Is your credit card late fee pushing a hefty $40?

Unless you’ve had to fork out cash for them in the last few years, it may come as a surprise that credit card late fees have been bumped up since 2016, with some now reaching as high as $40. That’s got to hurt!
Mozo’s review of 225 credit cards found a number of cards have increased late fees by up to a mammoth 200%, with rises from this month alone ranging from $10 to $30.
It follows after the High Court in 2016 gave it the all-clear for lenders to charge up to $35 for Aussie’s who miss a credit card repayment, prompting lenders to hike late fees soon after.
“When it comes to credit cards, if you are not in the habit of paying on time each month it’s worth checking your statement to see what fee you’re being hit with. If you don’t like the fee you see it might be time to switch cards,” Mozo Director Kirsty Lamont said.
And with the average late fee now clocking in at $18.50, she encourages people to double check what kind of fees are in place for their own credit cards.
“With some card companies happy to charge $0 it’s clear not all fees structures are the same across the credit card market so it pays to compare.”
RELATED: Top Balance Transfer cards of 2019: Mozo Editors Picks
And it’s not just your hip pocket that could feel the pain of missed credit card repayments. With the introduction of Comprehensive Credit Reporting, lenders have a more thorough view of an applicant’s financial situation, so it’s important to be aware of your own repayment behaviour and how it could affect your credit health.
Geri Cremin, Credit Reporting expert from CreditSmart.org.au, said a ding like this on your credit report can ultimately affect the next time you seek credit, whether it be when you apply for a home loan, personal loan or a credit card. But that doesn’t mean it’s all doom and gloom.
“If you’re diligent in making your repayments on time, you can improve your credit health,” she said. “Good credit health will help you borrow money more easily when you need it, and perhaps at a better interest rate than before.”
But it’s not just credit cards that look to cash in on late fees, here’s what Mozo found after extending the search to 445 electricity contracts and 206 personal loans:
Product | Late Fee Range | Average Late fee |
Credit Card | $0- $40 | $18.50 |
Electricity | $0-$20 | $13 |
Personal Loans | $0-$50 | $17.70 |
If you’re paying up to $50 in late fees for any of these products, then avoiding those fees could be as easy as getting organised, start by taking note of when your bills are due and making a conscious effort to pay them on time.
But if you find yourself constantly shelling out cash despite your best efforts, then get in touch with the company to see if you can access a hardship program or consider switching to one of the many products that don’t charge late fees by comparing some of the best credit card deals in Australia.
Some credit cards with no annual fees - last updated 2 December 2023
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American Express Low Rate Credit Card
Competitive low rate with $0 Annual Fee. Offers Card Refund Cover and Card Purchase Cover. Must have no history of bed debt or payment default, be aged 18 years and over, and be an Australian citizen, permanent resident, or hold a long term visa.
Annual fee
$0Interest free days
55Purchase rate
10.99% p.a.Balance transfer rate
No current offerCompareCompareLow Rate Credit Card
Competitive low rate with $0 Annual Fee. Offers Card Refund Cover and Card Purchase Cover. Must have no history of bed debt or payment default, be aged 18 years and over, and be an Australian citizen, permanent resident, or hold a long term visa.
- Annual fee
- $0
- Interest free days
- 55
- Purchase rate
- 10.99% p.a.
- Balance transfer rate
- No current offer
- Purchase rate
- 10.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $0
- Late payment fee
- $30.00
- Cash advance fee
- 2%, min $2.50
Read our Mozo Review to learn more about the American Express Low Rate Credit Card
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American Express Essential Credit Card
Earn Membership Rewards points® with a $0 Annual Card Fee. T&Cs apply. New Card Members only.
Annual fee
$0Interest free days
55Purchase rate
18.99% p.a.Balance transfer rate
No current offerCompareCompareEssential Credit Card
Earn Membership Rewards points® with a $0 Annual Card Fee. T&Cs apply. New Card Members only.
- Annual fee
- $0
- Interest free days
- 55
- Purchase rate
- 18.99% p.a.
- Balance transfer rate
- No current offer
- Purchase rate
- 18.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $0
- Late payment fee
- $30.00
- Cash advance fee
- 2%, min $2.50
Read our Mozo Review to learn more about the American Express Essential Credit Card
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Latitude 28° Global Platinum Mastercard
The Latitude 28° Global Platinum Mastercard has no annual fee, free Global Wi-Fi and no overseas fees on purchases made when travelling or when shopping online you can pay like a local wherever you are.
Annual fee
$0Interest free days
55Purchase rate
26.99% p.a.Balance transfer rate
No current offerCompareCompare28° Global Platinum Mastercard
The Latitude 28° Global Platinum Mastercard has no annual fee, free Global Wi-Fi and no overseas fees on purchases made when travelling or when shopping online you can pay like a local wherever you are.
- Annual fee
- $0
- Interest free days
- 55
- Purchase rate
- 26.99% p.a.
- Balance transfer rate
- No current offer
- Purchase rate
- 26.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- 26.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 0%
- Annual card fee
- $0
- Late payment fee
- $35.00
- Cash advance fee
- 3%, Min $4
Read our Mozo Review to learn more about the Latitude 28° Global Platinum Mastercard
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Apply By 30 Apr 2024
Bank of Melbourne Vertigo - Balance Transfer Offer
0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.
Annual fee
$55Interest free days
55Purchase rate
13.99% p.a.Balance transfer rate
0% p.a. for 32 months and then 21.49% p.a.CompareCompareVertigo - Balance Transfer Offer
0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.
- Annual fee
- $55
- Interest free days
- 55
- Purchase rate
- 13.99% p.a.
- Balance transfer rate
- 0% p.a. for 32 months and then 21.49% p.a.
- Purchase rate
- 13.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 32 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $55
- Late payment fee
- $15.00
- Cash advance fee
- 3%
Read our Mozo Review to learn more about the Bank of Melbourne Vertigo - Balance Transfer Offer
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Bendigo Bank Ready Credit Card
Annual fee
$0Interest free days
55Purchase rate
19.99% p.a.Balance transfer rate
No current offerCompareCompareReady Credit Card
- Annual fee
- $0
- Interest free days
- 55
- Purchase rate
- 19.99% p.a.
- Balance transfer rate
- No current offer
- Purchase rate
- 19.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- 19.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 0%
- Annual card fee
- $0
- Late payment fee
- $15.00
- Cash advance fee
- Greater of $3.00 or 3% of the transaction amount.
Read our Mozo Review to learn more about the Bendigo Bank Ready Credit Card
^See information about the Mozo Experts Choice Credit Card Awards
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