You’re only human. Missing a credit card payment can happen to anyone. But knowing the consequences and acting fast can help limit the damage.
On-time payments are key to keeping your finances in good shape. Miss one and you could face fees, higher costs and even a drop in your credit score. Here’s what you need to know and how to stop it happening again.
What are the immediate consequences?
A missed payment can have both short-term and long-term effects.
Short-term consequences
Late fees
The first thing you’ll likely see on your next statement. Fees usually range from £10 to £25, but some lenders charge more for repeated late payments. The sooner you pay, the better.
Interest charges
Interest will start building on your unpaid balance, making it more expensive to clear. Some lenders may even apply a penalty APR, which means a higher interest rate after a missed payment. That’s when things can really add up.
Long-term consequences
Damaged credit score
Payment history plays a big role in your credit score. If a payment is more than 30 days late and reported to credit reference agencies, your score could take a hit. That might make borrowing more difficult or expensive in the future.
Account closure
Repeated missed payments could lead to your credit card provider closing your account. That doesn’t just leave you without access to credit – it could also affect your score by reducing your available credit and pushing up your credit utilisation ratio.
Debt collection
If your account stays unpaid for too long, your debt could be passed to a collection agency. Their role is to help you set up a repayment plan that works for you. However, it may still affect your credit report, so it’s best to reach out and make a payment as soon as possible.
How to avoid missing payments
Now we know the risks, let’s look at how to stay on track.
- Set up automatic payments
This ensures at least the minimum payment is made on time each month. You can always pay extra manually to clear your balance faster. - Check your statement regularly
Keeping an eye on your credit card statement helps you track due dates, spot errors and stay on top of your spending. - Budget effectively
Plan your spending around what you can afford to repay in full each month. A clear budget helps prevent overspending and keeps your finances in check. - Use payment reminders
Mark your due date on a calendar or set a phone reminder. A small step that can make a big difference.
How Zilch can help
To help you stay on track with your instalments, Zilch automatically takes payments from your debit card on the scheduled due date. You’ll get a reminder notification 24 hours before an instalment will be taken from your account, so they’ll never come as a surprise if you’ve forgotten them.
It’s also easy to manage your cash flow using the Zilch app. You have the option to Snooze a payment by 4 or 8 days (fees may apply, subject to eligibility) or pay off an upcoming instalment early. If you’re struggling to meet your repayments, we’re easy to contact – and yes, you do get to speak to a human. We’ll always do our best to help.
Life happens, we get it, so if you do miss a payment, we don’t charge late fees. We will however get in touch to make sure everything is OK with your repayment plan. It’s important to remember that late payments affect your credit score and we could pass your details on to a debt collection agency if you continue to not pay.
What to do if you’ve already missed a payment
If you’ve missed a payment, don’t panic – but act quickly:
- Pay as soon as possible
Even paying a day late is better than not paying at all. - Contact your card provider
If it’s your first missed payment, they might waive any late fees as a goodwill gesture. - Check your credit report
If the missed payment hasn’t been reported yet, making your payment now could stop it from affecting your score. If it has, focus on paying on time going forward to rebuild your credit history.
In short?
Missing a credit card payment can lead to fees, interest charges and a hit to your credit score. The good news? You can recover by acting fast and setting up simple systems to stay on top of payments. Your future self will thank you.