If you do not have money to pay the credit card bill, then adopt this method to avoid penalty, you will save yourself from heavy interest.

Credit Card Rules: Credit cards provide you financial assistance to relieve cash crunch, increase credit score and meet unexpected needs. But paying monthly bills on time is equally important. If you miss payments, you may face huge fines and other losses.

To prevent this from happening, it is important that credit card holders understand their card billing cycle and financial management. You can manage the credit card billing cycle based on the recently changed rules by RBI.

What is the credit card billing cycle?

Suppose, your credit card bill comes on 25th of every month and its payment date is 7th of the next month. That is, if on January 25 you get Rs. A credit card bill of Rs 10,000 has come. Therefore, it will have to be paid by 7th February. Paying the full amount may increase your credit limit. But if you are not able to pay then you can pay the minimum amount (5 percent of the bill). But remember, interest will have to be paid on the outstanding amount, which will increase the burden.

RBI's new rule for billing cycle:

According to RBI, now credit card companies will have to allow their billing cycle to be changed at least once. So that you can change the payment period as per your financial convenience. Due to which you will be exempted from penalty charges. And maintaining a strong credit score. Hence you can change the billing cycle date as per your convenience without worrying about the due date.

The burden will increase due to late fees and penalties

Payment is usually due within 28 to 31 days after your credit card bill is generated. You can pay your bill within 10 to 15 days after the statement date. If payment is not made within the due date, you will have to pay late fees and penalties. Besides, the credit score also becomes weak.