Does the Moratorium Rule Apply to Multiple Credit Cards?
Last Updated : Sept. 12, 2020, 12:35 p.m.
There are many individuals who use more than two credit cards and they are in the dilemma whether moratorium guideline applies to multiple credit cards or not. Well, the RBI’s guideline clearly says that neither your Cibil Score will get affected nor you have to late payment charges if you suspend the credit card bill payment for 3 months. Therefore, in such a scenario whether you use one credit card or multiple credit cards, if you have requested 3 months moratorium then you will not have to pay the credit card bill for three months of any credit card. In simple words, it means that you can skip the payment of all the credit card bills and it will not going to affect your Cibil score.
Advantage of Not Paying the Credit Card Bills for 3 Months
Eliminates Financial Burden :- 3 months suspension will remove the financial burden from you. If you are having multiple credit cards and you are skipping the payment for 3 months then you have enough funds that can be used to meet the necessary expenses. Basically, this RBI’s guideline helps you to utilize the saved funds in fulfilling your necessity rather than paying the credit card bills.
No Negative Impact on the CIBIL Score :- Normally, if you skip the payment of any credit card from multiple credit cards then it will decrease your Cibil score . But the 3 Months Moratorium allows you to not pay the bills of multiple credit cards for 3 months and it will not be going to affect the Cibil score and neither impose any extra charges.
No Extra Fees will be Charged :- The Late Payment fees are charged if you clear the credit card bill after the due date. If you are having multiple credit cards then you have to pay a large sum of money as the late payment charges. But if you are opting for 3 months moratorium period then the no bank is entitled to charge an extra sum of money when you pay the credit card bill after 3 months.
The Reason Why 3 Months Moratorium Period is Not Good for Multiple Credit Card Users
The three months moratorium will definitely help you to fight the financial crisis but on the other hand, if you have multiple credit cards and you skipping the bill the payment of all of them then the respective bank will charge the applicable interest on the outstanding amount. 3 months later, you will have to face the financial burden because you have to clear the outstanding bill of all the owned credit cards and also have to pay the sum of interest on all the cards. Therefore, it is better to clear the credit card dues on time if you are having enough funds because this will save the part of your interest on the outstanding amount.
Take Away
Well, it is clear that you can enjoy moratorium on multiple credit cards and skip the payment for 3 months. But it will make you pay a large sum of interest after the expiry of 3 months. Now, it is up to you whether you want to clear the dues on time or delay it by 3 months.