If you pay your credit card bill late, you get up to a month of leeway before it gets reported to the credit bureaus and impacts your score.
But there’s another negative to keep in mind: You could be slapped with a penalty APR of 10 points higher (or more) than your typical interest rate. The highest penalty APR that can be charged is 29.99 percent. Card issuers can’t switch you to a penalty APR until your account has hit sixty days late, but they can put that higher interest rate on both current and future balances on your card.
Your card issuer is required to lift your penalty APR once you’ve made six months of on-time payments. But that penalty APR may still apply to your future balances for several months—be sure to check your card’s terms and conditions for details.
There’s also a negative impact right away when you don’t pay at least the minimum payment on time: a late fee. Credit card issuers can charge up to $30 for your first late payment and up to $40 if you’ve had repeated late payments. While you can call your issuer and ask them to waive the late fee, it only works once or twice—you’re not going to get much sympathy if you’re a repeat offender. With automated payments and mobile apps for credit cards, there’s no reason to pay late. The price is just too high.