What Happens If You Miss a Credit Card Payment?
So, you’ve missed a credit card payment. It’s natural to feel anxious, and you’re probably wondering about the consequences.
Missing a credit card payment can have costly repercussions. The amount you’ll be charged will depend on how late you are in making the payment and the terms of your credit card.
Typically, when you miss a payment, you’ll incur a late fee ranging from $10 to $40. Additionally, you will face a penalty Annual Percentage Rate (APR). Penalty APRs are higher than regular interest rates and can increase significantly when a payment is missed. The spike in APR is temporary, but you’ll need to resume making timely payments to revert it back to the normal rate, the specific conditions of which will be outlined in your card agreement.
In the long run, missing payments can harm your credit score. The longer you delay making payments, the more your credit score will suffer. Missing a credit card payment by more than 30 days can have serious consequences. However, being just a day or two late shouldn’t impact your credit score significantly, as most issuers don’t report payments less than 30 days overdue to credit bureaus. It’s crucial to take this 30-day window seriously, as it determines whether missing a payment will affect your credit score.
