While we all understand that it would be horrible if we miss credit card payments, but sometimes bad things might happen. We shall know the consequences of missing credit card payments in case one day we have to face this situation.
Consequences of missing credit card payments includes following steps, and these steps happen one by one if you continue refusing to make some repayments.
You would be charged interests and late fees
If you miss the due dates of your statement period, the date that you need to make your repayments, the banks will charge you 0.05% interests of all your purchases during this period since the First day of your purchasing. If you miss the due for 60 days, banks will increase your interest rate to the penalty rate, which is the highest interest rate on your credit card.
When your repayment is more than 30 days, some late fee (usually 5% or 30 to 40 dollars) will be charged.
Your credit scores will drop
35% of your credit score is made up with payment history. In general, your late repayments won’t be reported to the credit bureau within 30 days. If you keep refusing to make your repayments for a long time (for example, three months), your overdue record would be listed on Central Bank’s system, and this negative file would preserve for 5 years.
If the amount of your repayments is quite huge, and you delay your repayment for more than three months, your credit scores will suffer harsh. These activities would seriously affect your future loan applications, as well as your future applications of a new credit card.