Debt Counseling: Mohan Jayaraman

Readers' Corner

My credit card payment this month was due on a public holiday, followed by a two-day bank strike. Due to this, I crossed the date of repaying my monthly bill. The bank has denied me an extension to repay. What if the bank fines me for this?
Some banks, in certain instances, may take into consideration public holidays before charging late fees if the minimum payment due against the credit card is not made by the due date. However, this might not be true across all banks and all such instances of a credit card due date falling on a public holiday. There is generally a gap of 15-20 days between the credit card statement generation date and the payment due date. The consumer is advised to make the payment at least three to five days ahead of the due date; to avoid such instances.

To avoid misuse of my credit card, I have taken an in-built insurance cover to protect it from any frauds. Is there any other fool-proof mechanism to protect it further?
Banks generally invest in fraud prevention tools and mechanisms to protect the consumer against potential frauds. Banks also issue notifications and advise to consumers on various preventive measures to further reduce chances of fraud. Consumers should follow the directives and guidance, issued by banks. Examples of some of these self-preventive measures are not sharing the card number and PIN with anyone. Do not store the PIN and credit card in the same place. Or, they should enroll for SMS/email alerts on spends and transactions. One should always use the virtual keyboard while using internet banking, to ensure safety.

I am 33 and have two credit cards, from two different banks. I defaulted on one. However, I repaid the sum within three months and settled the issue. Will my credit history capture this activity? Am I eligible to get personal loans in future?
The credit report of the consumer will reflect the default and the settlement of the credit card. The closure of an unsecured line of borrowing is likely to have a positive impact on the credit score/rating of the consumer.

The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in
Today, Mohan Jayaraman, MD of Experian Credit Information Company, answers your questions