With the rise in interest on credit cards in the United States ( one of the side effects of the increase in interest rates by the Federal Reserve to curb inflation ), every day it is more difficult to meet the commitments that these financial instruments require. But it’s not just that using these plastics is becoming more expensive . Not making a payment on time can be due to many factors .
It is even possible that you have forgotten to make a timely payment on a credit card, something quite common if you have a large number of services and bills to pay.
But what exactly happens if you don’t make a payment on time from your credit cards? Will your credit history be tarnished forever?
At Global Web Wire we explain it to you.
What exactly happens if you don’t make a credit card payment on time?
Not making a credit card payment on time is something that will inevitably have an impact on your financial life if you are in the United States.
The consequences will vary depending on your payment history and how long you remain delinquent.
In the first place, not paying on time will probably mean that you have to pay a late payment fee, which will range between $20 and $40 , according to the specialized portal CNET. This could be a one-time payment as long as you’re not late on subsequent payments, but it could increase if you’re late more than once.
Another consequence of not paying your credit card on time will be the loss of the grace period offered by banks and financing organizations . In general, most credit cards in the US offer a grace period of 21 days from the day your balance is collected, and you can take advantage of this period to avoid paying interest on your credit card.
Also, not making a payment on time can cause your credit card annual interest rate (APR) to increase. In other words, the cost of the money you get from your credit card will be more expensive. In general, the interest can be up to 29.99%.
In the same way, any late payment will be reflected in your credit history . This means that any credit card you apply for in the future could carry higher interest rates, and, of course, your credit score will start to drop (although you have 29 days to fix the error).
How much can your credit score go down if you don’t make a payment on time?
According to credit rating company FICO, with a score of 607, missing a payment on time that reflects on your credit history can push your score to 590 or even 570 .
Therefore, contacting your credit issuer at the right time is vital to avoid that not making a payment on time affects you negatively .
In the same way, setting payment alerts for when the expiration date of your credit card debts approaches can help you.

John writes for Finance & Business, focusing on cryptocurrency and innovative financial solutions. He has a good understanding of the financial sector and is well versed with the latest trends and developments in the world of crypto and trading. He has the ability to break down complex financial concepts and present them in a clear and concise manner. Apart from his expertise in finance and business, he is also an experienced networker and communicator. He is always looking for new opportunities to collaborate with like-minded individuals and organizations, and is passionate about using his platform to promote financial literacy and innovation.