What if I pay my credit card bill late?

What if I pay my credit card bill late?

Janet Bodnar (Deputy Editor, Kiplinger’s Personal Finance) gives expert video advice on: Should I take advantage of low rate offers and transfer my balances?; How many credit cards should I have? and more...

If you pay your credit card bill late, and bad things can happen. Number one is that your credit score can drop. Number two is that you're probably going to be hit with a late payment fee, which could be as high as $39. And number three, your interest rate could be jacked up, possibly to over 30%, so it's really a no-no to pay your bill late. But if you do pay your bill late, and it's an accident, then don't make a habit of it. If you forgot to make the payment, you left it in your briefcase, for example, I would immediately call the credit card issuer. Throw yourself on the mercy of the issuer and say, "Look, you know that I don't do this regularly. I would really prefer not to have to pay the fee or have my rate increased." If you have a good history, it's very likely that the credit card issuer will go along with you and make accommodations.