We’ve all been there – you’re busy with work, family, and life in general. The due date for your credit card payment sneaks up on you, and before you know it you’ve missed the deadline. It happens to the best of us, but forgetting to pay your credit card bill can have consequences. In this article, we’ll walk through some steps on what to do if you’ve missed a credit card payment, how it impacts your finances, and tips to avoid late payments in the future.
Immediate Steps to Take When You Miss a Payment
First things first once you realize you’ve forgotten a payment take action right away to minimize any damage. Here are some recommended steps
-
Pay at least the minimum amount as soon as possible. Even if the due date has passed, pay whatever you can afford – even just the minimum – immediately. This helps correct the situation and can limit any late fees.
-
Contact your credit card company. Let them know the situation and see if they can remove any late payment fees. Especially if you have a good track record, many companies will work with you on a one-time basis.
-
Review your budget. Take a look at your spending and see where you can trim expenses to free up cash for credit card payments. Cutting back on dining out, entertainment, or other flexible costs can help.
-
Make a plan for upcoming payments. Mark your calendar and set payment reminders to avoid future late payments. Automate payments if possible.
If you pay your bills on time and responsibly, you can keep a late payment from ruining your credit score.
How a Missed Payment Affects Your Credit Score
A late credit card payment often means a drop in your credit score. Financial Credit Reporting Corporation (FICO) says that your payment history makes up about 35% of your overall score. One payment that is 30 days late can take 90 to 110 points off your score.
The damage deepens if the payment stays unpaid for over 30 days. Now the credit card issuer can report your seriously delinquent account to the credit bureaus. This serves as a big red flag that you’re a high-risk borrower and lenders may deny you credit as a result.
The impact on your score lessens over time, but a late payment stays on your credit report for seven years. Your credit will recover with on-time payments in subsequent months, but it takes diligence to rebuild a solid score.
Late Fees and Penalty APRs
A missed payment can hurt more than just your credit score. It can also hurt your wallet. Expect the following repercussions:
-
Late fees. The penalty for a late payment is usually around $30, but can be as high as $40.
-
Penalty interest rates. Your APR could jump dramatically if your account becomes 60 days past due. This penalty APR may apply for at least 6 months.
-
Lower credit limits. Issuers may opt to lower your credit limit, which also hurts your credit utilization ratio.
-
Difficulty getting new credit. Lenders view you as a risk, so you may have trouble getting approved for new cards and loans.
-
Sent to collections. If you fail to pay after several months, your account gets closed and sent to collections. This wrecks your credit score.
As you can see, just one missed payment can become very expensive. It’s critical to pay on time every month if possible.
Tips to Avoid Missed Payments in the Future
Once you’ve addressed the immediate late payment, take steps to prevent future stumbles:
-
Sign up for autopay – Set your account to automatically pay at least the minimum due every month. This ensures you never miss a payment deadline.
-
Use payment reminders – Calendar alerts, mobile apps, and email reminders can all prompt you to pay on time.
-
Pay right after your bill cycles – Schedule payments immediately after your statement period closes. Don’t wait until the due date.
-
Set up account alerts – Many issuers let you set custom alerts to warn about pending due dates, low balances, or high spending.
-
Review statements regularly – Get in the habit of reviewing transactions and balances so payments don’t sneak up on you.
-
Have a financial cushion – Maintain an emergency fund with at least a few months of living expenses. This provides a buffer if money gets tight.
Staying organized and diligent about tracking monthly bills can remove the stress of wondering if you paid on time. Develop a system that works for you.
What If I Simply Can’t Afford the Payment?
Sometimes circumstances completely outside your control make it impossible to pay – job loss, medical bills, family emergencies, etc. In these cases, contact your credit card company immediately for assistance. Let them know why you can’t pay. Many issuers have hardship programs that can help by:
- Reducing or waiving late fees
- Lowering your interest rates temporarily
- Setting up alternative payment plans tailored to your situation
Be proactive in communicating and show a willingness to pay what you can. This good faith effort makes the credit card company more likely to work with you until you get back on your feet financially.
Mistakes Happen – Focus on the Future
At some point a late payment will probably happen to most people. Try not to panic or feel ashamed about an accidental slip up. Instead, focus your energy on taking the necessary steps to get your finances back on track. Use it as a learning experience.
When utilized responsibly, credit cards are useful financial tools that can provide convenience and even boost your credit profile. Just remember to use caution, track due dates diligently, and maintain open communication with your credit card company. Despite your best efforts, you may encounter bumps along the way. By building strong financial habits and making your payments a priority, you’ll keep those stumbles to a minimum.
Let’s face it: Missing a credit card payment doesn’t feel good. But rather than kick yourself over it, you might be able to minimize the effects of a missed payment by acting quickly.
The worst thing you can do, in many cases, is nothing. Left unresolved, a missed payment might turn into a costly blunder thanks to the combination of a late fee, a potential penalty APR and any interest charged on the balance. Plus, missing the payment due date could affect your credit scores.
Keep in mind that most credit card companies charge interest on a daily basis, so you’ll be charged interest for each day you carry a balance. That means it’s important to settle your account as soon as possible and take steps to make sure you don’t miss another payment in the future.
With that in mind, we’ve compiled some simple guidelines to follow immediately after you miss a payment.
With any luck, you’ll avoid the worst parts of a missed payment and chalk this time up as a learning experience.
How often do lenders report to the credit bureaus?
Lenders typically report your balance to bureaus once a month. They can report at different times to different bureaus, so your credit scores may vary across your reports. For a more in-depth look, check out our video primer on how reporting works.
After missing a payment, you’ll likely see two charges: a late fee and interest on the balance. If the missed payment was an accident, we recommend paying off the balance and immediately calling your issuer to explain that you made an innocent mistake.
Once you’re on the line with a representative, you can try asking if they’ll refund the late fee. You can also ask the issuer to refund the interest charges if you’ve paid the balance in full. Just remember — it’s the lender’s right to either grant your request or say no.
If your first call wasn’t successful, consider trying again. The issuer isn’t required to refund the fee or interest charges, but it’s probably worth a second shot if you usually pay on time and regularly use the card. Being polite and not making demands is most likely to prompt a refund, but dropping hints that you’re considering switching to a different company could be a solid last-ditch option.
What To Do If You Miss A CREDIT CARD PAYMENT
What happens if I Forget to pay my credit card bill?
If you forget to pay your credit card bill by the due date, your credit card issuer will charge you a late fee. Extra charges like this impact your checking account balance. Paying your credit card bill on time every month is the best way to avoid late fees. If you miss a payment or pay late, interest will begin to accrue.
What if my credit card payment is late?
Your credit card payment is late when you don’t make at least the minimum payment by the due date. This can happen if you forget to pay or if your payment doesn’t go through. The issuer may have a cutoff time on your due date, typically 5 p.m. at the earliest, after which your payment is considered late.
What happens if you miss a credit card payment?
Here’s what you can do. Missing a credit card payment can result in fees or increased interest rates — and it can affect your credit scores. If you act quickly, you might be able to lessen the negative effects of a late payment. Louis DeNicola is a personal finance writer and has written for American Express and Discover.
How do I get a credit card alert if I miss a payment?
You can choose how many days before the due date you want to get an alert. If it’s your first time missing a payment, it’s worthwhile to reach out to your credit card issuer to request a fee waiver. It may waive the fee if it’s your first time missing a payment or paying late.