Credit Card Bill terminology (min. due, billed amount, outstanding)

[adjjoshi]

Many new Credit Card users confuse Minimum Due amount with total bill and get trapped in credit card debt.
This terminology is used by all credit card providers and it is necessary for everyone to understand.

Total Outstanding: This is the total outstanding value of credit card - which contains all unbilled amounts, any unpaid amount from last bill, any EMI value plus GST and interest values along with fees (if any - eg: Joining/Annual fee, Late Payment penalty etc.)

Due Date/Due On: Due date by which the credit card billed amount should be paid to avoid any late fees or interest

Billed Amount/Last Billed Amount: Generated Billed amount which needs to be paid on or before Due Date

Min. Due: Minimum amount you need to pay before the due date to continue using credit card without any restriction.

Let's consider a user spent 10,000 in a billing cycle. After the bill generation date, the user spent 5,000 more.
Total Outstanding = 15,000
Due Date = 01 Apr 20xx
Billed Amount = 10,000
Min. Due = 100

In above scenario, the user has to pay atleast 10,000 (billed amount) to avoid any extra cost in terms of late payment fees and interest. Users can pay more (consider 50) and that amount will be reduced from the unbilled amount 5,000 spent after bill generation date. Next bill would be generated as [5,000 (-) 50 extra amount user paid = 4950]

Now the scenario where new users are trapped in Credit debt:
User pays min. due = 100
Unpaid bill = 9,900
From 02 Apr 20xx, user will be charged late payment fees + interest on the unpaid dues. The interest will be calculated from the 1st day of transaction.

 

[shubhamaggarwal]

Understand why you should never carry any balance to next month on your credit card - https://www.instagram.com/tv/CVkmhWmMHnb

 

[Shiv patel]

Hi sir my HDFC credit card reject but I have good civil my civil is 721 but my credit card is reject help me how to get hdfc credit card

 

[shubhamaggarwal]

Hi sir my HDFC credit card reject but I have good civil my civil is 721 but my credit card is reject help me how to get hdfc credit card

Do you have any prior relationship with HDFC and required ITR limit? If yes, ask your RM or contact your branch manager for more details.

 

[TechnoFino]

Many new Credit Card users confuse Minimum Due amount with total bill and get trapped in credit card debt.
This terminology is used by all credit card providers and it is necessary for everyone to understand.

Total Outstanding: This is the total outstanding value of credit card - which contains all unbilled amounts, any unpaid amount from last bill, any EMI value plus GST and interest values along with fees (if any - eg: Joining/Annual fee, Late Payment penalty etc.)

Due Date/Due On: Due date by which the credit card billed amount should be paid to avoid any late fees or interest

Billed Amount/Last Billed Amount: Generated Billed amount which needs to be paid on or before Due Date

Min. Due: Minimum amount you need to pay before the due date to continue using credit card without any restriction.

Let's consider a user spent 10,000 in a billing cycle. After the bill generation date, the user spent 5,000 more.
Total Outstanding = 15,000
Due Date = 01 Apr 20xx
Billed Amount = 10,000
Min. Due = 100

In above scenario, the user has to pay atleast 10,000 (billed amount) to avoid any extra cost in terms of late payment fees and interest. Users can pay more (consider 50) and that amount will be reduced from the unbilled amount 5,000 spent after bill generation date. Next bill would be generated as [5,000 (-) 50 extra amount user paid = 4950]

Now the scenario where new users are trapped in Credit debt:
User pays min. due = 100
Unpaid bill = 9,900
From 02 Apr 20xx, user will be charged late payment fees + interest on the unpaid dues. The interest will be calculated from the 1st day of transaction.

helpful Information 🙂

 

[Juganta]

Learn from My Mistake: Why You Should Never Use Your Credit Card Unless You Repay Your Current Outstanding

As a credit card user with four years of experience, I've learned some valuable lessons along the way. However, there's one lesson that stands out above all the rest: never use your credit card unless you've repaid your current outstanding balance.

Recently, I made the unfortunate mistake of continuing to use my credit card without fully clearing the previous outstanding balance. It was a simple oversight, but one that had significant consequences. For the first time in my credit card usage history, I found myself facing interest charges and GST on my account.

From now on, I've made a commitment to myself to never use my credit card unless I've completely cleared the previous outstanding balance. It's a simple rule, but one that can save me from unnecessary financial stress and ensure that I maintain control over my finances.

I share this experience not to dwell on my mistake, but to offer a word of caution to others. If you're considering using your credit card, take a moment to assess your current outstanding balance. If it's not fully repaid, think twice before making any further transactions.

.

 

[pothi]

Learn from My Mistake: Why You Should Never Use Your Credit Card Unless You Repay Your Current Outstanding

As a credit card user with four years of experience, I've learned some valuable lessons along the way. However, there's one lesson that stands out above all the rest: never use your credit card unless you've repaid your current outstanding balance.

Recently, I made the unfortunate mistake of continuing to use my credit card without fully clearing the previous outstanding balance. It was a simple oversight, but one that had significant consequences. For the first time in my credit card usage history, I found myself facing interest charges and GST on my account.

