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SBI Credit Cards Late Payment Charges




SBI Credit Cards Late Payment Charges: What are Late Payment Charges?


If you have a credit card from SBI, you might be wondering what the late payment charges are and how are they calculated. This blog will explain everything you need to know about this topic.

 

Late payment charges are fees that you have to pay if you do not pay your credit card bill by the due date. These charges are meant to discourage you from delaying your payments and to cover the cost of collecting the overdue amount.


The amount of late payment charges depends on your outstanding balance at the time of the due date. SBI has different slabs for different balances, as shown in the table below:


| Outstanding Balance | Late Payment Charges |

|---------------------|----------------------|

| Less than Rs. 200   | Nil|

| Rs. 200 to Rs. 500 | Rs. 100|

| Rs. 500 to Rs. 1000 | Rs. 400|

| Rs. 1000 to Rs. 10000 | Rs. 600|

| Above Rs. 10000    | Rs. 950|

These charges are applicable for both domestic and international transactions. They are also subject to GST, which is currently 18%.


How to Avoid Late Payment Charges on SBI Credit Cards?


Here are some tips that can help you:

 

  • Pay your bill before the due date. This is the most obvious and effective way to avoid late payment charges. You can check your bill amount and due date on your monthly statement, online banking, or mobile app. You can also opt for email or SMS alerts to remind you of your due date. Make sure you pay at least the minimum amount due, if not the full amount, to avoid late payment charges and interest charges.

  • Choose a convenient payment mode. SBI offers various payment modes for its credit card customers, such as online banking, NEFT, UPI, debit card, mobile wallet, cheque, or cash. You can choose the one that suits your convenience and availability of funds. However, keep in mind that some payment modes may take some time to reflect in your account, so plan accordingly. For example, if you pay by cheque, you should drop it at least 3 days before the due date to avoid any delay.

  • Set up a standing instruction or auto-debit. If you tend to forget your due dates or have a busy schedule, you can set up a standing instruction or auto-debit facility for your SBI credit card. This way, your bill amount will be automatically deducted from your bank account every month on a specified date. You can choose to pay the full amount, the minimum amount, or a fixed amount of your choice. This will ensure that you never miss a payment and avoid late payment charges.

  • Request for a grace period. If you are facing a temporary cash crunch or an emergency situation that prevents you from paying your bill on time, you can request for a grace period from SBI. A grace period is an extension of the due date by a few days, during which you will not be charged any late payment fee. However, this is not a guaranteed option and depends on the discretion of SBI. You will have to contact customer care and explain your situation and request for a grace period. You will also have to pay interest on the outstanding balance during the grace period.

  • Negotiate for a waiver. If you have been a regular and loyal customer of SBI and have a good repayment history, you can try to negotiate for a waiver of the late payment charges. You will have to contact customer care and request a waiver, citing your record and any genuine reason for the delay. Again, this is not a guaranteed option and depends on the discretion of SBI. You may also have to pay interest on the outstanding balance until you clear it.


By following these tips, you can avoid late payment charges on your SBI credit card and save money and hassle. You can also maintain a good credit score and enjoy the benefits of your credit card without any stress. Paying your credit card bill on time saves you money and helps you maintain a good credit score and avoid interest charges.


What is CIBIL score and how it is affected by late payment of the credit card bills?


CIBIL score is a three-digit number that represents your creditworthiness. It is based on your credit history, which includes your repayment behavior, credit mix, credit utilization, and other factors. The higher your CIBIL score, the better your chances of getting approved for loans and credit cards at favorable terms.

 

CIBIL score ranges from 300 to 900, with 900 being the best possible score. Generally, a CIBIL score of 750 or above is considered good, while a score below 600 is considered poor. Different lenders may have different criteria for evaluating your CIBIL score, but most of them use it as one of the key factors in their decision-making.


One of the most important factors that affect your CIBIL score is your payment history. If you pay your credit card bills and loan EMIs on time and in full, you will have a positive impact on your CIBIL score. However, if you miss or delay your payments, you will have a negative impact on your CIBIL score.

