It can be easy to miss a credit card payment if you're juggling a half dozen different bills all with different due dates, and you haven't yet set up autopay. Unfortunately, a missed credit card payment can come with expensive consequences.
The impact of a late payment depends on how late that payment is and the terms of your credit card. You may incur a late payment fee, penalty interest rate and risk damage to your credit score.
Below, CNBC Select reviews what happens when you miss a credit card payment, the fees you may incur, the effect on your credit score and how to prevent late payments.
Consequences of a missed or late credit card payment
The consequences of a missed or late credit card payment vary based on how many days your payment is past due. If you missed a credit card payment by one day, it's not the end of the world. Credit card issuers don't report payments that are less than 30 days late to the credit bureaus. If your payment is 30 or more days late, then the penalties can add up.
Common results of paying late include:
- Late payment fee: In most cases, you'll be hit with a late payment fee. This fee is often up to $41.
- Penalty APR: A late payment can cause your interest rate to spike significantly higher than your regular purchase APR. However, penalty APRs may be reverted back to the regular APR by meeting certain requirements, such as making two consecutive payments on time.
- Cancellation of intro 0% APR periods: If you're benefiting from an introductory interest-free period, you risk losing out on the offer if you make a late payment.
How a missed or late credit card payment effects your credit score
A missed or late payment can have serious negative effects on your credit score. The longer your payment is past due, the more your credit score will drop. Below, we've provided an example of the effect a 30- and 90-day missed credit card payment has on two consumers, according to FICO data.
| | Sophia | Maria |
|---|
| Current FICO® Score 9 | 607 | 793 |
| Result of a 30-day missed payment | 570-590 | 710-730 |
| Total credit score drop for a 30-day missed payment | 17-37 points | 63-83 points |
| Result of a 90-day missed payment | 560-580 | 660-680 |
| Total credit score drop for a 90-day missed payment | 27-47 points | 113-133 points |
As you can see, the higher your credit score, the greater negative effect a 30- or 90-day missed credit card payment has on your account. That's because someone with a lower credit score already has their past behavior reflected in their score. The addition of one more indicator of risk won't be as significant as someone with a clean credit history.
What to do if you miss a payment
If you missed a payment, it's important to take action fast. Here's what you should do to minimize the negative effects of a late payment:
Pay at least the minimum as soon as possible
The sooner you make a payment, the better. If your payment is less than 30 days past due, you can avoid it hitting your credit report. And if it's more than 30 days past due, you can still minimize the damage by paying at least the minimum as soon as you can.
Call your card issuer and try to negotiate your payment
If this is your first late payment, chances are good that your card issuer may waive the late fee. There are even some cards that automatically waive your first late payment, such as the Discover it® Cash Back, or have no late payment fees at all, like the Citi Simplicity® Card (see rates and fees).
If your card doesn't have these perks, simply pick up the phone or live chat with customer service and ask if the fee can be waived.
Don't miss another payment
Missing one payment might not be terrible, but if you make a habit of paying late, it can have serious implications. Make sure you always make on-time payments and follow our tips for preventing late payments below.
How to prevent late payments
Here are some steps you can take to prevent late payments:
Set up autopay
Card issuers provide an easy way for you to prevent late payments: autopay. You can set up autopay in less than a minute and benefit from peace of mind that your credit card payment is scheduled. Autopay can be set up for the minimum payment due, your total statement balance or another amount. We recommend setting it for your total statement balance so you avoid interest charges, but if that's not possible choose at least the minimum due.
Learn more: Making only minimum payments on credit card debt could cost you thousands and take over a decade to repay
Set payment reminders
If you don't want to set up autopay, you can set calendar reminders or text and email alerts. Many card issuers let you opt into reminders for when your statement is available, when your payment is due in a set number of days, when your payment posts and more. Note that these options may vary by issuer.
Change your payment due date
If you have multiple bills to pay, odds are your due dates are spread out over the month. This may increase your chances of missing a payment, so it can be a good idea to adjust your payment due dates as needed. It may be beneficial to have them on the same day or right after you get paid.
Read more
Recently miss a credit card payment? This is how long it may stay on your credit report
For rates and fees of the Discover it® Cash Back, click here.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
FAQs
In addition to a late fee, you may face a penalty APR, which often hovers around 29.99 percent. If you have a promotional APR, one late payment could cancel your promotional APR and your interest rates could balloon to the max amount, depending on your credit card agreement.
How bad is missing 1 credit card payment? ›
Missed payments could stay on your credit report for up to seven years. If you start with a credit score of 607, recording just one missed payment will drop your score to between 570 and 590, depending on your payment history, according to FICO.
