Credit Card Issuers have legal obligations to send you monthly credit card statement before your minimum payment due date.
Billing statements usually consist of one or two pages containing a good deal of information about what you’ve charged, how much you paid last month, what payment you need to make, and the date by which your payment must be received to avoid penalties.
Your credit card statement will typically come in the mail, but if you’ve opted for online, or paperless billing, you’ll either receive an email statement or need to log on to your credit card issuer’s website to check your statement.
When you review your statement, you’ll find several different categories of information providing detail on a variety of account characteristics, described below.
The account summary gives an overview of your credit card account status. Here you’ll find your current balance, fees and interest charged since your last billing statement, the amount of credit you have available, and the date your billing cycle closed.
Payments and transactions that post to your account after the billing cycle closed won’t reflect on this credit card statement. However, if you log in to your online account, that balance will typically include your most recent activity. This is usually the first section on your credit card statement because it contains some of the most important information.
The payment information section entails the payment you must make to avoid late payment penalties. This section includes your minimum payment and payment due date. If you pay less than the minimum or your payment receive after the due date. You can charge a late fee, have your interest rate increased if you’re 60 or more days late, and have the credit bureaus notified of your late payment.
The late payment warning disclosure explains specifically what will happen if the company receives your payment late.
Late Payment Warning
Credit card issuers require to include a late payment warning on billing statements. This section shows the consequences of sending your payment late, i.e., after 4 pm on the payment due date. You’ll find out the amount of the late fee. And the penalty APR that can apply to your account if you don’t make the minimum payment by the due date.
Keep in mind that the late payment warning shows on every cardholder’s billing statement regardless of the current payment status; It doesn’t mean you’ve done anything wrong. If you had been late on a previous payment, the payment information section would include a past due amount.
Late fees are now limited to the lesser of your minimum payment or $25, or a maximum of $35 if you’ve late on a payment in the previous six months. The credit card issuer dose not allowed to raise your APR to the penalty rate unless you’re 60 days delinquent on your payment.
In other words, not until you’ve missed two payments. Once the penalty rate goes into effect, it will remain until you’ve made six consecutive timely payments. Then, it will lower, at least for your existing balance.
Some credit card issuers leave the penalty rate in place for new purchases make after the rate was triggering. The late payment warning does not include the credit reporting consequences of late payments. After your payment is 30 days past due, the past-due account status may be reported to a credit bureau.
Once you bring your account current again. The account status will show that you have caught up on payments. But your credit report will continue to show the late payment history for seven years. For more information about the credit card details , stay connected !!
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