Worst Effects of Missing Credit Cards Payments

Under a tight budget many people choose to skip credit card bills or make late payments. Making a late payment may not be a major concern for you, but credit card issuers will not hesitate to charge you with various fees for missing your credit cards bills. Not paying at least the minimum payments can have far-reaching consequences that impact you well into the future. Below is a list of some of the long lasting and short term effects of missing your credit cards payments-
1. The most obvious effect is you will be required to make a late fee. You have to pay the minimum payment plus the late payment fee. For making a late credit card payment you can expect to pay $15-$35 and will continue to pay these amount each month you have missed your payments.
2. Beside the added fees your interest rates are likely to increase. You can expect the interest rate to increase to default rate, which is considered the highest possible fee that any card companies can charge legally. And with the higher interest rate you will be charge higher finance charges. This will not only make it more expensive for you to carry a balance, but will let you fall into greater credit debt.
3. If by any chance your credit card company applies universal default clause in the card agreement, you can expect other credit card fees and interest rates to increase as well.
4. Once you are more than 30 days behind to make your payments, your creditor will report the late payments to the credit bureaus. The record of your inaction on your credit report will stay for seven years. Check your card disclosures and read the terms and conditions to see when card issuers will consider reporting your delinquency to the credit bureaus.
5. Missing out payments will have a serious affect on your credit score and make it harder on you to get credit for necessary items. Your score will fall down because about 35% of your credit score makes up your payment history. Buying a house or a card may be difficult on your part and will also affect you once you apply for new cards in the future.