When Paying on the Due Date Equals Late

Just when I revealed some of credit cards' dirtiest tricks, one of my credit cards pulled a trick of its own.

With this month's GAP card (backed by GE Money) statement came changes to my cardholder agreement. One of the changes is the way payments are processed. Payments made after 5:00 pm on a business day will be posted on the next business day. Payments made on non-business days will also be posted on the next business day (as if I have control over the day and time the mail gets delivered and opened at their payment processing center).

Paying over the phone and online are both payment methods that are available and of which I DO have control. However, the cardholder agreement provisions for a fee for both those methods. The amount of the fee isn't included. With gas and food prices on the rise, I'd rather not pay to make a credit card payment.

The trickiest thing of all - next month's payment is due on a Saturday. If I made payment on that date, it would not be posted until the following Monday which would make me late and subject me to a late fee and the default interest rate. You just gotta love credit card companies. Fortunately, I plan on paying via my bank's online bill pay well in advance of the due date.

Folks, read your credit card agreements. Know how your credit card processes payments, what constitutes a late payment, and when you're subject to the default interest rate. If you don't understand the language, make a post in the Credit / Debt Management forums and one of your fellow readers or I will help you out.