What is a late payment fee?

Our content is accurate to the best of our knowledge when posted. A late fee is what your credit card issuer might charge if it doesn’t receive the monthly minimum amount due on your credit card account on time. You can find the card’s late payment fee in your card’s credit card agreement.

How much is a credit card late fee?

When you’re late with a payment for the first time, a credit card company can charge a late fee of up to $30. If you pay late a second time within the next six monthly billing cycles, the credit card issuer can hike the late fee up to as much as $41. But you can only be charged one late fee per monthly billing cycle.

How much do lenders charge for late payments?

Lenders generate revenue through various fees, and late fees are a crucial component. Clearly outlined in agreements, late fees typically range from $25 to $50 and may be imposed if payments are not made by a specified due date. Some creditors offer a grace period, while others may waive the late fee for the first instance of tardy payment.