Ramifications of a Late or Missed Credit Card Payment


In India, credit cards are no longer in the early stages. 

Best credit cards in India are more valuable than debit cards, even though they are still out of reach for a significant portion of the population.

Each transaction with a credit card is worth twice as much as one with a debit card.

However, users take it lightly when it comes to making timely payments on the best credit cards in India. Users think that payments cannot harm their credit for a few days. 

Missing payments is a big and serious matter, as it may cost one a poor credit score and pay higher interest rates on their credit card bills in the future. 

Moreover, this may cause some restrictions on new loans and cards, limiting their future purchasing power.

If they miss a credit card payment, there will be consequences. As a result, before taking on any form of debt, it is vital to understand what they are. 

This article explores how missing a credit card payment affects users’ finances.

Also, Read This: 10 Credit Score Myths: List of Credit Myths you Should Know About

What are the Ramifications of a Late or Missed Credit Card Payment? 

The repercussions of missing or late credit card payments differ depending on how many days the payment has been past due. 

It is not the end of the world if one misses a credit card payment by one day. A few consequences of a late or missed credit card payment are:

Hefty Late Fee

If cardholders pay their credit card bills after the due date, they will be charged a significant late fee. 

If they pay less than the minimum amount due by the due date, they will also be charged a fee. The bank will add the late fee to their next credit card payment.

Impacts Credit Score

A person’s payment history is one of the most critical variables affecting their credit score. 

When they miss credit card payments, their bank contacts credit reporting agencies, which affects their credit score. 

A bad credit score can lead to loan denial and excessive interest rates on future loans and international credit cards

High-interest Rate

If cardholders do not pay the minimum amount due by the payment due date, the interest rate on their outstanding bill may increase. 

If they keep making purchases with their credit card after missing a bill payment, the interest rate on cash withdrawals or frequent purchases may rise. 

No Interest-free Credit Period

The bank may terminate the interest-free credit period if cardholders default on or delay their credit card payments.

Most banks offer a 25 to 30-day interest-free credit period during which customers can use their credit cards to make purchases without incurring interest.

Credit Card Limit Reduced

If users consistently miss or delay their credit card bill payments, their bank may restrict their card’s authorized credit limit.

As a result, their spending power gets limited.

Read This Also: How to Raise Credit Score When You’re Single

How can You Avoid Late Payments?

Here are some steps that can help an individual avoid late payments: 

Set Up Autopay

Autopay is a convenient technique to avoid late payments provided by card issuers. 

In less than a minute, one can set up autopay and enjoy the assurance that their credit card payment will be made on time. 

Autopay can be set up for the minimum payment due, the complete balance on their account, or any other amount. 

One can set it to their complete statement balance to prevent interest costs, but if that is not possible, choose at least the minimum due date.  

Set Payment Reminders

Users can schedule reminders on the calendar or text or email alerts if they do not want to set up autopay. 

Many credit card companies allow users to create reminders for when their statement is available, when their payment is due in a certain number of days, when their payment posts, etc. 

Please keep in mind that these selections may differ depending on the issuer.

Change the Payment Due Date

If cardholders have a lot of bills to pay, their due dates will most likely be spread out throughout the month. 

This may raise their risks of skipping a payment, so they need to make any necessary adjustments to their payment due dates. 

It may be advantageous to have them the same day or shortly after they get paid.


Thus, it is essential to understand that missing or late payments might hurt one’s financial situation and credit score. 

It is critical to remember that getting back on one’s feet can take a long time. 

If users’ circumstances prevent them from making a complete payment on time, they can contact their bank and can reschedule their due payment.

If they have a habit of neglecting to pay their bills on time, they need to take the necessary precautions. 

Remember that the longer one waits to pay, the worse the consequences will be.

As a result, make it a practice to pay the credit card payments on time to stay on track with money.

Next, you can also read: 5 Reasons for Using the Visa Debit Card

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