It can be all too tempting to let a credit card payment slide during the busiest times of the year. Curious about what happens when you do? Learn why it’s never a good idea – and how it can do damage to your credit scores in the process.
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Welcome to Credit 101. Simple answers to the most common credit questions like: what happens if I don’t pay my credit card bill?
If you’ve gotten in over your head when it comes to holiday spending, you’re not alone. But know that if you’re considering falling behind in your credit card payments, there can be serious side effects when it comes to letting payments slide. We’ll tell you more about what that can mean for your credit.
According to recent information from The Urban Institute, one in three Americans has debt that they’re not current on. That’s 77 million people who’ve fallen into the trap of delinquent debt – and 77 million folks whose credit reports are displaying that information. When you miss a payment on a credit card, your creditor usually reports that debt to one or more of the three major credit bureaus, where it hits your credit reports and often delivers a drop to your credit scores, too.
Making your payments on-time is one of the easiest ways that you can keep up with your credit. Even if you’re just making the minimum payments for the next few months to save up a bit, staying current on your payments helps keep your accounts in good standing and avoids having a credit card issuer report negative information that can show up on your credit reports and potentially be considered in credit scoring calculations or lending decisions.
It’s just that simple. If you’re thinking about missing a credit card payment, you probably should think twice about it!
Have more questions about credit and the holidays? Check out Experian-dot-com-slash-holiday quiz to learn what type of holiday spender you are, and don’t miss the rest of our podcasts, available on iTunes. Thanks for listening and we’ll catch you next time on another episode of Credit 101, brought to you by Experian.