Credit Card Late Payment Charges: What You Need to Know

When you fail to pay even the minimum amount due on your credit card by the due date, late payment charges become applicable. Most card issuers charge late fee basis the outstanding amount, whereas some charge a fixed percentage of the outstanding amount, subject to a minimum value. Delaying your credit card bill payment beyond the due date not only leads to late payment penalties but also has a negative impact on your credit score.

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What Are Late Payment Charges on Credit Cards?

On your monthly credit card statement, you can see a total amount, a minimum amount and the due date. Ideally, you should pay the total amount due on your credit card on or before the due date. However, if you are not able to pay even the minimum amount by the due date, the bank starts charging a late payment fee.

Late payment charges on a credit card should not be confused with the finance charges or interest rates. While late payment charge is a one-time penalty in one billing cycle, finance charges are accrued on your outstanding balance as well as new purchases, and compounded daily. This means when you miss a payment, you have to pay the late payment charges as well as the finance charges until you clear the dues in full.

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How Much Is the Late Payment Charge on a Credit Card?

Usually, late payment charges are based on the total outstanding amount on your credit card. For example, HDFC Bank charges Rs. 500 for outstanding balance between Rs. 501 and Rs. 1,000 but if the outstanding amount is between Rs. 5,001 and Rs. 10,000, cardholders will have to pay Rs. 750 as late payment penalty.

Some cards charge a fixed percentage of the outstanding balance, subject to a minimum amount. So, for instance, if the total amount due on your card is Rs. 5,000 and the bank charges 15% of the amount as late fee, you will have to pay Rs. 750.

An important thing to note here is that the late payment charges vary across issuers and may also vary across cards from the same issuers. Some premium cards do not charge any late fee.

Credit Card Late Payment Charges by Major Banks

The table below shows late payment fee charged by the leading credit card issuers in India:

Card Issuer	Late Payment Charges
HDFC Bank	On outstanding balance of – Up to Rs. 100: Nil Rs. 101 to Rs. 500: Rs. 100 Rs. 501 to Rs. 1,000: Rs. 500 Rs. 1,001 to Rs. 5,000: Rs. 600 Rs. 5,001 to Rs. 10,000: Rs. 750 Rs. 10,001 to Rs. 25,000: Rs. 900 Rs. 25,001 to Rs. 50,000: Rs. 1,100 More than Rs. 50,000: Rs. 1,300
SBI Card	On outstanding balance of – Up to Rs. 500: Nil More than Rs. 500 up to Rs. 1,000: Rs. 400 More than Rs. 1,000 up to Rs. 10,000: Rs. 750 More than Rs. 10,000 up to Rs. 25,000: Rs. 950 More than Rs. 25,000 up to Rs. 50,000: Rs. 1,100 More than Rs. 50,000: Rs. 1,300
ICICI Bank	On outstanding balance of – Less than Rs. 100: Nil Rs. 100 to Rs. 500: Rs. 100 Rs. 501 to Rs. 1,000: Rs. 500 Rs. 1,001 to Rs. 5,000: Rs. 600 Rs. 5,001 to Rs. 10,000: Rs. 750 Rs. 10,001 to Rs. 25,000: Rs. 900 Rs. 25,001 to Rs. 50,000: Rs. 1,100 More than Rs. 50,000: Rs. 1,300
Axis Bank	On outstanding balance of – Less than Rs. 500: Nil Rs. 501 to Rs. 5,000: Rs. 500 Rs. 5,001 to Rs. 10,000: Rs. 750 Rs. 10,001 to Rs. 50,000: Rs. 1,200 Greater than Rs. 50,000: Rs. 1,300
IndusInd Bank	On outstanding balance of – Up to Rs. 100: Nil Rs. 101 to Rs. 500: Rs. 100 Rs. 501 to Rs. 1,000: Rs. 350 Rs. 1,001 to Rs. 10,000: Rs. 550 Rs. 10,001 to Rs. 25,000: Rs. 800 Rs. 25,001 to Rs. 50,000: Rs. 1,100 Above Rs. 50,000: Rs. 1,300
Kotak Mahindra Bank	On outstanding balance of – Up to Rs. 100: Nil More than Rs. 100 to Rs. 500: Rs. 100 More than Rs. 500 to Rs. 1,000: Rs. 500 More than Rs. 1,000 to Rs. 5,000: Rs. 600 More than Rs. 5,000 to Rs. 10,000: Rs. 750 More than Rs. 10,000 to Rs. 25,000: Rs. 900 More than Rs. 25,000 to Rs. 50,000: Rs. 1,100 More than Rs. 50,000: Rs. 1,300
IDFC FIRST Bank	15% of the unpaid dues, subject to a min. of Rs. 100 & max. of Rs. 1,300
AU Small Finance Bank	On outstanding balance of – Up to Rs. 100: Nil Rs. 100 to Rs. 500: Rs. 100 Rs. 500 to Rs. 5,000: Rs. 600 Rs. 5,000 to Rs. 10,000: Rs. 700 Rs. 10,000 to Rs. 20,000: Rs. 800 Rs. 20,000 to Rs. 50,000: Rs. 1,100 More than Rs. 50,000: Rs. 1,300
BOBCARD	On outstanding balance of – Less than Rs. 100: Nil Rs. 100 to Rs. 500: Rs. 100 Rs. 501 to Rs. 1,000: Rs. 400 Rs. 1,001 to Rs. 10,000: Rs. 750 Rs. 10,001 to Rs. 25,000: Rs. 950 Rs. 25,001 to Rs. 50,000: Rs. 1,100 More than Rs. 50,000: Rs. 1,300
RBL Bank	12.5% of the total outstanding amount, subject to a minimum of Rs. 5 and a maximum of Rs. 1,300

