Here’s What Will Happen If You Miss A Credit Card Payment
It’s that time of the month again—you open your email (because going paperless can save Mother Earth) and see that “e-Statement of Account (e-SOA)” from your credit card provider. You think thrice before clicking it, and as soon as you spot your outstanding balance, you can’t help but let out a sigh and start regretting the impulse purchases you’ve made.
If you’re religiously paying your credit card bill on time, then you’re doing great! But if you’ve been missing paying your dues, then you may be in serious trouble.
Here are the reasons why you should never miss a credit card payment:
You’ll lose your credit card benefits
You won’t be able to enjoy discounts, freebies, and promos if you skip paying your bill even for just a day. Credit card providers a.k.a. banks are serious when it comes to monitoring your credit standing, but some are generous enough to still allow you to avail the rewards that you’ve earned. No matter how you look at it, taking advantage of these perks are not worth it since your unpaid balance will continue to grow.
Your credit card may be cancelled
Aside from the perks, your card itself can be cancelled or suspended if you fail to pay the balance after 90 days from your billing statement. These banks have every right to do so as mentioned in the memo (Circular No. 398 Series of 2003) released by Bangko Sentral ng Pilipinas. Don’t wait for your card to be terminated because you don’t pay your dues on time.
You might drown in credit card debt
You missed one payment, so what? Well, once you start missing payments, the unpaid balance will be included in the next billing cycle.
Besides the finance charges, your card will be charged a late payment fee that can go as much as 8% of the total amount due for every month that you pay past your due date. In short, your outstanding balance will pile up without you even noticing it. This is why it’s better to know when your eSOA will be sent to your email or you can always check your account online to never miss out on anything. Most banks have apps that allow you to check your balance anytime, anywhere.
You’ll hurt your credit score
There are so many ways to boost your credit score, but it takes one missed payment alongside unpaid balances to ruin it. Credit card providers can access records of your credit information, so they would know if you skip paying your bill.
Think of it this way: Your credit score is your grade while your credit history is your report card in college. When you apply for a job, your potential employer will look at your card and transcript of records before they decide to hire you. The higher your credit score is, the better.
Now, are you ready to avoid credit card debt and keep your credit score in tip-top shape?
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