Ouch! Forgetting to Pay My Credit Card.

Most of our bills are paid through automatic withdrawal from our checking account. My husband and I jointly own one credit card that we use to pay for just about everything. I do own two credit cards that are only in my name. One is a credit card that I’ve had since the beginning of time. Really, I opened this account way back in college, and I no longer use the card, but I do keep the account active and the credit card locked in the safe in our home. I also own one store credit card. I only opened the account because they often send me coupons in the mail and they offer savings on just about every purchase.

The store credit card is not paid automatically. I have to remember to log on to bill pay to pay it. But for some reason I have the hardest time remembering to pay it. Maybe it’s because I use it so infrequently or because it’s one of the few bills that aren’t paid automatically. Either way I forgot to pay it last month. The bill was a whopping $5.19.

This month I received retribution for my sins with a $1.00 finance charge and $15 late payment. $16 for failing to pay a $5.19 bill? The letter actually reads As a result of the minimum Finance Charge of $1.00 being applied to your Revolving account, the actual ANNUAL PERCENTAGE RATE charged on that account is 228.96%.

Thankfully since this is the first time I’ve missed a payment on that account the fee was waived, with the note that it would not be waived EVER again. Really $16 for a $5.19 bill?

4 thoughts on “Ouch! Forgetting to Pay My Credit Card.”

  1. Your other cards may have a clause in the small print that says if you are late on ANY payment to ANY creditor (not just their account with you) that they have the right to raise your interest rates. I’d be watching to see if this happens. I hope it doesn’t for you.

  2. What Renee is talking about is “universal default”. This can only happen if your credit card company reported the late payment. In most cases a late payment should not show up on your credit report unless it’s past 30 days due.

  3. You need to close this account or log in to the site and set an alert to send you a text message to your phone when your bill is coming up due.


  4. I would call the company and dispute the increase in the interest rate. The late charge, you may not get away with, but that’s a severe increase in rate based on missing a $5 payment.

    I would say that if they want to keep you as a customer, they should rescind the rate hike.

    Otherwise, cancel the card.

    Just my suggestion.



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