What happens when you miss a credit card payment and what can you do about it?

Monday, January 12th, 2015

Have you ever thought about what metamorphoses your credit account undergoes when you miss a payment? Here are several things that can happen to your credit card account in case of missed payment.

  • The credit card issuer can charge you a late payment fee. Most cards have this fee listed in terms and conditions as a flat rate. However, there are cards for which this fee is tiered meaning the fee will vary based on, for example, your balance. However, according to Federal laws you cannot be charged a late payment fee if this fee exceeds the amount due.
  • The credit card issuer can apply a penalty interest rate to your account. In addition to late payment fee you will be “granted” a new, higher penalty interest rate when you miss your payments.
  • You can lose your interest-free grace period. If you are one of those cardholders who avoid interest charges by paying off the card balance in full and on time, the credit card issuer can apply the interest charges, along with fees, to your next payment if you fail to pay your statement balance on time.
  • Your credit score can be hurt. A late payment can lower your credit score, but it depends. A credit card issuer may or may not report your late payment; it depends on how late it was. Most credit card issuers won’t report late payments that are less than 30 days late, other lenders may wait up to 60 days before reporting late payments.

So, what can you do if you miss a payment?

  • The first thing you can do when you realize that you missed a payment is to make an immediate payment. Call the customer service or log in to your account to make it as quick as possible. Make sure the payment was received to increase your chances to get forgiveness from the credit card issuer.
  • Another thing is to contact your credit card issuer to explain the circumstances that caused you to pay late. In most cases, many credit card issuers will waive the penalty charges to satisfy their customers.

We all can sometime miss a payment and it is important to make immediate steps to prevent big harm. Another thing you can do is not to let it happen again. To do that you can switch to electronic statements and set payment reminders or even automatic payments.

Latest Credit Card Fees News

Tuesday, October 25th, 2016
For people with limited credit, bad credit, or no credit history at all, secured credit cards are a huge help. They let folks who might otherwise have trouble getting a credit ...
Thursday, August 13th, 2015
MasterCard is going to move fraud protection to the next level. The company will start a test of their new program which approves online purchases with a facial scan.
Tuesday, July 15th, 2014
Today most consumers understand how to avoid their credit cards having a negative effect on their credit scores. They know that making every minimum payment every month on time, ...
Thursday, May 29th, 2014
There were times when credit card companies could increase your interest rate or change your payment due date without warning. Of course such changes led to late payments or ...
Monday, January 13th, 2014
You hardly find a person who hasn’t made a mistake involving a credit card. It happens to all of us. These mistakes can be costly if they come in form of fees, interest charges ...
Best Credit Offer
Click the Compare link to compare the checked cards side-by-side at the comparison table.
Consumer Rating: 4 / 5
Pacific Credit Group Emporium Black Card
Copyright © 2001-2016 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com.com website are property of their respective owners.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.