How Credit Card Delinquency Can Hurt You (and How to Handle It)

Missed bill payments happen to the best of us, and in many cases, the fix is as easy as covering the balance and moving on with your life. But credit card debt can get out of hand quickly if you're not on top of your amount owed and due dates. The average American household has around $8,000 in credit card debt, and nearly 9% fell behind on their payments in the first quarter of 2024. In fact, credit card delinquencies are at their highest level since the Federal Reserve started collecting data in 2012.

Here's what happens if your credit card is delinquent—and how to deal with it.

What is credit card delinquency?

Credit card delinquency simply means that you've missed a payment: as little as the minimum required, by as little as one day. The most minor cases of delinquency can be resolved quickly and with minimal impact to your debt or your credit score, as most card issuers don't report missed payments to credit bureaus until they are at least 30 days late.

If you realize your bill is overdue, pay it as soon as possible. Ideally, this means covering your statement balance in full to avoid late fees and interest, which begins accruing as soon as you carry a balance forward to the next month after your payment due date. If this is your first time missing a payment, your credit card company may be willing to waive the late payment penalty (the Consumer Financial Protection Bureau recently reduced the typical fee to $8).

If your account is delinquent for 30 days or more, though, you are facing more significant consequences, from a ding on your credit to account suspension or closure.

What happens if your credit card payment is delinquent

When your credit card account is more than a month past due, it'll appear on your credit report with the three major credit bureaus (Equifax, Experian, and TransUnion). You'll probably see a drop in your credit score, as on-time payment history accounts for 35% of your FICO score. It's also possible that your card issuer will put a hold on your account so you can't make any additional purchases.

If the delinquency extends to three or four months, your credit card company may suspend your account until you take action to repay the debt. After four or five months of delinquency, your card may be permanently revoked—and if you don't make any progress after six months, the issuer will close your account and classify the debt as a charge-off, which will stay on your credit report for up to seven years.

A charge-off has additional consequences: Your debt may be sold to a collections agency, which will also report it to credit bureaus, and you still have to pay back what you owe in full. Collections on credit card debt can go on for years.

How to deal with credit card delinquency

The best case scenario with delinquency is to avoid it completely by paying your credit card bill on time and in full. If you happen to miss a payment by accident or need an extra few days, don't panic: take care of the overdue balance as quickly as you can and continue to make timely payments going forward. (Autopay is your friend if forgetfulness is the problem.)

If you do end up with a delinquency of 30 days or more, do not ignore it. Call your credit card company immediately to discuss your options—some have hardship programs or custom payment options for customers experiencing financial difficulties and may work with you to get your debt paid off.

If you can't get your credit card debt under control by making payments and working directly with your issuer, you may need to consider alternatives, like enrolling in a debt management plan through a nonprofit credit counselor or a consolidation loan.