Say if my statement shows Rs 1000 as due
Credit Card Statements. All credit card statements show dues, inter alia, as under (with some minor variations in wordings/phrases):-
* Total Amount Due (TAD). This is the total amount that needs to be paid by due date. This is the best option, under normal circumstances. If financial emergencies are there and one cannot pay the TAD, then the next option outlined below can be used.
* Minimum Amount Due (MAD). This is the bare minimum amount that needs to be paid by due date to avoid any adverse CIBIL report. However, interest will be charged on the balance amount due - it is quite high and it ranges from 2 to 4% per month and can snowball into a huge amount (i.e. the balance amount to be paid almost doubles every 2 years or so, based on the exact interest being charged by your credit card company. Please check the MITC(s) of your credit card(s) for detailed T&C). So, this option is best avoided and is to be taken only during financial distress - for a short duration only.
So, in your case, if in the statement it mentions that TAD is Rs 1,000 then I would recommend that you pay Rs 1,000. Even if you get Rs 200 as cashback after paying TAD, it will be adjusted in the subsequent statement. No issues. I would prefer this option.
Hope this helps.
🙂
