What happens if I miss a credit card payment?

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by alan , 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 mazie , 9 months ago

@alan 

If you miss a credit card payment, the consequences can vary depending on the credit card issuer's policies and terms. Here are some possible outcomes:

  1. Late fees and interest charges: Typically, credit card companies impose a late fee if the payment is not received by the due date. Additionally, you may incur interest charges on the unpaid balance, which can accumulate over time.
  2. Negative impact on credit score: Late payments can have a negative impact on your credit score. The longer the payment is overdue, the more significant the impact may be. This can make it more difficult to obtain credit in the future or result in higher interest rates.
  3. Increased interest rates: After missing a payment, the credit card company may increase your interest rate. This can result in higher finance charges and make it costlier to carry a balance on your card.
  4. Loss of promotional rates: If you're benefiting from any special promotional rates, such as a 0% APR on purchases or balance transfers, missing a payment may cause you to lose those terms and revert to the regular interest rate.
  5. Collection efforts: If the missed payment is not resolved within a certain timeframe, the credit card issuer may escalate collection efforts. They may contact you via phone, mail, or email to request payment. In severe cases, they may involve a collection agency or take legal action.


To prevent these consequences, it's crucial to make your credit card payments on time. Consider setting up automatic payments or reminders to ensure you don't miss any payment due dates.