What is a late payment fee?

A late payment fee is a penalty fee that is charged when an individual fails to make the minimum payment on a credit card bill by the due date. This fee is typically charged by the credit card company in the state of Oregon. The late payment fee is usually a fixed amount or a percentage of the amount that was due, whichever is greater. Late payment fees are in place to encourage individuals to make timely payments. When a payment is not made on time, credit card companies have to follow up with the cardholder, which can be costly. Late payment fees are not the same as interest charges, which are applied to the balance of the credit card; instead, the late payment fee is in addition to any interest charges that may be due on the account. In addition to the fee, a late payment can trigger other negative consequences, including a higher interest rate or a lower credit score. In the state of Oregon, a late payment fee can be up to $25, or 5% of the amount owed, whichever is greater. Cardholders should also be aware that not all late payments are equal. If a payment is 30 days late, it may incur a late payment fee, but if it is more than 30 days late, the credit card company may choose to report the delinquency to the credit bureaus, resulting in a decrease in the cardholder’s credit score.

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What is a late payment fee?

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