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Updated: Jan 16, 2022

Your Credit Card is Injurious For You? Question With This Yourself, and if Your answer is yes then surely this article for you.

(हिंदी मे पढ़ने के लिए यहाँ क्लिक करें )

What is Credit Card?

Credit card is a unsecured loan provided by bank for a certain span of time like as 30 days or 45 days on without interest. If Credit Card Bill is not Paid as Per Guideline than Bank Charge 36% to 45% Interest per annum on your Bill from 1st Day of Bill. If you not Fulfill the Bill Forgot 45 Days Relaxation, Now this Interest Period Started from 1 day of your bill.

Let’s See This Example-

" Ramesh is a Credit card User, He use this as Per his requirement , He Have XYZ bank credit Card Whose Limit 1 Lakh Inr. Now He Spend 25000 Inr on Shopping on 1 January.

On February 1st if He Successfully Paid his 25000 Bill, He will not pay any interest on this.

Now This Totally Fine, But Now Many People Ask if Ramesh Not Paid his bill than what will happen?

If Ramesh Not Paid His Bill He Have Two Option-

1 )- Pay Minimum amount like as 1000 INR 2)- Pay Next Month.

Both Scenario is Injurious for Ramesh- But Why?

Case 1- if Ramesh Pay Minimum Amount , For Example 1000 INR-

Than next Bill adjust This Amount, Means His Next Bill Amounts is

(25000-1000)+interest (as Per Bank Guideline) Keep in Mind This Interest is Calculated from 1ST Day of Transaction. And This harm Ramesh Credibility as well.

Case 2- If Ramesh Not Pay Credit Card Bill-

This Affect Ramesh’s Credit Score (Cibil score), Mean Ramesh Cannot Get Bank Loan in Future at Affordable interest Rates. And also Ramesh will Accumulating the interest of Credit Card Bill Time to Time if He Never Settle this amount, after a certain time a Recovery agent will come to house address. How Ramesh Deal with Recovery Agent? Thought this full scenario with yourself. How Terrible this? "