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What Happens If You Miss a Credit Card Payment — UK Guide

What happens when you miss a credit card payment. Late fees, interest charges, credit score impact, and what to do if you can't pay your credit card bill.

If you're struggling with debt, free confidential help is available from StepChange (0800 138 1111), National Debtline (0808 808 4000), and Citizens Advice.

Missing a credit card payment isn’t the end of the world, but knowing what happens and acting quickly can limit the damage.

What Happens Immediately

Late Payment Fee

Most providers charge £12 when you miss a payment. This is added to your balance and will accrue interest.

Loss of 0% or Promotional Rate

If you have a 0% interest deal (balance transfer, purchases, or both), missing a payment can cause you to lose the promotional rate. Your balance reverts to the standard interest rate, which is typically 20%–30% APR.

Check your terms — some providers give one chance, others remove the deal immediately.

Interest on Full Balance

If you normally pay your balance in full each month (avoiding interest), missing a payment means you’ll be charged interest on the entire outstanding balance from the statement date — not just the unpaid amount.

What Happens Over Time

The consequences escalate the longer the payment remains outstanding:

Timeline What Happens
1–29 days late Late fee charged, potential loss of promotional rate, interest accrues
30 days late Missed payment recorded on your credit file
60 days late Second late fee, further credit score damage, provider may reduce your credit limit
90+ days late Account may be marked as “in arrears” or “defaulted”
3–6 months Default notice issued, account may be passed to a debt collection agency
6+ months Potential CCJ application, long-term credit file damage

Impact on Your Credit Score

How Missed Payments Are Recorded

Credit reference agencies (Experian, Equifax, TransUnion) record your payment history each month:

  • On time: Positive mark
  • 1–29 days late: Usually not reported (but the provider knows)
  • 30+ days late: Recorded as a missed payment
  • Default (usually after 3–6 missed payments): Registered as a default

How Long It Stays on Your File

  • A missed payment stays on your credit file for 6 years
  • A default stays for 6 years from the date of default
  • A CCJ stays for 6 years (or can be removed if paid within 1 month)

The Real-World Impact

A missed payment or default can make it harder to:

  • Get a mortgage
  • Rent a property (landlord credit checks)
  • Get a phone contract
  • Open new credit accounts
  • Get favourable interest rates

What to Do If You’ve Missed a Payment

Pay as Soon as Possible

The sooner you pay, the less damage:

  • Within a few days: You’ll pay the late fee but may avoid a credit file mark
  • Within 30 days: Stops the missed payment being reported to credit agencies
  • After 30 days: The mark is on your file, but paying prevents further escalation

Contact Your Provider

Call or use online chat to:

  • Explain your situation — providers must treat you fairly (FCA rules)
  • Ask for the late fee to be waived — many will do this for a first offence
  • Request your promotional rate be reinstated — worth asking, some providers agree
  • Set up a direct debit for at least the minimum payment to prevent future misses

Set Up a Direct Debit

The single best way to avoid missing payments:

Direct Debit Option Best For
Full balance Avoiding all interest charges
Fixed amount Budgeting a set repayment each month
Minimum payment Safety net to avoid late fees (but costs more in interest)

Setting up a direct debit for the minimum payment as a safety net, then making additional manual payments, gives you the best of both worlds.

If You Can’t Afford to Pay

Minimum Payment Only

If money is tight, paying the minimum payment keeps your account in good standing. But be aware:

  • Minimum payments are typically 1%–2.5% of the balance plus interest
  • Paying only the minimum on a £3,000 balance at 22% APR could take 27+ years to clear
  • You’d pay thousands in interest

Contact Your Provider for Help

Credit card companies have affordability teams that can offer:

  • Temporary reduced payments
  • Frozen interest and charges
  • Extended repayment plans
  • Payment holidays (up to 3 months)

They’re required by the FCA to treat customers in financial difficulty sympathetically.

Free Debt Advice

If you’re struggling with multiple debts:

  • StepChange — free debt advice and debt management plans
  • National Debtline — free telephone advice
  • Citizens Advice — face-to-face and online help
  • MoneyHelper — government-backed guidance

These organisations can help you understand your options, including:

  • Debt management plans — reduced monthly payments to all creditors
  • Individual Voluntary Arrangement (IVA) — formal agreement to pay what you can afford
  • Debt Relief Order (DRO) — for debts under £30,000 with few assets
  • Bankruptcy — last resort, clears most debts but has serious consequences

The Escalation Process

If you don’t pay and don’t engage with your provider:

  1. Reminder letters — increasingly urgent
  2. Default notice — formal warning giving you 14 days to pay
  3. Account closed — the debt remains but the card is cancelled
  4. Debt sold to collection agency — they buy the debt and chase payment
  5. County Court Judgment (CCJ) — court order to pay
  6. Bailiff action — enforcement of the CCJ (can take goods to sell)

At any stage, engaging with the provider or seeking debt advice can slow or stop this process.

Sources

  1. MoneyHelper — Dealing with debt
  2. Citizens Advice — Debt and money