In today’s world, every individual owns a Credit card and purchases things using them. But have you ever wondered what would happen if you skip or miss a credit card payment? 

Let’s face it: it is a big deal that anyone can even think of. Missing a credit card payment will not bring your credit card company to show up at your door. 

But the company might be working behind the scenes to get you into trouble for missing your payment. If you fail to make your credit card payments on time, that would result in fees or increased rates. It would eventually affect your credit scores as well.  

Hence, we are here to help you out with this problem. By sharing with you the consequences of a late credit card payment, you will be able to put in extra effort to pay off your credit on time. 

 If you end up being in such a situation, the best thing to do is to act as quickly as possible and save yourself from paying high interest rates. By doing so, you can lessen the negative effects of late payment.  

Consequences if you miss or skip a credit card bill payment.

  • It all depends on how many days your payment is past due. If your credit card bill payment gets delayed by a single day, then it’s not the end of the world. 
  • The payments made less than two days late to the credit bureaus usually don’t get reported by the credit card issuers. It is only when your payment is three or more days late, that the penalties are added. 
  • Most of the time, if you miss or skip a credit card bill payment, you will be hit with a Late Payment Fee. 
  • Due to late payment, your interest rates would spike up higher than the regular rates.
  • You can make two consecutive payments on time and get your penalty APRs reverted.
  • If you have an introductory interest-free period and during that period you make a late payment, you might lose out on the offer.

Having all this information in mind, we have come up with some simple guidelines that you can follow immediately when your credit card payment delays.

  • Make at least the credit card minimum payments. 
  • Get the issuer on call
  • Try Calling the representative again
  • Set notifications or reminders for payments 
  • Set automatic payments
  • Analyze the reports of your credit card
  • Avoid spending a lot on unnecessary things
  • Stick to your financial budget plan
  • Limit your credit card usage.

1.Make at least the credit card minimum payments. 

If you know that you will not be able to pay off the credit card bills on time, you could always make at least the minimum amount due on the account. That would help you get away from the late payment issues as the issuers won’t report the credit bureaus regarding your late payment until it’s past 30 days. This way, you can pay the extra amount later on before the 30 days and get away from late payment.

But please note that there is no guarantee that this would work. It has got a high-risk level to it, as the delayed credit card bill payment could be reported before then well.

2.Get the issuer on call

In case you end up missing a credit card payment by mistake or by accident, then we recommend you pay off the balance as quickly as possible. And then you must call the issuer immediately and explain that it was an innocent mistake on your part. Because, once you miss your payment, you will see two changes – 

  • a late payment fee
  • Interest on the balance.

Once you get the representative to call, you can try your best to explain your part to them and request them to refund the interest charges and the late fee. You can also tell them that such behavior will not occur again on your part. 

3.Try Calling the representative again

It is common if your first call with the issuer was not successful. You need not worry about the same. You may go ahead and dial them once again. 

If the issuer is not willing to refund the late fee or the interest charges, you may go for a second shot to explain your side. You can take your chance to explain to them that you usually pay on time and that you use the card regularly.

4.Set notifications or reminders for payments

You can set a notification on your phone to remind you about your credit card bill payment. This way, the credit card bill payment would never get delayed. 

Another option is that you could also receive notifications either text or email by your issuer that would remind you when your bills are due.

5.Set Automatic Payments

You can enable automatic payments in your account. This way, you will never miss any of the payments you need to make. The amount will be deducted from your account every month before the due date.

6.Analyze the reports of your credit card

  • It is crucial to analyze and monitor your credit card reports frequently.
  •  If you fail to make the payment on time, the late payment will be recorded on your credit card reports. It would remain in your reports for almost seven years.
  • If your payment gets delayed for 180 days, the lender may declare a charge-off. The issuer will take it off their books, but you still owe the amount. In such cases, your account will be marked ‘in collections’ in your credit card reports.
  • The credit card company will increase your interest rate if you end up missing, skipping, or even delaying a payment. Hence, it is crucial to pay off your debts immediately. 
  • If you skip the payments by two consecutive months, there are chances that the issuer might apply the penalty interest rate to your existing balance also. 
  • Hence we request you to be careful while you go through your credit card’s terms and conditions. And be aware of their policies

7.Avoid spending a lot on unnecessary things

In today’s world, we have too many options to go after. That is one reason why people end up spending too much. 

We highly recommend you prepare a financial budget and avoid spending your money on unnecessary items. 

  • Avoid surfing through online shopping apps
  • Minimize the use of credit cards for purchasing
  • Evaluate your expenses and purchases
  • Write down your accounts in a separate accounts book.

8.Stick to your financial budget plan

To remain debt-free, you need to prepare a solid financial budget plan and follow it without fail. Sticking to your budget will help you reduce your expenses on unnecessary things.

It will help you remain motivated and achieve your financial goals. It will also help you become financially independent and successful in the long run

9.Limit your credit card usage

We highly recommend you limit the usage of your credit card. This way, you will not purchase anything that is not there on your urgent list.

  • Always try to stick to your urgent list. 
  • Purchase things by giving liquid money rather than using your card.
  • Use your credit card only when you are in high need of it or only in case of an emergency.
  • Always keep track of your expenses, especially the payment that you make using your credit card.
  • Always get a copy of your Credit card bill payment.
  • Read and be familiar with the terms and conditions of your credit card. 

You may get in touch with our team or check our website VATTALKS.com to get more information regarding the same. It is a one-stop solution for all your financial needs and issues. We provide you best quality service at an affordable price range. 

VATTALKS.com provides services like home loans, car loans, life insurance, credit card payments, debt payments, financial advisers, etc. We have a hard-working team who are ever-ready to help you achieve your financial goals and provide you with great satisfaction. Come and join hands with VATTALKS.com to experience an easier way of handling your finances and business. 

To know more about credit card payments and other services, click on VATTALKS.com.