It’s never fun opening up a credit card statement and seeing those scary words:
Late credit card payment fee = $100,000,000
Okay, it’s not that much – but sometimes it sure feels like it.
It's easy to miss a payment, and often, it can be a costly expensive credit card mistake that you'd want to avoid.
But even with a "happy little accident" and a pinky swear promise to never, ever do it again, you may find yourself missing a payment again.
If you want to stop forgetting and wasting money on credit card interest, read our 5-step guide on how to stop this from happening. Be sure to spread the word as well, the last thing you want your friends to do is suffer the same fate as you!
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What happens if I miss a credit card payment?
There’s a cost to being late, so it pays to be organized.
But if you do happen to be on the receiving end of a late fee – here are the consequences.
Late payment fees
You’ll be charged a late fee, which can be upwards of $40, depending on your policy.
If it’s your first time, your credit card issuer may forgive the fee and let you off with a warning. There’s also often a grace period after you first open your card.
Most of the time, though, you’ll be charged a late fee each month your payment is late or is less than the minimum payment.
Related: Waive goodbye to those credit card fees – the Canadian way!
Higher interest charges
There are also interest charges…
If the payment is 60 days past due, your bank will probably increase your interest rate to the penalty rate – which is as high as they can charge, depending on your card.
Loss of promotional rates and rewards
Sometimes they’ll add other penalties, like removing a promotional interest rate or even taking away rewards completely.
This makes it more expensive to carry your card, since you may be relying on rewards to make up for the annual fee or the promotional rate to save on interest.
Your credit score drops
Another hit you’ll take with a late credit card payment is to your credit score. That’s because your payment history is a huge part of what makes up your credit score.
A bad credit score can make it harder for you to take out a new credit card, finance a car, or get a mortgage for a house.
Related: Credit Score In Canada: What These 3 Digits Say About You
5 tips to avoid late credit card payments
Everyone has their own way and routines for paying their bills.
Some work better for others, whether they’re old-school pen and paper, or new-school digital reminders.
We’ve asked around and compiled some tips to make sure you stay organized and never miss a payment again.
1. Add due dates on your calendar
Every smartphone comes with a calendar app that can perform basic functions like reminder notifications. If you’re hyper-organized like me, you even use a different calendar app than the one that comes with your phone.
I use the Google Calendar app available in the App Store or Google Play Store and set recurring events for every bill that needs to be paid.
This way, I have them all in one place, and my phone will buzz with a notification the day before I need to pay it.
Make sure to set the notification for a time when you’re usually not busy, or else you’re likely to just ignore the reminder. It may be worth setting multiple reminders per month (every second Thursday, for example) just to be extra sure.
2. Set up automatic payments
Automating your finances is one of the best ways to make sure everything is done on time. Life can get busy, but automatic payments never fall behind.
You can often set up your credit card bill to be paid automatically through your online banking. Every card issuer has a different process for this, so if you’re having trouble, it’s best to call customer service and have them walk you through it.
This means your money will be automatically withdrawn from your debit account, so make sure you have enough money in the account to cover the cost of your credit card bill, or you may be hit with a dishonoured payment fee.
3. Consider bill reminder apps for your smartphone
If you want to take the next step and download an app that’s specifically for bills, there are lots of great apps that can help you organize your payment schedule.
Want an example? TimelyBills is a free personal finance management app that helps you:
- see all your bills in one place,
- manage your budget,
- track your spending habits, and
- consolidate a monthly/yearly spending report.
It has thousands of positive reviews, tons of positive testimonials, and a really clean, user-friendly interface that can streamline your finances – and of course, avoid those late payment fees.
Apps like these really help you become the personal finance boss everyone needs to be in order to take control of their cash.
4. Schedule a day to pay all of your bills at once
Many people have a special day in their calendar that’s dedicated to their bills. It’s something my mom did, my grandmother, and probably a few generations before her.
Lots of people pull out all of their statements (or pull them up as e-statements on the computer), make a list of what needs to be paid, and send off cheques physically or electronically.
There’s a reason generations have done it – because it works. Getting into a routine like this really helps, and takes the pressure off of paying bills on separate days every month.
For example, you could make the 1st of every month “bill day,” or maybe the first Saturday. Just be sure the day you choose works for you so you’re not likely to skip out if it becomes inconvenient later.
5. Pay off your bill as soon as the charge is posted
What I see more and more people doing is using their credit card for gas, groceries, and other things they need to buy anyways to get rewards, and paying it off immediately.
This is a good way to maximize your credit card rewards and avoid late payment fees.
Our favourite credit cards
We couldn’t help but remind you to choose a credit card that actually works for you.
By knowing what your biggest expenses are and choosing a credit card that offers rewards on purchases you actually make every day, you’re getting so much back in return, while showing credit card companies who’s boss.
It’s not always the best idea to choose a low fee or no fee credit card, since sometimes annual fees can be worth the extra rewards you’re getting in the end.
Here are our favourite picks:
Transfer points to Aeroplan and 7 other travel partners with Canada's #1 credit card.* Transfer points to Aeroplan and 7 other travel partners with Canada's #1 credit card.*
×8 Award winner 
8x Award winner
There’s no wonder why the
With a $155.88 annual fee that’s charged out monthly as $12.99, this card can definitely work for you. It earns:
- 5 points per $1 spent on eligible groceries and restaurants
- 3 points per $1 spent on eligible streaming services
- 2 points per $1 spent on eligible gas, transit, and ride share purchases
- 1 point per $1 spent on foreign currency purchases
- 1 point per $1 spent on all other purchases
You can also earn up to 15,000 rewards points after spending $750 every month for the first year.
GC: $20
$20 GeniusCash + 10% cash back on purchases for 3 months + 4% cash back on groceries.*
The
- 4% cash back on recurring bills and grocery purchases,
- 2% cash back on gas and daily transit, and
- 1% cash back on all other purchases.
Its $120 annual fee is also waived for the first year, which means you can really test this card out and see if it’s for you.
×1 Award winner GC: $125
1x Award winner
Another honourable mention is the
You can choose up to 3 categories to earn 4% cash back on for the first 3 months you have the card. After that, it’s a standard 2% cash back on your bonus categories.
With categories like recurring bills, groceries, and more to choose from…this can be a stellar card for anyone.
We want to hear from you
Every been hit with a late payment fee that made you want to scream?
Do you have a routine for paying your bills?
Let us know in the comments below.
creditcardGenius is the only tool that compares 126+ features of 229 Canadian credit cards using math-based ratings and rankings that respond to your needs, instantly. Take our quiz and see which of Canada's 229 cards is for you.
GC: 
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