It’s a valid fear when applying for a credit card. What happens if I miss a credit card payment here in the UK? Well, you could end up paying more money than you need to. And maybe worse…
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Perhaps I’ve come across too strongly there. One missed payment doesn’t automatically mean your card will be taken away from you and you’ll be blacklisted forevermore!
However, credit-card providers can issue ‘late fees’ of up to £12. That may not sound much to some, but it can go a long way. Also, these fines can really add up if multiple payments are missed.
What I’m most conscious of, though, is what happens to my credit score if I miss a credit card payment, as a lot rides on the credit history in the UK.
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Each time a cardholder misses a billing cycle, or is even marginally late with a payment, a note is added to their credit file. In fact, if they were to miss between three and six monthly payments, they’d receive what’s known as a ‘default’. This is a marker that stays on one’s credit history for six years.
The more ‘black marks’, the less likely it is that a credit-card provider will accept applications. The same goes for mortgage lenders and the like. So it’s really in cardholders’ best interests to pay on time!
(Personally, I set myself reminders in my calendar each month to ensure I avoid the repercussions of what would happen if I were to miss a credit card payment. Life’s stressful enough without being issued with late fees, and denting your credit score!)
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