When one shops by Axis Bank credit card, the reward points, discounts, cashback and numerous other conveniences come to greet an individual. Suddenly, the urge to shop via the bank’s plastic money can get stronger and lead to injudicious purchases. The result would be a fat bill, making you almost handicapped to pay off the same on time. What would happen if you delay on default on the payment of card dues? It will lead to late payment charges and interest. Taxes will also accrue on the interest charged.
Late Payment Charges
These charges differ according to the billing amount that comes to you each month. Normally, a charge of ₹100-700 is levied on the late payment. And when the pattern of delayed payment continues, the charges foot the bill even higher. The recurrence of these charges can bring down your CIBIL score.
Axis Bank, like other banks, also quotes the minimum due amount on the credit card statement. Many of you may be paying the same each month and letting the credit to revolve. Folks, this results in the accrual of interest. The minimum due amount is calculated at about 5% of the total outstanding in a particular billing cycle.
The interest also gets charged when you avail the card EMI option to initiate big purchases. Axis Bank offers the said facility for purchases above 2,500. So, when you use Axis Bank Credit Card to purchase the latest iPhone on an EMI, the interest charges will apply until you pay off the entire installments.
The Goods and Services Tax (GST), the new indirect tax phenomenon, will also apply to the interest charged on the card transactions. So, if the interest charged is ₹1,200, you would have to pay tax at 18% i.e. ₹216.
How to Avoid These Charges?
- Try to get a clear idea of the amount you would be able to pay off easily. Your income can dictate this decision to a considerable degree.
- Maintain a strong purchase discipline
- Make payment of the entire bill on time
Misconception Regarding GST on Axis Bank Credit Card Bill
Ever since the GST has made its way to India, a lot of speculations have been doing the rounds. Many are saying that the credit card bills of banks like Axis Bank will rise, without giving a full disclosure on the same. You must have seen in many journals telling the card bills will rise by 3%. And when you hear the same, you feel you shouldn’t be using the card. Yes, 18% GST will apply to card bills, but only to those who revolve the credit by delaying payment, paying the minimum due amount only, using the card EMI option and others. Those who pay the entire bill on time won’t have to worry at all.
How to Make Axis Bank Credit Card Payment?
So, you have got an e-mail statement of your Axis Bank Credit Card Payment Bill. Want to know the ways by which you can make the payment? Well, you have multiple mediums like cheque, Internet Banking, Auto Payment and others to pay your card dues. Now it’s up to you to decide which one is more convenient to you.
Being aware of the purchasing power helps maintain a strong discipline on spends via a credit card. Know your shopping limits and stick to the same. In the absence of a purchase discipline, the potential perils could hit your wallet and force you to default on the card payment on a regular basis.
The result would be a poor credit score and a reduced scope for gaining approval for any fresh loan in the future. Yes, Axis Bank Credit Cards are one of the most sought-after ones in the business. Yet it requires an awareness of the repayment capability, which can be greatly dictated by the income you generate each month.