How Late Can Your Credit Card Payment Be Before You Have Big Problems?

When you get your credit card bill in the mail, you should try to do everything you can to pay it by the due date listed on the bill. Unfortunately, this isn't always possible. You might simply forget to make a payment sometimes, which isn't a good thing -- but we're all human. Or you may not have the money in your checking account to cover the minimum payment when the bill comes due.

If you are going to be late on a credit card payment, there are consequences. But the good news is you may have a little bit of time before you face real trouble. Here's how late you can be before problems start.

Here's when your credit score is affected

Credit card companies report late payments to the credit bureaus. Even a single late payment could cause your score to drop by around 60 to 110 points, depending on how solid your credit record was prior to the missed payment. Those who previously had a better score will see a bigger decline.

The good news is that card companies don't report your late payment until you are 30 or more days late. So you have a month before you need to worry about your credit score being damaged.

Here's when interest kicks in

Credit card companies offer you a grace period before you start having to pay interest on purchases. Usually, this is about 21 days between the time that you get your monthly card statement and the time your payment is due. So, if you pay your payment by the due date during that grace period, you will not owe any financing charges.

Once you're late with your payment, though, then you start owing interest on any charges you made during the course of the month. Interest is accrued daily, which means that interest is calculated for each day you have a card balance. That day's interest charge is added onto what you owe, so the next day, the balance you're charged interest on is a little higher.

Credit card interest rates are high, with the Federal Reserve reporting the average rate was 21.19% as of August 2023. Add that to the fact that interest compounds daily so your balance is constantly growing, and you end up paying a lot more for purchases. If you want to avoid this, you'll not only need to make your payment on time but will also need to pay the entire full balance by your bill's due date.

Here's when you get stuck with a late payment fee

Credit cards can charge late payment fees as soon as your payment is not delivered on time -- even if it is only a day late or a few hours late -- because it comes after the close of business on the day it is due.

Card issuers can charge you up to $30 for your first late payment and up to $41 for any additional late payments. That can get expensive quickly.

So, as soon as you are even a few hours late, you'll face added costs of fees. Interest charges will also start to accrue right away. While your credit score won't be damaged immediately, these consequences are still serious and it's always best to try to pay on time if you can. Aim to set up an automatic payment for at least the minimum due, so accidentally forgetting to make a payment won't hurt your finances.