How much credit do you lose if you miss a payment? ›
Missing a payment by 30 days
Even if this is the first and only your payment is late by 30 days, it can still impact your score—by about 100 points or more, depending on the scoring model and your current credit score.
Can you recover from missed credit card payments? ›
A late payment will be removed from your credit reports after seven years. However, late payments generally have less influence on your credit scores as more time passes. Unpaid debts and debts in collections also generally come off your credit reports after seven years.
Will credit cards forgive late payment? ›
Contact Your Credit Card Issuer
There are many scenarios where the late payment is understandable, and your credit card issuer may be willing to work with you. Apologize for the late fee, and explain why it happened. Make sure to highlight your history as a good customer and ask if they'll be willing to waive the fee.
Can I skip a month of credit card payment? ›
To keep your credit card account open and in good standing, you must pay at least the minimum payment amount indicated on your bill by the due date. Failing to do so can result in late fees, potential damage to your credit score and even having your account closed and turned over to collections.
Does 1 missed payment affect credit score? ›
Even one or two late or missed payments can affect your credit score. However, this doesn't mean your credit score is ruined. If everything else on your report is favourable, you can improve your score by maintaining good financial habits.
What happens if I never pay my credit card? ›
Consequences for missed credit card payments can vary depending on the card issuer. But generally, if you don't pay your credit card bill, you can expect that your credit scores will suffer, you'll incur charges such as late fees and a higher penalty interest rate, and your account may be closed.
Does it hurt your credit to skip a payment? ›
First, many people fall out of the habit of making their monthly payments when they choose to skip just one loan payment. Payment history influences credit scores the most, putting you at significant risk of hurting your score if you skip a payment without your lender's permission.
Will a 2 day late payment affect credit score? ›
When is a payment marked late on credit reports? A payment will typically need to be 30 days late before it's reported to the credit reporting bureaus. An overlooked bill won't hurt your credit as long as you pay before that 30-day mark, although you may have to pay a late fee.
Ask the lender to remove it with a goodwill letter
In some cases, creditors are willing to make a goodwill adjustment if your payment history has been good or if you have a good relationship with them. The process is easy: simply write a letter to your creditor explaining why you paid late.
Can you have a 700 credit score with late payments? ›
It may also characterize a longer credit history with a few mistakes along the way, such as occasional late or missed payments, or a tendency toward relatively high credit usage rates. Late payments (past due 30 days) appear in the credit reports of 33% of people with FICO® Scores of 700.
What happens if you miss 2 months of credit card payments? ›
If you don't make the minimum payment on time, the late payment could be recorded on your credit reports. This generally stays on your reports for seven years. If your payment is 180 days late, your lender may declare it a charge-off. This means that the issuer takes it off their books, but you still owe the money.
What happens if I accidentally miss a credit card payment? ›
In addition to a late fee, you may face a penalty APR, which often hovers around 29.99 percent. If you have a promotional APR, one late payment could cancel your promotional APR and your interest rates could balloon to the max amount, depending on your credit card agreement.
How bad is one late credit card payment? ›
Even a single late or missed payment may impact credit reports and credit scores. But the short answer is: late payments generally won't end up on your credit reports for at least 30 days after the date you miss the payment, although you may still incur late fees.
Is there a grace period for credit card payments? ›
Grace periods are, without exception, at least 21 days long. Credit card issuers must legally present you with a bill no fewer than 21 days before hitting you with fees. Depending on the issuer, you may even receive a grace period lasting up to 30 days.
What happens if I don't pay my credit card one time? ›
But generally, if you don't pay your credit card bill, you can expect that your credit scores will suffer, you'll incur charges such as late fees and a higher penalty interest rate, and your account may be closed. And the longer it takes for you to pay that bill, the worse the effects may be.
How many missed payments before a credit card closed? ›
If you don't pay your credit card bill on time, you might not be able to use your card for new purchases until your account is made current. And if your credit card account goes 180 days—or six months—past due, your card issuer will close and charge off the account.
How many missed payments before a credit card company sues? ›
A credit company usually sues for non-payment after 180 days have passed without the consumer paying and the account is officialy charged off. Creditors choose to sue based on the following factors: account balance, level of delinquency, and estimated likelihood of payment (based on assets and employment income).
What happens if I don't pay credit one? ›
Missing a payment by 30 days can cost you as much as 83 points, while a 90-day delinquency can impact you by up to 180 points, according to credit score company FICO®. A charge-off itself affects your credit score even further, as does a debt being sold to a collections agency.
