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What happens if I pay my credit card AFTER the deadline?



Your bank or department store may charge you interest if you pay your credit card after your payment deadline, we tell you how to avoid it.

We know, sometimes, due to setbacks, many people don’t manage to pay their credit or department store card before the payment deadline.

Do you know what happens to your accounts when this happens? In this article we tell you all about it and help you understand how late payment interest is calculated and how late payments are reflected in your credit bureau.

What happens if I pay one day after the payment deadline?

If you are late even one day after your payment deadline, and you do not make the minimum payment to avoid generating interest, the bank will apply late payment interest for each day you miss a payment.

This, of course, can tarnish your credit bureau record and make it difficult for you to get a loan or another card in the future.

Why am I charged interest if I am only one day late on the payment deadline?

Banks or department stores that give you a card charge you interest if you are late in your payments because when they grant a credit card to a customer, they establish cut-off and payment dates that both agree to respect.

What is a payment cut-off date?

As we have mentioned in other articles, and in the video at the beginning of this article, the payment cut-off date is defined as the last day you have to pay, whether it is the minimum payment due on your statement or a higher amount.

What is the cutoff date?

The cutoff date is that day that marks the end of one purchase registration period and, at the same time, establishes the beginning of another.

What happens if I pay after the cutoff date?

Paying after the cutoff date will cause the amount you have to pay to be calculated based on all purchases made up to that day, i.e., interest will increase if you have spent a lot.

If for some reason you will not be able to pay the full amount of your payment, you may want to pay before the cutoff date to reduce the average daily balance on which the interest included in your minimum payment is calculated.

How is the interest on my card calculated?

To calculate them you will have to review the contract you made with your bank to corroborate the annual interest rate agreed upon. You can find this information with a number and a percentage and it applies to the interest rate you will be charged for late payments.

What happens if my payment deadline falls on a Saturday or Sunday?

If it falls on a Saturday, you must pay on that day because it is a business day. But, if it falls on a Sunday and it is a non-business day, the maximum date you can pay is moved to the next business day, for example, Monday.

What happens to my credit bureau when I pay late?

From the first day after the payment deadline that you have not paid your bills, a late payment will be reflected in your credit bureau history.

In your special credit report, there is a table called payment history that rates your credit behavior with numbers.

How do I avoid missing my credit card payment deadline?

Our tips to avoid being disorganized and not falling into interest payments are the following:

  • Have your bank’s mobile app at hand: this way you will know exactly the breakdown of your charges, the amount you will have to pay month to month and the cut-off and payment dates.
  • Do not have more than two credit cards: if you have more than two credit cards you can lose control between cut-off and payment dates. What we recommend is to use two credit cards; one for daily purchases and another one for monthly purchases.
  • Take advantage of interest-free months: remember that it is not justifiable, for any reason, to finance at the regular rate of your card. On the other hand, interest-free months are a good alternative.
  • If what you need is capital for an entrepreneurial project or a good sum to furnish your home, there are other alternatives such as personal loans or payroll loans, whose rates are more accessible and terms are longer.

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