Late Credit Card Bill Payment: Everything You Should Know

Late Credit Card Bill Payment


Beyond providing convenience, credit cards offer various rewards and serve as a handy tool to avoid a cash crunch. Not only that, but it also helps to improve the credit score if used judiciously. On the other hand, it can also harm your credit score and the ability to borrow funds in the future.

What are the consequences of misutilisation of credit card:

If a credit card is not utilised wisely, you can fall victim of late credit card payment. Here are some of the reasons why people miss the credit card bill payment and know what we need to learn:

  1. The behaviour to spend money beyond the limit of the credit card forces people to skip the payments of the credit card on time. These Shopaholic means cannot resist their urge to spend money, and thus, they cannot pay the credit bills on time.
  2. The common reason why people fail to make the payment on time is that they have multiple credit cards. Once, they exceed the limit of one credit card, and they start using another credit card. The credit card debts thus become a common cause why late payments are made on the credit card. In some cases, people may also get confused about the date of credit card bill payment in case of multiple credit cards.
  3. Then comes the circumstances in life which arise unexpectedly—for instance, a medical emergency or loss of employment. If you make the last-minute payment, then you cannot make the payments of the credit card bill on debt as you already have used the same money for paying emergency bills.

What will happen if you fail to make payments on time: It is essential to understand that every single payment can improve or decrease your credit score. Thus, if you miss one single payment, it will affect your credit score negatively. Besides impacting your credit score, these are some of the other impacts of late credit card payments.

Here are some consequences of making a late credit payment.

  1. Higher interest rates:  A late credit card bill payment can affect your relationship with the credit card lender. Thus, they would no longer provide the credit card at discounted rates, especially if you miss multiple card payments. Not only, but it also tarnishes your image with the bank, and it can thus put a significant burden on your pockets as well.
  2. Penalty charges: In case of delayed or failure of payments of credit card bill, you have to pay the penalty fees charged by the lending institution on late payment.
  3. Waiver of rewards: If you fail to make credit card bill payments on time, it may also result in the refusal of specific offers. You may not get credit card rewards on purchase transactions, movie tickets, leisure activities which indeed are the primary attraction for any credit cardholder. 
  4. Loss of the card: It is essential that in case of failure of making payments on time, you must pay the credit card bills as soon as possible. Negotiating with the bank may be a good option if you have had an emergency. Banks may also waiver the charges if you have a good reputation with the bank. As, if you fail to make the payments for several months, then the lending institution may eventually take away access to the credit card.

Late credit card bill payment can impact your credit score severely, it is thus advisable to automate your payments if you can’t remember the payment dates. Also, make the payments immediately even if you miss a single payment of credit card.

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