More Than 11% of the U.S. Population Missed a Credit Card Payment Last Year

A recent FICO report found that more consumers are falling behind on their credit card payments. Not paying your credit card bill on time can result in late fees and lead to you racking up expensive credit card debt -- which can be challenging to pay off quickly.

Unfortunately, FICO scoring data shows that over 11% of the U.S. population has missed a credit card payment within the last year. Find out more about how this money mistake could impact your credit score and why paying your credit card bills on time is essential.

Over 18% of consumers had past-due payments last year

FICO, the company behind the most commonly used credit score known as the FICO® Score, regularly releases reports that analyze consumer credit score data.

In a recent report examining October 2023 scoring data, FICO found that many U.S. consumers had past-due payments listed on their credit reports in the last year.

Over 18% of the population had a 30-day or worse past-due payment on one or more credit accounts. Compared to April 2023 data, that's a 4% increase in missed or late payments. Consumers were behind on various credit accounts, including mortgages, credit cards, and auto loans.

11.2% of consumers were past-due on credit card accounts

FICO's October 2023 data showed that mortgage and auto loan missed payments increased but remained below pre-pandemic levels. However, missed credit card payments increased and now exceed pre-pandemic levels.

The latest report shows that 11.2% of the population had a 30-day or worse past-due payment on one or more credit card accounts -- compared to 10.5% in April 2023. That's concerning.

Many Americans are likely relying on credit cards to cover some of their expenses now that everyday costs are higher. If you use credit cards, paying at least the minimum amount due by the due date is vital. Otherwise, your credit card issuer will charge late fees.

Plus, you'll be charged interest when you carry a balance on your credit card account. Credit card interest rates are usually extremely high (20% or higher), so it can quickly get expensive. You should pay the entire monthly statement balance for your credit cards to avoid interest fees.

Paying your entire statement balance is also good practice because it can help you maintain a lower credit utilization ratio. Your credit utilization ratio is how much of your available credit you use, expressed as a percentage. Experts recommend keeping your credit utilization ratio below 30%. Not carrying a balance on your credit cards can help you do this.

Your payment history impacts your credit

Late or missed payments could impact your credit report and credit score. Your payment history makes up 35% of your FICO® Score, so staying on top of your bill payments is crucial. If you can afford to pay your credit card bills but forget due dates, consider enrolling in autopay through your credit card accounts. Doing this can ensure your bills are paid by the due date.

It pays to care about your credit

Don't ignore your credit. If you have no credit or a poor credit score, it can make your life harder. For example, you may struggle to qualify for an auto loan or mortgage in the future. Reviewing your credit reports can allow you to know where your credit stands.

You can request a free credit report from each credit bureau at AnnualCreditReport.com. Your credit report won't list your FICO® Score, but some credit card issuers include credit scoring tools within their mobile apps. You can use tools like this to get a free credit score estimate.

If your credit or credit score needs work, making small changes, like paying every bill on time and maintaining a low credit utilization ratio, can help. For additional financial guidance, check out our personal finance resources.