What Happens if You Don’t Pay Off Your Credit Card?

Despite your best efforts, it’s possible to fall behind on your bills. When you have to make some tough money decisions, putting off bills like credit card payments may make the most sense. But what happens if you don’t pay your credit card bill? That depends on how many payments you miss and how long it takes you to catch up. 

If you’ve missed a payment, you need to know what you can expect in terms of consequences and how you can bounce back after missed payments. The goal is to get caught up as quickly as possible so you can salvage your credit score. 

What happens if you don’t pay your credit card?

When you don’t pay your credit card, your account won’t go into collections immediately. But it does start a chain reaction that includes the following consequences:

• You’ll be charged late fees
• Interest continues to accrue on your balance
• Your credit score will drop
• Your account may eventually be closed
• The debt can be sent to collections or charged off

The longer you wait, the worse the consequences become. It will also become harder to bounce back both financially and in terms of your credit score. If the account is charged off and sent to collections, the delinquent activities will stay on your credit report for years. 

The timeline of missed credit card payments

If not paying credit card, consequences snowball the longer you go without making a payment. What you can expect depends on how late you are. 

30 days past due

If you go 30 days without paying your credit card bill, the issuer may charge a late fee and report the missed payment to credit bureaus. The lender will also reach out to you via email or phone to address the late payment. 

That’s the first milestone where real damage happens. Payment history is the biggest factor in your credit score, so even one missed payment can cause a noticeable drop. 

If you haven’t hit 30 days past due and are struggling to make your payment, contact your lender. You may be able to set up a payment plan that makes getting caught up possible. 

60 to 90 days past due

Things get more serious after 60–90 days. If you continue not paying your credit card bill:

• The lender will apply additional late fees
• Your interest rate could increase, which is known as a penalty APR
• Your credit score may drop more
• Collection calls will become more frequent

The lender will categorize the account as high risk. The longer you wait, the more difficult it becomes to catch up because fees and interest keep growing. It’s like being stuck in a hole that keeps getting deeper. 

120 days and beyond

After about 120-180 days of nonpayment, the lender will likely write the account off as a loss. This is known as being “charged off.” The debt may be sold or transferred to a collection agency. The third party that buys the rights to collect your debt will begin reaching out to solicit payments. 

If you are able, set up a payment plan with the collections agency. You may also be able to settle, which involves making a lump sum payment for less than the total amount owed. Settling can save you several hundred dollars or more, but the damage to your credit score has already been done. 

How not paying affects your credit score

A drop in credit score is one of the most notable not paying credit card consequences. If you are only a few days late, the issue probably won’t get reported to the credit bureaus. But if you are 30 days late or more, the issuer will notify the credit bureaus, and your score is going to take a hit. 

Having an increased credit utilization and negative marks on your profile also hurts your score. If the account is charged off, the negative activity can remain on your credit profile for years. Long-term, the damage could make it harder to get approved for loans and prevent you from qualifying for a lower interest rate. 

What to do if you can’t pay your credit card bill

If you’re struggling, doing nothing is the worst thing you can do. There are several ways to take control before the situation spirals. You should:

• Contact the lender before you miss a payment
• Ask about payment plans or temporary hardship programs
• Pay what you can to keep the balance down
• Ask about settlement options if your account is already delinquent

None of these solutions is ideal. However, the goal is to minimize the damage to your credit score so you can address the overdue account and focus on bouncing back. While it will take months to recover, the less damage, the better. 

Bounce back from not paying credit card consequences

Once you’ve addressed your delinquent account, credit-building platforms like Kikoff can help you recover. Our solution includes several user-friendly tools designed to add positive payment activity to your profile, such as verified rent reporting and a secured credit card. There are no hard credit checks required to sign up. 

Take a step toward stronger credit habits with Kikoff.