It is a basic and well known fact that most credit card companies penalize those of their customers who are late in making their credit card balance payments. Indeed, a considerable number of credit card companies make the greatest portion of their income out of the penalties they charge those of their customers who make their balance payments late.
But while the credit card companies have become accustomed to late payment of the money they effectively lend to people through the credit cards (and perhaps actually come to like it because of the penalties they charge on such people who fall late on their repayment of credit card debt repayment), it is noteworthy that the money so paid as late credit card balance repayment penalty is money that is utterly lost from the credit-card holders’ perspective, as they get absolutely no value from it.
Whatever the arguments, though, it is appreciated that the spirit behind late credit card balance repayment penalties is basically good, namely to encourage people to service their credit card balance debt in a timely manner. What are not understandable, however, are the situations where people end up being charged late credit card balance repayment penalties, in spite of their having made their credit card balance payments on what they would have considered reasonably good time upon the balance falling due. So how does one protect themselves from such unfair credit card balance repayment penalties?
One way to avoid such unfair credit card balance repayment penalties is by giving a standing order to your bank; to be paying the credit card company the minimum amount required to prevent the late credit card balance repayment penalty – right on the day the repayment falls due, leaving you to pay the rest of the amount above the balance later upon your scrutinizing your credit card statement. Having instructed your bank to do this, it is under legal obligation to effect the standing order on time (provided you maintain sufficient funds in your account, of course), and there is absolutely no reason for your credit card provider to ever charge you a late balance repayment penalty.
Reading the credit card provider’s payment guidelines – and observing them to the letter when making your payments – is another measure you can take toward preventing unfair credit card penalties. Many people who complain that they have been unfairly penalized often turn out to be people who made simple errors (like mailing the repayment check to the wrong address), naturally leading to delays in processing the payment and incurring the penalty. In a situation like that, one really has no reason to claim that they are being unfairly penalized.
Making credit card balance payments over the phone, too, is another good step one can take towards protecting themselves from unfair credit card penalties, because of the ‘real-time’ nature of such over-the-phone transactions. For this to happen, though, making such over the phone payments has to be something you are comfortable with, and something that your credit card provider accepts too.