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If you’re experiencing financial difficulty, we encourage you to contact our team as soon as possible. Reaching out early may help prevent additional fees or account restrictions. If your statement balance is not repaid, the following may occur.

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Deferred Payment Fees

If your statement balance remains unpaid one month after the due date, a 2% monthly Deferred Payment Fee will be assessed on the unpaid principal balance.
  • Fees do not compound
  • Fees continue to accrue monthly until the overdue principal is repaid
  • Partial payments do not prevent fees if the full statement balance is not paid

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Card Restrictions

If your payment fails or your balance remains unpaid:
  • Your card may be declined for new purchases
  • Your credit line may be reduced or suspended
  • Certain account features may be limited
Restrictions may occur immediately following a missed payment.

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Account Suspension or Closure

If the balance remains unpaid for an extended period:
  • Your Karat Card will be suspended or closed
  • Your credit line will no longer be available
  • You will remain responsible for repaying the full outstanding balance
  • Deferred Payment Fees will continue to accrue on unpaid principal

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Credit Reporting

Missed payments will be reported to credit bureaus. Late payments and charge-offs can negatively affect your credit profile and may remain on your credit report in accordance with applicable laws.

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Collections

If a balance remains unpaid, Karat will take steps to recover the amount owed. This may include working with you directly or engaging third-party service providers, as permitted by law.

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How to avoid these consequences

To keep your account in good standing:
  • Pay your full statement balance by the due date
  • Ensure your autopay account has sufficient funds
  • Contact us before your due date if you anticipate difficulty
If you’re unable to make a payment, reach out as soon as possible. Karat is a financial technology company, not a bank. Banking services provided by Grasshopper Bank, N.A., Member FDIC. The Karat Visa® Business Credit Card is issued by Cross River Bank, Member FDIC, and pursuant to a license from Visa️ USA.