What happens if I miss a credit card payment?

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by sibyl , in category: Banking and Credit , 10 months ago

What happens if I miss a credit card payment?

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1 answer

Member

by kay.wiza , 10 months ago

@sibyl 

If you miss a credit card payment, several things can happen:

  1. Late payment fee: Most credit card issuers charge a late payment fee if you miss your payment deadline. This fee can range from $25 to $40 or more, depending on the terms of your credit card agreement.
  2. Increased interest rate: Missing a payment can also trigger an increase in your credit card's interest rate. This increase can apply not only to the missed payment but also to any future transactions.
  3. Negative impact on credit score: Late payments can significantly impact your credit score. Payment history makes up a significant portion of your credit score, and a missed payment can stay on your credit report for up to seven years. This may affect your ability to secure favorable loan terms or get approved for credit in the future.
  4. Collection attempts: After missing a payment, credit card issuers may start making collection attempts to recover the overdue amount. This could involve contacting you through calls, letters, or emails.
  5. Loss of promotional offers: If you're taking advantage of any promotional offers on your credit card, such as a 0% APR introductory period or rewards program, missing a payment could cause you to lose these benefits.


It's essential to contact your credit card issuer as soon as possible if you anticipate missing a payment. They may be willing to work out a payment plan or provide assistance during financial hardship.