What Happens When You Stop Making Credit Card Payments?

The life cycle of a missed credit card payment

First, you should know that only the minimum payment on your credit card is due by your due date — this date can fall on any date of the month, depending on your card issuer and when you originally applied.

Separately, there’s also a reporting date. This is when the card issuer reports your payments to at least one of the three credit bureaus each billing cycle.

If you’re late on your credit card bill by even a day or two, you can get hit with a late fee on your account (usually around $30). Additionally, your remaining credit card balance can be moved to a penalty interest rate higher than your card's regular annual percentage rate (APR). Penalty rates vary by card.

According to John Ulzheimer, president of The Ulzheimer Group and formerly of Equifax and FICO, the life cycle of a missed credit card payment can be broken down in the following way:

While even a single missed or late credit card payment can impact your credit score, the consequences to your credit become more severe as 30 to 60 days and 90 to 180 days pass since your bill was originally due.

For example, a simulation on the FICO website shows that a consumer with a starting score of 793 could see it drop by 63 to 83 points after missing a payment by 30 days. There could also be a drop of 113 to 133 points from the starting score after a 90-day missed payment period.

After seven years from the original late payment date, unpaid credit card bills will be removed from your credit reports in most cases. If the unpaid debt ultimately leads you toward bankruptcy, the bankruptcy itself can stay on your credit report for up to 10 years. Medical debts, on the other hand, can no longer impact your credit score due to a recent ruling by the Consumer Financial Protection Bureau (CFPB).

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What happens to promotional offers if you miss a payment?

Missing a payment can quickly wipe out a promotional APR or introductory offer. Most credit card agreements allow issuers to cancel a zero percent or low intro rate after just one late payment. When that happens, your balance may shift to the card’s regular APR or a higher penalty APR.

Here’s what can change right away:

• Your promotional APR may end immediately.
• Your balance can move to a higher regular or penalty APR.
• Interest may start applying to your existing balance, not just new charges.

If payments stay overdue, the account can move toward charge-off. This usually happens after about 180 days of nonpayment, when the lender treats the debt as a loss. A charge-off does not cancel what you owe, and it can stay on your credit report for up to seven years, damaging your credit and making future borrowing harder.

Key charge-off impacts include:

• A major negative mark on your credit report.
• Ongoing responsibility to repay the debt.
• Higher difficulty qualifying for loans or cards later.

After a charge-off, the debt is often sent to a collections agency or sold to a debt buyer. You may start getting calls or letters at that point.

You still have important rights:

• You can request written proof of the debt.
• You can dispute errors or inaccurate balances.
• You can limit how and when collectors contact you.
• Federal law bans abusive or misleading collection practices.

Acting early, even after one missed payment, can help limit damage by preserving your promotional terms or arranging temporary relief.

How credit card issuers and collectors contact you

Credit card companies and debt collectors follow a fairly predictable communication path when a payment is missed. Knowing what to expect at each stage can help you respond early and protect your rights.

1. Payment reminders and late notices
After a missed due date, issuers usually start with friendly reminders by email, text or app notification. If the payment remains unpaid, you’ll receive a formal late notice by mail or email explaining the past-due amount, any late fees, and the risk of a higher APR or account restrictions.

2. Escalation calls and warning letters
If the balance stays overdue, expect more frequent phone calls and written warnings. These messages often stress urgency and may mention possible account closure, loss of promotional rates or charge-off if the debt is not brought current.

3. Charge-off notice
After about 180 days of nonpayment, most issuers charge off the account. You’ll receive a notice stating the account has been closed and written off as a loss. You still owe the balance, and the charge-off will be reported to the credit bureaus.

4. Collections communications
Once the debt is sent or sold to a collector, you may get letters or calls requesting payment. Under the FDCPA, collectors must identify themselves, provide written validation of the debt, and avoid abusive or misleading tactics.

Your rights and next steps

• You can request written proof of the debt.
• You can dispute errors in writing.
• You can limit when and how collectors contact you.

If you receive a legal notice, court summons or demand letter, do not ignore it. Respond by the stated deadline, consider speaking with a consumer law attorney and keep copies of all communications to protect yourself.

Legal consequences of unpaid credit card debt

When credit card debt goes unpaid for too long, it can move beyond calls and letters into formal legal action. Understanding the possible consequences can help you act before the situation becomes harder and more expensive to fix.

What to do if you can’t pay your credit card bill

Ulzheimer said consumers who can’t make the minimum payment on their credit card bills have some choices, but "none of them are great."

Here are a few steps to consider if you find yourself in this situation:

• Negotiate with the creditor. During the earliest stages of a late credit card bill, it may be possible to offer up payment to the card issuer to get "current" on the debt. The Federal Trade Commission (FTC) says reaching out to your card issuer is a good way to start the conversation. You may be able to work on a modified payment plan with the card issuer.
• Look into debt settlement. Once the debt is with a collection agency, it may be possible to settle the debt for the amount owed or less. You may be able to reach a settlement for unpaid bills on your own, but you can also get help from a debt settlement company.
• Work with a nonprofit credit counselor. Individuals drowning in credit card bills can consider working with a credit counseling agency, particularly a member of the National Foundation for Credit Counseling (NFCC).
• Sign up for a debt management plan. Some third-party companies help consumers who are late on bills get on a debt management plan (DMP). With a DMP, you pay one monthly payment to the debt solutions company. It manages and pays credit card debts and other bills on your behalf while negotiating lower interest rates and waived fees.
• File for bankruptcy. Finally, Ulzheimer says consumers who can’t pay their bills can always seek bankruptcy protection. That said, there are notable downsides to filing for bankruptcy since it can ruin your credit and stay on your credit reports for up to 10 years.

» MORE: Should you get a personal loan to pay off credit card debt?

Bottom line

It’s always smart to pay your credit card on time, but sometimes life happens and keeping up with bills becomes a challenge. In that scenario, you should know that your credit score will see damage that will only escalate, and the late fees and interest that accrue will make your debt grow over time.

That said, you have rights under the FDCPA, including telling debt collectors to stop contacting you. These protections can prove helpful while you figure out your next steps, whether they include a do-it-yourself financial fix, help from a credit counseling agency or bankruptcy.