The Consequences of Making a Late Credit Card Payment

Credit cards are accessible plastic money that has made it easy for people to make purchases as and when required. However, the ease it offers needs to be paid for, in the form of credit card payments. Many people, however, do not tend to take this seriously, and often make a big mistake. When you miss your credit card payment, the company won’t send people in person to collect the bill from you.

However, it still plans action from on you for missing out on payments. These actions could be adverse and can shake your financial balance for days, months or even years. To know why you should take your credit card payments seriously, one must identify what consequences late credit card payments bring. Some of these are listed below:

Late fees penalties:

The late fee is charged when the cardholder fails to pay the credit card bill on the required date, or when the balance paid is less than the minimum due amount. When you fail to abide by the credit responsibility and pay your credit card bill on time, then, your next billing details will be inclusive to both the previous month fee and the late fee as well. The late fee charged by the card issuers depends on the terms and conditions of the credit card issuer or the card. It may be based on factors like your previous six months of credit history.

Doubled up interest rate:

When you fail to pay your credit card bill for more than 60 days, it is not the late fee that is charged by the card issuer as a penalty. But, also, the interest rate is doubled by the card issuer as a punishment to the cardholder. This makes it more manageable for the cardholder. Further, you may lose out on bonus interest rate offers, or interest rate offered as promotional offers during the beginning of the card cycle.

Recorded in the cibil report:

When the credit card payment has been later than 30 days, then it is reported in the cibil score. This report can stay there for as long as seven years. This can mark you as a credit defaulter in the creditor’s eye, and can hamper your fund borrowing ability for years.

Reduced credit score:

A good credit score is an important thing to hold in the financial market. However, late credit card payments can subsequently bring your credit score to a low. The more the amount of the credit bill is unpaid, the more the credit score is bound to fall. A bad credit score ruins one’s financial credibility and indicates an individual’s indebtedness.

The above-mentioned points make it clear that making the credit card payments on time should be considered seriously. On-time credit card payment is a healthy financial habit and can help you save yourself from the financial blunder created otherwise. A credit card payment can indeed be a wise move to improve one’s credit score deliberately. This is because these payments and repayments are reflected directly on the cibil report, and thus, can help you climb up the credit score ladder. Thereby, ensure that you make the best use of your credit card by making payments on time. Delayed payments can make your card a financial liability instead of convenient plastic money.

What happens when you miss a Credit Card Payment?

A credit card has become one of the most popular ways to spend money in the present times. It offers a number of benefits to the cardholder, such as, building a credit score, rewards and offers on purchases made, collaborated offers with various brands, cashback offers, no charges on foreign transactions, and the purchasing power in time of urgency amongst others. All these benefits are offered by the credit cards without being linked to a savings or a current account.

However, the benefit that the card offers needs to be paid back for, though the credit card bills and payments. Many people, however, fail to do, and this turns the credit card benefits into a liability. Some of the outcomes of not paying the credit card bill on times are listed as follows:

  • Late credit card payments can force the card issuer to charge penalties in the form of late payment fee. This fee is charged when the payment is not as per the billing cycle dates, or when the amount of aid is less than the minimum due amount.
  • Not paying the credit card bill on time can make you lose out on lower interest rates earned in the form of promotional offers. Further, as a punishment, the interest rate is doubled up by the card issuer.
  • If the credit card payments are delayed for more than thirty days, then they are directly recovered in one’s cibil report. This can make you a considerable credit defaulter in many cases.
  • Further, while the late payment is recorded in the cibil report, it directly impacts one’s credit score. Thereby, the loan borrowing ability of a person is hampered.
  • Though a credit card comes with various benefits, yet it must be made clear that when making a delayed payment or no payment at all, you are likely to lose on all rewards earned through credit cards.

Thus, the above-mentioned points make it clear that on-time credit card payments are an important financial responsibility that needs to be fulfilled with sincerity.


Wajazali is a passionate writer and blogger who has been writing about the latest developments in the field of technology for over 3 years. His articles are published on, which he administers as well. Wajazali is also involved with various other projects to help people learn how to manage their own online marketing campaigns.
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