Credit cards from RBL Bank give card holders a wide range of rewards and benefits. Right from massive welcome bonuses and reward points on practically all kinds of expenses to lifestyle benefits and discounts, there’s a lot to look forward to. To access these features and more, all you need to do is apply for an RBL Bank Credit Card.
However, having an RBL Bank Credit Card is one thing. And using it well is another. To ensure that you enjoy uninterrupted benefits from your card, it is important to make your RBL Bank Credit Card payment on time, within the due date.
Reasons You Must Not Delay the Payment of Your RBL Bank Credit Card
At the end of each billing cycle, your RBL Bank credit card statement is generated. You will then have a grace period during which you can make the RBL Bank Credit Card payment without suffering any financial repercussions like interest charges and more. Check out the top reasons to pay your RBL Bank Credit Card bill on time.
1. To Avoid Late Payment Fees
If you do not make the RBL Bank Credit Card payment on time, the bank will levy a late payment fee. This fee depends on the total amount due on your card. If the outstanding amount is above ₹100, you will have to pay the late payment fee at 12.5% of the balance due (subject to a maximum of ₹1,300).
For example, if you have an unpaid outstanding balance of ₹10,000 on your RBL Bank Credit Card, you will have to pay a fee of ₹1,250. To avoid the burden of this fee, it is advisable to pay your credit card dues within the date specified.
2. To Avoid Finance Charges
When you apply for an RBL Bank Credit Card, you need to also be mindful of the finance charges involved. In addition to the late payment fee, you will also have to pay finance charges or interest charges at the rate applicable on your card if you delay your credit card payment. Typically, credit cards carry higher rates of interest than other forms of credit.
Additionally, interest is also levied on any new purchases or payments made using your credit card when you already have unpaid dues. The typical interest-free period will not be applicable on these new transactions till you have settled the outstanding liabilities in full.
3. To Prevent Falling into a Debt Trap
As explained above, interest charges will continue to be levied on any new transactions made when you have outstanding debt on your card. These interest charges can be very steep, so it is advisable to repay the unpaid sum as soon as possible.
By not doing so, your debt continues to add up. Eventually, to repay the outstanding sum and the interest due, you may have to again borrow funds. And before you know it, you may have fallen into a debt trap that is hard to get out of.
4. To Keep Your Credit Score High
Delaying your RBL Bank Credit Card payment also has a direct adverse impact on your credit score. Credit rating agencies take into account such delays and reduce your credit score accordingly.
So, such delays can negatively affect your credit score and your credit history. This may make you a poor candidate for any credit facilities you may want to utilise in the future. However, by paying your credit card bill on time, you can keep your credit score intact.
5. To Achieve Your Financial Goals
Some financial goals are easier to achieve than others. For the really big milestones like owning a house property and paying for your children’s higher education, you may need to rely on credit facilities.
Achieving these financial goals is easier when you pay your credit card dues on time, since you continue to build good credit history. So, when you approach a bank for a loan later in life, you will qualify for the facility more easily than individuals with poor repayment histories. Having access to such credit facilities allows you to achieve your financial goals as planned.
Conclusion
Before you apply for an RBL Bank Credit Card, it is essential to be aware of why you must pay your card dues promptly. And now that you know the consequences of delayed repayment, you can avoid the additional charges and penalties listed above by simply making your RBL Bank Credit Card payment on time.
By doing so, you can not only save money on the extra charges outlined in this article, but also enjoy the benefit of a good credit score. Above all, it also gives you peace of mind and acts as a sign of good financial health. For these reasons, ensure that you always pay your credit card bill in full within the due date.
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