What if you’re late paying your credit card?

We use our credit cards for everything these days which make them popular among bank clients however before you commit to a credit card you need to know that every time you use it you will be borrowing money from the bank but if you pay back the money during the grace period you won’t be charged an interest rate meaning you’ll only have to pay back the amount you borrowed in the first place. 

Unlike regular loans credit cards interest rates are charged monthly not yearly.

The grace period is usually between 48 to 58 days according to each bank and is a period where you can pay your credit card debt without paying an interest fee.

The interest is calculated based on everyday you are late beyond the grace period. It also affects your I-Score/credit rating which determines whether the bank approves any future financial facilitation for you. The sooner you pay off your credit card debt within the grace period the better your I-Score is.

How to calculate the interest if you are late in paying your credit card?

There is a fixed late fee which is either a percentage or a fixed amount according to each bank.

The interest rate is calculated based on the rate enforced by the bank. Calculate how many days your payment is late then calculate the interest per day.

Add the fixed rate plus the daily interest rate and you get your extra payment.

Or you can use Faydety’s credit card interest rate calculator instead and avoid all the hassle!

How to pay back your credit card?

Call your bank

You can inform your bank to either withdraw the borrowed amount or just the minimum payment from your account. The bank will automatically do so every month.

Internet banking

First you need to apply for the service at your bank’s local branch. Once you have a username and password you can access your account via Internet banking  or the bank’s app and pay your credit card easily

Use your debit card/ prepaid card

If you have a debit card or a prepaid card or a salary card you can transfer the credit card instalment directly through an ATM or the bank’s application

More on credit cards: six most popular banking cards in Egypt

ATM

You can pay your credit card through any of your bank’s ATMs using the deposit option.

Fawry (only for National Bank of Egypt’s clients)

NBE clients can now pay their credit card debt through Fawry. No need to go to the bank and wait in line, just visit the nearest Fawry outlet