From now on, I've made a commitment to myself to never use my credit card unless I've completely cleared the previous outstanding balance. It's a simple rule, but one that can save me from unnecessary financial stress and ensure that I maintain control over my finances.

I share this experience not to dwell on my mistake, but to offer a word of caution to others. If you're considering using your credit card, take a moment to assess your current outstanding balance. If it's not fully repaid, think twice before making any further transactions.

.

Thanks for sharing your experience. Since Axis cards support eNACH, why don't you use it to pay any miscalculations?!

 

[Juganta]

Thanks for sharing your experience. Since Axis cards support eNACH, why don't you use it to pay any miscalculations?!

I use 3rd party apps to pay using debit cards, eg. RBL Sig+, Indus, HDFC DC to earn extra 1% approx. 9K/Month

 

[timva]

Thanks for sharing your experience. Since Axis cards support eNACH, why don't you use it to pay any miscalculations?!

Just a question: If I've set up eNACH for my Axis card (eg: Airtel Axis) from my ICICI account for total amount due but pay from other sources (like cred) before due date, will the eNACH still be triggered?
Or will it only be triggered if I haven't cleared my total amount or made partial payments?

 

[pothi]

Just a question: If I've set up eNACH for my Axis card (eg: Airtel Axis) from my ICICI account for total amount due but pay from other sources (like cred) before due date, will the eNACH still be triggered?
Or will it only be triggered if I haven't cleared my total amount or made partial payments?

It will be triggered only when there is due for any pending amount that we missed to pay due to our miscalculations (or for other reasons).

If my bill is Rs.6543.21 and if my MAD is Rs.400, I pay MAD (plus paise and some more to make the pending amount to a rounded figure) as soon as the bill is generated. ie 443.21. Then, I pay Rs.6000 manually via third party apps (to get CB). If I ever miscalculated the due (like I did above), the rest of the payment (Rs.100) is settled via e-NACH on the due date.

You may think of e-NACH as a backup plan.

Not all bank CCs support e-NACH. Axis, SBI, OneCard support NACH. ICICI doesn't.

LIC doesn't support partial payment, though. So, if you used LIC NACH earlier, you could be in a surprise.

Axis auto debit works bit differently. One has to make a payment at least two business days before the due date in order to exclude it from the final due.

Similarly, if the manual payments are not settled before the due date, NACH will not exclude such payments either.

Whatever happens, we will have a peace of mind when we configured NACH (or auto debit by the card issuing bank).

 

[Juganta]

It will be triggered only when there is due for any pending amount that we missed to pay due to our miscalculations (or for other reasons).

If my bill is Rs.6543.21 and if my MAD is Rs.400, I pay MAD (plus paise and some more to make the pending amount to a rounded figure) as soon as the bill is generated. ie 443.21. Then, I pay Rs.6000 manually via third party apps (to get CB). If I ever miscalculated the due (like I did above), the rest of the payment (Rs.100) is settled via e-NACH on the due date.

You may think of e-NACH as a backup plan.

Not all bank CCs support e-NACH. Axis, SBI, OneCard support NACH. ICICI doesn't.

LIC doesn't support partial payment, though. So, if you used LIC NACH earlier, you could be in a surprise.

Axis auto debit works bit differently. One has to make a payment at least two business days before the due date in order to exclude it from the final due.

Similarly, if the manual payments are not settled before the due date, NACH will not exclude such payments either.

Whatever happens, we will have a peace of mind when we configured NACH (or auto debit by the card issuing bank).

1 drawback of NACH mandate is
There will be charges if no sufficient balance available at the time of debit

 

[timva]

Thanks @pothi for your great explanation 😄

Whatever happens, we will have a peace of mind when we configured NACH (or auto debit by the card issuing bank).

Auto debit has been already setup for my ICICI and HDFC cards (bcoz offline agents do this without even telling you) and I'm going to set eNACH for my Axis & SBI cards right away.

 

[pothi]

1 drawback of NACH mandate is
There will be charges if no sufficient balance available at the time of debit

There are other charges as well. Some banks even charge even there is enough balance. For example, Axis charges Rs.25 per debit (for a maximum of Rs.100 per month).

Thanks @pothi for your great explanation 😄

Auto debit has been already setup for my ICICI and HDFC cards (bcoz offline agents do this without even telling you) and I'm going to set eNACH for my Axis & SBI cards right away.

Please check the charge and use a bank that levies minimum. Some banks charge for configuring NACH. Some charge for each debit. Some charge for both. Almost all banks charge for failure in debit, just like a bounced cheque.

 

[timva]

Please check the charge and use a bank that levies minimum. Some banks charge for configuring NACH. Some charge for each debit. Some charge for both. Almost all banks charge for failure in debit, just like a bounced cheque.

Okay..... Well I'm gonna use my ICICI wealth account which has these charges -
The only concerning charge would be for failure but as it is my salary account (with linked FDs as my emergency fund) it is highly unlikely that I would ever have to pay for it.