 

Late payment of the credit card bills can lower your CIBIL score in two ways. First, it will increase your outstanding balance and reduce your available credit limit. This will increase your credit utilization ratio, which is the percentage of your credit limit that you use. A high credit utilization ratio indicates that you are overburdened with debt and may have difficulty in repaying it. A low credit utilization ratio indicates that you are using your credit responsibly and have enough room for new credit. Ideally, you should keep your credit utilization ratio below 30% to maintain a good CIBIL score.

 

Second, late payment of the credit card bills will also affect your payment history, which accounts for 35% of your CIBIL score. Payment history reflects how timely and consistently you have paid your debts in the past. A single late payment can lower your CIBIL score by up to 100 points, depending on how severe and frequent it is. A late payment also stays on your credit report for up to seven years, which means it can affect your future borrowing prospects for a long time.

 

Therefore, it is advisable to pay your credit card bills on time and in full every month to avoid any negative impact on your CIBIL score. If you are facing any financial difficulty or cash flow problem, you can contact your credit card issuer and request for a moratorium or a restructuring of your payments. This will help you avoid any late payment fees and penalties and also protect your CIBIL score from further damage.

 

Remember, a good CIBIL score can open many doors for you in terms of getting access to credit at lower interest rates and better terms. A bad CIBIL score can close many doors for you and make it harder for you to achieve your financial goals. Therefore, it is important to monitor your CIBIL score regularly and take steps to improve it if needed.


Conclusion:


In conclusion, SBI credit card late payment charges are a penalty for not paying the minimum amount due on time. They can affect your credit card balance and increase your interest rate. To avoid these charges, you should always pay at least the minimum amount due before the due date. This will also help you maintain a good CIBIL score, which is a measure of your creditworthiness and repayment history. A good CIBIL score can help you get better loan offers and lower interest rates in the future. Therefore, it is important to use your SBI credit card responsibly and pay your bills on time. Therefore, being responsible with your credit card usage and paying your bills on time is advisable. If you have any queries or issues regarding your credit card bill or late payment charges, you can contact SBI customer care at 1860-180-1290 or 1800-180-1290 (toll-free).


FAQs:


Q: What are the late payment charges for SBI credit cards?

A: Late payment charges depend on the outstanding amount:

  1. Rs. 1,001 to Rs. 10,000 - Rs. 750

  2. Rs. 10,001 to Rs. 25,000 - Rs. 950

  3. Rs. 25,001 to Rs. 50,000 - Rs. 1,100

  4. Above Rs. 50,000 - Rs. 1,300 An additional Rs. 100 fee applies if Minimum Amount Due (MAD) is missed for two consecutive cycles, repeating till cleared.

Q: What happens if I pay my SBI credit card bill late?

A: Besides late payment charges, late payments impact your CIBIL score, potentially affecting future loan approvals and interest rates.


Q: Can I avoid late payment charges?

A: Yes, by paying your full bill or MAD before the due date. Setting up auto-payments can help avoid missed payments.


Q: How can I dispute late payment charges if they are wrong?

A: Contact SBI customer care or visit their website to raise a dispute. Provide supporting documents like payment receipts.


Q: What is CIBIL score and how does it relate to SBI credit card payments?

A: CIBIL score reflects your creditworthiness based on past loan and credit card repayment history. Late payments on your SBI card will negatively impact your score.


Q: How much does a late payment on an SBI card affect my CIBIL score?

A: The impact depends on several factors, but even a single late payment can significantly drop your score.


Q: How can I recover my CIBIL score after late payments?

A: Consistent on-time payments over time can gradually improve your score. Consider paying bills early and using credit responsibly.


Q: Is there a minimum CIBIL score needed for an SBI credit card?

A: While SBI doesn't specify a minimum score, a higher score generally improves your chances of approval and potential credit limit.


Q: Can I check my CIBIL score after an SBI credit card late payment?

A: You can get your CIBIL score report (with fee) online or through SBI Card website/app. This will show the impact of late payments.


Q: Can I remove the late payment information from my CIBIL report?

A: Only if the information is inaccurate or due to extenuating circumstances. Contact CIBIL to dispute any errors.

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