The Consequences of Late Credit Card Payment

There are Singaporeans who prefer credit cards than debit cards. For some Singaporeans, credit cards are more convenient. Do you know that there was a study conducted by Credit Bureau Singapore? The study revealed that 14.64% of clients miss at least 1 credit card payment in 2013. The figure increased from the previous year.


Missing at least 1 credit card payment may not be a big deal to you but you should know that the creditors feel the other way. Missing 1 credit card payment means serious trouble if you do not settle it at once. Your creditors will take action right away. So, it is crucial that you know the consequences of late credit card payment so you will know how to respond. Here are the consequences that you should be wary about:

  • Late fee: If you are only late for a day or few hours, the creditor will charge you with late fee. The late fee will depend on the bank or institution. It also depends whether it is your first time or not.  
  • Interest rate: If you haven’t paid your account for at least sixty days, your interest rate will undoubtedly increase whether you like it or not. Of course you will also pay the late fee. For more information, you should read your Credit Card Terms and Condition.


  • Credit report: Do not forget that the late payment shall be added to your report. In every incident, there will be a credit report made. If you are unable to pay for more than thirty days, a credit report will stay. The report will be kept for at least seven years.
  • Credit score: Your credit score depends on your performance. You should remember that if you are a good payer, you have chances of increasing your credit score. Do not miss at least one payment if you want to increase your credit score, that is the secret.

If you do not want to be indebted to any institution, you should settle your payments as soon as you have the money. If you cannot make it on time, you can call your bank and ask for leniency. After 30 days of late payment, you will suffer more consequences. The most important thing here is to remember your due. Unfortunately, forgetting your payment is not a valid reason when creditors hear your case.

If you do not want to deal with the credit, do not consider it in the first place. It is always better and it is wise to use debit cards.