Perhaps you have a few bills around the same date, and your paycheck comes afterward, or you’ve had some larger purchases come up. Sometimes missing a credit card payment isn’t because you forgot the date – it could be due to struggles with paying that bill. (Imagine: your credit card is past due, and the bank charges you an overdraft fee.) That’s why it’s important-if you decide to use automated payments-to ensure your bank account can always cover your bill. Pulling automated payments from an account that can’t cover payment can actually put you in a worse situation than where you started. This option can help you avoid ever missing a payment-assuming the associated bank account always has enough cash to cover the payment. Setting up automated payments means never having to think about your due date. Actually, making the payment is still your responsibility. Odds are you regularly check your phone and email, so you’ll at least know that a payment due date is coming up. Most credit cards allow customers to opt in to receive text or email alerts for when the payment is due. Alternatively, you can always log on to your issuer’s online account center and find your statement due date there. Your credit card’s due date can be found on your statement. Knowing that date is the first step to avoiding missed payments. Your due date on a given card is usually the same date every month. There are several tools available that make paying your credit card on time a breeze. You can always double-check this information if you’re ever unsure of late payment repercussions. Your card’s terms and conditions outline all of the associated consequences of missing your due date-and they’ll vary for every card. Also, a missed payment may be recorded on your credit report, and could remain there for up to seven years. Some cards provide a grace period before a late charge is assessed. If your due date has passed, still do your best to make the payment as soon as possible. Your credit score is used by credit card companies, banks, and other lenders to determine your creditworthiness therefore, if you want to apply for loans or credit cards in the future, a strong credit score can be crucial. On-time monthly payments are one important component of credit scores, so when payments are reported as late from your credit card to the credit bureaus, that can have a negative impact on your overall score. Your credit score may also be affected if your credit card is past due. Be sure to check your terms and conditions and make sure you understand the details. This all depends on what terms are associated with your credit card, and not all creditors will change your APR for paying late. If your credit card company does increase your APR if you’ve missed a payment, it means that interest will accumulate on the revolving balance at a higher rate. Penalty APRĬredit cards come with either a fixed Annual Percentage Rate (APR) or a variable APR-and either type can adjust to a higher APR if you miss a payment, though some cards don’t use a penalty APR. This fee can range in amount, so check your credit card agreement to learn how much a late payment will cost you. You might see a late fee added to your balance if you missed a payment. Therein lies the importance of making sure you pay your card on time every month. When a credit card is past due, the potential penalties range from increased interest rates to late fees to credit score impacts. What happens when you miss a credit card payment Make sure you understand what happens when you miss a credit card payment and that you’re well-versed on how to use your credit card responsibly. However, there are a number of ways to avoid missing your due date in the first place, and things you can do if you have missed a payment. Late payments can come with certain consequences, including late fees, interest accrued on the credit card balance, and potential negative impacts to your credit score. When a credit card is past due, it means that you’ve failed to pay your card’s minimum payment due amount by its due date. You can set up payment alerts to help remember to pay by your due date.īudgeting is a good way to ensure that you have the funds to cover your credit card payment. A late credit card payment could result in late fees, a penalty APR, and a negative impact on your credit score.
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