Why You Might Be Paying a Late Fee Without Being Late

Even if you hit "pay" on the due date of your credit card payment, you could still end up with a late fee. Why?

Because most card issuers have a cutoff time for processing payment, typically 5 p.m. or later. If your payment comes after that, it could be counted as the next day.

And that's not the only catch. If your due date falls on a weekend or federal holiday, some issuers won't process payments until the next business day. If that happens and your payment misses the cutoff, you might still be hit with a late fee -- even though you technically paid on time.

Here's what you need to know about credit card late fees and how to avoid them.

The cost of cutting it close

Missing your credit card payment date by even a few hours can cost you. According to the Consumer Financial Protection Bureau, the average late fee for major card issuers was $32 in 2022 -- and it may be higher for repeat offenders.

If your payment is late enough, it can also hurt your credit score, cancel a 0% intro APR offer, or trigger a penalty APR. That can make it even harder to pay down your balance later on, so even if you're already late on your payment, you've got reasons to pay it off as soon as possible.

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How to avoid late fees

There are a few easy ways to avoid late fees on your credit card payments.

1. Pay a few days early. Don't wait until the due date. Pay at least two business days ahead of time to be safe.
2. Set up autopay. Autopay is the easiest way to never miss a due date. Choose to pay the full balance if you can, or at least the minimum payment.
3. Set up reminders. Many banks and credit card apps let you set payment alerts. You can also use your phone's calendar to set up reminders a few days before the due date.
4. Watch for holidays. Check if your due date lands on a holiday or weekend. If it does, plan to pay before that to avoid processing delays.
5. Know your cutoff time. Check with your issuer to find out what time your payment is due on the due date.

Pay early today to avoid issues

Credit card late fees can happen even when you think you're on time. But by paying early, using autopay, and setting reminders, you can avoid paying extra for a simple mistake.