Always Pay Your Credit Card Balance on Time

This may seem obvious, but always pay your credit card balance on time; don’t pay late.  If your payment is due on the 15th of the month, be sure it’s paid on the 14th or the 15th.  If you make your payment on the 16th, you get hit with many extra charges, including:

  • extra interest
  • a late payment fee; and
  • the elimination of your grace period.

In Canada you get a 21 day grace period, meaning that you have a minimum of 21 days before your card issuer can charge you interest on your credit card, provided you pay your balance in full at the end of the payment month (the 15th in our example).  However, if you pay late, you lose the grace period, and you will end up paying interest on the purchase from the day you purchased it.  Paying one day late can cost you and extra 21 days in interest!  That’s a big charge for paying late.

To be sure you don’t miss a payment, pay your credit card on-line, using the post dated pre-authorized payment feature at your bank.

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