What Happens If You Don’t Pay Your Credit Card Bills?

credit card bills

The consequences of missed or delayed credit card bills are severe, but it highly depends on the card’s issuer. In general, if you don’t clear your credit card bills on time, your credit scores will suffer, and you need to pay higher interest rates. In worst cases, your account will be closed permanently. 

The longer you take to pay your credit card bills, worsen the situation becomes. That’s why it’s essential to pay your credit card bills before the due date. 

Some unavoidable circumstances and emergencies can prevent you from paying your bills. In such cases, you need to take some crucial steps to minimize the impact. However, if you delay too much, your credit score will be decreased. 

This article will discuss the top 4 consequences that you will suffer if you don’t pay your credit card bills on time. 

Lower Credit Scores

Payment history is one of the huge factors in your credit scores. The status of your payment history will determine if your credit scores will increase or not. Hence, late submission will only damage the scores.

According to Experian, if you have a meagre credit score, you won’t be able to take any mortgage or car loan. Additionally, you won’t be able to apply for any other credit cards shortly. 

However, a missed payment won’t damage your credit scores as long as you pay the amount within 30 days from the due date. You have to pay the penalty fees, but your credit scores will remain unchanged.

You Have to Bear Late Fees and Higher Interest Rate

Another significant consequence that arrives with the late payment is the higher interest rate. Depending on the terms and conditions of the issuer, you need to pay late fees if you missed the payment date of credit card bills. The first late fee can be anywhere from $29 to $40. Remember that the amount will increase gradually.

You may also face APR or a penalty annual percentage rate. This means that higher interest will be applied if you miss the bill payments by at least 60 days. However, some issuers don’t charge any APR or late fees. 

The Legacy Visa Credit Review -a Second Chance at Good Credit will give you enough time to clear the outstanding amounts. Hence, you don’t have to worry about late fees. 

An Account in Collections

If you fail to complete the minimum payment of your credit card even after 180 days, your account will be charged off. This means the issuer will freeze your account to prevent any future purchases and writes off your debt as a loss amount. But, you still need to pay the money. 

During this time, some issuers might sell your debt to a different third-party debt collector. If this happens, you need to pay the outstanding amount to that company. Once your debt has been handed over, your credit scores will be destroyed. 

A Lawsuit

If you still fail to complete your debt, you’ll end up with a judgment as well as a debt collection lawsuit. The decision will always favour the creditor. For instance, your creditor may take some of your belongings or place a lien over your property. 


These are the consequences you might face if you fail to clear your credit card payments. If you don’t want this to happen, it’s suggested to remove your payments as soon as possible. If you think that your debt is increasing, you need to stop using your credit card. 

About the author

Brian Altman

Brian Altman is with us for the last 10 years and manages technology-related newsletters, blogs, reviews, and weekly opinion articles. He is a passionate writer and is the chief of content & editorial strategies. He writes articles on artificial intelligence, Blogging, SEO, Technology, and cryptocurrency. Brian Altman is a professional writer from the last 8 years in this industry and, in leisure time, he likes to be connected with people via social media platforms. If you may wish to contribute a post though contact here:

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