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Credit card late payment and overlimit fees

If you’ve missed the due date on your statement or maxed out your card, you could be charged a penalty fee. Learn more about late payment and overlimit fees, as well as how to avoid them.

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Credit cards come with a range of fees that apply in specific circumstances, including when your payment is late or if you go over your available credit limit.

Having an outstanding balance that exceeds your available credit can occur in various instances. For example, when you request for a temporary credit limit increase and the outstanding card balances exceeds the card’s original credit limit.

Other examples would be when annual fees, late payment fees, cash advance fees, interest charges or returned cheque fees are levied upon a credit card with an insufficient credit limit.

How to avoid late payment and overlimit fees

Budgeting is a key factor in avoiding these types of penalty fees as it allows you to keep track of your balance and can help make sure you have enough money set aside to at least meet the minimum payment by the statement due date.

As well as establishing a budget, there are other specific strategies you can use to avoid these fees. We’ve broken them down below.

Overlimit fees

piggy bank and calendar

If you exceed your credit limit, your financial institution may charge you an overlimit fee.

  • Overlimit example.
    If you have a card with a credit limit of S$5,000 and regularly spend S$5,000 per month on your account, there is a high risk that you’ll go over your limit, especially if there may be unexpected fees levied upon your card. To reduce the odds, you could consider a credit limit increase or pay for some of those expenses with a debit card instead.
  • Check your balance.
    You can download your bank’s mobile banking application, log into Internet banking or call your provider to stay informed about your remaining credit. Either plan your purchases so you don’t exceed your credit limit or make a payment between statement periods so you can avoid spending past your limit.
  • Limit your spending.
    Some credit cards allow you to set customised spending limits. For example, DBS’s Internet and mobile banking apps let you set spending limits per transaction. This can help you manage your money and avoid going over your actual credit card limit.

Late payment fees

If you don’t pay at least the minimum required by the due date on your statement, this fee could apply. It may then be charged for each subsequent statement until a payment is made. If this happens, interest will accrue on both the original balance and the penalty charges. You can set up auto-payments so you never miss a credit card repayment. And if money’s tight, budgeting can help you make at least the minimum monthly repayment each month.

  • Late payment example.
    You need to budget for at least the minimum payment on your card. So if you had a S$5,000 balance, a minimum payment of 3% would be S$150 a month. If you know this, you can set aside this amount when you’re paid so you have enough to meet the repayment requirements by the due date on your statement.
  • Autopayments.
    Autopayments allow you to pay the minimum amount due each month, the entire outstanding balance or a partial amount of your account’s closing balance from a nominated transaction account. You can arrange an autopayment to your credit card by logging into your online banking facility and completing an online autopayment form. Alternatively, you can call your financial institution or complete and send in an autopayment form. Autopayments will become active after one statement cycle.
  • Contact your provider.
    If you’re strapped for cash and the due date on your statement is looming, you could call your credit card provider to explain the situation. In some cases, you may be able to get a one-off extension on your payment without fees or other penalties applying.
Card IssuerExamples of overlimit fees in Singapore
DBSS$40
CitibankS$40
Maybank3% of the credit limit, plus the excess over the credit limit

Bottom line

Spending over your credit limit by a couple of dollars isn’t going to cost you, but financial institutions will still charge when you miss a payment. What’s more, missing credit card payments can impact your chances of getting approved for other types of finance such as a home loan or a car loan. Make the most of smart credit card features such as auto-payments to make sure your repayments are always on time, helping you to avoid unwanted credit card fees in the future.

