
Higher rate of interest: The interest rate on your outstanding bill will also increase for late payments.
Withdrawal of interest-free credit period: Defaulting on your card payment can lead to withdrawal of interest-free credit period from your card.
Adverse effect on your credit score: Late payments can have a significant effect on your score, affecting your ability to get new credit in the future.
Decrease in credit limit: Frequent defaults in credit card bill payments will decrease your credit limit, which will restrict your spending capacity in the future.
Paying just the minimum amount due: If you believe that if you pay the minimum amount, no interest would be charged on your outstanding bill amount, you could be wrong.
It is always better to be safe than face the consequences of a late credit card payment. So, stick to the due date.
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