Late Fees on Credit Cards: A Costly Mistake
According to the Consumer Financial Protection Bureau (CFPB), the average credit card late fee in the United States is $29. While this may not seem like a lot, it can quickly add up if you miss multiple payments. In fact, the CFPB estimates that Americans paid over $12 billion in credit card late fees in 2021.
DBS Credit Card Late Fee Structure
DBS Bank, one of Singapore’s largest banks, charges a late fee of $100 for each missed payment on its credit cards. This fee is applied automatically to your account when your payment is late by more than 15 days.
Consequences of Late Payments
In addition to the late fee, there are other negative consequences of missing credit card payments:
- Damage to your credit score: Late payments are reported to credit bureaus and can damage your credit score, making it more difficult to qualify for loans and credit cards in the future.
- Increased interest charges: Your credit card company may increase your interest rate if you miss payments, which can make it more expensive to carry a balance.
- Collection actions: If you miss multiple payments, your credit card company may eventually turn your account over to a collection agency, which can damage your credit even further.
DBS Credit Card Late Fee Waiver Policy
Fortunately, DBS Bank offers a late fee waiver policy that allows you to have your late fee waived under certain conditions. Here are the eligibility criteria:
- You have not missed any payments on your DBS credit card in the past 12 months.
- Your account is not currently delinquent or in collection.
- You have a valid reason for missing your payment, such as an illness, job loss, or financial hardship.
How to Request a DBS Credit Card Late Fee Waiver
To request a late fee waiver, you can call DBS Bank’s customer service line at 1-800-276-7500 or visit your nearest DBS branch. You will need to provide your account number and the reason for your late payment.
Tips for Getting Your Late Fee Waived
Here are some tips to increase your chances of getting your late fee waived:
- Call or visit DBS Bank as soon as possible: The sooner you contact DBS Bank, the more likely they are to waive your fee.
- Be polite and respectful: Customer service representatives are more likely to help if you are friendly and cooperative.
- Explain your situation clearly: Be specific about the reason for your late payment and provide any supporting documentation if possible.
- Offer to make a payment: Even if you are unable to make a full payment, DBS Bank may be more willing to waive your fee if you offer to make a partial payment.
Alternatives to a Late Fee Waiver
If DBS Bank is unable to waive your late fee, you may still have other options to reduce the cost of your late payment:
- Ask for a payment extension: Contact DBS Bank and explain your situation. They may be willing to give you an extension on your payment due date.
- Negotiate a reduced fee: If DBS Bank is unwilling to waive your fee, you can try to negotiate a reduced fee.
- Use a balance transfer credit card: If you have a good credit score, you may be able to transfer your balance to a balance transfer credit card with a 0% introductory interest rate. This will give you time to pay off your debt without incurring additional interest charges.
Conclusion
Missing a credit card payment can be costly, but it is important to know that you have options to reduce the financial impact. DBS Bank’s late fee waiver policy can help you save money if you meet the eligibility criteria. If you are unable to get your late fee waived, you can still explore other alternatives to minimize the cost of your late payment. Always remember to make timely payments to avoid late fees and protect your credit score.
