What Happens if You Miss a Credit Card Payment?

Despite your best effort to pay your bills on time, you could find yourself missing a credit card payment. While it’s not the end of the world, you need to catch up as soon as you can. 

So what happens if you miss a credit card payment? You’ll notice your score drops, and you’ll rack up some late fees. Several consecutive missed credit card payments can cause your account to be frozen altogether. 

Our guide unpacks what you need to know about missed credit card payments so you can protect your score and bounce back after a rough patch. 

What happens when you miss a credit card payment?

When you miss a credit card payment, the impact will vary depending on how late the payment is. 

Here’s a general timeline:

• 1 Day Late: You may be charged a late fee, but most card issuers offer a grace period 
• 30 Days Late: Your issuer may report the missed payment to the credit bureaus, which affects your score 
• 60+ Days Late: The card issuer may apply additional late fees and a penalty APR 
• 90+ Days Late: Your account could be flagged, frozen, and eventually closed when you pay off the balance 
• 120-180 Days Late: The account may be charged off and sent to a third-party collections agency

If you’ve missed a credit card payment, act quickly and reach out to the card issuer. Let them know what’s going on and see if you can make payment arrangements to reduce the financial burden. 

How a missed credit card payment affects your credit score

Your payment history is the single most important factor in your credit score. That means a missed credit card payment can have a noticeable impact on your score if it gets reported. 

Here’s what you need to know:

• Payments typically aren’t reported as late to the credit bureaus until they’re 30 days past due
• A single late payment can stay on your credit report for up to seven years
• The higher your score, the bigger the drop may be after missing a payment
• Multiple missed payments hurt your score more than a single missed payment

If your payment is only a few days late and you catch up before the 30-day mark, your credit score may not be impacted at all. If a late payment does get reported, you can bounce back by adding consistent, positive payment activity. Tools like Kikoff can help you build a track record of on-time payments. 

Late fees and penalty APR

Missing a payment also costs you money. Most card issuers charge a late fee when you miss a due date. These fees can vary, but they are usually around $25 to $40. If your payment is over 60 days past due, your issuer may apply a penalty APR, which is a higher interest rate on your balance. You may need to make several on-time payments before your rate drops back to the normal APR. 

Unfortunately, these added costs can make it harder to pay down your balance. You need to act quickly after missing a payment. 

What to do after you miss a payment

Now that you know what happens if you miss a credit card payment, here’s what you need to do to minimize the consequences: 

Pay as soon as possible

The faster you make your payment, the better. Paying within 30 days may help you avoid damage to your credit report and score. Even if you’re late, pay sooner to reduce how much you rack up in fees and penalty interest. If you can’t pay the full amount, try to at least make the current minimum payment. 

All of your payment activity will be reported to the credit bureaus. It’s better to show that you are trying to catch up by making payments rather than letting the bill go unaddressed. 

Call your card issuer

Call your card issuer as soon as you know you’ll be late on your payment. If you have a good history and typically pay on time, the card issuer may be willing to help. You could ask them to waive the late fees, reverse the penalty APR, or set up a payment plan. 

Set up autopay to avoid it happening again

One of the simplest ways to avoid future missed payments is to set up autopay. Set your autopay amount for at least the minimum due. Choose a payment date that aligns with your paycheck and due date. Set reminders to check the account so you can verify that the bill was paid. 

How to recover after a missed payment

Even if your missed payment has already been reported, you can still bounce back. You should:

• Make on-time payments going forward
• Reduce your credit utilization
• Add positive payment history
• Be patient 

It can take several months for your score to recover. Focus on consistency and stay the course. 

Conclusion

If you’ve missed a payment and it was reported to the credit bureaus, it will impact your score. Credit-building platforms like Kikoff can help you recover by adding positive payment history and giving you tools to manage your financial profile. 

Use on-time payments to build credit with Kikoff.