What Can Happen to Your Credit If You Have a Late Fee on a Credit Card?

If you are late in paying your credit card bills, you may get hit with late fees. Even worse, the credit card company can report your late payments to the credit bureaus, lowering your credit score.

Late Payments and Fees

If you are late in paying your credit card bill, your credit card company may charge you a late-payment fee. This fee will increase both your balance and your next monthly card payment.

Credit Reporting

While the late fee itself won't affect your credit, most credit card companies regularly report your payments to the credit bureaus. If a payment is late, this can affect your credit score. Late payments can also cost you a lot of money aside from fees: Your other creditors may periodically review your credit history, and raise your interest rates if they see that you missed a payment.

Prevention/Solution

Mail your credit card payments in early to prevent late payments. Many credit card companies offer payment by phone or online payments, though they may charge an extra fee for these services. If you are going to be late with your credit card payment, contact the credit card company to see if they can give you a short extension.