Missed Credit Card Payment

Only a small percentage of the American population have never missed a credit card payment.
For the larger portion of the consumer market, there will always come a time when you are not able to pay your dues to your beloved banks and card issuers. What does a missed credit card payment really entail? What can you do to improve such a situation?

A missed credit card payment is like a missed flight. You accept that all opportunities are wasted and prepare yourself for dreadful consequences. What are the consequences that come with a missed credit card payment? Unfortunately, credit card companies are always looking for ways to charge you for something or increase your interest rates. If you miss a payment, here are the things that a credit card company can do: charge you a late payment fee; increase your APR to a higher rate or sometimes, even the default rate; notify the credit bureaus about your behavior, who will then add an entry to your credit report; and, slash your credit score. A late payment fee runs between $15 and $35. An increase in your APR can land you a universal default rate which can run from 29.99% to 34.99%. A notification is usually given by a credit card company to the credit bureau 30 days after the due date, and, you can expect an entry in your credit report that can stay there for up to seven years. A tarnish on your credit rating will eventually drop your credit score by a large amount since payment history comprises 35% of your score. A missed credit card payment for one or two months will not be too bad if it is an isolated incident. However, if a missed credit card payment that is 30 to 60 days late occurs infrequently, your score will plummet, albeit temporarily. The game changes when you have a missed credit card payment for 90 days. This incident, even if it occurred once, is considered ominous by credit card companies. A 90-days missed credit card payment will damage your credit score for up to seven years and is as bad as filing for bankruptcy.

Hence, if you can avoid it, never miss a single due date. This is the reason why credit card companies have a minimum monthly payment, for consumers like you to fulfill your responsibilities even by small increments. If you missed a credit card payment, grab the phone immediately and call your credit company to apologize. Make sure, though, that you have already paid at least the minimum payment before you call for the card issuer to see sincerity in your actions. If this is a one-time event, they’ll probably let you off on the late payment fee. Being calm, collected, and sincere is the key.


Source: Credit Cards For People With Bad Credit Rating

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