NAB increases credit card late payment fees
NAB customers will have to fork out more if they fail to pay their credit card bills on time.
NAB credit card holders will have one more reason to pay their bills on time come April. As of 1 April 2017, the bank will be increasing its late payment fees from $9 to $15. So, if you fail to make the minimum repayment of 2% of your total balance by the statement due date, you’ll be charged the higher fee from April onwards. This new late payment fee will be applied across all 11 of NAB’s credit card products.
However, NAB isn’t the only bank to raise its late payment fees in recent months. In January, we reported that St.George had also increased its fee from $9 to $15. Despite these fee increases, NAB and St.George have more competitive late payment costs than the other Big Four banks.
How do NAB's late payment fees compare?
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While NAB hasn’t confirmed exactly why it has increased the fee, it could be a part of a bigger trend in the current credit card market. With the interchange fee regulations coming into place in July 2017, banks are preparing for the predicted losses by reducing extra card features and reward point earn rates and increasing fees.
As 1 in 3 Australians has defaulted on their credit card payments in the past, it’s important to understand the costs that come with failing to make your minimum credit card repayment on time. While you should always pay at least the minimum repayment amount, it’s actually better to repay the balance in full (or as much as you can) to cut down on interest costs. Plus, as credit reporting agencies will soon be able to view your card repayment history when assessing your credit history, paying your bills on time has never been more crucial.
If you’re struggling to repay your credit card balance on time, you can set calendar reminders to prompt you each month or request to move your statement due date closer to when you get paid to free up your cash flow. Otherwise, if you’re struggling to repay your debt on time because of financial reasons, contact your bank to discuss alternative payment plans and options. See our guide on how to pay your credit card bill on time for more tips.