By: Ishan Mukhopadhyay Jun. 29, 2018
A recent analysis by Raltin with data from the Consumer Financial Protection Bureau and identified 6 credit cards that charge a $0 late payment fee. Of these six, Northwest Loyalty Visa card has the lowest APR at 8.24%. The data analysed credit agreements made in 2017 and 2018. The second on the list is Winthrop Area Federal Credit Union Visa card with an APR of 11.50%. Gesa Credit card comes third with an APR of 12.50%.
Late payment fees is the additional amount that some banks charge over the interest rate, once you go past the billing cycle. While selecting a your credit card, it is greatly beneficial to choose one with low late payment fees.
Banks calculate interest by adding a margin to the index or benchmark rate. For example, if your credit agreement says prime plus 15 percent, and the prime rate is at 5 percent, then the interest rate for your card will be 20 percent. Out of the 6 cards analyzed, three had a variable index and three had a fixed one.
Grace period is the number of additional days you get to pay off your dues, after the billing cycle. Northwest Loyalty Visa, Winthrop Area Federal Credit Union, and First Bank SSB all offer a 25-day grace period. Gesa Credit Union offers 25 days for its Visa cards, but 0 days for its Gesa Credit Cards.