Avoid Credit Card Late Fees With These Five Tips

Most of us may have experienced the dreaded credit card late fees one time or another. Not only is paying a credit card late fee charges tantamount to throwing money away, it can badly affect your credit score. These useful payment tips and strategies here is a guide to show you how to avoid these costly fees.

Although, the Fair Credit Billing Act requires credit card companies to credit payments on the day they are received, it also allows each credit card issuer to set their own specific payment guidelines. Each credit card issuer includes a payment guidelines (normally small print) that must adhere to the core principles of this Act. Thus, when credit card companies process credit card payments, every single detail is extremely important. Any minute variation and you are likely to be liable to a credit card late fees charge.

If one or more of these guidelines are not met, the credit card company can take as much as five to seven business days to credit the payment.

That means you can get your payment to your credit card company on time and it could become late during that five-day period. According to law, the credit card company could legally charge you late fees. So it is in your best interest to follow their payment guidelines carefully, which are usually on the back of your credit card bill.

Here is the five best ways to avoid or prevent credit card late fees.

#1. Pay The Minimum Payment As Soon As Bill Shows Up
One of the guaranteed ways to avoid paying a credit card late fee is to pay your bill as soon as it arrives. Minimum payment is better than paying an unnecessary late credit card charge. Additional payments can always be added later to keep your interest costs down.

#2. Payment Guidelines Must be Followed Religiously
This includes everything from a specific payment address to the time of day the payment has to be received to be credited that day. Depending on the method of payment, there is usually a detailed way in which it is to be sent. That is the number of days required to make the payment deadline varies if you are paying by phone, through your bank or by post. It is essential that whatever method of payment you choose, you know exactly how long it takes for payment to register on your card. Some companies even require that payments arrive in their preprinted envelope they sent you with your bill. To be safe, always use the preprinted envelope provided by a credit card company. For check payments, it is important to identify your account by writing your credit card account number on the back of your check.

#3. Change Your Due Date To Suit You
Most major credit card companies allow you set your own due date by just asking. Set your due date so your credit card bill arrives right after you get paid.

#4. Pay By Phone
Most major credit card companies will accept payments by phone. Very few of them will charge fees, ranging from $5 to $15 for the service. But credit card late fees cost you much more so it's better to pay the small fee than a late credit card payment fee.

#5. Automatic Online Payments
Paying bills online is also another good way to avoid paying a credit card late fee. These days, most major credit card companies do accept credit card payments online. You will need to sign up for the service on the card company's web site. Make sure to choose a payment amount that automatically covers the minimum amount due on your credit card each month. You can always make additional payments later to keep your interest costs down.

If you do get hit with a credit card late fee unawares, you can call the credit card company and ask for it to be waived. This can be done if you are not a habitual late payer. Many credit card companies will waive late credit card payment fees as a courtesy to customers with good payment records.