A person sits on the floor holding credit cards in their hand with scattered papers and a calculator.

What Happens If I Can’t Pay My Credit Card?

7 min read

Last Updated: November 13, 2024

Table of contents

Key Takeaways

A missed credit card payment can happen to anyone, but it’s helpful to know about the potential costs to your finances.
A missed payment may result in late fees and increased interest rates, which cost you more money overall.
A missed or late payment typically shows up on your credit report and may impact your credit score.

When you can’t pay a credit card, you could get hit with late fees, increased interest, and damage to your credit score.

If you feel like you can’t make a credit card payment, you should contact your credit card issuer right away. Your credit card company may be able to advise you on a payment plan or provide you with other helpful resources. If you do miss a payment, there are a few things you can do to help manage your credit card debt.

If I don’t pay my credit card, what happens?

If you missed a credit card payment by one day, you may not see much change to your credit. However, the longer your bill goes unpaid, the more severe consequences you may face.

Find out if you are already pre-approved for a standard credit card from Discover. There’s no harm to your credit score to check if you’re pre-approved.¹

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Late fees and penalty APRs

When you don’t make the minimum payment by the payment due date, the first consequence is likely to be a late fee on your credit card bill. If you continue to miss payments on your next billing cycles, your late payment fee may increase. You should check the terms and conditions of your credit card to find out how much your late fee would be.

If you miss a payment, it could lead to more than just a late fee, though. Depending on your credit card company, and how late your payment is, you may see an increase in your interest rate. If you miss multiple payments, your account could wind up with a debt collection agency.

Reduced credit score

Even one late or missed payment may impact your credit report and credit score. Credit card issuers report your credit card activity every month to a major credit bureau. Late or missed payments often don’t show up on your credit report for at least 30 days after the payment due date.

Lenders use credit history and credit scores to determine the creditworthiness of an applicant before loaning them money. Your payment history is an important component of your credit score and missed payments may be harmful.

Missed payments can also impact your credit score in another way. When you miss a credit card payment, you may increase your credit utilization ratio (the percentage of available credit in use) by accruing more interest without reducing your balance. Your credit utilization is another important factor in determining credit scores.

Charge-off

If you don’t make a monthly payment for six months it may result in a charge-off. A charge-off is when a lender or creditor has written your credit card account off as a loss, closes the account, and you’re no longer allowed to make charges on the account.

A charge-off may show up on your credit report and remain on the report for up to seven years. At this point, and sometimes even earlier, your account may be sent to a collection agency (also called a debt collector) or attorney. This means the collection activity on your debt will be from the collection agency or attorney and not from the card issuer. You’re still responsible for repaying the debt.

What can you do about a missed payment?

If you miss a credit card payment, your card issuer may send you overdue notices. These notices could be in the form of calls, emails, letters, and text messages. You should make a payment as soon as possible to try to lessen the impact on your credit score.

If you can’t pay your credit card, one of the best things to do is call your card issuer and explain the situation. If you’re going through a tough time, such as a job loss or have some unexpected medical bills, credit card companies may be able to help. Whatever the case, let your creditor know and they might be able to work with you on a repayment plan or offer other help.

How long do missed payments stay on your credit report?

Late payments can remain on a credit report for up to seven years. If the account is still open after seven years, the late payment is the only thing that’s removed.

What can you do if you can’t make the minimum payment?

To help get you back on track, here are some things you can do if you think you’ll miss a credit card payment.

See what expenses you can cut

If you can’t make your credit card payment, you should see what expenses you could cut out. Any money that you free up may help with paying the minimum amount due on your credit card.

Still, if you can manage to pay more than the minimum amount, you should. If you can repay the full balance, you’ll avoid getting interest charges on your account.

Go with autopay

If you have a missing payment for other reasons, you still have options. People with a lot of bills to juggle might easily forget a payment due date.

You should check to see if your credit card issuer has automatic payments available. With autopay, your credit card company makes an automatic payment from your bank account to pay your credit card on the due date. The trick is to make sure you have enough money in your bank account to pay your credit card account each month.

Did you know?

Text and email alerts could help you stay on top of your credit card due dates. With Discover, you can also receive security alerts and notifications for exceeding payment limits that you set, all by text or email.

Learn More

Consider moving your payment date

Do you want your credit card due date to align with when you get your paycheck? If so, you can ask your card issuer to move your due date.

To move your due date, you should reach out to your credit card company as soon as possible. Sometimes you can change your credit card payment date yourself online or over your issuer’s mobile app.

Research credit relief programs

If you’re the victim of a layoff or had a medical emergency, you may not be able to make your minimum payment for a while. Luckily, your credit card company may be willing to work out a plan with you. Some credit card companies offer payment relief programs and other payment plans. You should discuss your situation with your credit card company to see if there’s an option for you.

Consider credit counseling

Credit counseling organizations help people learn ways to manage their money and expenses. A credit counselor might be able to offer personalized advice on how to manage credit cards and other forms of unpaid debt.

You should carefully research before choosing a credit counseling service to help with debt relief and consolidation. Be wary of any organization that promises that your debts will go away or that your credit will improve quickly—it takes time to communicate with each creditor and work out a plan that benefits you both. Check your credit card statement for contact information for non-profit third-party credit counselors.

The bottom line

A single late credit card payment isn’t likely to make a huge impact on your finances or credit score. However, a large credit card balance left unpaid for months may be come with more severe effects, including fees, higher interest rates, charge-offs, or a lowered credit score. Stay up to date on your payments, and understand your card issuer’s specific repercussions to avoid mounting debt and other consequences.

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