Late payment penalties can be brutal. Just how bad? Here are 6 ways that they can work to your detriment on top of the embarrassment at the point of sale.
1. Reduced credit lines
2. Late fees (Typically $39)
3. Over-limit fees (Average of $35)
4. Trigger a higher interest rate (could as much as double your APR)
5. Negative report to credit bureaus
6. Canceled rewards accumulation
Bottom line, pay your card balance on time. If you can’t afford it, don’t charge it. And if you slip up, contact the issuer immediately and offer a good excuse for the oversight.