How to Avoid Late Credit Card Payments

Credit cards can have many benefits that make life a little easier, as long as you build responsible credit habits. Chief among them: staying up-to-date on your credit card payments.

Paying on time can help you avoid the problems associated with late credit card payments. Luckily, there are many easy ways to stay on top of your monthly payment.

You Should Avoid Late Credit Card Payments

Making a late credit card payment isn’t wise for several reasons. Firstly, late payments usually result in late fees.

Discover does not charge a late fee on your first late payment. Subsequent missed payments will result in a late fee of $25 if you paid on time for all of your last six billing periods, or $35 if you haven’t. (Note that not all credit card companies are quite so forgiving with regard to your first late payment. Be sure to check your credit card’s terms to understand the consequences of missed payments.)

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Secondly, if your payment is 30 or more days past due, the delinquency may be reported by the Creditor to a credit bureau.1 And thirdly, when you make late payments, your credit card account may even be subject to a higher interest rate known as a penalty APR.2 Discover does not impose penalty APR.

Set Up Auto Pay To Avoid Missing a Credit Card Payment

Having an automatic credit card payment set up gives you one less thing to worry about. For example, Discover lets you set up automatic monthly payments from your bank account to your Discover card. Set it for your Minimum Payment Due, Minimum Payment + Fixed Amount, a Fixed Amount of Your Choice, or Your Full Statement Balance to be paid every month.

Get Email and/or Text Alerts

One easy way to stay up-to-date on your credit card payment activity is to set email reminders or text alerts. It’s free to use this handy service, which can notify you six to seven days before your payment is due. If you prefer, set up a mobile alert so the reminder will arrive via text.

Today’s technology gives you a variety of options to stay on top of your bills. Use them to your advantage and avoid making a late credit card payment.

Resources:

1http://www.federalreserve.gov/creditreports/pdf/credit_reports_scores_2.pdf

2. http://www.consumerfinance.gov/credit-cards/knowbeforeyouowe/

Legal Disclaimer: The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice. 

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