What happens if you miss a Credit Card payment?

Sometimes even the most conscientious customers miss a credit card payment. Calling your provider to let them know the reason and how soon you're able to make up the amount may help limit any potential damage.

However, you may find you have significantly less room for manoeuvre if you miss a second minimum payment. Continued late payments will affect your credit score more severely and will almost certainly incur late fees, but keeping track of your credit card spending can help you maintain control of your finances.

Falling out of favour

Failure to meet payments in a timely manner may result in a charge-off, whereby a creditor declares that a debt is unlikely to be collected which may cause a blemish to your credit score. Maintaining a clean balance sheet, on the other hand, could earn you favourable interest rate cuts, in addition to other noted benefits. Monitoring overspending and meeting payments on time will keep your credit score in tip-top shape. 

The bottom line

By missing a credit card payment you risk damaging your credit score and falling deeper into arrears. Above all, being a responsible, proactive, well-informed credit card user – which includes not overspending on your credit card and making payments on time - can help you guard yourself from receiving financial penalties.