5 ways to avoid credit card late fees

Gone are the days when credit card companies could charge an outrageous $39 for late payment. As of August 2010, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act capped most fees at $25, regardless of the balance. Often late fees are lower, depending on your minimum payment. The $25 applies to the first late payment; banks can add fees for missing more than one payment.

But paying even $5 or $10 for being a day or two late with a credit card payment isn't doing your online savings account any favors. Even if you manage your money well, keep savings accounts with high interest rates, and save for retirement, letting money leak from your pocket by paying late fees is working against yourself. Today there are many ways to ensure that you pay your bill on time, especially if you make use of technology.

Here are five easy ways to avoid ever paying a late fee on a credit card again:

1. Sign up for automatic bill pay. Credit card customers can set up automatic payments every month that will pay at least the minimum amount due and avoid possible late fees. Some credit card companies will even allow you to specify a certain amount to be paid each month. But even if you only automatically pay the minimum, you can make an additional payment later.
2. Sign up for online alerts. There are several ways to set up online alerts when your credit card bill is about to be due. Many credit card companies will allow you to opt in to e-mail alerts, but you can also use online bill pay reminders like Mint to get notifications when your bill is nearly due.
3. Get alerts on your smartphone. If you're always on the go and an avid smartphone user, you can get alerts on your phone to remind you when your credit card bill is due. PageOnce and Mint are two personal finance apps that will notify you as your payment date is approaching.
4. Move all your bills to the same due date. If you prefer an off-line method, consider changing all of your bill due dates to the same day each month. You can usually call and change your due date once per year. That way if the electric bill, house payment, and credit card bill are all due on the same day every month, you're less likely to forget to pay it.
5. Call someone who cares. Finally, if all else fails and you're late, try calling the credit card company. If you're not normally late with the bill and you have a good record with that company, speak with a customer representative and ask to have the late fee waived. Often they'll make a note in your account and let it slide just once, but make sure to change your bill pay system so you aren't late next month.

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