Citibank recently charged me P500.00 for not paying my “Minimum Amount Due” on time. Can’t blame them, it was really my fault since I forgot to make the payment this month. I don’t want to pay this Late Charge in the future so I did further research to understand the fees and penalties charged by my Citibank credit card. Here’s what I learned.
About Citibank’s Monthly Late Charge
We know that we have to be ready to pay a lot of fees when using a credit card. One of these fees, apparently, is the “Late Charge.”
Credit cardholders receive a monthly billing statement and included there are information about the “Minimum Amount Due” and the “Due Date”, among others. For Citibank credit cards in the Philippines, if you don’t pay the “Minimum Amount Due” on or before the stated due date, that’s when you will be charged the Late Charge.
Citibank’s Monthly Late Charge is P850.00 or the unpaid Minimum Amount Due, whichever is lower.
So if you don’t want to be penalized with the Late Charge, there are two things you need to check in your billing statement:
- Minimum Amount Due; and
- Payment Due Date
You can easily find these two information at the bottom of your monthly statement or upon logging in to Citibank Online (see screenshot).
In my case, since I wasn’t able to pay the “Minimum Amount Due” of P500.00 on or before the “Due Date” which was June 18 above, I had to pay either “P850.00 or the Minimum Amount Due, whichever is lower.”
Since my Minimum Amount Due (from the billing statement) was P500.00 and was lower than the fixed P850.00 charge, P500.00 was the amount charged to me by Citibank as Late Charge.
When “Late Charge” is Incurred
What to do so as not to incur the Late Charge? Simple, just pay at least the Minimum Amount Due on or before the payment due date!
Here’s a handy guide from Citibank showing when credit card users incur the Late Charge. Now we know!
|If you pay...||Payment Date||Will you incur LATE CHARGE?|
|Total Amount Due (Full Payment)||On or before Payment Due Date||NO|
|Total Amount Due (Full Payment)||After Payment Due Date||YES|
|Minimum Amount Due or higher||On or before Payment Due Date||NO|
|Minimum Amount Due or higher||After Payment Due Date||YES|
|Less than the Minimum Amount Due||On or before Payment Due Date||YES|
|Less than the Minimum Amount Due||After Payment Due Date||YES|