Your card issuer will report the missed payment to credit bureaus, charge you fees, and eventually send your account to collections
When you miss a credit card payment, the consequences start when ready and compound over time. Your card issuer reports the late payment to the three major credit bureaus — Equifax, Experian, and TransUnion — within 30 days. You will also face a late fee (typically $25 to $40 for a first offense) and a higher interest rate on your remaining balance. If you continue not paying, the account moves through stages: 60 days late, 90 days late, 120 days late, and eventually to a collection agency, usually around 180 days of non-payment. At each stage, the damage to your credit score deepens and your debt grows larger because of accumulated interest and fees.
The path from first missed payment to collections is not random — it follows a legal timeline that varies slightly by state and card issuer, but the general sequence is predictable. Understanding what happens at each stage helps you know when to act and what your options actually are, rather than waiting until the situation becomes harder to fix.
Key Takeaways
- A single missed payment is reported to credit bureaus within 30 days and costs you a late fee plus a higher interest rate on your balance.
- After 60 days late, your card issuer may freeze your account and stop allowing new charges, even though you still owe the full balance.
- At 180 days of non-payment, your account is typically sold to a collection agency, which then pursues you for the debt.
- A late payment stays on your credit report for seven years from the date it first became late, even after you pay it off.
- Contacting your card issuer before you miss a payment to discuss hardship options is far more effective than waiting until the account is in collections.
What happens in the first 30 days after you miss a payment
Your payment is considered late the day after the due date passes. On that day, your card issuer charges you a late fee — usually $25 for the first late payment in a six-month period, or up to $40 if you have been late before. This fee is added to your balance.
Within 30 days of the missed payment, your card issuer reports the late payment to Equifax, Experian, and TransUnion. This report when ready affects your credit score. The exact impact depends on your current score and credit history, but a 30-day late payment typically lowers your score by 60 to 100 points. Your card issuer also raises your interest rate — often to the card's penalty rate, which can be 29% or higher depending on your card agreement and state law.
During this first month, you can still use your card to make new charges, though some issuers may lower your credit limit. Your card issuer will contact you by phone, email, or mail to remind you that payment is due. These reminders increase in frequency as the days pass.
What happens between 30 and 90 days late
At 60 days late, your account status changes. Your card issuer will likely freeze your account, meaning you cannot make new charges even though you still owe the full balance. You will receive another late fee — a second one, which resets the six-month clock for the "first late payment" fee structure. Your interest rate remains at the penalty rate, and interest continues to accrue on your unpaid balance daily.
The credit bureaus receive another report at 60 days late, and your credit score drops further. At this point, your account is marked as "seriously delinquent" on your credit report. If you have other credit accounts, issuers of those accounts may also lower your limits or raise your rates based on this negative information.
Your card issuer's collection calls intensify. They may call multiple times per week. You have the right to request in writing that they stop calling, though they can resume if you contact them or if they file a lawsuit. If you answer, the issuer will offer hardship programs — temporary interest rate reductions, payment plans, or settlement offers — because at this stage they still own the debt and prefer to recover something rather than write it off.
What happens between 90 and 180 days late
At 90 days late, your account is reported again to the credit bureaus. At 120 days late, your card issuer typically writes off the account as a loss for their own accounting purposes. This is called a "charge-off." The charge-off does not erase your debt — you still legally owe the money — but it signals to the credit bureaus and other lenders that your card issuer has given up trying to collect from you directly.
Between 120 and 180 days of non-payment, your card issuer sells your account to a third-party collection agency or assigns it to one. The collection agency now owns the right to pursue you for the debt. Your card issuer stops calling, but the collection agency begins. The collection agency will contact you by phone, mail, and sometimes email. They may also file a lawsuit against you in civil court, depending on the amount owed and your state's laws.
Your credit report now shows both the original late payment and the charge-off. Your credit score has typically dropped 130 to 200 points from where it was before the first missed payment. This damage affects your ability to borrow money, rent an apartment, or sometimes even get hired for certain jobs.
What a collection agency can and cannot do
Once your debt is in collections, a collection agency has legal authority to pursue you, but they must follow the Fair Debt Collection Practices Act (FDCPA). They cannot call you before 8 a.m. or after 9 p.m. in your time zone. They cannot call your workplace if your employer prohibits it. They cannot threaten you, use profanity, or contact third parties (like family members or your employer) to shame you into paying, though they can contact them once to locate you.
You can send the collection agency a written request to stop contacting you. They must comply, though they can resume contact if they notify you of a lawsuit or if you contact them first. You can also dispute the debt in writing within 30 days of their first contact, and they must then prove the debt is valid before continuing collection efforts.
