Late fees are charges that a consumer or business pays for failing to make payments on time. These fees are typically assessed on payments for the following lines of credit:
- Credit cards
- Property and equipment leases
- Mortgage payments
- Debt repayment plans
Late fees can usually be avoided by making a minimum payment each month, as specified by the creditor. For certain accounts, such as those with good credit scores, creditors will waive the fee for the first late or missed payment. However, it is important to remember that missed payments can have a significant effect on reputation and credit score, especially for individual consumers.
How to avoid late fees
The simplest answer to that question: Pay on time. However, one of the biggest reason for why people incur late fees is that they don't use a tool to help them manage their payments. Tools like Roger helps people and businesses pay their bills on time by providing a seamless bill pay experience from A to Z.