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Compare a range of credit cards

Name Product Reward Cashback Offer Annual Fee Min Income - Singaporean and PR
HSBC Revolution Credit Card
Earn up to 10X Reward points or 4 miles per S$1 spent on qualifying purchases.
Choose between a S$150 cashback or Samsonite suitcase if minimum spend requirements are met. T&Cs apply. Ends 31 Aug 2020.
S$0 annual fee
S$30,000
New cardholders can choose from a Samsonite Prestige 69cm Spinner Exp luggage worth S$670 or S$150 cashback. Minimum spend of S$800 within the qualifying spend period is required. T&Cs apply. Ends 31 Aug 2020.
UOB PRVI Miles American Express Card
Earn 1.4 miles for every S$1 spent locally with no minimum spend or cap.
Get S$150 cash credit if you spend a minimum of S$1,500 within 30 days. First 400 new customers only.
S$0 annual fee for the first 1 year and S$256.80 thereafter
S$30,000
Enjoy up to 20,000 bonus miles if you charge S$50,000 to your card in a year. Apply today and enjoy free transfers to Changi Airport.
HSBC Visa Platinum Credit Card
Earn 1 Reward point for every $1 on all spend.
Up to 5% cash rebates on groceries, dining and fuel with minimum monthly spend of at least S$600.
S$0 annual fee for the first 2 years and S$192.60 thereafter
S$30,000
New cardholders can receive a Samsonite Prestige 69cm Spinner Exp suitcase (worth S$670) or S$150 cashback, if a minimum of S$800 is spent using the card in the qualifying spend period. T&Cs apply. Ends 31 Aug 2020.
KrisFlyer UOB Credit Card
Earn 3 KrisFlyer miles per S$1 when you spend with Singapore Airlines, Scoot, SilkAir or KrisShop and 1.2 KrisFlyer miles per S$1 on all other spend.
Get S$150 cash credit if you spend S$1,500 or more within 30 days. First 800 new customers only.
S$0 annual fee for the first 1 year and S$192.60 thereafter
S$30,000
New cardholders can receive up to 10,000 KrisFlyer miles when applying and spending a minimum of S$1,500 within 30 days card approval. Ends 31 August 2020. Existing UOB cardmembers get 3,000 KrisFlyer miles after the first transaction of S$5 minimum. T&Cs apply.
UOB Yolo Card
Wide range of discounts. Plus, complimentary travel insurance
Enjoy up to 8% cashback on dining, travel, shopping and entertainment. Plus, a further 3% cashback in selected categories
S$0 annual fee for the first 1 year and S$192.60 thereafter
S$30,000
Apply today and get up to S$230 in bonus cash credits. T&Cs apply.
UOB Lady's Card
Earn 10X UNI$ (or 20 miles) per S$5 spent on a chosen spending category with no min. spend required, and 1X UNI$ (or 2 miles) on other purchases.
New customers can get S$150 in bonus cash credits. T&Cs apply.
S$0 annual fee for the first 1 year and S$192.60 thereafter
S$30,000
Apply today and get S$150 in bonus cash credits. T&Cs apply.Ends 31 August 2020.
HSBC Advance Credit Card
Enjoy up to 3.5% cashback on local and overseas purchases with no minimum spend requirement plus fuel discounts.
Enjoy up to 3.5% cashback on all purchases with no minimum spend
S$0 annual fee for the first 1 year (permanently waived for HSBC Advance banking customers) and S$192.60 thereafter
S$30,000
New cardholders can choose between a Samsonite Prestige 69cm Spinner Exp luggage worth S$670 or S$150 cashback if minimum spend of S$800 within the qualifying spend period is made. T&Cs apply. Ends 31 Aug 2020.
UOB One Card
Get S$150 cash credit when you apply. Minimum S$1,500 spend within 30 days. First 400 eligible applicants only.
Up to 10% cashback with some merchants including Grab,7-Eleven and Cold Storage; 6% for Singapore Power Utilities bills; and 5% back on all other retail spending.
S$0 annual fee for the first 1 year and S$192.60 thereafter
S$30,000
Apply today and get up to S$150 in bonus cash credits. T&Cs apply.
American Express Singapore Airlines KrisFlyer Ascend Credit Card
Complimentary stay at a Hilton hotel in Asia Pacific each year. Plus, enjoy four airport lounge passes
N/A
S$337.05 annual fee
S$50,000
Get up to 56,200 KrisFlyer miles with S$16,000 minimum spend within six months.
