Minimum Amount Due in HDFC Credit Card

How to Calculate HDFC Credit Card Minimum Amount Due

The minimum amount due on your HDFC credit card is 5% of the total outstanding amount on the card or Rs.200, whichever is higher. Also, if there are any EMIs or unpaid dues from the previous statements, those will be added to your current outstanding and hence your minimum amount due also increases. You will be able to see it on your monthly credit card statement.

What Happens When I Pay Only the Minimum Amount Due on My HDFC Credit Card?

As already explained, paying the minimum amount due is just ensuring that you don't need to pay any late payment charges. However, you would still have to pay interest on the balance amount. On paying the minimum amount due, the balance outstanding will be carried to your subsequent statements. Do bear in mind that the minimum amount due or any payment higher than that should be made on or before the payment due date which is also mentioned on your credit card statement.

Any payment that you make towards your credit card account would be first considered as a payment towards the minimum amount due. Once the minimum amount is paid, only then any further payment would be adjusted against other charges.

Also, on paying only the minimum amount due, you wouldn't be able to enjoy the interest-free period that you normally do on making a purchase with your credit card. The interest amount would be charged from the date of purchase itself.

If you plan to pay your credit card bill only on its due date, be careful about the mode of payment that you choose. This is because some payment modes take a few days to process and reflect your payment. For example, for local cheques used to pay the credit card balance, the amount would be credited to your card account only in 3 working days. So you would have to deposit the cheque at least 3 days before the due date.

What Happens When I Don't Pay the Minimum Amount Due on My HDFC Credit Card?

If you fail to pay even the minimum amount due on your HDFC credit card, you will be charged a late payment fee that would be added to your next statement. The late payment charge depends on the total outstanding on the card.

Also, if you continue to default on payments, you will be sent reminders by the bank from time to time to settle the payment. It may also appoint a third party to get the payment from you. If you don't make the payment even after all of these, the bank may suspend the facility on your credit card. Any reward points that you have accrued on your card may also be suspended by the bank.

The bank may also inform CIBIL about the non-payment of your credit card debt and hence your CIBIL score would drop.

HDFC Credit Card Late Payment Charges for Non-payment of Minimum Amount Due

How to Avoid Late Payment Charges 

The effect of late payments on your credit score can be negative. However, this can be avoided by keeping the following points in mind: 

1. Create reminders for payments: To help you remember when your credit card is due, you can use electronic reminders like email alerts or mobile notifications. This helps you in sticking to your payment schedule. 
2. Select the ECS facility: It is advisable that you register for the credit card issuer's Electronic Clearing Service (ECS) programme so that your credit card bills can be automatically paid from your linked bank account. In this manner, you receive email and SMS alerts notifying you when the payment is due, and the payment will be deducted from your account on that date.  
3. Automate your payments: The majority of banks provide autopay options that let you schedule automatic payments for the minimum amount due or the entire outstanding amount on your credit card bill. You can set up an automated payment system to make sure you never forget the deadline or worry about accruing late fees. 
4. Keep an eye on your spending habits: To make sure you don't use your credit card over the allotted limit, it is recommended to keep a record of your purchases. Furthermore, you need to ensure that your bank account has adequate funds to settle any outstanding credit card balances. It is helpful to monitor your spending habits so that you can plan your finances well in a timely manner.  
5. Give priority to on-time payments: Your credit card bills need to be given as much attention as any other necessary expense. To ensure that you pay your bills on time, you must set aside money well in advance that will cover the minimum amount due or the entire unpaid balance. Your credit score will rise if you do so.

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