Note: The above charges are subject to change at the respective bank’s discretion. Consumers must check the latest charges on the issuer’s official website.

What Happens If You Miss Your Credit Card Payment Due Date?

When you miss your credit card bill due date, the following happen:

Late payment charges apply as per the rates prescribed by the issuer
Finance charges apply on the outstanding balance, compounded daily
Interest-free period becomes invalid and finance charges also apply on the new purchases that you make
Your credit score takes a hit and the number of days by which you delay the payment start showing in the DPD section of your credit report
Possible suspension of credit card benefits as per the issuer’s policies

Hence, it is always advised to pay off your total amount due on or before the due date to avoid any penalties and negative impact on your credit score.

How Does Late Credit Card Payment Affect Your Credit Score?

When you fail to pay your credit card dues on time, the DPD section on your credit report shows the number of days by which the payment was delayed. Although one missed payment may not have long term major impact on your score, missing due dates frequently can lead to a major drop in your credit score. This shows you are not managing your existing credit responsibly and lenders would see you as a risky borrower, making approvals for new credit difficult for you.

To avoid missing late payments, you can take the following steps:

Spend only as much as you can afford to pay back on time
Convert your bills into EMIs to make monthly payments more manageable
Set up reminders or alerts for payment due dates
Set up auto pay on your credit cards for automatic payments when the bills are due

If you cannot afford to pay the total due, pay at least the minimum due to avoid impact on your credit score.

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FAQs

When is a credit card payment considered late?

It is considered late payment when you fail to pay your credit card dues by the due date.

Are late payment charges the same for all credit cards?

No. Late payment charges vary on issuer to issuer basis and it may also vary for different cards from the same issuer.

Does the late payment fee depend on the outstanding amount?

Yes, in most case, the late payment charges depend on the total outstanding amount. Most issuers charge a fixed amount for different outstanding balances, while some charge as a percentage of the outstanding amount with a maximum capping.

Does late payment affect CIBIL Score?

Yes. Late payment charges show in the DPD section of your credit report and lead to a drop in your credit score.

Is interest charged if I pay my credit card bill late?

Yes, when you delay your payments, interest charges start applying on the outstanding balance as well as the new purchases that you make. Interest keeps accruing until you pay off your balances in full.

How can I avoid credit card late payment fees?

You can avoid late payment fee by paying off your card dues on time. For this, it is important to spend only as much as you can afford to pay back. If you tend to forget the due dates, it is advised to pay your bills via Paisabazaar so that you can get reminders when the payment is due.