UOB PRVI Miles Visa Card
6 air miles for every S$1 spent through Expedia, Agoda and UOB Travel
Get S$150 cash credit when you apply. Minimum S$1,500 spend within 30 days. First 400 eligible applicants only.
S$0 annual fee for the first 1 year and S$256.80 thereafter
S$30,000
Apply today and enjoy up to S$150 in cash credits. Plus, free travel cover.
American Express Platinum Credit Card
Up to 50% off your food bill for unlimited visits at hotels around Singapore
N/A
S$321 annual fee
S$80,000
Get S$150 Lazada Vouchers and up to 43,250 Membership Rewards points with minimum spend in your first 3 months and when you successfully refer a friend. T&Cs apply.
American Express True Cashback Card
Enjoy free travel insurance benefits of up to S$350,000
Earn 1.5% cashback on all eligible spending with no minimum spend or cap
S$0 annual fee for the first 1 year and S$171.20 thereafter
S$30,000
Apply today and get a 3% Cashback bonus when you spend S$5,000 in the first six months.
American Express Singapore Airlines KrisFlyer Credit Card
Enjoy money-saving offers on Hertz, Grab and at restaurants in Singapore and overseas
S$150 cashback for use at singaporeair.com when you spend a minimum of S$12,000 untill 30 June 2021
S$0 annual fee for the first 1 year and S$176.55 thereafter
S$30,000
Earn up to 29,800 KrisFlyer miles with minimum spend of S$8,000 in your first 6 months.
UOB PRVI Miles World Mastercard
6 air miles for every S$1 spent through Expedia, Agoda and UOB Travel
Get S$150 cash credit when you apply. Minimum S$1,500 spend within 30 days. First 400 eligible applicants only.
S$0 annual fee for the first 1 year and S$256.80 thereafter
S$30,000
Apply today and enjoy up to S$150 in cash credits. Plus, free travel cover.
American Express CapitaCard
Earn 3X STAR$ when you shop at participating CapitaLand malls, and more
Get a referral bonus of S$20 worth of CapitaVouchers when you refer a friend.
S$0 annual fee for the first 1 year and S$171.20 thereafter
S$30,000
Receive an American Tourister Hypebeat 79/29 Spinner luggage (worth S$239) upon S$3,000 minimum spend within the first 3 months of card approval. Ends 30 September 2020.
Citi Rewards Credit Card
Up to 10X Rewards on eligible online and retail purchases, capped at 10,000 points per statement month.1X Rewards for other retail purchases.
Up to 10% cash back at selected merchants
S$0 annual fee for the first 1 year and S$192.60 thereafter
S$30,000
Get 30,000 Citi Thank You points when you spend S$3,000 in the first 3 months. T&Cs apply. 30 September 2020
Citi Cash Back Card
Get up to 20.88% fuel discounts at Esso and Shell, and 8% cashback on dining and groceries.
8% cash back on dining, groceries and petrol transactions. 0.25% cashback on other retail purchases.
S$0 annual fee for the first 1 year and S$192.60 thereafter
S$30,000
Get a welcome gift of S$120 cash back when you spend S$1,200 in the first 3 months. T&Cs apply. Ends 31 January 2021.
Citi Prestige Card
Deals and discounts in more than 90 countries. Also, get six complimentary golf games across Asia
Up to 20% cashback at selected merchants
S$535 annual fee
S$120,000
Get a welcome gift of 62,500 Citi ThankYou Points (25,000 Miles) or Gadget Welcome Gift. T&Cs apply. Ends 30 September 2020.
Citibank SMRT Card
Up to 5% savings on groceries, fast food, movies, and coffee. Plus, 3% savings on online shopping
Redeem S$10 cash back for shopping vouchers with every 10 SMRT$ earned
S$0 annual fee for the first 2 years and S$192.60 thereafter
S$30,000
Get a welcome gift of S$120 cash back when you spend S$1,200 in the first 3 months. T&Cs apply. Ends 31 January 2021.
Citi PremierMiles Card
Earn 1.2 Citi Miles for every S$1 spent locally and 2 Citi Miles for every S$1 spent overseas.
Up to 10% cash back at selected merchants
S$0 annual fee for the first 1 year and S$192.60 thereafter
S$30,000
Get 37,300 miles when you spend S$9,000 in the first 3 months. Annual fee applies. 30 September 2020.
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