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How to beat credit card late fees?

September 23, 2013 by · Leave a Comment 

It could happen to anyone for many reasons. But paying a payment late is no fun at all. That’s why the Federal government built in some relief into the Credit Card Act of 2009 which limits the late fees to $25 for the first violation and $35 for subsequent violations. If you have missed a payment within the last six months, rules may not apply. They also do not apply to small business credit cards or any other type of late fees such as what they charge on your late mortgage payment.

When you are shopping for a credit card, look for a card that doesn’t charge a late fee at all. But they may be limited to certain number of late payments. But be aware, late payments still may be reported to credit reporting bureaus which will result in a lower credit score. Keep in mind your payment history counts for 35 percent of your FICO score.

If you miss a payment, call immediately. Regardless of what the law allow them to charge, your credit card company may be willing to listen to you and not charge a late fee if you have been a good customer for them.

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