State Bank of India offers a lot of beneficial features to credit card users. All the features may not be associated with particular fees and other charges. Every month, the customers will receive a credit card statement and the minimum due amount in the SBI Credit card will also be mentioned in the statement. Credit cardholders often get attractive cashback offers, rewards, discounts, and a lot more on their transactions.
However, all the payments related to your borrowed funds and transactions must be cleared every month without any delay. It is highly important to clear even the minimum amount due on your SBI credit card. Otherwise, you need to pay SBI credit card minimum due charges for late payments. To evade such charges, you need to clear all your dues on the credit card. In this post, we provided the complete information about what is minimum amount due in SBI credit card, charges, due calculation, pros and cons of paying the minimum amount due, and more. Have a glance!
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What is the Minimum Amount Due in SBI Credit Card?
What is minimum due amount in SBI credit card? Customers usually carry out certain transactions using a credit card. The amount will pile up ultimately at the end of the month and the customer will receive their credit card bill. Customers can also check their transaction history to know their total spendings and calculate their bill. The total outstanding amount that the customer should pay will be included in the credit card bill. In case, if you don’t have enough funds to clear the complete amount as per the bill, the bank gives you an option to pay only the SBI credit card minimum amount due calculation.
The minimum amount due on a credit card is referred to as the minimum amount you need to pay within the due date of the credit card payment. This way, you can keep your credit card account active. However, the minimum amount due is only a minute portion of the outstanding credit card bill. A minute portion means 5 percent of the current month’s outstanding amount on your credit card bill. If in case, you have EMIs to pay on your credit card, other pending bills, and more then, your credit card minimum due amount will be higher.
SBI Credit Card Minimum Amount Due Calculation
The SBI credit card minimum amount due calculation can be done as 5 percent of your outstanding balance. Otherwise, it can also be calculated as the sum of all installments, the amount utilized over the credit limit, interest or bank charges, 1 percent of the remaining balance outstanding, and more, whichever is higher. If there are some unpaid minimum amount dues from your previous credit card statements then, they will also be added to your current minimum amount due. The customers will receive monthly statements and SMS alerts through which they can get information regarding the minimum amount due for a specific month.
Difference Between SBI Credit Card Total Amount Due and Minimum Amount Due
Check the difference between the SBI credit card total due and minimum due. The minimum amount due is the minimum amount that you have to pay on your SBI credit card account. By paying the minimum due amount, you can evade late payment charges. The total amount due, on the other hand, is the sum of all expenses on your SBI credit card during that specific billing period. You don’t need to pay any additional charge if you pay the total amount due on your credit card.
One of the key benefits of paying the total due amount is that you get an interest-free period. But, if you pay the minimum amount due then, it indicates that you are carry forwarding a balance. This provision is known as revolving credit and will attract interest. If you make any other purchase on a credit card, it will also attract interest from the date of purchase. This is the major difference between the SBI credit card total due and minimum due.
Pros and Cons of Paying Minimum Amount Due on SBI Credit Card
For any feature offered by credit card issuers, there could be advantages and disadvantages. To know the pros and cons of the SBI credit card minimum due charges on your credit card, just go through this post.
The customers need to know the benefits or pros of paying the minimum amount due on an SBI credit card. By understanding the pros, the customers can utilize it in the worst scenarios. We furnished the list of the advantages of paying only the minimum amount due on an SBI credit card here.
- Mostly, the credit card issuers recommend the customers pay the whole outstanding amount on the SBI credit card within the due date. By doing so, the customers can get a lot of advantages in the long run. If you are unable to pay the entire outstanding amount due, you can still manage to pay an amount slightly close to it.
- If you consider paying only the minimum amount due on your credit card every time thinking that it is only a small portion of your total amount then, you will be completely mistaken.
- It would be better to pay the minimum amount due only once or twice. Try to make sure that you don’t follow the same every month. If you make any sort of payment against the outstanding amount on your SBI credit card then, it would be considered as the minimum amount due. After paying the whole minimum amount due then, it would be adjusted against other categories such as interest charges, fees, balance transfer outstanding, etc.
Paying only the minimum amount due on your SBI credit card isn’t recommended often. Some of the cons include the following:
- If you continuously pay the minimum amount due for a few months then, high interests will be accumulated against the total outstanding amount on your credit card. It could be about 3.35 percent per month. It is very much more compared to the total outstanding amount on your credit card. Ultimately, you need to pay a higher amount in the form of interest every month on your credit card.
- If you skip paying the outstanding amount on your credit card then, it leads to a low credit score. In that, it may show an impact on your loan accumulating chances in the future. Mostly, the loan issuers will approve loans to the customers based on the credit score. Considering the credit score, the lenders will assess whether the customers are worth getting a loan or not.
- The customers who use a credit card can understand the benefit of an interest-free period of up to 50 to 55 days. In this period, the customers can relish their credit card expenses. You can get the interest-free period only when you pay the entire outstanding amount on your credit card. If you pay only the minimum amount due on your credit card then, you may not avail of the interest-free period. As a result, you need to pay the interest from the date of purchase.
SBI Credit Card Minimum Amount Due FAQs
Here are some of the frequently asked questions about the sbi credit card minimum amount due calculation, charges, and total amount due. We included answers to your queries and doubts regarding the minimum amount due on the SBI credit card. Check it out!
- What will happen if I do not pay any amount due before the due date?
It leads to additional late payment fees, interest, and other charges. It might sometimes lead to a potential suspension of your credit card. In some cases, it shows a negative impact on your future financial credentials and a low or negative CIBIL score.
- What will happen if I pay only the minimum amount due only?
Every month, if you pay only the minimum amount due then, it results in the repayment stretching over years followed by interest payment on your outstanding amount.
- What are the amounts included in the minimum amount due on my SBI credit card?
It includes the interest fees, charges, sum of all installments, unpaid minimum dues of previous card statements.
- How can I find the total amount due and minimum amount due of my SBI Credit Card?
You can find the total amount due and minimum amount due on your credit card in three different ways. It includes the website, mobile app, and chatbot ILA. Log in to the website and check the due amounts under the 'My Card' section. On the mobile app, find the amount from the 'Last Billed Summary' section. ILA gives information about the due amounts once you log into your account.
Well, this is everything you need to know about the minimum amount due on SBI credit card, charges, and more. Hopefully, this article has given enough information on what is minimum amount due in SBI Credit Card. If you still have any doubts, just ask us in the comments space. Stay tuned to our website to learn more about the SBI credit card, benefits, etc.