Lending Club Blog

Paying Your Credit Card Bill On Time

Most of the personal finance advice regarding the payment of credit card bills focuses on the negative effects of only paying the minimum balance due. While these discussions are certainly worth having, paying your bill on time, regardless of the amount, is at least as important.

When your credit card bill gets paid late, a number of things will happen. First, a late payment fee generally applies. Second, interest will be charged on the outstanding balance. Third, a late payment flag may be added to your credit report. Lastly, your interest rate for the card in question (and other forms of credit that use universal default) may be instantly raised to a very high default rate. A single late payment could cause your interest rate to double or worse.

To avoid late payments, you should either automate the process or send in your payments with plenty of time to spare. Sending in at least the minimum payment by the due date is better than sending in a larger amount after the due date. If you are waiting for an upcoming source of income before paying a large amount to your credit card bill, you can always send the minimum by the due date and then make an additional payment once you receive the expected money.

Paying off your entire credit card balance each month is the most responsible way to use a credit card. But regardless of how much you are able to pay, paying at least the minimum by the due date will reduce the significant number of negative effects a late payment can have on your financial situation and credit history.

Do you always pay your credit card bill on time?

Monday, January 19th, 2009 at 6:51 am

Comments (1)

  1. Mike:

    My entire balance is paid in full, every month. I use ING Direct,
    and they mail my checks and don’t even charge for the postage.

    January 22nd, 2009 at 3:55 pm


Types of Loans 101

Growing Your Business By Using Capital

9 Reasons to Open an IRA

6 Reasons to Get a Personal Loan

See more
Lending Club Awards
  • Archives z

Recent Posts

Lending Club Teams Up with United MileagePlus® to Offer Customers More

  When it comes to… Read More »
October 21, 2016

Patrick Dunne: A Message to Investors

I wanted to take a moment to introduce myself… Read More »
September 29, 2016

Line of Credit vs. Loan

Lines of credit (LOCs) and small business term loans… Read More »
September 28, 2016

Types of Loans 101

There are many types of loans out there and… Read More »
September 16, 2016

Meet Patrick Dunne — Lending Club’s Chief Capital Officer

Patrick Dunne, Chief Capital Officer,… Read More »
September 8, 2016

Growing Your Business By Using Capital

Smart small business owners don’t wait to consider borrowing… Read More »
August 19, 2016

9 Reasons to Open an IRA

Retirement: a word that often comes with many connotations.… Read More »
August 5, 2016

6 Reasons to Get a Personal Loan

While it would be great if we all had enough… Read More »
July 29, 2016

Lending Club and the Marketplace Model

Some of our investors have observed the funding environment… Read More »
July 28, 2016

A Recap: Credit Strength on the Lending Club Platform

We are proud of our… Read More »
July 14, 2016


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w