What is late payment fees and how to avoid it?

By OneCard   |   August 29, 2022

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What is late payment fees and how to avoid it?


Late payment fee is the fee which is charged when you don’t pay your credit card bill by the due date. You can prevent this by paying the minimum amount due or by paying the bill in full, on or before the due date.


Imagine your friend finally sets you up with someone for a date after months of you singing “single bells” in their ears all day long, only to know that you kept your date waiting for hours. You’ve offended two people—the date and your friend, for not showing up on time. And to make up for it, you offered a treat to your friend and an apology to your date.

Now, the “treat” in the above story is the “late payment fee” when you are late and don’t pay your credit card bill on time.

How much is the amount?

Talking about the amount, well, different friends require different levels of treats. Likewise, different credit card companies have different late payment fee structures.

What is due date?

Every 30 days (depending on your billing cycle), your total spends on a credit card add up to your total amount due and your bill gets generated, which then you have to clear before a date (due date). The due date is usually 15-20 days after the bill’s generation. The 15-20 days period is called the grace period.

What if I don't have enough money to pay my bill?

Well, if the need arises, make sure to clear your Minimum Amount Due before or on the due date, which is 5% of your total bill amount due. By doing so, you won’t have to pay the late fee charges and will also protect your credit score from being hurt. But, even if you pay the Minimum Amount Due, interest is accrued on the unpaid amount month on month.

How does OneCard help with this?

OneCard credit card has a dedicated app that shows clearly your bill due date, the bill amount, the total spends and the minimum amount due, so that you never miss on your payments or get confused. Adding to that, OneCard also sends you reminders and has an in-app bill payment feature for seamless payments.

If you still haven’t got your OneCard yet, click here and download the app for instant virtual card.