I’m worried about missing my Kotak credit card due date. I’ve heard that late payments can lead to high charges and even impact my credit score. Can someone explain exactly what happens if I don’t pay on time? Will there be late fees, interest, or any other penalties? Also, if I miss one payment but pay it later, how badly will it affect my CIBIL score? Any tips on how to avoid this in the future?
I had this happen once when I completely forgot about my due date, and here’s what I learned the hard way:
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Late Payment Fee: Kotak charges a late payment fee depending on your outstanding balance. If your bill is small, the fee isn’t too bad, but if you have a high balance, it can go up to ₹1,300.
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Interest Charges: The moment you miss your due date, interest starts piling up on your total outstanding amount at an annual rate of 36-42% (3-3.5% per month). This includes any new purchases you make after the due date, which means you lose the interest-free period until you clear the full balance.
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Impact on Credit Score: This one stung the most. Even a single missed payment can hurt your CIBIL score, especially if you don’t pay it off quickly. If you default for more than 30 days, it gets reported to the credit bureau, making it harder to get loans or new credit cards in the future.
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Card Block or Collection Calls: If you miss multiple payments, Kotak may block your card or send reminders through calls, emails, and messages. If it goes unpaid for a long time, you may even get collection calls, which can be annoying.
How to Fix It?
If you’ve missed a payment, the best thing to do is pay it off ASAP. Even if you can’t pay the full amount, at least clear the minimum due to avoid further penalties. You can pay through Kotak net banking, mobile app, UPI, or any third-party payment app.
To avoid this happening again, I set up auto-pay for my credit card bills, which saves me from forgetting. If you travel a lot or tend to miss due dates, it’s a good idea to do the same.