What are late fees and how can I avoid them?

What are late fees and how can I avoid them?

Late fees are charges applied when a payment is not made by the due date. To avoid them, pay on time or set up reminders.

How much can late fees typically be?

Late fees can vary widely, but they often range from $25 to $50, or a percentage of the overdue amount.

Are there any ways to negotiate late fees?

Yes, you can contact the creditor to explain your situation. They may waive the fee, especially if it's your first late payment.

What happens if I keep missing payments?

Continuously missing payments can lead to increased fees, damage to your credit score, and potential legal action.

Can late fees affect my credit score?

Yes, late fees themselves don't affect your credit score, but missed payments can lead to negative marks on your credit report.