It's More Than Just a Credit Card Statement
Why You Need To Pay Your Credit Card Statement On Time
If you have a credit card you know you get a credit card statement each and every month like clockwork. The question is, do you pay that statement on time, every time? If the answer is no, that late payment could be costing you a lot more than the fee charged by your credit card company. Here are some more reasons why you need to pay your credit card statement on time.
Kiss That Great Rate Goodbye
If you make your credit card payments late, you're probably going to see an increase in your interest rate, and not just on the card you've made the late payment too. Most credit card companies have what's called a Universal Default Clause, which means the cards you pay on time can still raise your rates if you pay any of your other cards late.
It Won't Be There When You Need It
If you make late payments when your credit card statement comes in, your good credit won't be there when you need it. Late payments can prevent you from buying a car or even a home. And if you do manage to get approved, you're going to pay thousands more in higher interest rates. Technically, a few late payments can cost you thousands of dollars in the long run.
What To Do
If you want to avoid all of the pitfalls associated with late credit card payments, make sure you pay those bills on time. If you will be late, contact your credit card company right away letting them know. They may be able to grant you an extension. It might cost extra, but will save you hassle (and maybe even money) in the long run.