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Investments glossary

Late Fee


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— Henry Miller

A late fee is a charge a consumer pays for making a required minimum payment on a credit card after the due date. Late fees encourage consumers to pay on time and may be as high as $27 for the first late payment and $38 for a subsequent late payment. Some credit card issuers will waive the late fee the first time a consumer misses the minimum payment deadline; other credit card issuers do not charge any late fees at all, but only issue cards to consumers with very good to excellent credit—individuals who are unlikely to ever pay late. Still other cards offer no leniency and will charge a late fee even if a cardholder barely missed the payment deadline.


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