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Don't let a missed payment put you on the bench

Blog Post
2 min read
Man looking at bills with his head in his hands.

In football, missing a field goal doesn’t mean the game is over - but it can put your team at a disadvantage. The same goes for missing a credit card payment. A small mistake can lead to penalties, lost opportunities, and challenges down the line.

However, missing a payment isn’t uncommon. A recent NerdWallet study found that 37% of Americans were charged a late fee in the past 12 months. Even seasoned players fumble now and then. What matters is how you recover.

Here’s what happens when you miss a payment - and how to get back in the game.

Change in Field Position

  • Late fees start adding up. Even if you’re only a day late, you might be charged an initial late fee and then another for each subsequent missed payment. Fees, which vary by credit card issuer, are added to your balance and are subject to interest charges.
  • Your issuer throws a flag. Miss a payment, and your credit card company won’t stay quiet. Expect emails, texts, or phone calls reminding you of the overdue balance.
  • Your interest rate could skyrocket. Many issuers impose penalty APRs for late payments. If you had an introductory 0% rate, you could lose it, making carrying a balance much more expensive.

Delay of Game Penalties

  • Your credit score takes a hit. If your payment is 30 days past due, your issuer can report it to the major credit reporting bureaus. This can drop your credit score, making borrowing more difficult and costly. Since payment history makes up 35 percent of your credit score, repeated late payments can have lasting consequences.
  • Multiple misses could bench you for a while. At 120-180 days overdue, your issuer may charge off your account and sell your debt to collections. Even if you pay it later, that negative mark can stay on your credit report for up to seven years.

Run With the Ball

  • Make a payment ASAP. If you catch the mistake before it’s 30 days past due, it likely won’t be reported to the credit bureaus. Even if you can’t pay the full balance, covering at least the minimum due can help you avoid additional penalties.
  • Call your credit card issuer. Some issuers offer one-time forgiveness, meaning they might waive your late fee or prevent a penalty APR increase. This is typically an option reserved for people who normally pay on time. But you have to ask.
  • Set up a payment plan. If you’re struggling to catch up, check if your issuer offers hardship programs or flexible repayment options. Many credit card companies will work with customers to avoid getting further behind.

Stay in the Game

  • Turn on autopay. Automatic payments ensure you never miss a due date.
  • Set up payment alerts. If autopay isn’t an option, enable payment due date notifications from your mobile banking or credit card app.
  • Check your credit report. Reviewing your credit report regularly helps you catch payment errors and stay on top of your financial game.

The missed payment might set you back temporarily, but it doesn’t have to cost you the game. Act fast, put better systems in place, and keep driving toward financial victory.