Miss a Credit Card Payment? Here’s What To Do

PennyGem's Elizabeth Keatinge tells us what happens when you credit card payment.

Transcript

00:00You have so much going on, it's easy to forget things, like a credit card payment.

00:09But what actually happens when you miss the due date for your Amex, Visa, MasterCard or

00:14whatever your plastic of choice is? CNBC outlines the consequences. If it's one day, you may

00:19be hit with a late fee that could be up to $39. US News and World Report recommends that

00:25if you have a valid reason, call your credit card company and see if they can waive the

00:29fee. It can also cause your interest rate to spike. Once a late payment shows up on

00:33your credit report, it can cause your FICO score to drop. A history of late payments

00:38is worse than a single incident. US News and World Report also explains that once you pass

00:42the 60-day mark, your credit card issuer might bump up your interest rate to a costly penalty

00:47APR. After 90 days, the card could send your account to a collection agency. As time goes

00:52by and you don't pay, you could get sued. CNBC recommends setting up autopay so you

00:57don't miss your payments. If you do get in a pickle, try calling your card company to

01:01work something out before it goes to collections or worse.