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Man looking at his laptop to find out how a missed credit card payment will impact his credit score

How Will a Missed Credit Card Payment Impact My Credit Score?

It’s very important to do everything you can to maintain a good credit score. Even just one missed credit card payment can have detrimental effects on your credit for years to come. If you are having trouble making your minimum payments, you may want to consider an installment loan from Simple Fast Loans to avoid any missed payments. 

In this article, we are going to break down why it’s so important to stay current on your credit card payments and how Simple Fast Loans can help you do that if you need some extra help. 

When Is a Credit Card Payment Considered Late?

Most credit card payments are considered late 30 days after the due date. So, if your payment was due more than 30 days ago and you haven’t yet made a payment, you are considered late. 

How Will a Missed Credit Card Payment Impact My Credit Score?

Sometimes missing a credit card payment happens. Whether you forget or just don’t have enough money in your account by the due date, it’s easy for it to slip by. 

Unfortunately, when you miss a credit card payment, even just one, there are sometimes lasting effects on your credit. This is important to consider if you think you might be late and a good reason why you should always try to pay on time or early to avoid this. 

Here are some of the things that are likely to happen to your credit if you miss a credit card payment:

Credit Bureau Reporting

Most credit card companies will report your late payment to the major credit bureaus, Transunion, Experian, and Equifax, once you are 30 or more days late. This will result in a semi-permanent remark on your credit report. 

Items such as late payments will stay on your credit report for about 7 years, so even just that one late payment will stay with you for quite a while. 

Increased Interest Rates

If you make a late payment on your credit card, they may increase your interest rate. 

This happens because since you made a late payment, you are considered less credit-worthy. Even though you can still use your credit card, they may add on that additional interest to discourage you from continuing to make late payments. 

Lower Credit Score

When credit card companies or other lenders report a late payment to the credit bureaus, it will most likely lower your overall credit score. How much it will lower depends on a few factors, but it will almost certainly lower it by at least a few points. 

Even if you have been a good payer for a long time, a late payment can make a big impact on your credit score. Your payment history makes up about 30-35% of your credit score, so even a one-time late payment can have a big effect that will take months or years to reverse. 

Difficulty Getting Approved for Other Financing or Loans

When your credit score decreases, you will appear less credit-worthy if you apply for any other credit or loans. If you are planning to apply for another credit card, a mortgage, auto loan, or any other kind of financing, your credit score is a huge factor in the decision to approve you. 

If your credit score has dropped due to a late payment, you may have a hard time getting approval for any additional loans until it comes back up. This can take up to 7 years depending on what other detrimental factors appear on your credit report. 

If you do get approved for a loan, it may be for a smaller amount than you were hoping for, or you may have a higher interest rate. These are the most common ways that banks and other lenders will work with people who have lower credit scores because they are viewed as less likely to repay. 

couple reviewing bills

What Is an Installment Loan?

An installment loan with Simple Fast Loans is an easy way to borrow a set amount of money that you will pay back over time in small incremental payments, also called installments. 

Installment loans with Simple Fast Loans are a great way to get your hands on some cash to pay your credit card payments without incurring late fees or impacting your credit score. You can get instant approval online to borrow from $200-$3,000 to cover your expenses and/or payments. 

How Can an Installment Loan Help Me With My Credit Card Payments?

Applying for an installment loan from Simple Fast Loans can help you bridge the gap and get your payments covered quickly and easily. It is a hassle-free process that can make a big impact on your finances and your credit score. 

Here are some ways that an installment loan from Simple Fast Loans can help you with your credit card payments: 

Make Payments on Time

If you know you have a credit card payment due soon that you won’t be able to afford, installment loans are a great way to cover that until you get the money. You can apply online and get an instant approval for the amount you need to comfortably pay your bill on time and avoid late payment penalties and other issues. 

Installment loans from Simple Fast Loans will have the money deposited in your account within 24 hours of your approved application. This is great if you are short on time to get your bills paid. 

Only Borrow What You Need

With flexible loans ranging from $200-$3,000, you can borrow as much as you need and split your payments up over time.

If you only need a few hundred dollars to cover some credit card bills, you can easily do that with. If you need a little bit more money to cover other expenses in addition to your credit card bills, you can apply for extra to cover those as well. 

Easy Application Process

You can apply online with Simple Fast Loans with any computer or device using their simple application form. There are no long, complicated pages to fill out and all you need is some basic personal information to submit your application. 

Once your application is completed, most loan decisions are instant. You will know right away whether you were approved and how much you were approved for. 

Your loan amount will be based on your income status and your current credit rating. Even if you have less than stellar credit, you can still get approved for an installment loan from Simple Fast Loans. 

Get Money Quickly

No waiting around for 3-5 business days to see the money hit your account. Simple Fast Loans understands that when you apply for an installment loan, you need the money quickly so you can catch up on your payments and move on with your life. 

Once your loan is approved, the money will be deposited into your account within 24 hours. In most cases, the funds are deposited the same day. 

woman paying bill

What Should I Know Before Applying for an Installment Loan To Cover My Credit Card Bills?

An installment loan is a great way to help pay your bills when you are struggling financially or just need a little extra time to come up with the cash to pay your credit card bills. There are still some important considerations to think about before deciding if an installment loan is right for you. 

Here are some important things to think about before applying for an installment loan: 

  • Make a repayment plan - Before you take out an installment loan, it’s important to have a plan to repay the loan and a budget set up so you don’t get into financial trouble again. Make sure you understand what the monthly installments will be and make sure you can cover them monthly until the loan is paid off. 
  • Don’t over or underestimate your needs - You can borrow $200-$3,000 from Simple Fast Loans depending on your credit score and your income. Make sure you know how much you need to cover your important bills.

    If you don’t take out enough, you may still have a hard time making payments. If you take out too much, you might have a bigger repayment bill than you expected. 

  • Apply before you’re late - Even though installment loans with Simple Fast Loans can be approved and deposited quickly, it’s important to plan ahead before your payment is late.

    If you think you’ll need an installment loan to cover a credit card bill, apply a week or two before the due date. This ensures you have enough time to get approved, get the money, and make the payment on time. 

  • Be prepared to apply - Make sure you have everything you need to complete the application for your installment loan.

    With Simple Fast Loans, you must be 18 or older and you will need a Driver’s License, your social security number, a bank account, and a valid phone number. If you are missing any of these items, your application may not be completed on time or denied. 

Final Thoughts 

It’s never a good idea to pay your credit card bills late. Payments made 30 or more days after the due date will be reported to the major credit bureaus and will be reflected on your credit score for at least 7 years. 

Even just one late payment can cause damage to your credit score that will haunt you for years to come. Late payments make up a large portion of your credit rating, so you can expect to see an impact from a late payment even if you’ve always paid on time. 

If you’re having a hard time coming up with the money to pay your bills, an installment loan can help. They offer you a flexible loan for only as much as you need with an affordable repayment amount so you won’t risk falling behind again. 

With an installment loan from Simple Fast Loans, you can cover a month (or a few months) of your credit card bills until you get back on your feet. They have an easy application process and deposit the funds into your account quickly so you can pay your bills and not stress about late fees and credit score decreases. 

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