When you delay making the credit card payment, your card issuer levies late fees. These fees can be as high as $40 every time you fail to pay on time. This can burn quite a big hole in your pocket. Here are the few tips that can be used to prevent being charged late fees.
The simplest method of avoiding a late fee is to pay your bill every time before the due date. Read the detailed payment instructions mentioned at the back of the statement and follow them thoroughly to ensure your payment reaches your issuer on time. These payment instructions will tell you how, where and the last date of making the payment. Many issuers also require you to send them the payments in the preprinted envelope that comes along with the statement. The Fair Credit Billing Act requires the issuers to credit payments on the day they arrive. But in spite of this, each issuer follows their own set guidelines and if any one of these guidelines remains unfulfilled, your payment gets credited up to 5 days late. So even if you have made payment on time, you will be charged late fees.
Use Skip-A-Payment services. This method allows you skip mortgage, credit card, or loan payments. To use this method, contact your bank to find out your eligibility. You can also contact independent companies that let you do the same, irrespective of which bank you deal with. These companies charge varying fee. You need to find out the fees charged by each company to determine whether it is worth it or not.
Make minimum payment immediately. This is the best method to avoid being charged a late fee. As soon as you get the bill, pay off the minimum amount to ensure your credit card issuer gets the payment. If you have spare some cash, you can pay more afterwards. You will not be charged any late fee since your credit card issuer has already received the minimum amount.
Altering your date is another option. Usually, many people are hard-pressed for cash during the month end. So if your due date is towards the month end, you can get it changed closer to the date when you get your salary. This allows you to have money to pay off your card dues.
The other method is to call up to make the payment. If you like to pay at the last minute or if you forgot to make the payment early, you can pay using a phone. You need to provide your checking account number and your bank routing number to the representative on the line. This allows you to make your payment on time but can be very expensive. Many issuers charge a fee anywhere between $5 and $20.
If your card issuer does not have a pay by phone and you have to make the payment quickly, use express methods like express mail or Western Union. Your card issuer will get the payment immediately but will work out expensive for you. Write the address properly, since any mistakes can delay the processing of the payment.