When Is A Credit Card Payment Considered Late?
By Leah Bourne
It’s indoctrinated into most of us that it is absolutely essential that we pay our credit card bill on time. That being said, it isn’t that easy to do it every single time. For one, most of us are juggling not just one monthly bill, but multiple bills. On top of that, the due dates on all of those bills are different. It’s a lot to keep track of.
While it’s annoying to keep track of it all (trust us, we know), it is essential. Not paying your card on time can have implications like an increased APR, or having interest tacked on to your bill. This is bad stuff guys.
A few things to keep in mind:
When Is Your Credit Card Payment Late?
Your credit card payment is due the same time every month, and at the same time (usually in the evening, but you will need to check that with your card issuer). Per the CARD Act, as long as your payment is received by then it is not late. Often times if you pay online, you get a few extra hours, often till 11:59 p.m. (again, make sure to double-check). Keep in mind, if you are mailing your payment and not paying online, the payment must be received by the due date, not just postmarked by the due date.Pay Attention To The Fine Print
As with all things money and banking, you need to make sure you are double-checking the fine print on exactly when your payment is due, including what time zone it is due. Say you live in California. Your payment will very much be considered late if you pay at 11 p.m. PST instead of the designated 11 p.m. EST that your card issuer has specified.
1. Set a reminder
Many credit cards will allow you to set a reminder — either a text or email — as the due date approaches so you can remember to pay on time. If it isn’t an option via your credit card, you can simply do this yourself, setting a calendar alert.
2. Set up autopay
You’ll never be late again on your credit card if you set up autopay. You can set up a payment for the minimum payment due, your statement balance, or any amount you want. Remember, you can cancel this payment if something comes up, so the risks are pretty minimal.
What About If Your Bill Is Due On The Weekend Or A Holiday?
If you are someone who pays their credit card online then you can just ignore this section, but if your bill ends up being due on a weekend or holiday and you are mailing your payment there are slightly different rules. Per the Consumer Financial Protection Service, if your payment is due on a day when a company doesn’t accept mail like a Sunday or a holiday, the payment can’t be considered late if it is received by 5 p.m. the next business day.How To Make Sure You Never Make A Late Credit Card Payment
3. Change your due date
Under certain circumstances, it might be helpful for your budget to change your payment due date, say to a due date after your payday every month, or to set the same due date for all of your bills so the date is easy to remember. Most credit card issuers allow you to do this, though it usually takes a payment cycle to take effect.
Feature Image: Twenty20
