It is easy to use a new credit card for purchasing anything from offline to online. A credit card lets you to enjoy financial liberty and makes you more independent in your purchasing. But, what about your credit card bill payment. Are you paying your card bills timely? Do you have issues paying your credit card bills? When you can’t go through the queries of credit card payment or feeling stressed, it is the right time to dig out more information.
Multiple options are available if you wish to pay your card bill timely and effectively. To make the payment of your credit card, you can opt for online banking, mobile banking, or can submit your bill over a call. You must be serious about your card payment as it affects your credit score. The payment history of your card contributes 35% to your FICO credit score. In other words, your regular payment is essential for building a good credit score. It also helps you to avoid late payment fees or unnecessary interest rates. But, what if you miss your credit card payment?
What are the outcomes of a missed or late new credit card payment?
When you are worried about your credit card payment, then you must know about the consequences of a missed or late payment. Well, it totally depends on how many days you have passed from the due date. You don’t need to worry if your payment is missed by one day only. It’s only matters when your payment is late by 30 days and you have to bear the penalties. Generally, you might face the following outcomes of your late card payment:
- If you miss your card payment, then you must face the late payment fee. Basically, you have to pay a fixed amount as a late fee.
- Another significant thing is to think about penalty APR (annual percentage rate). If you do pay the late payment, you have to pay an interest rate that significantly higher than your regular purchase APR. After meeting certain requirements, penalty APRs may be reverted to the regular APR like making payments consequently.
- If you are taking advantage of an introductory interest-free period, you may lose out on the offer because of late payment.
Late or missed any credit card payment affects your credit score negatively. If your payment is due for many days, your credit will drop badly. Thus, you must think about the payment of your credit card seriously to avoid any negative impact on your score.
Things to do when you miss your credit card payment
It’s natural if you miss your credit card payment. Here, you need to take action if you missed a payment due to any reason. In this case, you can follow some steps to reduce the negative effects of late payment.
- Try to pay at least the minimum amount as soon as possible. This is beneficial in making an impact on your credit report if you make your payment in less than 30 days past due. Even if you pass the due dates by 30 days, you can still pay the minimum amount as soon as possible to avoid further damage.
- Connect with your card issuers and share your payment queries with them. If possible, try to negotiate your payment. It is good to discuss issues with the concerned person in order to find out the needed solutions. There are good chances that your card issuer may waive the late fee. Alternatively, you can use live chat and discuss your concern with customer care directly.
- If you missed your payment once, make sure to pay another payment on time. If you have a habit of paying your bills late, then you must think about it as it can produce serious implications on your score.
Tips to avoid late payments of your credit card
As a suggestion, you can follow the below tips to avoid late payments of your card bills:
- Set up auto-payment on your account so you don’t have to do it manually. It makes you stress-free for your payments and avoids late fee.
- Try to set up payment reminders. Use your mobile phones or calendars to put reminders about your card payment.
- For multiple cardholders, set the payment due dates accordingly. Adjust the due dates as needed so you can avoid late payment.