Credit card late payment fees are completely avoidable simply by paying your statement on time, either manually or with a direct debit. However, if you are still paying late because of cash flow issues or poor account management, a credit card with no late payment fee could save you money each month.
What is the best credit card with no late payment fee?
The best credit card for you depends on your own financial situation. Here are some things to check before deciding which to apply for.
- No late payment fee. The cards listed on this page do not charge a fee for late payments.
- Annual fee. Check how much it will cost to keep the account open. The lower this fee is, the better. Note that some credit cards with no late fees charge a monthly fee instead of an annual fee (which may even be waived if you don't use it).
- Purchase rate. Some credit cards with no late fees do not charge interest at all, and others do.
- Cash advances. No interest credit cards typically block cash advances.
- Balance transfers. If you choose a no interest credit card, you won't be able to transfer a balance to your new card.
Pros and cons of credit cards with no late fees
Before applying for a new credit card, there are a few details to consider first.
Pros
- Save money. Late fees can add up, especially if you are habitually late.
- Less stress. Knowing you won't get charged extra fees can take the pressure off.
Cons
- It could encourage poor account management. With no penalty fee, you may feel like you can take a generally more relaxed approach to credit.
- Most no late fee credit cards lack basic functions. For example, no interest credit cards may not charge a late fee, but they also don't allow cash advances, balance transfers, additional cardholders, etc.
Eligibility
If you have recent missed payments, it may be more difficult to get approved. Check your credit score to see what's on your report before applying. If your report has recent missed payments or bad credit, work on improving your credit score before applying for a new card.
