Effective tips to avoid paying late fees on your credit cards

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Effective tips to avoid paying late fees on your credit cards

Effective tips to avoid paying late fees on your credit cards

By
Add to Favorites:

Owning a credit card can prove to be very costly if you do not manage it effectively. Of the many fees associated with the credit cards, the annual fees and late payment fees are the most common. Before the implementation of the CARD Act in 2009, customers were at the receiving end with banks increasing the late payment fees without prior notice. However, with the implementation of the CARD Act, this practice has been curtailed to a great extent. This has caused banks to lose out on a lot of revenue, but they are still making a lot of money from the fees, thanks to people who don’t pay their credit card dues on time. Not paying the dues on time does not only set you back by a few dollars, it also has an impact on your credit history. It is imperative to pay off your dues on time and for people who are unaware of how to do it, here are some tips to help you.

The best way to avoid late payment fees is by paying your credit card dues twice each month. Don’t wait for the credit card billing statement to arrive at your doorstep and then set aside funds. Rather than that, make two small payments each month to avoid defaults on your account. Another option is to request the banks to change the due date to coincide with the time your paycheck comes in so you don’t run short of funds to make at least the minimum payment due. You can also ensure that the date coincides with the due dates on the other bills so all payments are made on time.

Opt for direct debit payments from your accounts to avoid missing your payments. However, you need to ensure you keep your account sufficiently funded to avoid the check returns. In addition to the minimum payment, ensure you pay at least 2% of the total outstanding so the subsequent payments go down and you can clear off your debt fast without defaults.

If the payment due date is pretty close by, sending the check to the card company will not work because it does take time for the check to reach the account. Hence, it is recommended that you either make the payment by phone or the internet so the funds reach your account on time and prevent you from having to pay late payment fees.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading