A Late Fee May Not Be the Only Penalty For Making a Late Payment On Your Credit Card
Surprising Penalty for Making Late Credit Card Payments
Most of us know that we’re going to pay a late fee if we make a late credit card payment. What many of us don’t realize is that the penalty can go far beyond that one-time late fee. In fact, if you’re not careful, you could end up spending a heck of a lot more than just a late fee if you happen to make your credit card payment late.
Kiss That Low Interest Rate Goodbye
If you make a late payment on your credit card, you’re going to have to kiss that low interest rate goodbye. More and more credit card companies are implementing higher interest rates on the accounts of those who have made a late payment. Some credit card companies are only increasing the interest rate for a few months as a late payment penalty while others are increasing the interest rate for good.
Pay On Time
The only way to protect yourself from having to pay a late fee and an increased credit card interest rate is to make sure that you make your credit card payments on time each and every month. After all, if you carry a high balance, that increased interest rate could equate to hundreds of dollars in wasted cash.