What Happens If You Miss a Credit Card Payment?

 

It is not a good thing to miss a payment but yes, it is common and normal. People have too many things they worry about so it is easy to forget a credit card payment. Delayed/ or missed payment consequences are determined by its lateness plus a credit card's rules. Users run the danger of losing money from late payments, paying extra interest, but also having their credit scores suffer.


Issues that could arise from failing to make a credit payment:


Issuers may charge you a sizable late fee:

Users are assessed a fine by the credit card company if they don't settle their payments by the deadline. The subsequent credit card statement will include the above-delayed charges. The amount of time users missed their fees, your prior record of missed fees, as well as various circumstances can affect the late fees that each card issuer imposes.

Your credit score may suffer:

None of it may show on the credit file should a person miss a payment by only a couple of days but pay it back on schedule (you have up to 29 days to do so). But, the lender will probably certainly charge a person the late payment penalties. The creditor will notify the credit bureaus of any missed payment after it is more than 30 days past due. This delayed repayment may remain on a customer credit file lasting approximately 7 years. In case you wish to avoid being plagued by a late payment for the upcoming 7 years, it is imperative that you make every effort to settle your credit card payments promptly.

Your interest rate can increase:

The charges of interest on any unpaid credit card balances rise if customers do not even settle them by the deadline or earlier. Both cash transactions made just after the deadline and any transactions made via the card are subject to a higher interest rate.

Can result in a reduction of your credit limit:

Missing a payment or delaying it can also result in a reduction of your credit limit. Missing a payment does not shed a good light on your trustworthiness and creditworthiness so a missed payment makes an issuer feel riskier. Therefore, the only way they see that would reduce the chances of risk is to reduce your credit limit. 

Cancelation of grace periods:

Many credit cards offer grace periods to their consumers. They are very beneficial because in those periods’ banks do not charge you any interest on your purchases and transactions. If you miss or delay a payment a credit card company may find that to be a good enough reason to cancel your grace period. 


Bottom Line:

Even if you fail to make a payment by a payment deadline, you still have things you may perform to bounce right back on track, so it's not the ending of everything. However, adopt preventative measures such as selecting the correct card and fixing up alerts and automated repayments if you believe missed fees may be a recurring problem for you. Make every effort to make a payment by the deadline.

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