Realising you have forgotten a credit card payment is never a pleasant experience. But for most people, it is not the end of the world.
Keep reading to discover what to do if you missed a credit card payment. We will also cover what happens if you miss a payment and how this mistake can affect your finances. Scroll down to learn more.
If you have forgotten a credit card payment, you should try to pay the balance or at least the minimum amount as soon as possible. Quick action can minimise the negative effects of a missed credit card bill. So, do not put your payment off.
The worst thing you can do is nothing at all.
If you leave a missed payment unresolved, you might pick up late fees and further expensive interest charges. Remember that interest for late payments is charged on a daily basis. This means you incur a larger interest fee for every day that you don’t make your payment.
A missed payment can also tank your credit score, depending on whether you miss payments regularly. Someone with a demonstrated history of on-time payments is less likely to see a drop in their score.
Credit card payment missed? No stress. Take a deep breath and follow the steps below.
If you can, pay off the minimum amount due as soon as possible. Typically, credit card issuers won’t report the late payment to credit bureaus until it’s past 30 days due. So, get your payment done before the 30-day mark.
Call your credit card issuer if you cannot pay off even the minimum amount. They may be able to work with you or provide personalised help. For example, some issuers can move due dates or offer to reduce interest rates for a period of time. This is not guaranteed as the specific options will depend on your circumstances and your card issuer, but it is always worth a try.
Even if you can make the minimum payment, calling your issuer is still a sensible idea. Explain to your card provider that the late payment was an innocent mistake. In some cases, the issuer may refund or cancel the late fee. Again, this is not guaranteed. But it never hurts to ask.
Going forward, you need to prevent future late credit card payments.
Set up reminders or automatic payments so you never miss a credit card payment again. You can choose to pay off the full balance or the minimum amount.
You should also make a monthly habit of monitoring your credit card statements. You may also want to track your spending or create a monthly budget to help you organise your finances.
14% of UK residents have reported using more credit than usual due to increases in the cost of living.
More are relying on credit to bridge the gap between expenses and payday. But this also means more are likely to unfortunately miss a credit card payment.
Make sure you are keeping track of your spending and repayments to avoid any extra charges. In extreme cases, you risk entering a debt spiral, something that happens when you keep borrowing more than you can afford to repay.
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