I Missed My First Payment on a New Credit Card — Here’s How I Recovered the Fees

When I entered the world of points and miles, I quickly learned I could accumulate rewards faster through applying for credit card welcome bonus offers. For the last 5 years, this has meant acquiring a steady stream of new cards. When I’m approved for a new card, I usually set up my new account right away, making sure that it is set up for autopay so that I never miss a payment. I emphasize usually, as 1 card finally slipped through the cracks.

Recently, I realized too late that I neglected to set up autopay on my new card, which resulted in missing my first payment and incurring interest charges and a late fee. I panicked about my credit score and immediately went to work to fix the situation. Here are the steps I took to resolve my missed payment and how I reclaimed those fees.

Applying for my Latest Business Card

June 12 was like any other day. School was out, and I took my kids to an ice skating lesson and the orthodontist. At some point during the summer fun, I applied for and was accepted for a Marriott Bonvoy Business^® American Express^® Card.

Applying for new business cards has been my current strategy until I’m clear of Chase’s 5/24 rule in a few months. Thanks to a tip from Upgraded Points Senior Editor and Content Contributor Juan Ruiz, I realized that I could be paying my small business taxes on a business credit card to meet the minimum spending requirement for many of these credit card welcome bonus offers. I typically do this through payUSAtax for a 1.82% fee. So long as the return and bonus are greater than the fee, it’s a win-win for me.

So, with my shiny new Marriott Bonvoy Business card, I swiftly paid my taxes using the card, verified that I had met the welcome bonus offer requirements, and saw the rewards added to my Marriott Bonvoy account. Easy peasy and done, right? I was wrong.

Pay Attention to Those Emails

When I was approved for my new card, I received a standard welcome email with a few reminders.

Because I have several American Express business cards, setting up my online account should have been easy. But for whatever reason, I had forgotten to set up autopay. Had I paid attention to when my billing date closed and when payment was due and manually paid then, I wouldn’t have had any issues. However, I didn’t give the process a second thought until I received an email titled “Reminder: Your payment is due.”

Springing into action, I logged into my account to realize that I had not set up autopay, missed my payment by a week, and had been assessed a $39 late fee and over $200 in finance charges. Yikes!

How To Get Credit Card Interest and Late Fees Waived

I haven’t missed a credit card payment in over 20 years, so my immediate thoughts went to how to fix this situation quickly and protect my credit score.

1. Immediately Pay the Balance in Full

My first step was to pay the full balance immediately — fees and all — as well as set up autopay. This was important to do before contacting American Express to show I had tried to correct my mistake.

Because I paid the balance within 8 days of being past due, I wasn’t concerned about the late payment affecting my credit score.

“While your credit card payment is considered late by the credit card issuer as soon as you miss the payment due date, it’s only reported as late to the credit card bureaus when it’s 30 days past due.”

Jessica Merritt, editor and content contributor, Upgraded Points

2. Reach Out to the Chat Team To Waive Late Fees

As I realized the situation I was in at 11 p.m. (checking my phone before bed), my next step was to see what I could accomplish via the chat feature on the Amex app. I confirmed with the chat agent that I had just paid the balance on the card and asked if the late fee and interest charges could be reversed as a courtesy, considering my history of on-time payments.

The agent asked for my reason for the late payment, and I was honest in saying that I forgot to set up the autopay and must have missed any emails before the payment reminder email I received a week after the payment was due.

The agent confirmed that he could waive the $39 late fee. He advised that it was a “one-time exception, and the account may not be eligible for another exception in the future.” I asked if there was any way to reverse the interest charges and was told it was not possible. When I asked to be escalated to a manager, I was advised that I’d hear the same answer but that I could call the number on the back of my card to discuss.

I received an email the next day confirming that the late fee had been waived.

3. Call the Call Center Team To Waive the Interest Charges

My final step was to call the number on the back of my card and plead my case to a customer service agent. I was forwarded to a small business agent and went through similar steps to explain my mistake in not setting up autopay. I also mentioned my history of on-time payments and detailed my steps to resolve the issue.

After a brief hold, the agent thanked me for my 20+ years as an American Express cardholder and advised that he could waive the interest charges as a courtesy. Within a few days, both adjustments showed in my online account.

Final Thoughts

Setting up autopay as soon as you’re approved for any credit card is a surefire way to keep your balance paid on time and avoid fees. You can also set up account alerts for payment reminder emails or texts before the payment due date or autopay date.

If you have a history of on-time payments and miss 1 by mistake, utilize the steps I’ve outlined to help recover those late fees and interest charges. I paid the balance as soon as I realized my mistake and set up autopay to ensure I didn’t have future issues. I then contacted my card issuer’s customer service team via chat and phone to ask for the fees to be waived. These efforts only took a few minutes and returned over $250 to my account.