Rollover

Rollover

Nature of rollover

The amount due on the credit card has to be paid by the due date. If you are unable to do so then there is an option available. This is to pay the minimum amount and then roll over the remaining amount to be paid next month.

Future payment

In this case, the majority of the payment will have to be made in the future. When this is done depends upon your ability to repay, but it can be rolled over for a longer period of time too till you get the necessary funds.

Financial implication

The financial impact of this rollover is witnessed in the form of interest payments that have to be made by you. This interest will be payable each month for the amount that still remains outstanding each month.

Further expense

Such a rollover is costly for you because of the fact that now all the expenses made on the credit card are liable for interest. This is because there is no credit period available on the new expenses once the amount is being rolled over.

Classification of rollover

A rollover is not considered as a default and in fact the bank would like you to roll over the amount because this is the source of earning interest for them. As long as you keep paying the minimum amount and your outstanding is within the credit limit sanctioned you still remain a creditworthy customer.