Credit cards are great tools for making purchases both in person and online. All you have to do is swipe your card at the machine and enter your information, and just like that, the transaction is complete. However, when it comes time to pay your credit card fees, there are some tips you can use to avoid credti card late fees.
On the other hand, the convenience and rewards of a credit card can be hindered greatly by the late fees, high interest rates and damage to your credit report if you were to fail to pay your bill on time. Credit card companies are allowed to charge a late payment fee up to $27 for the first offense, and up to $38 for the next offense. Continue reading to learn more on how you can avoid late fees.
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5 Ways to Avoid Credit Card Late Fees
Missing a credit card payment or being late to one is not only bad for your credit score but it can also cost you quite a bit. Here are five things you can do to avoid a credit card late fee:
1. Pay Early
One of the easiest thing to do to avoid any late fees is to pay early. Make sure you pay at least the minimum amount due, and make sure that your payment reaches the credit card company before the due date. This will leave plenty of time for the company to process your payment and use the credit card issuer’s website to pay your bill online.
2. Sign Up for Reminders
If you tend to be forgetful, then sign up for reminders to pay your balance so you don’t have to pay any late fees. It can be quite frustrating if you have the funds to make a payment but you simply just forget. Some banks and financial institutions will send you texts and emails to remind you that your minimum payment is due, and will let you know when your payment has been posted.
3. Use Auto Pay
What’s even better than signing up for reminders is to simply sign up for auto payments. You can link your credit card to your checking account so that payments will me made without you having to do a thing. You will have the option to make minimum payment, paying a specific dollar amount, or paying your balance in full each month. Consider choosing making minimum payments if you’re unsure if you can pay the whole bill in full, and then adjust the payment upwards if you’re able to pay more.
4. Change Your Credit Card Due Date
If you get paid a certain day of the month, then changing your credit card payment due date will benefit you greatly. Some banks and credit card issuers will allow customers to do this. Your new due date should align with your financial schedule taking into account when your direct deposit hits and when you have to pay your bills.
5. Ask for the Fee to Be Waived
Let’s say you completely forgot to pay your credit card balance and incur a fee. Don’t panic because there are ways to work around this. Simply call your credit card company and as for your fee to be waived. The company might agree to this if this is your first time you pay late. However, if you have a habit of paying late, don’t expect the company to comply with this request.
Avoiding credit card late fees is a crucial thing to take into account when managing your finances. Late fees can start to rack up in cost over time if you consistently forget to pay your balance and can hurt your credit report over time. However, there are some things you can do to avoid those fees.
Pay early so that you don’t forget. Some banks may even offer a way to notify you of your payments if you tend to be forgetful. Use any auto payment features offered by your bank by linking your credit card to your checking account. Change your credit card due date to match your financial schedule. If all else fails, ask for your fee to be waived if it is your first time.
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