It is very easy to miss making your credit card payments. At times, some unforeseen expenses might crop up, leaving you with no money for your card payment, while at other times; you might completely forget the due date. But if you think that making the next payment on time will protect you from the consequences for one missed payment, you are wrong. It can actually ruin you financially. Though the consequences of missing a payment will vary from issuer to issuer, we give you an overview of the consequences that could arise due to a missed payment.
No more promotional offers: When you get a card offering you promotional rate, this rate is in fact a gift for you to make timely payments. But when you skip a payment, your lender will stop the promotional offer charge you a higher rate.
Default Rate: Sometimes the lender will switch back your promotional rate to the commercial rate. This rate can be very steep. If you cannot afford the minimum payment at the promotional interest rate, then it is very unlikely that you can easily pay the minimum amount at the commercial rate of interest.
Credit Score: A single late payment will make your credit company file a report against you to the credit bureau. This leads to a serious lowering of your credit score and will make it difficult for you to get any type of credit in the future.
The above penalties may seem harsh for missing just one payment, but do not take any risk with your payment. Try to pay at least the minimum by cutting out the unnecessary expenses. This will save you a lot of headache in the future.