How to Avoid Credit Card Late Fees and Penalties?

Posted on Tuesday, May 23rd, 2023 | By IndusInd Bank

Credit card late payment fees and penalties can add up quickly and put a dent in your budget. In some cases, they can even damage your credit score. Fortunately, there are steps you can take to avoid late payment fees and penalties and keep your finances on track. In this blog, we’ll explore some tips to help you avoid credit card late fees and penalties. 

Set Up Payment Reminders 

One of the easiest ways to avoid late fees and penalties is to set up payment reminders. This can be done through your credit card provider’s website or app, or through a third-party service like Google Calendar or a mobile app. You can set reminders to notify you when your payment is due, so you don’t forget and miss the deadline. 

Consider Automatic Payments 

Automatic payments are another great way to avoid late fees and penalties. You can set up automatic payments through your credit card provider’s website or app.

This will ensure that your payment is made on time each month, without any additional effort on your part. However, it’s important to ensure that you have sufficient funds in your account to cover the payment, to avoid overdraft fees or other penalties. 

Review Your Billing Statement 

It’s important to review your billing statement each month to ensure that you’re aware of your payment due date and any outstanding balances. This will also help you identify any errors or unauthorized charges on your account, so you can dispute them with your credit card provider. 

Be Mindful of the Due Date 

The most effective way to avoid late fees and penalties is to make your payments on time. This means paying your bill in full each month, by the due date specified on your billing statement. If you’re unable to pay your balance in full, it’s important to at least make the minimum payment to avoid late fees and penalties. 

Prioritize Your Payments 

If you have multiple credit card balances, it’s important to prioritize your payments. Focus on paying off the card with the highest interest rate first, while making at least the minimum payment on your other cards. This will help you reduce your overall debt more quickly and avoid accruing additional interest and penalties. 

Contact Your Credit Card Provider 

If you’re unable to make your payment on time, it’s important to contact your credit card provider as soon as possible. They may be willing to work with you to set up a payment plan or waive late fees and penalties. However, it’s important to communicate with them in a timely manner to avoid additional fees and damage to your credit score. 

Monitor Your Credit Score 

Late payments and penalties can have a negative impact on your credit score. It’s important to monitor your credit score regularly to ensure that there are no errors or unauthorized entries  on your account, and to track your progress in reducing your debt and improving your creditworthiness. 

Conclusion 

Credit card late fees and penalties can be frustrating and costly. However, by taking proactive steps to avoid them, you can keep your finances on track and protect your credit score.

Set up payment reminders, consider automatic payments, review your billing statement, make payments on time, prioritize your payments, contact your credit card provider, and monitor your credit score regularly. With these tips, you can avoid late fees and penalties and achieve greater financial stability. 

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Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.