Credit Cards with Late Fees

If you signed up for credit cards with late fees, this means that you will be charged whenever you delay the repayment. In other words, if you pay after the due date, a late fee is imposed. Most repayment schedules are appointed anywhere around 21 to 25 days after the conclusion of the billing cycle. In some cases, late fees are also charged when card holders pay below the minimum payment.

How Much is a Late Fee?

Not all credit cards have late fees. Some that do even waive this charge to loyal and responsible customers. Nevertheless, every consumer has the right to know how much the card charges for delayed payments. Before signing the agreement, ensure that every important detail about the card is on the paper.

Some issuers base the late fees on the credit card balance. Usually, issuers base their computations on certain percentages. For example, if you have a balance of $500 or below, you may be required to pay $15, which is 3% of your balance. If you go over $500, you would be obliged to pay $30.

You may also find issuers that have a fixed rate on the late fee no matter how little or big your balance is. The new Credit CARD Act of 2009, however, has set a maximum late fee for the companies to follow. The maximum is $25, but it can go up to $35 if the consumer has a delayed payment record within the previous six months.

Credit Cards that Charge Late Fees

It is not to say that you should avoid cards that have late fees. As a matter of fact, they teach you how to be a conscientious card holder. If you don’t want to pay the late fees, you don’t have to, as long as you always pay your bills on time. Here are some of the credit cards that have late fees:

• American Express® Credit Cards – Blue, Gold, and Platinum Membership Rewards® all require you to pay the late fee of $25. If you make another late payment within the next six months, this will rise to $35. Note that you will not be charged more than your minimum payment due.
• Citi® Credit Cards – Citi Forward®, Platinum Select®, and Dividend are among the Citi® cards that have a late fee of $35.
• Chase Credit Cards – Both Freedom® and Slate® have a late fee of $35. Meanwhile, if you want to get a Chase SapphireSM credit card, the late fees are based on your balance. For instance, if you have a balance of $250, the late fee is $15. For those with a balance of over $250, they will be charged $25. Chase business credit cards have higher fees but have the same tiered fee arrangement as SapphireSM.

Late fees are not an attractive credit card feature, but most cards have this so you should be wary when using your card. Know your due date, allocate funds for your monthly payment, and pay on time – these are the three steps that will help you avoid late fees. Electronic transfers and mailed payments may take a few days before they are received. Remember that your payment must be obtained by your issuer before or on the deadline to avoid these fees.