Late fees on credit cards are the same thing as throwing away your money. Your credit score can be affected if you fail to make your monthly credit card payments on time. These payment strategies and tips will help you avoid these expensive fees.
Every detail is crucial when credit card companies process credit cards payments. You will be charged late fees if you miss even one of these details.
Credit card companies must credit payments as soon as they receive them under the Fair Credit Billing Act. This law allows credit card companies to establish their own payment guidelines. Credit card companies can take up to five days to credit a payment if any of these guidelines is not met.
This means that you can make your payment on time to your credit card company, but it may become late if it is not received within the five-day deadline. Late fees could be charged by the credit card company. It is in your best interests to adhere to their payment guidelines. These payment guidelines can be found on the backside of your credit card bill.
These are the top five ways to avoid credit card late fees.
1. Pay attention to Credit Card Payment Guidelines
This covers everything, from the specific address of the payment to the day it must be received in order to be credited the next day. Many companies require that you send your payments in the preprinted envelope provided by them. Always use the preprinted envelope issued by credit card companies to ensure your safety.
In the provided box, include the billing coupon and the amount that you are paying. Make sure your check is legible. Double check the amount and sign it. Send the payment to the address provided by the credit card company with proper postage.
2 Pay the Minimum Payment immediately
Paying your credit card bill promptly is the best way to avoid paying a late fee. Even if you are unable to make the minimum payment it is better than late payments on your credit card. To keep your interest costs low, you can always make more payments later.
Change your due date
Major credit card companies will allow you to set your own due dates by simply asking. You can set your due date to ensure your credit card bill arrives shortly after you have been paid.
4 Online Automatic Payments
Online payment is a great way to avoid late fees on credit cards. Online credit card payments are accepted by most major credit card companies. Sign up on the company’s website to sign up. You should choose a monthly payment amount that covers the minimum credit card bill. To keep interest costs low, you can always make more payments in the future.
5 Pay by Phone
Major credit card companies accept phone payments. Some companies will charge fees ranging from $5 to $15. However, credit card late fees can be much more costly so it is better to pay the small fee rather than a late payment fee. Toll-free numbers are listed on the back of credit cards. They will need your check number and bank routing number. These numbers are printed on every check.
You can call the credit card company to ask them if they will waive the late fees if you are hit with credit card charges. Customers with good payment records will often get a credit card company to waive late payment fees.
