Tips for Avoiding Late Fees

If you find yourself paying late fees for your credit card, it may be time to take another look at your payment habits. After all, you can be costing yourself hundreds of dollars every year just in late fees alone. Follow these few tips, and you might find more money remains in your pocket instead.

Make Your Payment Right Away

Even if you can only pay the minimum payment, pay it as soon as you receive your bill. One of the main reasons for paying late is simple forgetfulness. It is far too easy to set a bill aside with good intentions, only to notice it again after the due date has passed. Avoid this problem by making your payment immediately. Plan ahead to make sure you have the money in your checking account to make the payment once your bill arrives. If you want to send more money, you can send a bigger payment later.

Change the Due Date

If you discover that your current credit card due date doesn’t work within your financial scheme, check into changing the due date. Many credit cards allow cardholders to set their own due dates – all you need to do is ask. In this way, you can spread your bills out over the month and make them far more manageable.

Follow the Rules

Every credit card has its own procedures for making payments, though most are pretty much the same. For example, most ask that payments be sent in the preprinted envelopes they include with the bill. They also ask that the billing coupon be included with payment and that the check is filled out properly, which includes placing the account number on the check. If these guidelines are not followed correctly, it can take up to five days for a payment to be processed. In the meantime, your due date may have come and gone.

Alternative Payment Strategies

In addition to mailing in your credit card payment, you can take advantage of a few alternative methods for paying your bill, such as by phone or online. Most credit card issuers allow online payments to be made, which credits your account much more quickly than paying by mail. You may also pay at the last minute by phone, though most credit card issuers do charge a small fee for this type of payment. Therefore, it is best to avoid this strategy because, although it saves your credit from getting damaged, it doesn’t help you with avoiding late payment fees. Other options include paying with Western Union or taking advantage of the Postal Service’s overnight delivery option.

By following these few tips, both your wallet and your credit score will thank you.

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