Question of the Day: What's the maximum fee the first time a cardholder is late paying their credit card bill?
Credit card late fees rise with inflation and the maximum fee was just adjusted on January 1, 2022. What do you think the maximum fee rose to?
Answer: $30 (as of 1/1/22)
- What do you think are some of the reasons that people pay their credit card late?
- Do you think it’s worthwhile to call the credit card company to try and get this fee waived?
- What's a strategy you can use to avoid paying late fees on your credit card (or other bills)?
Behind the numbers (Creditcards.com)
As mentioned, if it’s your first time paying late, the most an issuer can charge you (as of 2022) is $30. But if you miss another payment due date within six billing cycles, you can expect to pay up to $41. Lenders will often adjust how much they charge based on your current balance. For example, if your balance is more than $1,000 on your card, you may get charged a higher fee than if you have a balance of a few hundred dollars.
My favorite video using a pitcher of water to show the futility of making the minimum payment on your credit card.
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