Key takeaways
- Missing a single payment may not have serious consequences, but multiple missed payments can negatively impact your credit score.
- If you miss a due date, it’s important to make at least the minimum payment as soon as possible.
- Consequences include a potential hit to your credit score, late fees, loss of promotional APRs and triggering a penalty APR.
Paying your credit card bill on time (and in full whenever possible) is among the most important rules for responsibly handling your credit cards. Doing so consistently has a positive effect on your credit score and allows you to take full advantage of all credit cards can offer.
While it’s ideal to pay your bill on time every time, sometimes mistakes – or just life – happen. Missing a single payment by a few days likely won’t lead to serious consequences, especially if you have a history of responsible payment. However, making a habit of missing payments could have a serious detrimental effect on your credit and costly implications for your wallet.
Let’s go over some steps you can take to minimize the effects of missed payments.
What are the consequences of missing credit card payments?
It’s important to always make at least the minimum payment by the due date. If you don’t, you could face a range of penalties that can affect your finances.
Here is what you can expect if you miss credit card payments:
Your credit score could take a hit
Payment history makes up 35 percent of your FICO credit score, making it the single most important factor when determining your score. The good news is that credit card issuers usually don’t report missed payments until they’re 30 days past due, so your credit score likely won’t suffer if you make the payment within 30 days of the due date.
Miss that 30-day mark, however, and your credit score will take a hit. Recent late payments impact your credit score more than older ones, and missing several payments over a short period of time can be more harmful than missing a single payment.
If you miss a payment by a few days and you manage to catch it on time, nothing will appear on your credit report, but you could still face late payment fees from your creditor. Once a late payment is 30 days late, the lender will typically report that missed payment to the credit bureaus, which has the potential to live on your credit report for up to seven years from the original delinquency date.
You could face late fees
With most credit cards, you’ll face a late payment fee of up to $40 for your first late payment, but check your card’s terms and conditions for details. Additionally, many credit card companies will increase the late fee charge for subsequent late payments.
Keep in mind:
Any fee that hits your account will be added to your card balance and be subject to interest charges.
In some cases, the issuer will not charge a late fee for the first late payment, but will if you miss another.
You may lose your promotional APR
The best balance transfer and 0 percent APR cards can save you hundreds of dollars in interest, but those savings could evaporate if you miss a payment.
Missing payments not only makes it tough to pay off your balance during the intro period, but could also cause the issuer to vacate your 0 percent APR and begin applying the regular interest rate to your balance.
Therefore, even though you aren’t paying interest on your purchases or balance transfers during the promotional period, make sure you still make at least your minimum payment by the due date each billing period.
You could face a penalty APR
In addition to a late fee, issuers may impose a penalty APR, which often hovers around 29.99 percent. Federal law requires issuers to review your account after six months and potentially remove the penalty APR, but if you’ve continued to violate your card’s terms by missing payments, that penalty APR can remain indefinitely.
What to do if you miss a credit card payment
It’s not the end of the world if you miss a payment due date — there are steps you can take to get back on track.
Make at least the minimum payment as soon as possible
If you’re able to pay off your late statement balance — or, at the very least, make your minimum payment — that’s ideal. In fact, if you make your payment right away, you may even be able to avoid a late fee.
It never hurts to ask
A year ago, I opened a new credit card and forgot to set up autopay. I realized my oversight the day after my due date when a late payment fee hit my brand-new account. I immediately paid the full balance (and set up autopay) and then called Chase to ask whether they would forgive the late fee. I have multiple credit cards with Chase and always pay my bills on time and in full, which certainly worked in my favor. Chase was happy to forgive the fee and thanked me for being a customer. That five-minute phone call saved me $40 and was absolutely worth my time.
Remember, credit card issuers generally won’t report a late payment to the credit bureaus until it is at least 30 days past due so it’s always better to submit a payment as soon as you can.
If you can’t make a payment, contact your credit card issuer
If you find yourself unable to make even the minimum payment, contact your credit card issuer. If your payment is late, you could still face penalties and fees, but your issuer may be able to work with you or offer resources that can help. Consider asking your creditor for a modified due date, reduced interest rate or a payment plan (if you’re experiencing long-term financial difficulty). Your issuer may not honor your request, but it never hurts to ask.
Take steps to avoid missing another payment
Mistakes happen, so don’t fret too much if you miss a single credit card payment. The best way to ensure you won’t miss another payment is to set up payment notifications (via text or email) or automate your payments each month.
Most credit card issuers make setting up autopay easy. Simply log in to your account or call your issuer to set up your autopay preferences. Autopay can be set up for the minimum payment, the total statement balance or a fixed amount. If you don’t want to commit to automatic payments, you can set calendar reminders or opt in to receive text or email reminders from your issuer for when your statement is available or your bill is due.
The bottom line
Missing credit card payments will add to your debt balance and over time can damage your credit. Late fees and interest grow the longer you wait to pay your credit card statement. If you forgot to pay a bill or need help moving a due date, contact your issuer as soon as possible.
If you’re having trouble paying your credit card bills each month, there are other options to consider. One popular option is to transfer your balance to a credit card with a 0 percent intro APR for a limited time. Another option is to consider a debt consolidation loan. However, it’s worth noting that these methods typically require a good to excellent credit score.
Frequently asked questions
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You cannot go to jail for not paying your credit card bill in the United States. A creditor or debt collector should never threaten you with jail for not paying your bill.
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Your credit card issuer will contact you if you neglect to pay your bills. If you don’t pay the amount they request, your account will default, and your issuer could seek legal action against you. At a minimum, your credit score will suffer.
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Yes, your wages can be garnished for not paying credit card debt, but for this to happen, you must first be taken to court and have a judgment filed against you. Then, a court order must be submitted directing your employer to deduct funds. This process takes time to set up and occurs after your debt is charged off. By that time, you would have received notification the account was overdue and sold to collections. You would also get a notice of litigation and be given a chance to appeal. Once a judgment is granted to garnish wages, a percentage of your disposable earnings can be garnished from your paycheck.
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