How to Make Up for a Credit Card Late Fee

Everyone makes mistakes, and credit companies are counting on it. When account holders that concerned with their credit forget to make payments, companies profit greatly in more ways than one. Not only do they implement a sizeable late fee, but might also raise the interest rate. If a payment was late by mistake, even by just a few hours, it is possible to make up for the fee. Those that feel cheated by a simple error can make it up using one or more methods.

I recently paid my credit card late by only five hours, and I was charged a $25 late fee. The interest rate also sky rocketed to 26 percent. Although I made a mistake when paying the bill by not reading and following their payment terms, I wanted to find a way to make up for the loss. I decided against calling the company since I wanted to pay it off as soon as possible and never use it again. You might have additional options to make up for the loss.

Begin by Calling Customer Service

When trying to make up for a credit card late fee, consider whether or not you want to continue using the account. If you want to keep the card, call customer service before giving up and paying the late fee. If the account is in good standing and the payment was never before late, ask a company representative if they are willing to credit the account to make up for the late fee if the payment is immediately made. You might be surprised. Many companies will refund the late fee if prior payments were made on time.

Work Harder to Pay Off the Balance

If a credit card payment is late, read the fine print on the next bill. The company probably increased the interest rate, and they probably did not bother to let you know. Trying to make up for the inflated charges can be difficult, especially if the balance is high. However, an increased rate creates financial incentive. You will more than likely want to pay it off sooner. Make up for credit card fees by working harder to pay off the entire balance. Do not continue to use the account. Pay more toward the balance and you will more than make up for the credit card late fee and the inflated interest rate.

Source: Personal Financial Experience