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June 30, 2022
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Avoid late payment punishments with Fizz

A late payment on your credit card can hurt your credit for years to come. Find out how you can avoid worry about late payments all together by using Fizz.

Whether it's running late to class or turning in late work, we can all agree that being late is stressful. But we’re all human, and we should be allowed to make a mistake or two. Unfortunately, most credit card companies don’t feel the same way.

If you make a late payment on your credit card, things can get ugly fast. Even if you make a late payment by accident, even if you have the money to pay your bill, your credit card company can make you pay - in more ways than one. Late payments can result in additional fees, increased interest rates, decreases in your credit score, and a lasting impact on your credit report. Fizz, on the other hand, does things a little differently. Read on to find out how.

Late payments are expensive

When you use a traditional credit card, you’re typically required to pay off your balance or make a minimum payment once a month. The card company will usually send you a statement and you’ll have about three weeks to make the required payment. If you fail to do so, you’ll have missed a payment.

There are plenty of ways that credit card companies can hurt you when you miss a payment. Even if you pay your card off just one day late, you can be charged up to $40, depending on the credit card provider. It typically doesn’t matter why you missed the payment, so don’t expect your provider to be sympathetic.

Late payments also often result in a penalty APR or a penalty interest rate - an increase in the interest rate on your credit card. Credit card interest rates are already sky-high, but these penalty rates can get as high as 30%.

Here’s a penalty APR example: let’s say that your regular APR is 15% and you owe $200. Instead of paying $30 in interest, you could now be paying $60 in interest - double the amount you would have paid before!

Late payments hurt your credit score

Late payment are the biggest factor when it comes to determining your credit score. Specifically, payment history accounts for nearly 35% of your credit score. A payment that’s 30 days overdue can lower your credit score by 100 points. To make matters worse, late payments can remain on your credit report for up to 7.5 years. And making on time payments after the fact won’t save you.

It’s not an exaggeration to say that late payments can have a bigger negative effect on your credit than any other factor. Your credit utilization, hard credit pulls, age of accounts, and other factors might swing your score by a few points here and there. But late payments can ruin your score like none other.

Fizz helps you avoid late payments

Everyone makes mistakes. So why should you let yourself be so severely punished by your credit card company for one late payment?

Fizz is the simple solution to avoiding all of these unnecessary pitfalls of using a credit card. Fizz makes it almost impossible to miss payments. By enabling autopay, your Fizz card is paid off for you every single day. And if somehow you miss a daily payment, we make sure you have the opportunity to make up for it without any interest or fees. Gone are the confusing days of remembering to make your credit card payments every month.

To make matters even better, Fizz doesn’t charge fees or interest in any situation. So even in the case that a payment doesn’t go through, we won’t take advantage of you. Plus, Fizz offers rewards at national and global brands that students love, as well as popular on-campus spots.

With Fizz, you won’t have to worry about late payments or extra fees. You can just sit back and relax knowing that Fizz is helping you on your journey towards a better credit score and an independent financial future. Sign up for a Fizz card today and never worry about late payments again.

Join Fizz, the debit card for college students
bio

Ahmed Mousa

Ahmed is a senior at the University of Texas at Austin and is a Growth intern at Fizz. He is new to the beautiful world of finance, but is quickly growing his knowledge through personal research and learning from his peers. Out of office you can find him playing guitar, or attempting new recipes. He currently resides in Austin, TX.

Back
June 30, 2022
Tips

Avoid late payment punishments with Fizz

Fizz is the credit card for college students

A late payment on your credit card can hurt your credit for years to come. Find out how you can avoid worry about late payments all together by using Fizz.

Whether it's running late to class or turning in late work, we can all agree that being late is stressful. But we’re all human, and we should be allowed to make a mistake or two. Unfortunately, most credit card companies don’t feel the same way.

If you make a late payment on your credit card, things can get ugly fast. Even if you make a late payment by accident, even if you have the money to pay your bill, your credit card company can make you pay - in more ways than one. Late payments can result in additional fees, increased interest rates, decreases in your credit score, and a lasting impact on your credit report. Fizz, on the other hand, does things a little differently. Read on to find out how.

Late payments are expensive

When you use a traditional credit card, you’re typically required to pay off your balance or make a minimum payment once a month. The card company will usually send you a statement and you’ll have about three weeks to make the required payment. If you fail to do so, you’ll have missed a payment.

There are plenty of ways that credit card companies can hurt you when you miss a payment. Even if you pay your card off just one day late, you can be charged up to $40, depending on the credit card provider. It typically doesn’t matter why you missed the payment, so don’t expect your provider to be sympathetic.

Late payments also often result in a penalty APR or a penalty interest rate - an increase in the interest rate on your credit card. Credit card interest rates are already sky-high, but these penalty rates can get as high as 30%.

Here’s a penalty APR example: let’s say that your regular APR is 15% and you owe $200. Instead of paying $30 in interest, you could now be paying $60 in interest - double the amount you would have paid before!

Late payments hurt your credit score

Late payment are the biggest factor when it comes to determining your credit score. Specifically, payment history accounts for nearly 35% of your credit score. A payment that’s 30 days overdue can lower your credit score by 100 points. To make matters worse, late payments can remain on your credit report for up to 7.5 years. And making on time payments after the fact won’t save you.

It’s not an exaggeration to say that late payments can have a bigger negative effect on your credit than any other factor. Your credit utilization, hard credit pulls, age of accounts, and other factors might swing your score by a few points here and there. But late payments can ruin your score like none other.

Fizz helps you avoid late payments

Everyone makes mistakes. So why should you let yourself be so severely punished by your credit card company for one late payment?

Fizz is the simple solution to avoiding all of these unnecessary pitfalls of using a credit card. Fizz makes it almost impossible to miss payments. By enabling autopay, your Fizz card is paid off for you every single day. And if somehow you miss a daily payment, we make sure you have the opportunity to make up for it without any interest or fees. Gone are the confusing days of remembering to make your credit card payments every month.

To make matters even better, Fizz doesn’t charge fees or interest in any situation. So even in the case that a payment doesn’t go through, we won’t take advantage of you. Plus, Fizz offers rewards at national and global brands that students love, as well as popular on-campus spots.

With Fizz, you won’t have to worry about late payments or extra fees. You can just sit back and relax knowing that Fizz is helping you on your journey towards a better credit score and an independent financial future. Sign up for a Fizz card today and never worry about late payments again.

Join Fizz, the debit card for college students
bio

Ahmed Mousa

Ahmed is a senior at the University of Texas at Austin and is a Growth intern at Fizz. He is new to the beautiful world of finance, but is quickly growing his knowledge through personal research and learning from his peers. Out of office you can find him playing guitar, or attempting new recipes. He currently resides in Austin, TX.

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