What is a late fee?

Late fee

A late fee is a charge added when a payment is missed or arrives after its due date. The amount, and how soon after the due date it's charged, are set out in the plan's or card's terms. On a small installment (definition, opens in a new tab), a flat late fee can be a large share of that one payment.

Where does this site use it?

• Should I use buy now, pay later?

Related terms

• Installment
• Buy now, pay later (BNPL)

General education, not financial advice.