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A late payment fee is a charge imposed by a creditor or service provider when a payment is not made by the due date specified in the terms of the agreement. This fee is typically applied to credit card payments, loan payments, utility bills, rent, or any other financial obligation where timely payments are expected.
A credit card late payment fee is imposed by the credit card issuer when a cardholder fails to make the minimum payment by the due date specified in the credit card billing statement.
The late payment fee serves as a penalty for not adhering to the agreed-upon payment terms. In addition to the late payment fee, the cardholder may also incur interest charges on the unpaid balance.
Late payments can also negatively impact a person's credit score, potentially leading to higher interest rates, reduced credit limits, or difficulty obtaining credit in the future.
People also ask
What are the best credit cards with no late fees?
The best credit card with no late fees is the Petal® 2 Visa® Credit Card. It offers 1% cash back on all eligible purchases, up to 1.25% back after 6 months of on-time payments, and 1.5% cash back after 12 consecutive months of paying on time. The Petal 2 Card has a $0 annual fee and requires limited credit for approval.
Best Credit Cards with No Late Fees in 2025
Generally, late fees can be steep. So, getting a credit card with no late fees might seem like a good idea. But it would be better to focus on paying your credit card bill on time...
read full answer by Bogdan Roberts, Credit Cards ModeratorDoes Bank of America charge late fees?
Yes, Bank of America does charge late fees when cardholders don’t make the minimum payment by the due date. The late fee for Bank of America credit cards is $29 for personal cards, and it will increase to $40 for subsequent late payments within six months. After six months of consecutive payments since your last missed due date, the late fee will reset to $29 for personal cards. Thanks to the CARD Act of 2009, the Bank of...
read full answer by Adrian Kaplan, WalletHub Credit Card ConsultantDoes Citibank charge late fees?
Yes, Citibank does charge late fees when cardholders don’t make the minimum payment by the due date. To avoid getting hit with late fees in the future, make sure to pay at least your minimum required payment each month. The best way to ensure that you never miss a payment is by setting up autopay.
If you accidentally pay less than the minimum required payment or you miss your Citibank credit card due date entirely, you...
read full answer by Chip Lupo, Credit Card WriterDid we answer your question?
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