What should I expect when I missed 2 consecutive credit card payments?

Question

I've been looking for answers on here and have only found tidbits of what I need to know. Here is the full story:

I missed my June credit card payments (on all 3 of my cards) and will also have to skip July's. I will be able to pay what I owe come August, so I won't have missed more than 2 consecutive payments on each card. It's been a rough summer for me but I will definitely be paying what I owe in another month...but not without having skipped out on 2 payments first.

I know that means my APR is going to go through the roof on all three cards. I've accepted the fact that that is the heavy price I'll have to pay for my mistakes these 2 months. I'm already receiving phone calls but I'm not bothering to answer because I can't even pay til August 10th anyway.

My question is: Aside from the fact that my APR is going to go up and they will be calling me for another month, should I expect any other problems? Or can I really go 2 months and then just catch myself up on what I owe?

Also, yes I am aware my credit is damaged and my credit report will look ugly. My primary concern is that they won't close the account or make me pay the balance in full for only 2 missed payments or sue me...things like that.

Answer 1

You already know that your APR will likely go up and that your credit will likely be affected. Specifically, payment history accounts for 35% of your FICO score. So being late on multiple cards can really make a dent in your score. Your credit score can influence many things, from the ability to get a loan for a house or car, to the interest rate you'll pay. On a car loan, this could mean the difference between paying 5-8% interest and paying 15-20% or more.Your credit history can also jeopardize employment and housing opportunities since many employers and landlords routinely check credit. Some think that the reason for this is to establish financial responsibility. Certainly that can be part of it. However, financially stressed individuals tend to be less productive at work, because they are distracted by other life issues. Employers want to know they can count on you!

Keep in mind it is not a given that your creidtors will report your delinquency. Different companies may report at varying times (i.e.30, 60, 90 days or more delinquent). For example, I work for a company that generally reports late payments to all three credit bureaus once an account goes 90 days past due. However, if another company such as a mortgage or car lender, makes an inquiry into a borrower's credit history sooner, the delinquency will be reported sooner.

Along with the hit you may take on your credit and with your interest rate, you may also have to contend with:
--possible late fees, which could be quite costly;
--having your accounts turned over to outside collections, which could be a nightmare to deal with; and
--establishing a history/reputation for not dealing with your situation, which can make it less likely that those you eventually speak with will accommodate any special requests of yours (such as lowering your interest rate)

The most important thing you can do is pick up your phone when your creditor calls! Right now, you look like an avoider to your creditors, even though you fully intend to bring your accounts up to date in August. (Everytime you are called, it's probably getting logged into your account history.) Why not speak with someone, let them know what you can do, and have them log that in your account notes. It'll certainly help establish you as more responsible and accountable that someone who never picks up the phone or who hangs up once they realize the creditor is on the phone.

Also, by speaking with a representative, you'll probably be able to stall the phone calls for a while. In our office, a simple conversation can hold phone calls for 21 days.

Finally, by speaking with someone, you may find that there are options that exist to give you some relief with your payments during temporary hardships. Perhaps that will mean you won't be charged so much in late fees or get hit with a big rate hike, Where I work, borrowers often don't realize that we are calling to help, no hound. The only trouble is, our ability to hep dimishes as time passes with no contact. To maximize your options now, pick up the phone!

By picking up the phone, you'll be able to learn about and avail yourself of any and all help that you can get. You'll probably also feel better, because you'll have at least one less thing to worry about.

Something else to consider: try asking friends and family for help. They probably won't cahrge you late fees and interest (and you certainly will save yourself an interest rate hike), and you could pay them back in August when you were going to pay your creditors.

Most people don't like to ask for help, perhaps out of embarrassment or a sense that they want to take care of it themselves; however, you might be surprised how many people have gone through their own difficult times and would welcome the opportunity to help you.

Regards,
CR

Answer 2

Depends on the contract. You need to read the fine print. They can ask for full payment and may close the account. Usually they won't because if you use the card you will be paying at a much higher APR. If you miss a month they may let it slide. You can always claim oversight. But two in a row....hmmmm. Again, it depends on the company. If you have been a good customer, then they make let it go. It also doesn't hurt to call them and explain the situation. They may get a little huffy puffy.

I would have at least made an effort to make the minimum payment. Been there before. I made sure I made at least the minimum payment.

Answer 3

You are over reacting. If you already have good credit, you probably will have no reprocussions from missing 2 payments. I don't even think your interest rate will go up. i've missed payments before. More than 2. I still have great credit. Credit card companies are more interested in the BIG money problems. As a matter of fact, call them up and just let them know you're sending money soon. You won't have any problems that way.

Answer 4

Talk to your creditors, ASAP. Let them know you're having financial problems. Lots of creditors have in-house programs that can help you get back on track. If you and your creditors play nice, they might also not charge you late fees while you're trying to catch up.
CCs usually won't close your account without your consent. Although, creditors can freeze your accounts so you can't charge any more. And they won't make you pay the full balance for being just a couple of months behind.

If you do make arrangements with your creditors, document names, date and time and a short note of your discussion. Better to be safe than sorry. Certain creditors can be tricky.

Good luck!

Answer 5

How to Manage Your Credit Card Debt?
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Answer 6

You can expect a couple of guys with baseball bats at your front door...They like to get thier money.....

Answer 7

you need to call them and let them know what your problem is! you should never not send anything and if you don't at least call

Answer 8

ull have to pay lots of interest