Credit Card Late Charges

The average credit card late charge in the United States is $34.35.
It can actually reach an all-time high of $39 but major issuers charge between $29 and $39 on average. How are credit card late charges calculated? Most card issuers use a "tier" system to assess fees. So, your credit card late fee may be $15 if you have a balance of less than $100. It can be $29 if the balance in your statement is less than $250 and $39 if the balance is beyond $250.

Credit card late charges can actually be avoided if you know how to play your cards right. There are a lot of things you can do to avoid all types of credit card late charges. Number one is to follow the company’s payment rules precisely. These guidelines are usually printed at the back of your credit card bill so make sure to read them. Every little thing you do is on the record and details as little as these can tip the scales.

Another thing that you can do to avoid credit card late charges is to pay the minimum immediately. Pay the bill as soon as it arrives even if you can only afford to pay the minimum. Companies usually require cardholders to pay 2% of the balance. This is not that hard on the pocket especially if you’re not financially able at the moment. However, don’t keep this up. Once you get extra cash, pay off everything immediately or you’ll end up paying more in interest.

You can also choose to move your due date to avoid credit card late charges. When the arrival of bills is not in sync with your pay date, call your card issuer immediately and have your due date changed. Having the bills arrive at a time when you’re ready will not only relieve you of credit card late charges but also high interest rates.

Another thing to do to avoid credit card late charges is to arrange with your bank for automatic online and on-time payments. Almost all card issuers accept online payments. When arranging for this agreement, make sure that the minimum amount you pay is equal to or more than the minimum that’s due every month. Also arrange that the automatic payment date is well before your due date. However, be sure to make additional payments online to cover the rest in order to avoid interest costs.

You can also opt to pay by phone to avoid credit card late charges. You just need your checkbook and the number of the company. Once you’re with an agent, give him/her your check number and the bank routing number, which can be seen at the bottom of the check. This is a quick and easy way to pay your bills and avoid credit card late charges. Still, be sure to ask about fees. Payments like these can range from $5 to $15.


Source: Credit Cards For People With Bad Credit Rating

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