Are you wondering if you will be forgiven when you miss a credit card payment? The truth is you will be forgiven if you miss a payment deadline by a day or two, especially if you have never missed a payment before. Missed payments do not usually show up on your credit report for at least 30 days after you miss the payment.
But when you realise you have missed a payment, you will have to pay at least the minimum payment immediately to avoid damage to your credit. Then you reach out to your card issuer to request a fee waiver or removal of penalty interest. Your issuer may waive your late fee if you have been consistent in making your payments on time. Let’s look out for Credit Card Missed Payment Forgiveness in this post.
Credit Card Missed Payment Forgiveness
If you have missed a payment for over 30 or 60 days, you will need to worry because your issuer will not forgive you on this one and you will likely be reported to the credit bureaus, and your payment history makes a large part of how the bureaus calculate your credit score. Note that the missed payment that will be reported to the credit bureaus will remain on your credit report for seven years.
Will Credit Card Issuers Forgive Late Payments
If you miss a payment, you do not have to worry, because your credit card issuer may be willing to work with you. Although not all late payments will be forgiven, it is worth asking.
Credit card issuers are likely to waive missed payments for their customers who have never missed a payment before, rather than for those who always miss a payment.
How to Get a Late Payment Forgiven Before It Is Reported
If you miss a payment for over 30 to 60 days, your issuer will report this to the credit bureaus. Therefore, you will have to contact your lender before the late payment is reported. So, if you know that you will miss a payment due to some financial issue. Or you will not make your payment on time, you should contact your issuing bank as soon as possible.
You have to explain to your credit card representative the reason why you have missed your payment, or why you will not be able to make your next payment and ask them for options. In most cases, credit card issuers will work with borrowers to find a solution before it gets reported to the credit bureaus.
Steps To Take When You Miss a credit card payment
Missing a credit card payment can have a serious effect on your credit score. If you miss a payment or do not have enough money to pay the minimum amount due. You may be charged a late fee. Your credit score may also be negatively affected. And this can make it harder to get approved for credit in the future. So, if you miss a payment, it is best you take action fast to help minimize the effect missing a payment will have on your credit score. What then should you do when you miss a payment?
- Pay at least the minimum bill immediately
- Call your credit card issuer
- Avoid missing another payment
Pay At Least The Minimum Bill Immediately
When you miss a payment, it will be reported to credit bureaus 30 days after the due date. So, if your credit payment was due yesterday, or last week and you make a payment today, the missed payment will not affect your credit immediately.
However, if you do not make payment for over 30 to 60 days, it will reflect on your credit reports and harm your score the longer it stays unpaid. Missed payments will also stay on your reports and will affect your credit scores for over seven years.
Therefore, the earlier you make a payment, the better it will be for you. If your payment due date is less than 30 days, you can avoid it from affecting your credit report. If it is over 30 days, you can still avoid it from affecting your credit report by paying at least the minimum payment due.
Call Your Credit Card Issuer
Aside from your credit score being affected, you will be charged a late fee when you miss a payment and your interest rate can increase to a penalty rate. However, if it is your first time missing a payment. There are chances that your card issuer may waive the late fee.
There are still some cards like Discover it Cash Back that waive your first late payment fee automatically. While cards like the Citi Simplicity Card have no late payment fees at all. But if your card does not have these perks. You have to reach out to customer service and ask if the late fee can be waived.
Avoid Missing Another Payment
Missing one payment may not affect your credit score, but if you make it a habit, it will definitely negatively affect your credit. To prevent this, you will have to make payments on time and avoid missing another payment.
How To Avoid Missing Credit Card Payments
Here are some steps to help you avoid missing your payments.
Set Up Automatic Payment
Setting automatic payment is a way to avoid missing a payment and incurring a late fee. To set up automatic payments, you will need to connect a bank account to your credit account. Make sure that the bank account you are connecting has enough funds to make payments every month.
There are different options for automatic payments. You can set up automatic payments to pay the minimum due date. The entire statement balance or a fixed amount of your choice every billing cycle. You will also be able to break payments into different instalments for the month.
Set Payment Reminders
Aside from setting up automatic payments, you can set reminders, text or email alerts. Your card issuer may allow you to opt into reminders when your statement is ready, when your payment is due, and when your payment posts.
Choose Your Payment Due Date
Having multiple bills to pay may increase your chances of missing a payment. So, you can adjust your payment date to a date that is suitable for you.
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