Do you regularly use a credit card for day-to-day expenses and other online and offline purchases? Then you’re most likely used to paying your credit card bills on a monthly basis. Have you, on the other hand, ever skipped or postponed a credit card payment? What happens if you don’t pay your credit card bill?

Missed or late credit card bill payments have a number of consequences. In this post, you’ll learn how late payments can have a long-term effect on your finances, lasting weeks, months, or even years.


  1. You are charged a hefty late fee: Customers who do not pay their credit card bills by the due date are charged a late fee by the credit card company. This late fee will be added to the next credit card statement. Fines differ from one credit card Company to the next and are based on a variety of variables, including the amount of days you missed the payment, your past late payment history, and more. The Reserve Bank of India recently released a notice to all banks, instructing them to charge a late fee only when a payment is due more than three days after the due date. 
  2. It impacts your credit score negatively: Banks and other lenders use your credit score to assess your creditworthiness. To put it another way, the higher your credit score, the more likely your loans and other banking requests would be accepted.

Your payment history is one of the most significant factors in determining your credit score. When you miss credit card payments, your bank tells credit information companies about it, which is recorded in your credit score. Late or missed payments lower your credit score, which affects your ability to obtain new credit from the same or different lenders. A low credit score will not only cause your loan applications to be rejected, but it will also result in you paying high interest rates on any potential loans you take out.

  1. Higher interest rate on your outstanding credit card bill: The interest rates on your outstanding bills rise if you do not pay your credit card bill on or before the due date. The interest rate rise applies to all transactions made with the card, as well as cash withdrawals made after the due date.
  2. Reduction in your credit card limit: If you consistently miss or delay your credit card bill payments, your bank can reduce your card’s available credit limit. As a result, your spending power is limited.
  3. Missing out on the interest-free credit period: If you default on or postpone your credit card payments, the bank will cancel your interest-free credit period. Most banks offer a 25–30 day interest-free credit period during which you can use your card to make transactions without paying any interest. However, if you do not make timely payments, your bank will revoke this privilege.


Customers skip credit card bills for two primary reasons:

  1. Forgetting the due date.
  2. Insufficient funds.

You should take the appropriate steps to mitigate the damage depending on the cause of missed payments. Let’s look at what we can do in both cases. 

  1. What to do if you have forgotten to pay your credit card bills on time? 

If you’re a responsible credit card user who always pays on time, contact your bank right away to pay off the balance on your account. You may also ask for the late fees to be refunded by the bank representative. For one-time delays, most banks typically reverse the late-fee payments.

Although it is true that missing a payment on a credit card bill does not have a significant impact on your credit score, you should be extra careful in the future. Late payments have a negative effect on your credit score, causing it to drop. 

  1. What to do if I don’t have the necessary funds to pay my credit card bill? 

If you haven’t been able to pay your bill on time due to a lack of money, be sure to talk to your bank about it. Most banks give consumers an option to paying off credit card debt, such as a personal loan or other repayment schemes through which the outstanding balance is repaid in monthly EMIs.

As a result, the interest burden on the outstanding balance is reduced, and you are better able to deal with the situation.

Alternatively, you will pay the bill’s minimum balance now and the balance in the next billing period. 

However, keep in mind that this is just a temporary solution, as paying only the minimum sum on a daily basis may have significant consequences. Your credit card issuer can charge interest on the outstanding amount if you pay just the minimum amount due, beginning on the due date. This may be really expensive, putting you in even more financial trouble.

The safest choice is to pay all of your bills on time. 


Avoid negative financial consequences by paying your credit card bills on time.

If you have a bad habit of failing to pay your bills on time, you should take the appropriate precautions. Start by setting a reminder on your phone to remind you a few days before the deadline.

If you’re having trouble keeping track of your spending, it’s time to close your credit card account and replace it with a debit card or a credit card with a lower cap. Remember that the longer you wait to pay, the more severe the consequences will be.

Make it a routine to pay your credit card bills on time to stay on track with your finances.