Avoid Late Payment Fees

Late payment fees was a source of controversy as it was felt by credit card holders that the credit card companies in the UK were trying to milk the situation by charging a flat fee, typically £25.00, for payments not made by the due date

Following pressure the credit card providers agreed that they would charge not more than £12.00 for a late payment.

However, so as not to have to pay the late payment fee, always ensure that you make your credit card payment to your credit card provider by or on the due date. If you don’t this will be added to your outstanding balance on your credit card and you will find yourself paying interest on the late payment fee. To ensure that this does not take place set up a direct debit that will always pay the minimum amount when it falls due and the balance can be paid by phone/internet banking, at a bank or by post.

Alternatively diarise when the monthly payment falls due and then pay (four to five working days prior to the due date) by phone/internet banking or at a bank or by post (seven working days prior to the due date).

If the date you have to pay the credit card provider by each month is not suitable for you, then contact them to arrange another date for payment.

Remember that a late payment fee is not all that you could effectively lose. Often the terms and conditions have a clause stating that any preferential introductory rate offered, such as 0% APR, may be rescinded if a late payment is made at any stage during its currency.

A late payment will also show up on your credit profile.

Return to our credit card information section, or return to the homepage.