What Happens When Your Credit Card Payment Is 90 Days Late?

What Happens When Your Credit Card Payment Is 90 Days Late?

As an expert in English credit cards, it is important to understand the consequences of missing acredit card payment. When a credit card payment is 90 days late, the credit card company will report this late payment to the credit bureaus. This can have a negative impact on your credit score, which can take years to recover from.

Credit Score Damage

When a credit card payment is 90 days late, it will be reported to the credit bureaus as a delinquent account. This can cause your credit score to drop by 100 points or more. Your credit score is a critical factor in determining your ability to obtain credit and the interest rates you will pay. A lower credit score can also impact your ability to rent an apartment, obtain insurance, or even get a job.

Late Fees and Interest Charges

In addition to the negative impact on your credit score, there will be financial consequences as well. The credit card company will charge you a late fee, which can range from $25 to $39. In addition, interest charges will continue to accrue on the outstanding balance. This can make it even more difficult to catch up on your payments, as the balance will continue to grow.

Collections and Legal Action

If the payment remains overdue, the credit card company may turn the account over to a collections agency. This can result in harassing phone calls, letters, and even legal action. The collections agency may also report the delinquent account to the credit bureaus, further damaging your credit score.

Protecting Your Credit Score

To protect your credit score, it is important to make your credit card payments on time. If you are struggling to make your payments, contact your credit card company to discuss your options. They may be willing to work with you to develop a payment plan or even reduce your interest rate.

Credit Card Tips

To avoid late payments, it is important to keep track of your due dates and set up automatic payments. You can also consider using a credit monitoring service to keep an eye on your credit score and receive alerts when there are changes.

When selecting a credit card, it is important to consider the annual fee and rewards program. Look for a card with a low or no annual fee and rewards that match your spending habits.

In conclusion, missing a credit card payment can have serious consequences, including damage to your credit score and financial penalties. Protect your credit score by making timely payments and consider the annual fees and rewards when selecting a credit card.