What does Late Payment Fee mean?
When contracting a credit line, you agree to certain terms and conditions, among which to the minimum monthly payment you need to make towards reducing your debt. Credit card debt is perhaps the most popular and notorious type of debt, and always keep in mind that whenever you fall behind with your payments/skip payments, as a penalty measure banking institutions require that you pay a late payment fee as well.
Most of the times, these late payment fees are pretty ‘spicy’. You always need to check which the minimum payable amount you are required to reimburse is, and try not to fall behind with that payment. As you already know credit scoring plays a very important role in today’s financial world, and you may not be able to contract any other line of credit if your credit scoring is bad.