Your card issuer will report the missed payment to credit bureaus, charge you a late fee, and raise your interest rate — but you have options before that happens
When you miss a credit card payment, the consequences start small and compound. Your first late fee arrives 30 days after the due date. At 60 days, the missed payment hits your credit report. At 90 days, your interest rate jumps — often to a penalty rate of 25% or higher. At 180 days, the card issuer may close your account and sell the debt to a collection agency. None of this is automatic if you act before the payment is due or within the first few days after.
The card issuer's goal is to get paid, not to punish you. If you contact them before or shortly after the due date, you can often negotiate a waived fee, a lower rate, or a payment plan. After 30 days, your options narrow. After 90 days, the damage to your credit report is already done, and a collection agency may own the debt.
Key Takeaways
- Contact your card issuer before the due date or within a few days after if you know you cannot pay — many will waive the first late fee or set up a payment plan.
- A missed payment is reported to credit bureaus at 30 days late, and your interest rate can jump to a penalty rate at the same time.
- After 90 days, the card issuer typically closes your account and may sell the debt to a collection agency, which can then pursue you for the full amount.
- Debt settlement, hardship programs, and balance transfers are options if you cannot pay the full balance, but each has different costs and credit impacts.
- A missed payment stays on your credit report for seven years, but its impact on your credit score weakens over time.
What happens in the first 30 days
Your payment is due on a specific date each month. If the payment does not post by the end of that day, you are technically late. Most card issuers do not report a late payment to credit bureaus until you are 30 days past the due date, but they do charge a late fee when ready.
The late fee is usually $25 to $40 for the first missed payment, and up to $40 for subsequent ones in the same billing cycle. At the same time, your interest rate may increase — some cards explore a penalty rate right away, others wait until 60 days. You will also start accruing interest on the unpaid balance at the higher rate.
This is the window to call your card issuer. Explain that you had a temporary hardship — a medical bill, a job loss, an unexpected expense — and ask if they will waive the late fee. Many issuers will, especially if you have been a customer for years and this is your first miss. Some will also lower your interest rate temporarily or set up a payment plan so you can pay the balance over several months instead of all at once.
What happens at 30 to 90 days late
At 30 days past due, your card issuer reports the missed payment to the three credit bureaus: Equifax, Experian, and TransUnion. This is when the damage to your credit score begins. A 30-day late payment typically lowers your score by 100 points or more, depending on your current score and payment history.
Your card issuer may also explore a penalty interest rate if they have not already. This rate is often 25% to 29.99% — much higher than your regular rate. If you have a $5,000 balance and a penalty rate of 27%, you are now paying roughly $112 per month in interest alone.
At 60 days late, the late fee may increase, and your account may be flagged for closure. At 90 days late, most card issuers close your account. You can no longer use the card, and the full balance becomes due when ready — though in practice, the issuer will work with you on a payment plan rather than demand the entire amount at once.
What happens after 90 days: debt collection
Once your account reaches 120 to 180 days past due, your card issuer typically sells the debt to a third-party collection agency. The collection agency now owns the debt and has the legal right to pursue you for payment. They will contact you by phone, email, and mail, and they may file a lawsuit to obtain a judgment against you.
A collection agency can garnish your wages, freeze your bank account, or place a lien on your property — but only after winning a judgment in court. The process varies by state. Some states require the collection agency to notify you before filing suit; others do not. If you are sued, you have the right to respond and defend yourself in court, but many people do not show up, and the collection agency wins by default.
The debt remains on your credit report for seven years from the date of the first missed payment. Even after you pay it, the paid collection account stays on your report for seven years, though its impact on your credit score fades over time.
Hardship programs and payment plans
Most large card issuers offer hardship programs for customers facing temporary or long-term financial difficulty. These programs can include a lower interest rate, a reduced monthly payment, a pause on payments for a set period, or a combination of these. To access a hardship program, you typically call the card issuer's customer service line and ask to speak with a representative in the hardship department.
Be specific about your situation: a job loss, a medical emergency, a divorce, a natural disaster. The issuer will ask for proof — a termination letter, a hospital bill, a court order — and will review your income and expenses. If you are approved, the program usually lasts 3 to 12 months. During that time, your account may be frozen, meaning you cannot make new charges.
