It’s a valid fear when applying for a credit card. What happens if I miss a credit card payment here in the UK? Well, you could end up paying more money than you need to. And maybe worse…
Perhaps I’ve come across too strongly there. One missed payment doesn’t automatically mean your card will be taken away from you and you’ll be blacklisted forevermore!
However, credit-card providers can issue ‘late fees’ of up to £12. That may not sound much to some, but it can go a long way. Also, these fines can really add up if multiple payments are missed.
What I’m most conscious of, though, is what happens to my credit score if I miss a credit card payment, as a lot rides on the credit history in the UK.
Each time a cardholder misses a billing cycle, or is even marginally late with a payment, a note is added to their credit file. In fact, if they were to miss between three and six monthly payments, they’d receive what’s known as a ‘default’. This is a marker that stays on one’s credit history for six years.
The more ‘black marks’, the less likely it is that a credit-card provider will accept applications. The same goes for mortgage lenders and the like. So it’s really in cardholders’ best interests to pay on time!
(Personally, I set myself reminders in my calendar each month to ensure I avoid the repercussions of what would happen if I were to miss a credit card payment. Life’s stressful enough without being issued with late fees, and denting your credit score!)
