Late Fee

Late fee is charged when payment isn't received by due date. First offense: up to $30. Subsequent late payments within 6 months: up to $41.

But the late fee is the smallest problem. Missing a payment triggers:

1. Late fee: $30-41 immediate charge
2. Penalty APR: Rate jumps to 29.99% (often permanent until 6 months on-time payments)
3. Credit score damage: 30-day late drops score 60-100 points, stays on report 7 years
4. Loss of promotional rates: 0% APR offer converts to penalty rate immediately

Example: Miss $25 minimum payment by 1 day:

• $30 late fee
• $5,000 balance now accrues at 29.99% instead of 16.99%
• Extra interest: ~$650 per year
• Credit score drops 80 points

Avoid late fees:

• Set up autopay for at least minimum payment
• Calendar reminders 3 days before due date
• Pay early in the month to avoid forgetting

One late payment can cost thousands in higher rates and denied credit for years.