What happens if you miss a credit card payment?
Missing a credit card payment happens — and while it can lead to late fees, interest charges, and a temporary dip in your credit score, it doesn't have to spiral. The key is knowing what to do next and acting quickly. Here's everything you need to know.
4 min read
What to do if you've missed a payment
If you have missed a credit card payment, there are several things you can do to limit the effect on your score:
- Contact your lender to explain the situation and see if you can get extra time to make the payment
- Try to make the payment as soon as you can to minimise any extra charges or actions
- Set yourself reminders in advance (e.g. on your phone) to make sure you don't miss any more payments
- Set up a monthly Direct Debit or standing order for at least the minimum payment — make sure you have enough money in your bank account to cover it, so you avoid fees
What happens if you miss a payment by one day?
If you miss a payment by just one day, the impact is usually minimal - a payment that's a few days late is unlikely to appear on your credit file, though you may still be charged a late fee or additional interest.
What if you can't pay immediately?
If you can't afford to pay straight away, take a deep breath — there are options available to help. Contact your lender as soon as possible — many are willing to help if they understand your circumstances.
You might be able to arrange a repayment plan. Some lenders may accept smaller token payments or offer a temporary payment holiday. While making reduced payments can affect your credit score, it is generally better than missing payments altogether.
Keep in mind that consistent missed payments (typically three to six) can lead to a default on your credit file, which significantly impacts your credit score and ability to get finance in the future.
If you're experiencing financial difficulties, seek free debt advice from organisations like Citizens Advice or StepChange. These charities can provide support and even talk to creditors on your behalf.
What happens if you don't pay your credit card at all?
If you stop making payments entirely, the situation will escalate over time. Here's what typically happens:
- Late fee and interest charged — usually within days of the missed payment
- Your lender contacts you — by letter, email, or phone, asking you to bring the account up to date.
- Account goes into arrears — after several missed payments, your account is formally in arrears and this may be reported to credit reference agencies
- Default notice issued — typically after three to six missed payments, your lender will issue a formal default notice. This stays on your credit file for six years.
- Debt passed to a collection agency — if the debt remains unpaid, your lender may sell it to a debt collection agency who will then pursue you for payment
- County Court Judgment (CCJ) — as a last resort, the lender or collection agency can apply for a CCJ. This is a court order requiring you to repay the debt and stays on your credit file for six years.
At any stage in this process, contacting your lender or a free debt charity can help stop the situation from escalating further.
How bad is missing one credit card payment?
Completely missing a payment can lead to late fees (up to £12) and added interest. This may result in a marker on your credit report, which could affect your ability to get future credit. Plus, your lender might take away any rewards linked to your card.
The good news? One missed payment doesn't spell financial disaster. You can rebuild your credit history by staying on top of future payments. Over time, consistent good management can minimise the impact on your credit score.
If you want to keep an eye on how a missed payment is affecting your credit score, you can check your Equifax credit score for free through CredAbility — it's updated regularly so you can track your progress as you recover.
How will one late payment affect my credit score?
A late payment can result in similar penalties to a missed payment, including fees and interest. It will also leave a late payment marker on your credit report, which could temporarily lower your credit score.
This marker signals to lenders that you may be struggling financially. This might make them hesitant to give you more credit. If they do approve you, it might come with higher interest rates.
But one late payment doesn't mean you will always be rejected for credit. Each lender uses its own criteria, and some are more flexible than others.
You can start to recover by focusing on making on-time payments going forward. With consistent positive actions, such as staying within your credit limit and paying at least the minimum each month, the effect of a single late payment will gradually fade. And your chances of accessing credit at better rates will improve over time.
Do late payments stay on my credit report?
Yes, but how much it affects you depends on the circumstances:
- One late payment — this will appear on your credit file and will usually stay there for six years. It may lower your score slightly. However, its impact lessens over time, especially if you maintain a strong track record of on-time payments.
- Defaults — if you miss several payments in a row (typically three to six), your lender might issue a default. This stays on your file for six years and can make borrowing harder for a while.
- Further consequences — if payments continue to be missed, this could result in a County Court Judgment (CCJ). Like defaults, this stays on your file for six years and is likely to limit your credit options.
The good news is that lenders often focus on your recent payment behaviour. By consistently paying your bills on time, you can rebuild trust and strengthen your credit profile over time.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
