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Detailed explanation-1: -A late payment fee is charged if the credit cardholder fails to clear dues even after three days past the due date. The late fee is typically added to the next billing cycle. Banks or credit card issuers decide the quantum of the late payment charges.

Detailed explanation-2: -Any approved transactions above your credit limit are subject to over-the-limit (or over-limit) fees. This credit card fee is typically up to $35, but it can’t be greater than the amount you spend over your limit. So if you spend $20 over your limit, the fee can’t exceed $20.

Detailed explanation-3: -If you go over your credit limit, your credit card company may add the over-limit amount to your minimum payment, lower your credit line, or even close the account if you’re exceeding the limit too often. Also, your credit score will drop if the balance is still over the limit when reported to the credit bureaus.

Detailed explanation-4: -There are three main ways a late or missed payment can impact you financially: You can be charged late payment fees. You may face having the interest rate on your card raised to the penalty rate. Your late payment may be added to your credit history and can end up affecting your credit score.

Detailed explanation-5: -However, you will most likely still face late payment fees from your creditor. Once a late payment is at least 30 days late, the lender will typically report a missed payment to the credit bureaus, which has the potential to live on your credit report for up to seven years from the original delinquency date.