What is a late payment fee?

A late payment fee is an extra charge imposed by credit card companies when a cardholder fails to make their minimum payment by the due date. This fee is designed to deter a cardholder from not paying their bill on time and is an additional expense added to the overall balance. In New York, the maximum late fee a cardholder may be charged is $25 for the first late payment, $35 for the second late payment, and $40 for the third and subsequent late payments within a six month period. This fee is often seen as a punishment for the failure to make the minimum payment on time, but making payments late could also damage a cardholder’s credit rating. To reduce the chances of incurring a late fee, cardholders should make sure they have sufficient funds in their account to cover the minimum payment when it’s due. Additionally, cardholders can ask their credit card issuer for an extension or other payment options if they can’t make the minimum payment on time.

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What is a late payment fee?

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