Will A Missed Or Late Credit Card Payment Hurt My Credit Score?
Ever wondered if a late credit card payment could ding your credit score? Well, it really depends on your current credit standing and your history of late payments. Let’s dive into how a late payment might affect your credit score.
Recently, I completely forgot to make my usual credit card payment at the start of the month, missing a $535 bill. It slipped my mind until three days after it was due!
First off, it’s important to understand that missing one payment isn’t a catastrophe. These things happen, and your credit score won’t plummet overnight. There’s a bit of a grace period. Being three days late is quite different from being 30 days late, but if you’re 90 days late, then you’re really in trouble!
Credit card companies rake in billions from late payments and fees. If they were sure you’d never default, they’d likely be less stringent about late payments.
Two Strategies For Waiving Late Credit Card Payment Fees
Not only could a late payment hurt your score, but it might also lead to late fees. Here’s how you might get those waived:
1. Ask for forgiveness: Simply calling your credit card issuer and asking for forgiveness can work. I’ve had to do this a few times over many years, and they’ve always waived the $25 fee because I promptly explained my situation soon after realizing my mistake.
2. Threaten to leave: If asking nicely doesn’t work, consider warning them you might close your account. Credit card issuers don’t want to lose a customer in a market flooded with options. This approach has often led to waived fees for me.
How Much Can Your Credit Score Get Hit Due To A Late Credit Card Payment
Your credit score starts to really take a hit once your payment is more than 30 days late. A 30-day late payment might be just the beginning, as 60 days puts you deeper into risky territory, and at 90 days, you’re officially delinquent.
For instance:
– A 680 credit score could drop to between 600 and 620.
– A 720 score could fall between 650 and 610.
– And a 780 score might drop to between 670 and 690.
The effects are substantial; a drop from 720 to 600 could significantly increase the interest rates on loans and mortgages, costing you more in the long run.
How Long Does It Take To Improve Your Credit Score After It Gets Hit
If your credit score takes a dive due to a late payment, recovery can take anywhere from nine months to three years, depending on how good your credit was to start with. But there’s a silver lining: if you keep up with payments thereafter, your score can bounce back over time.
For busy folks or frequent travelers, setting up an autopay for your credit card can prevent these mishaps. Calculate the average amount you spend on your card annually, divide by 11 to create a buffer, and set that as your autopay amount. This way, you’re covered and will avoid late payments altogether.
