ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If you don’t pay at least the minimum by the due date, you could be hit with a late fee and penalty APR, or annual percentage rate. After 30 days without paying at least the minimum, your account can be reported delinquent and your credit score could also take a hit.

Detailed explanation-2: -The credit card company is likely to raise the interest rate on your account. It can do that after two consecutive missed payments. The issuer also must inform you how long it will impose the penalty rate. It could be until you have made 12 consecutive on-time payments, or even indefinitely.

Detailed explanation-3: -The amount charged will typically range from $15 to $35 with the amount based on the size of your balance. For smaller monthly balances under a few hundred dollars, this can be a substantial percentage of your balance. A single late payment fee will cost you as much as paying a full year of interest on that balance.

Detailed explanation-4: -You will have to pay a late fee if you pay your bill after the due date. The late fee would be charged by the bank in your next credit card bill. In a recent move, the Reserve Bank of India (RBI) has directed banks to charge late fee only if the payment has been due for more than three days after the due date.