You’re Late Making a Payment- Just How Late are You? A blog about what happens if you are late making payments for your credit card.

Let’s be honest  If you’re juggling a half-dozen payments with various due dates and haven’t set up autopay, it’s easy to forget about a credit card payment. This could lead to not paying your card’s minimum payment by the due date. The consequences of late payment are determined by how late you are and the regulations of your credit card. Late penalties, interest accumulated on the credit card balance, and possible negative effects on your credit score are possible consequences of late payments.

The following are some of the most common consequences of late payment:

Fee for late payment

You’ll almost certainly be charged a late payment fee.

APR Penalty

Late payment might result in a much higher interest rate than your typical purchase APR. On the other hand, Penalty APRs may be converted to standard APRs if specific conditions are met.

You may lose your credit card rewards.

If you make a late payment, you may lose part or all of your rewards.

Your credit score may suffer as a result.

Late payments might impair your capacity to receive credit in the future since your payment history accounts for 35% of your credit score. Generally, people with better credit scores lose points more.

After 30 days, late payments are reported to the credit bureau. So, if you’re less than 30 days late, you may make the payment plus the late charge and prevent any harm to your credit record or credit score by making the payment plus the late fee.

 

What to do if you forget to pay a bill

It’s critical to respond if you’ve missed a payment quickly. To reduce the negative impacts of late payment, follow these steps:

•         As quickly as possible, pay the bare minimum.
•         Call your credit card company and attempt to work out a payment plan.
•         Make sure you don’t miss another payment.

 

How can you avoid late payments?

Here are some suggestions for avoiding late payments:

•         Set up automatic payments.
•         Set up payment reminders.
•         Make necessary changes to your payment due dates. It is advantageous to have them on the same day or the day you get paid.
•         Create an emergency fund.

The truth is that life tends to get in the way of our grand plans. However, it’s not the end of the world if you’re late with a payment; with a little more attention to detail, you’ll be able to pay them off in no time.