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
A late credit card payment could result in late fees, a penalty APR, and a negative impact on your credit score. You can set up payment alerts to help you remember to pay by your due date. Budgeting is a good way to ensure that you have the funds to cover your credit card payment.
What happens if I miss a minimum payment on my credit card? ›
If your credit card bill is 30 days past due, a late fee will be added to your minimum payment and any promotional APRs could be revoked. With most credit cards, you'll typically face a fee of up to $40 for late payments, but be sure to check your card's terms and conditions.
Does 1 missed payment affect credit score? ›
Some people assume that missing the odd payment or paying a few days late won't make a difference as long as they manage their debt well most of the time. Unfortunately, this isn't true. Even one or two late or missed payments can affect your credit score.
What happens if you only make the minimum payment on your credit card group of answer choices? ›
Interest charges add up: Typically, credit companies will charge you high interest rates on unpaid balances. If you only pay the minimum each month, the interest charges can snowball. The additional interest and any other fees are added on to your balance and can increase a lot over time.
What happens if you only make the minimum payment on your credit card statement? ›
However, if you only make the minimum payment on your credit cards, it will take you much longer to pay off your balances—sometimes by a factor of several years—and your credit card issuers will continue to charge you interest until your balance is paid in full.
How to ask for late payment forgiveness? ›
A goodwill letter is a formal letter to a creditor or lender, such as a bank or credit card company, to request forgiveness for a late payment or other negative item on your credit report. In the letter, you typically: Explain the circ*mstances that led to the late payment or issue.
Will a 3 day late payment affect my credit score? ›
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.
How long does it take to recover from a missed credit card payment? ›
It might take three to five months of strong payment history to get the score to turn around, Jackson says. Missed payments will stay on your credit record for seven years from the date of activity, "but that doesn't mean the impact on your credit score is there for the duration of the seven years," McClary says.
How bad is one late credit card payment? ›
For example, if you have good credit, one late payment might not give you bad credit. But a credit score of 780 with no prior late payments could drop by 110 points with just one credit card marked 30 days past due. As you exceed 60 and 90 days past due, your score suffers more.
How many points will my credit score go down if I miss a payment? ›
According to FICO data, a 30-day missed payment can drop a fair credit score anywhere from 17 to 37 points and a very good or excellent credit score to drop 63 to 83 points. But a longer, 90-day missed payment drops the same fair score 27 to 47 points and drops the excellent score as much as 113 to 133 points.
Unless you've reached a prior agreement with the credit card company, partial payments will not satisfy your account's minimum payment requirements. Even if you pay a little money, your account will become delinquent, and the credit card company will report the late payments to the credit bureaus.
What happens if I only pay the minimum amount due? ›
A: Paying only the minimum amount due leads to prolonged debt due to accumulated interest and a higher credit utilisation ratio and can result in paying significantly more over time due to interest and fees.
What happens if I only pay the minimum payment on my credit card BDO? ›
If CARDMEMBER opts to (a) pay the Minimum Amount Due, or (b) pay any amount less than the Outstanding Balance, CARDMEMBER shall be deemed as availing against his/her credit line with ISSUER and agrees to pay the corresponding finance charges or interest rates on all obligations at a rate determined by ISSUER.
What is the minimum payment on a $3,000 credit card? ›
The minimum payment on a $3,000 credit card balance is at least $30, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment.
What happens if you don t make full minimum payment on credit card? ›
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. In other words, if you don't have the cash to cover your credit card bill, the solution is not to simply skip your payment and hope for the best. Try these steps.
What is the credit card trap? ›
The minimum payment mindset
Here's how most people get trapped in credit card debt: You use your card for a purchase you can't afford or want to defer payment, and then you make only the minimum payment that month. Soon, you are in the habit of using your card to purchase things beyond your budget.
What happens if I'm 1 day late on my credit card? ›
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.
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 times can I pay minimum due on credit card? ›
Can you just keep paying the Minimum Amount Due Every Month? Yes, you can keep your credit card active by paying just the Minimum Amount Due every month. But, you will have to pay high interest charges and also, there will be no interest free credit period.
Does minimum payments hurt credit score? ›
But your credit scores may still be affected when you pay only the minimum each month, according to Sherry. “It might hurt some aspects of credit scoring analytics, such as credit utilization,” Sherry says. “If you only pay the minimum, you're going to take longer to pay off outstanding balances.”
