Should You Choose Moratorium For Your Credit Card Payment? Know Here Benefits Of It

Should You Choose Moratorium For Your Credit Card Payment? Know Here Benefits Of It

The Reserve Bank of India has extended the Morerium period for three months on payment of all term loans last week. Because of the Coronavirus pandemic, it has been extended till August 31. Earlier, the Central Bank had extended the period of moratorium between March 1, 2020, to May 31. Term loans include all kinds of retail loans, such as personal loans, auto loans, home loans, agricultural term loans. In addition, the Morerium option can also be availed on credit card arrears.

We are giving you five things about RBI's Morerium option for credit cards in this article...

1) If you choose the Morerium option on your credit card bill, you don't have to pay anything until August 31. The customer does not need to pay the minimum dues on their credit card bill every month.

2) Banks will not charge any delay fee for the next three months since the introduction of the moratorium. If you have switched 'Auto-Pay-Option' to your credit card, you need to turn it off to take advantage of this new feature.

3) Your CIBIL score or credit score will not be affected if you do not pay your credit card dues by August. Let's say that the CIBIL score is a three-digit numerical summary of your credit history. Meaning those three digits show what your credit history is and how much loan you can get.

4) Know that banks will charge interest for unpaid dues during this period.

5) Therefore, if your cash flow is not affected due to COVID-19, financial advisors recommend you pay your credit card bill on time to avoid an accumulation of interest rates.

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