The collection agency can sue you in civil court. If they win, they receive a judgment against you. A judgment allows them to garnish your wages (take money directly from your paycheck), place a lien on your property, or freeze your bank account — the exact tools available depend on your state's laws. Not all states allow wage garnishment, and some protect a portion of your wages from garnishment.
How long a missed payment stays on your credit report
A late payment remains on your credit report for seven years from the date it first became late, not from the date you eventually pay it. If you miss a payment on January 15, 2024, that late payment will appear on your report until January 15, 2031, even if you pay the full balance in February 2024.
A charge-off also stays for seven years from the original delinquency date. A collection account stays for seven years from the date it was first reported to the credit bureaus, which is typically around 180 days after the original missed payment.
After seven years, the late payment, charge-off, and collection account all fall off your credit report automatically. However, the debt itself does not disappear. Depending on your state, a collection agency may still have the legal right to sue you for up to three to ten years after the original missed payment, depending on your state's statute of limitations. The statute of limitations varies by state and by whether the debt is written or oral, so check your state's laws if you are considering whether to pay an old collection debt.
Options before your account goes to collections
The best time to act is before you miss a payment or when ready after the first missed payment. Contact your card issuer's customer service line and explain your situation honestly. Many issuers offer hardship programs that include a temporary reduction in interest rate, a pause on late fees, a modified payment plan, or a settlement offer where you pay a lump sum less than the full balance to close the account.
These programs are most available when your account is 30 to 90 days late. Once your account reaches 120 days late and is charged off, the issuer has less incentive to negotiate because they have already written off the loss. After your account is sold to a collection agency, negotiating with the original card issuer is no longer an option.
If you cannot afford the full payment, ask about a payment plan. Some issuers will accept smaller monthly payments over a longer period if you commit to the plan in writing. If you can pay a lump sum but not the full balance, ask about a settlement. Settlements typically range from 40% to 70% of the balance owed, though this varies by issuer and your situation.
If you are facing hardship due to job loss, illness, or another documented event, mention this when you call. Issuers are more likely to offer relief if they understand the cause is temporary rather than chronic non-payment.
What to do if your account is already in collections
If your account has been sold to a collection agency, you can still negotiate. Collection agencies buy debt at a discount — often 5% to 10% of the original balance — so they have room to settle. You can offer a lump sum payment in exchange for the agency removing the collection account from your credit report, or you can negotiate a payment plan.
Get any settlement offer in writing before you pay. The agreement should state the exact amount you will pay, the date payment is due, and what the agency will do in return (such as remove the account from your credit report or mark it as "paid in full"). Without a written agreement, the agency can accept your payment and still report the account as unpaid or pursue additional collection efforts.
If you dispute the debt, send your dispute in writing within 30 days of the agency's first contact. The agency must then verify the debt before continuing collection. If they cannot verify it, they must stop collection efforts and remove the account from your credit report.
If the collection agency sues you and wins a judgment, you may be able to negotiate a payment plan with the court or the agency's attorney. Some states allow you to request a hearing to dispute the judgment or negotiate terms. Ignoring a lawsuit does not make it go away — if you do not respond, the court will likely enter a default judgment against you, which gives the collection agency stronger tools to pursue you.
Frequently Asked Questions
Will my credit card company sue me if I don't pay?
Your card issuer may sue you directly if the balance is large enough to justify the legal cost, but most issuers sell the debt to a collection agency instead. Collection agencies are more likely to sue because they buy debt in bulk and have systems in place to pursue multiple lawsuits. Whether they sue depends on the amount owed, your state's laws, and whether they can locate you.
Can I go to jail for not paying a credit card?
No. Debtors' prisons were abolished in the United States. A collection agency or card issuer can sue you and win a judgment, but they cannot have you arrested or jailed for owing money. However, if you ignore a court order or fail to appear in court after being sued, you could face contempt of court charges, which can result in jail time.
What's the difference between a charge-off and paying off the debt?
A charge-off means your card issuer has written off the debt as a loss for accounting purposes. You still legally owe the money, and it still appears on your credit report. Paying off the debt means you have paid the full amount owed. A paid-off charge-off still damages your credit, but less severely than an unpaid one, and it shows future lenders that you eventually settled the debt.
Can I negotiate with a collection agency if I don't have the full amount?
Yes. Collection agencies often accept settlements for 40% to 70% of the balance owed because they purchased the debt at a steep discount. Offer what you can afford and ask for a written agreement before paying. If they refuse to negotiate, you can still request a payment plan or dispute the debt if you believe it is inaccurate.
How much will my credit score drop if I miss one payment?
A single 30-day late payment typically lowers your score by 60 to 100 points, depending on your current score and credit history. The impact is larger if your score is currently high. The damage increases at 60 days late, 90 days late, and again when the account is charged off or sent to collections.