A hardship program does not erase the missed payment from your credit report, but it can prevent further damage. It also shows future lenders that you worked with your issuer to resolve the problem, which is viewed more favorably than a debt that went to collection.
Debt settlement and negotiation
If you cannot pay the full balance and the card issuer has not yet sold the debt to a collection agency, you may be able to negotiate a settlement. This means paying a lump sum — usually 40% to 60% of the balance — and having the rest forgiven. The card issuer will close your account, and the settled debt will appear on your credit report as "settled" or "paid in full for less than the full balance."
A settlement damages your credit score, but less severely than a charge-off (when the issuer writes off the debt as uncollectible). To negotiate, call your card issuer and ask to speak with the collections or settlement department. Explain that you have a financial hardship and can offer a specific lump sum — for example, $2,000 to settle a $5,000 balance. The issuer may counter with a higher amount. Agree only to what you can actually pay in full within 30 days.
Get the settlement offer in writing before you send any money. The letter should state the exact amount, the date by which it must be paid, and that the account will be closed and reported as settled. Without this, the issuer may cash your check and continue to pursue you for the remaining balance.
Balance transfers and debt consolidation
If you have not yet missed a payment but know you cannot pay your full balance, a balance transfer to a card with a 0% introductory rate can buy you time. You transfer the balance to the new card, which charges no interest for a set period — usually 6 to 21 months. During that time, you pay down the principal without interest accruing.
Balance transfers typically charge a fee of 3% to 5% of the amount transferred, which is added to your new balance. If you transfer $5,000, you will owe $5,150 to $5,250. But if your current card charges 20% interest, you will save money as long as you pay off the balance before the introductory period ends.
Debt consolidation is another option: you take out a personal loan at a fixed rate and use it to pay off the credit card in full. Personal loans typically charge 6% to 36% interest, depending on your credit score and income. The advantage is a fixed monthly payment and a set payoff date. The disadvantage is that you are borrowing more money, and if you miss payments on the personal loan, the consequences are similar to missing credit card payments.
How a missed payment affects your credit score
A missed payment is one of the most damaging items on a credit report. Payment history makes up 35% of your credit score, so a single late payment can lower your score significantly. The impact depends on your current score: if you have excellent credit (750+), a 30-day late payment might drop your score by 100 points or more. If you already have fair credit (650), the impact may be smaller in absolute terms but larger in percentage terms.
The damage is not permanent. After two years, the late payment has much less impact on your score. After seven years, it falls off your credit report entirely. In the meantime, on-time payments on other accounts will gradually rebuild your score. If you have a missed payment and want to rebuild, focus on paying every bill on time, keeping credit card balances low, and not opening new accounts unnecessarily.
Frequently Asked Questions
Can the credit card company sue me for a missed payment?
Yes, but usually only after the debt has been sold to a collection agency or after 90 to 120 days of non-payment. The card issuer or collection agency must file a lawsuit in court and win a judgment before they can garnish your wages or freeze your bank account. You have the right to respond to the lawsuit and defend yourself.
What if I get a call from a debt collector?
You have rights under the Fair Debt Collection Practices Act. Debt collectors cannot call before 8 a.m. or after 9 p.m., cannot threaten you, and cannot contact your employer or family members. You can request in writing that they stop contacting you, though they may then file a lawsuit. Do not ignore the call — if you are sued and do not respond, you will lose by default.
Will paying off a collection account remove it from my credit report?
No. The collection account will remain on your credit report for seven years from the date of the first missed payment, even after you pay it. However, paying it off stops the collection agency from pursuing further action and shows future lenders that you resolved the debt.
Can I get a late payment removed from my credit report?
You can request a goodwill removal if this is your first late payment and you have been a long-time customer with a good payment history. Write to your card issuer explaining your situation and asking them to remove the late payment as a one-time courtesy. Many issuers will do this, but there is no may provide. You can also dispute the late payment if you believe it was reported in error.
What happens if I ignore the debt completely?
Ignoring the debt does not make it go away. The collection agency will continue to pursue you, and they may file a lawsuit. If they win a judgment, they can garnish your wages or freeze your bank account. The debt will also remain on your credit report for seven years, making it difficult to borrow money, rent an apartment, or sometimes even get a job.