Credit cards have a plus side as well as a downside. The plus side is that the users can use credit cards when they don’t have cash to pay at that moment. Whereas, the downside is that all the credit card payments have to be made on time, failing which it might lead to a black mark on the credit report and other consequences as well depending on the duration of the late payment.
Why do people issue a credit card?
People generally issue credit cards when they don’t have the resources and jobs to earn their own money. Credit cards are a basic necessity in today’s world where the world runs on the card and digital card systems. People all over the world believe in using credit cards for all their payments, and later paying them off well before the due date. This is basically the main reason why people issue credit cards in the first place for emergency cases when people require money instantly.
Payment of a Credit Card
Whenever a person issues a credit card it is mandatory for him or her to make the payment on time and right on the due date. Every credit card is given a particular credit card limit which allows the user to spend until the maximum credit limit value. This is basically how a credit card works but, it actually matters when the payment is made to the bank.
What is the importance of credit limit?
Every credit card has a particular limit and balance due once it is used upto the user when the payment has to be made in order to balance out the credit card. A credit card balance is basically the balance that remains at the end of a particular billing cycle every month. The credit card balance has to be cleared before the next billing cycle starts in order to avoid unnecessary interest charges and rates.
Circumstances leading to one day late payments of credit cards
Sometimes, people tend to pay the required amount a tad later than it is to be paid. There might be several reasons for these delayed payments.
Let us check out some of the main reasons why people tend to make one-day late credit card payments.
Sometimes, a person who is working might face a few difficulties like delayed salary and pay, and some financial emergencies that would hinder the payment
Another reason that might delay the payment would be some immediate financial emergency that might have come up, that would cause the one-day payment delay.
Another reason which might be responsible for this is that sometimes, people tend to overspend on a particular thing in such a way that they tend to delay the payments maybe by a day or two, or more.
So guys, one-day late payment of a credit card can also cause a lot of problems and subsequently also lead to causing a black mark on the credit report and cibil score as well.