I Missed a Credit Card Payment – What Now?

I Missed a Credit Card Payment – What Now?Credit Card

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. 

Can I Lower the Interest Rate on My Credit Card?

Can I Lower the Interest Rate on My Credit Card?Credit Card

Credit card companies set the interest rate on your credit card based on several factors:

  • There is the standard rate charged to the average cardholder
  • An introductory rate for new customers
  • The rate based on your credit score
  • The rate based on what the card offers you in points, rewards and/or bonuses
  • What other similar cards will charge you

You must realize that your credit card company wants to make a profit on you, but, they do not want to lose a good customer to a competitor. There is nothing wrong with phoning your credit card company and asking them to reduce your interest rate or allow you to transfer your card balance to a lower interest rate card. You should shop the competitors to see what is available from them and tell your credit card company what you found and see if they will match the competition.

You might find it advantageous to actually switch to the competitor if they offer a 6 or 12 month low introductory interest rage. But be careful of doing this as many people start running up their debt on the old credit card. Now you have solved one problem but created a much larger one by increasing your overall debt. Your purpose should be to lower your interest rate but continue to make the same payments so that you can pay off the total debt on all of your credit cards faster than before.

 

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.