The Truth about No Late Fee Credit Cards
Are No Late Fee Credit Cards Really a Good Idea?
Let’s face it, no one likes paying something if they don’t have to and everyone hates the late fees charged by credit card companies, especially when we have to rely on the postal service to get our credit card payments in on time and then trust that our credit card companies will process those payments in a timely manner. Perhaps that’s why people have taken such an instant liking to no late fee credit cards. But are no late fee credit cards really all they’re cracked up to be?
You’re Gonna Pay For It, One Way or Another
I’ve said it before and I’ll say it again -- if something sounds too good to be true, it probably is and no late fee credit cards definitely sound too good to be true. I mean, can you really make a late payment and not pay a penalty for it? Not really. You’re going to pay for it one way or another, and in this case you’re going to pay for it with higher interest rates.
No late fee credit cards traditionally charge a higher interest rate than credit cards that impose late fee penalties and if you think that a no late fee credit card is going to overlook reporting a late payment to the credit bureaus, you’d better think again.
Comments
I have made use of balance transfer for (usualy) good effect. I accidentally made a late payment (less than 24 hours). But shock horror! they classed the late payment as a purchase!! yest think about it. A purchase made on a credit card will sit there earning interest at the companies higher rate untill the 'Promotional offer' has been paid! I think that this is sharp practice (I did not make a purchase!!. The fee was charged at the companies discression I say discression because I know that they can waiver this payment if circunstances allow!
I told the company that I would pay the charge seperately, but they would not allow it!!
I would be interested in your views regarding a late payment being classed as a purchase. Some times they charge a handling fee of 2% for balance transfers but this is never classed as a seperate purchase. Can you offer any advice. Please make sure that your readers NEVER make a purchase on a card that has been used for a balance transfer.
Regards
David
PS you ptovide a good service, keep up the good work!
Posted by: David Brandwood | May 27, 2006 11:39 AM