Category: Credit Card Late Fees
Credit Card Late Fees are charges imposed by credit card issuers when a cardholder fails to make a payment by the due date. These fees are designed to encourage timely payments and compensate the issuer for the administrative costs and potential risks associated with late payments. Typically, late fees are a fixed amount or a percentage of the minimum payment due, and they can accumulate if the payment is not made promptly. In addition to the immediate financial impact, frequent late payments can negatively affect a cardholder’s credit score, leading to higher interest rates and increased difficulty in obtaining credit in the future.