Interest starts adding up right away Let’s say you missed paying your credit card bill this month. What do you think will happen next? The very next day, your bank will start charging you an interest on your balance. And not the small kind. Credit card interest in India can go as high as 3-4% per month. That adds up fast. Even a short delay can turn your manageable dues into a mountain of debt.
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Your credit score won’t forgive and forget Credit scores are sensitive. Even one missed payment can cause damage, especially if it crosses the 30-day mark. Lenders look at that and immediately label you a risk. Your CIBIL score can drop by 50 to 100 points, making it harder to get loans or new cards in the future—even if you’ve been a good borrower otherwise.
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There’s a late fee—and then there’s GST on that fee Yes, you read that right. If your bill isn’t paid on time, there’s a late payment charge (often around ₹1,200–₹1,300 depending on your balance). But it doesn’t stop there. An 18% GST is added on top of the penalty. So what could have been a simple ₹10,000 bill might now cost you ₹11,500 or more just because you were a few days late.
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Perks? Say goodbye to those too Many banks will quietly take away your reward points, freeze your cashback offers, or even lower your credit limit if you’re late on payments more than once. If you use your credit card for travel or shopping benefits, this loss can sting just as much as the penalty.
The bank won’t chase you forever—they’ll escalate If you ignore your bill for a few months, it won’t just go away. Banks may hand over your case to recovery agents. At this stage, you could start getting calls, emails, and even legal notices. While this doesn’t happen overnight, it's a risk you don’t want to take lightly.
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What should you do if you can’t pay? Don't disappear. If you’re facing cash flow problems, speak to your bank. They might convert your dues into EMIs or offer a short-term relief plan. At the very least, try to pay the minimum due to avoid being marked as a defaulter. The earlier you act, the more options you have.
