What happens when I miss a payment on my credit card?

Missing a payment on your credit card can have various consequences. Here’s what typically happens:

1. Late Fee: Most credit card issuers charge a late fee when you miss a payment. This fee can range from $25 to $40 or even more, depending on your card issuer.

2. Interest Charges: When you miss a payment, you could also incur interest on the unpaid balance. This interest can add up quickly and make it harder to pay off your balance.

3. Negative Impact on Credit Score: Missing a payment can have a significant impact on your credit score. Payment history makes up a large portion of your credit score, so a missed payment can lower your score and stay on your credit report for years.

4. Loss of Benefits: Some credit cards offer benefits like rewards or a 0% APR period. Missing a payment can sometimes result in the loss of these benefits.

To avoid these consequences, it’s crucial to make at least the minimum payment on time every month. Set up automatic payments or reminders to help you stay on track.

If you’ve missed a payment, try to make the payment as soon as possible to minimize the impact on your credit score and finances. You can also contact your credit card issuer to see if they can waive the late fee, especially if it’s your first time missing a payment.

By staying proactive and managing your credit card responsibly, you can avoid the pitfalls of missed payments and maintain a healthy credit profile.

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