6 Ways to Reduce Credit Card Late Payment Fees

Having a credit card can be useful, as long as you are not in arrears. Every delay generates bank charges such as interest to pay on your unpaid expenses. For example, some banks charge late fees or charge high interest rates. So here are some tips to help you minimize the late payment of your credit card.

Contents :

  • How to choose your card
  • Use a single credit card
  • Know your repayment timeline
  • Pay back on time
  • Limit your expenses
  • Avoid withdrawals

1. How to choose your card

Late payment can generate significant additional costs. To minimize these costs, it is useful to look at the rate applied by banks regarding repayment and late payment and find the one that suits you best. In addition, bank charges may apply to different types of credit cards:

  • Conventional Credit Card: Make sure you pay back a portion of the amount you borrow each month. Your bank gives you a minimum monthly amount to pay and the payment deadline. Always pay on time to avoid late payment.
  • Prepaid Card: Your expenses are automatically debited from your account before the repayment due date. This means that, each month, your current account is reduced by the total expenses incurred. If your balance is insufficient, you pay interest based on the applicable APR.


If you can’t pay your card balance this month, avoid making new purchases in the following month to reduce the costs of late payment. If you choose installment payments, try to reduce the number of repayments or even repay all your expenses at once. Be aware that by repaying the balance as soon as possible, you will pay less interest due to a potential late payment.

2. Use a single credit card

Another way to reduce your payment delays is to consolidate your balances from multiple credit cards into one card. So you don’t have to pay for the different cards, and you centralize all your expenses. It will be easier to follow up by consolidating your debts in one place. You can also better manage your late payments and pay off your card balance by paying one bill at the end of the month.

Know your repayment timeline

It is time by which borrower is required to fully repay the utilized credit. Make sure you know yours so you can repay your debts on time and avoid late payment.

4. Pay back on time

To avoid further payment delays, it is best not to exceed your credit card repayment deadline. You won’t have any additional expenses if you pay your bills on time. Learning to meet your payment deadlines will help you not lose too much money. Avoid unnecessary purchases to pay off your balance on time.


  • If it is difficult to repay the entire balance, always try to pay more than the minimum balance mentioned by the bank.

5. Limit your expenses

Depending on the amount of your expense, it may be more advantageous to pay with your credit card or take out a loan. Because of the bank charges associated with repaying your monthly payments and possible late payment, you may prefer a loan for large expenses such as a car or renovating your home. Credit cards have a limited limit, so you won’t always be able to borrow as much as you want. In this case, they are to be preferred for day to day shopping purchases or others with a low cost. Typically, credit card rates are generally higher than personal loan rates.

You can also choose different payment methods. Prefer to draw a little from your savings rather than drawing it from your credit card.

6. Avoid withdrawals

With your credit card, it is also possible to withdraw cash at ATMs called as cash advance. As simple as it sounds, cash advances also have a cost. You will be subject to bank charges and interest related for using this service. To minimize your costs, think about spending only the money you have. If you do not repay them on time, your late payment may also cost you interest on the amount due.

By avoiding late payment, you save most of the time on unnecessary costs incurred. With these 6 tips, make sure you know the cost of your credit card. Read carefully all the conditions related to your card.

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