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Making your credit card repayment goes beyond fulfilling your credit card requirement. It is a process that determines whether or not you will be permitted to perform further transactions on your credit card. For those who might be coming across the word repayment for the first time, credit card repayment is what you are required to pay back all you have spent on your credit card with the accrued interest.

Credit cards are great assets that help your financial stability when they are properly handled. However, if not properly used, it could lead to debt. This happens when repayment is delayed and it keeps accumulating with extra charges till you cannot afford to pay it all. Delayed repayment could happen to anyone but it can also be avoided. Here are some cases that often leads to delayed repayment:

  • Overspending and inability to make a timely payment due to insufficient funds.
  • Waiting until after the grace period before making repayment thereby resulting in extra charges.

Missing your repayment can be a very big deal. Your credit card company might not show up in your office or at your doorstep but the actions they take behind the scenes can affect your finances for months or even years.

Here are the consequences that come with late repayment.

1. Extra Charges

Making late repayment attracts extra charges. CredPal charges a 0.5% Penalty charge for each day you fail to make your repayment. You wouldn’t know how huge that is going to turn out to be till you calculate it for months or days. It is better to make early repayment than to deal with extra charges that might be inconvenient to pay off.

2. Withdrawal of Rewards

Credit card companies give out rewards such as cashback and discounts to customers who make use of their credit cards. For CredPal, you get cashback and discounts when you patronize CredPal merchants. This feature will be withdrawn from you if you default on your repayment because CredPal sees you as a big risk and should not be liable to any reward or benefit that other credit card users should enjoy.

credit card repayment

3. Damages Your Credit Score

Constant default in your credit card repayment can result in a bad credit score which can restrict your spending and loan capacity in the future. A bad credit score means that you will not have a better chance to get a credit card or loan approval, you pay more than you are expected to pay for your credit card repayment, and many more.

4. Decrease In Credit Limit

Frequent defaults in your credit card repayment will lead to a lower credit limit which will limit your spending capacity. This makes your financial organization conclude that you are unable to pay back or make timely repayment because you cannot afford to pay back what you have spent at the end of the month. Hence, you may be given a lower credit limit which will restrict your spending ability.

5. Paying just the minimum amount due

Some customers act wise by just paying the amount spend on their card without the accrued interest. This does not pass as the full repayment. And your interest begins to accumulate and can lead to debt that can take forever to pay back. It also allows your financial organization to conclude that you are not a reliable and trusted customer and can lead to your card blockage. It is therefore advisable to pay all you have spent with the accrued interest, full repayment, and not half.

It is always better to be safe than face the consequences of defaulting on your credit card payment. None of the consequences stated above is pleasant and should therefore keep you on your toes to always make timely repayment.

How To Keep to Timely Repayment?

  • Stick to the due date. You can select an auto-pay option that allows your financial organization to automatically remove your outstanding bill from your bank on your due date. That way, you do not have to bother about carrying over your repayment. CredPal particularly sets your repayment date around the day you receive your salary so that you can repay before other needs arise.
  • Set a reminder or an alarm to get a notification before your due date and on your due date so that you do not miss out on your repayment.

Credit cards have loads of benefits such as security, convenience, easy and fast purchasing power, and many more. However, they can cause logs of debt when they are not properly handled or used. No one likes debt or likes to pay for what they did not use. Paying for late fees are extra charges that you should not pay in the first place. To avoid all these, the perfect solution is to make timely payments.

We have made your CredPal credit card repayment very easy for you.

  • You can use the auto-pay option where your outstanding balance is automatically debited from your account.
  • Login to your dashboard, click on repayment, and ‘clear balance’.
  • Bank transfer to CredPal’s bank account.

Use your CredPal credit card wisely, make timely repayments!



In the wake of minimal access to loans, we are driving a lending ecosystem that increases the purchasing power of consumers and economic growth across Africa by offering better and easier access to consumer credit through credit cards, buy now, pay later, and loans.

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