Here’s One Dangerous Credit Card Move to Avoid in 2024

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Adulthood is all about paying bills — but missing your credit card bill can have major consequences. Learn what to do if you can’t pay a credit card bill. 

Adult life is complicated. There are so many bills and responsibilities to juggle. It’s pretty common to miss credit card payments — research from Clever Real Estate found that 43% of credit users have done so in the last five years (and 14% did last year).

But while this might be a frequent occurrence among Americans, it’s certainly not ideal. Here’s why — as well as what you need to do if you can’t make a credit card payment.

What’s the harm in missing a credit card payment?

Missing a credit card payment can be seriously bad news for your finances, and in particular, your credit score. Your payment history is the largest part of your FICO® Score, at 35%. This makes sense — lenders prefer to loan money to people who can be relied upon to pay that money back on time and in full. If you’ve struggled with on-time payments in the past, it’s likely reflected in your credit score. Conversely, even if you’re in debt, having a stellar payment history can help keep your credit score afloat.

If you’re starting from a place of good credit, missing a credit card payment (or paying it 30 days or more late) will have an even more severe adverse effect on it. A score of 780 could drop by as much as 110 points after 30 days, and further if you’re even later with your payment — or skip it entirely. And you’ll end up with a black mark on your credit report.

In addition to the credit score damage (which basically guarantees that you’ll have difficulty borrowing money again in the future), you’ll face late fees from your credit card issuer. If you’re less than 30 days late with your payment, your credit score may be unscathed — issuers report to the credit bureaus monthly, so if you’re just a few days late with your payment, you might not be reported as late. But credit card late fees aren’t any fun — they typically amount to $25-$40, and if you’re already struggling financially, do you need another bill on top of that?

I can’t make my payment — now what?

If you’re struggling, the prospect of hiding under your bed and pretending you don’t owe your credit card company might be more appealing than picking up the phone. But sincerely, the best thing to do in a situation like this is to call the issuer. Your credit card company has a vested interest in keeping you as a customer. So get in touch, and see what your options are — ideally, before your payment is late.

Tell the fellow human on the other end of the line that you can’t afford your payment, and explain why. You might be able to skip a month’s payment to help get your finances back on track, or maybe your card issuer has a hardship program you can join. You might get a break on your interest rate, waived fees, or possibly a deferment of your payments for a period.

Hardship programs might have consequences like a reduction in your credit limit or the closure of your account, but it’s better than the alternative — dealing with mounting credit card bills and severe credit score damage.

Being unable to afford your credit card payments is scary, but trust me, credit companies have heard it all before. So try not to panic, and give yours a call — you might be surprised at the options you’ll have to remedy the situation.

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