Missing credit card payments affect your credit score. By how much your credit score will be impacted depends on how long the bill is overdue.
Since your payment history is the most important element in deciding your credit score, it is critical that you pay your bills on time every time. If you ever miss a bill, three things can decide how much it affects your credit score.
- Your current credit score as well as your payment history
- When was the late payment made?
- The severity of the late payment
Additional Reading: Does Making Late Payments Affect The CIBIL™ Score?
Payments that are late for a period of 90 days or less are considered minor defaults. These defaults will have a considerable effect on your credit report but only temporarily. They can be fixed once you pay the bill. Though the credit score is decreased, it is to a lesser extent.
Payments that are not made even after a period of 90 days are very bad. They are going to stay on your record for a long time. Many creditors even turn over such accounts to collection agents. This is going to affect your future loan eligibility severely.
Additional Reading: Will Missing A Single Payment Affect My Credit Score
Points to note
The severity of missing a payment is not just dependent on how many payments you have missed, it also considers the bill amount and how late the payment was. If you want to have an impeccable credit history, the first and foremost point to remember is not missing even a single payment.