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This article is a brief guide for you to acquire your own credit card with low late payment fee. It includes information about credit cards and the advantages and disadvantages of credit card with low late payment fee.

Credit cards are types of cards that are provided by the credit card issuer or the bank to its users as a system of payment. The credit card holder can utilize the credit card for buying merchandise and services.

The Credit Card System

The issuer of the creditcard usually set terms and conditions to the creditcard holder. When the terms have been approved, a revolving account is then made by the issuer, and grants a credit source extended by the issuer to the creditcard holder.

The creditcard holder will have access to money that can be used as a payment to dealers or as a personal cash advance. The creditcard holder may only use the creditcard to dealers that have acceptance marks. These marks indicate that the dealer accepts creditcards for payment.

The creditcard holder indicates consent to pay the cash issuer when a purchase is made. This is done through a signed receipt with a record of the creditcard and with the amount of purchase or through a personal identification number (PIN).

Credit Card Verification

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creditcards are usually verified electronically, where the dealers can determine whether the creditcard is valid or not in a few seconds. The electronic verification method is executed through a creditcard payment terminal, which provides a communications link to the dealer’s acquiring bank. The data is collected from the magnetic stripe or chip of the creditcard.

Today, many dealers confirm payments even if the card is not presented, and they do it through a transaction called a card not present transaction (CNP). These transactions are done through telephone conversations and internet verifications. In this type of transaction, the dealer additionally verifies that the creditcard holder is in physical possession of the card and is the original user by asking the card details. The card details include the security code, date of expiry, and billing address.

Creditcard Terms and Conditions

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Every month, the creditcard issuer sends a report to the creditcard holder that indicates the amount of money that is owed by the holder. When the creditcard holder receives the report, the holder may inform the issuer the charges that can possibly be incorrect. If not, the holder must pay a minimum amount by the deadline date. The creditcard holder can also choose to pay a higher amount so that the creditcard holder can fill the entire amount owed to the bank.

The Problem: Late Payment Fee

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When the holder pays a minimum amount, the creditcard issuer usually charges interest on the amount owed. A late payment fee is imposed when the creditcard holder fails to pay at least the minimum payment by the deadline date. The late payment fee is one of the big disadvantages of creditcards since the creditcard holders cannot assure that the amount owed can be given to the creditcard issuer by the deadline date.

Reasons Why Creditcard Holders Cannot Pay by the Deadline Date

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One of the major reasons why creditcard holders cannot pay the amount owed by the deadline date is that creditcard holders usually use their creditcards irresponsibly, and cannot afford to pay the amount owed because their salaries are not enough. A solution that may lessen the problem is a credit card with low late payment fee.

Unreported fraud could also be a reason why card holders cannot pay by the deadline date. This happens when the credit card holder doesn’t realize that the money is missing from the account straight away and takes a while for it to get back. The scheduled payments and checks may bounce, affecting both the credit card issuer and the credit card holder.

The Solution: Credit Card with Low Late Payment Fee

Credit card with low late payment fee is an effective way to lessen the difficulties of a credit card holder. To get a credit card with low late payment fee, you must take time to travel around your own town and locate the different banks and credit card issuers in the town. Credit cards can also be issued through credit card issuers that are only available through the internet. When all of the sources are listed, you must acquire information from these banks and credit card issuers about their terms and conditions, payment rates on their credit cards, and especially their late payment fee rates. The details can be obtained through the internet, or directly to the bank branches and offices. When you have all of this information, compare the rates and see which has the least late payment fee.

Disadvantages of Credit Card with Low Late Payment Fee

Credit card with low late payment fee also has disadvantages. These kinds of cards are quite difficult to find, since most of the rates of credit card issuers are of the same rates. The other problem with credit card with low late payment fee is that the terms and conditions may not include security and insurance; therefore these kinds of cards are not that reliable. So make sure that the credit card issuer is from a trustworthy company.


The credit card with low late payment fee is a useful solution to lessen the problems of a credit card holder. Credit card holders usually use their credit cards irresponsibly, causing high amount of money owed to the credit card issuer. Because of this, the credit card holders cannot afford to pay the amount within the deadline, resulting to a Late Payment Fee. This becomes a headache to credit card holders when this happens on a regular basis. The credit card with low late payment fee reduces the amount of the late payment fee, especially when the problem happens frequently. Therefore, the credit card holders won’t worry much when they cannot pay the amount they owe to the credit card issuer by the deadline date. Credit card holders should also make sure that the credit card with low late payment fee comes from a reliable company to avoid fraud.