I Missed a Credit Card Payment – What Now?
It happens to all of us at one time or another. You were on a vacation, did not have enough money or just simply forgot to make a payment (or two). There are three things that you must consider:
1. What is the effect on your credit score?
2. Will there be a penalty for a late payment?
3. Will the bank raise the interest rate on my credit card?
As a general rule, if you have always paid your credit card in full and on time, being late one time will have no effect on your credit score or credit rating. However, if you have a history of late payments, no payments, bounced cheques or paying less than the minimum amount due, you already have a reputation with the credit card company as a delinquent credit card holder. Missing or late payments will just continue to reduce your credit score. The only way to get back your old “good” score is to start making all of your minimum monthly payments on or before the date they are due. If you have any extra money, review your credit card statements and look for interest being charged and make the extra payment to those cards that charge the highest interest rate.
The computers of all credit card companies are programmed to charge a penalty if you are late in a payment. If you regularly pay your bill on time each month, consider calling the credit card company (the number is on the monthly statement) and explain what happened that caused you to be late in your payment and ask them to consider reversing the late fee. The person that you will be speaking to may be sympathetic to you and just might have the authority to reverse the late payment charge. Nothing ventured, nothing gained!
The credit card companies will rarely raise the interest rate on your credit card just because you were late on one payment. Being late on many payments or several payments in a short period of time will almost certainly downgrade your credit standing
Contact “Rumanek & Company Ltd” for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.