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Late Credit Card Bill Payment- How Damaging Is It?


Credit cards has been a very beneficial asset if handled with care, but it can also prove to be damaging if you become careless while using it. Today let us look into late credit card repayment and the impact that late credit card repayments.

So why are people behindhand on credit card repayments?

Some of the reasons could be –

  • Overspending: 

Some people use their cards without giving a thought of the repayments later, this reminds me of the movie “Confessions of a Shopaholic”. When you spend in excess of your budget, it is obvious that you will find it tough to repay, thereby get late with your credit card repayment.


  • Delays beyond control:

Once in a while, it can be that the payments which are dependent on the production of bills might get delayed. Be it a purchase you made for your office whose reimbursement is pending, or the loan you gave to a friend is delaying in returning you the money.

  • Procrastinating until the last day:

Many people delay in paying the bills till the last day. At times, it might lead to unfavorable consequences. What if you delay the payment till the last day to make the most of the interest-free period and then fail to remember doing the payment?

  • Confusion from multiple card:

These days it is common for people to own multiple credit cards, and they must be having different billing period. Unless a strict vigil is applied, it can lead to confusion about the credit card repayment dates.

Consequences of late credit card repayment

Every cause has an effect, so does the late re-payment of your credit card. Let’s have a look at the consequences –

  • Increased Expenses:

Falling behind your scheduled date of repayment on your credit card bill will result in you being charged with a late fee as per the terms of your issuer and depending on your type of card. It also ends up putting you in the bad books of your credit card issuer, which could mean an increase in your future credit card interest rates.

Late payment is one of the biggest factor affecting negatively on your credit score. Credit card repayment default is definitely going to be disclosed on your credit report.

  • Loss of access to the card:

When you do not pay or default continuously on your credit card bills, some companies might also take away the access to your credit card for further payments, till the bills are all cleared.

  • Loss of earned rewards:

The credit card usage brings in exciting rewards and benefits, which has always been one of the major appeals in possessing a credit card. These rewards earned by you can be deactivated if you lag behind on your credit card repayment.

Rectifying the Missed Payment

Due to any circumstances, if you missed paying your bills on time, these actions are recommended –

  • Pay the Bill Immediately:

Without any further delay, make the repayments. Any more delays would add up your fines and interest, thereby increasing your debt. It also leaves a negative effect on your credit score and expenses.

  • Negotiate a Fee Waiver:

At times, discussions and consultations with your credit card issuer to show consideration towards you when you are late in your credit card repayment can also work. If you have been regular and steady with your repayments earlier, it can help you negotiate for a waiver on the penalty and interest charged, in case of a default or delayed in repaying.

  • Automate Your Payments:

To avoid any missed payments, putting your bills on auto payments from your bank account also helps. Automating your payments might make it certain that you never get late on your credit card repayment.


Every late credit card repayment, makes you lose the benefits and grossly affects your creditworthiness. Ensure that you follow the methods mentioned above and avoid any late credit card repayment.


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