You might think a few late credit card payments aren’t a big deal, but the repercussions can be widespread, negatively impacting your financial goals and making it harder to secure future credit or loans with reasonable interest rates.

Whether it’s just forgetfulness or you’re struggling to keep up with your financial responsibilities, late credit card payments can have both minor and major consequences, including:

Late Fees

According to federal law, credit card companies may charge a fee up to $28 for the first offense and up to $39 if you make a second late payment within six months. If you have multiple late payments in a short span of time, these fees can add up and make it harder to make progress toward paying down your debt.

Higher Interest Rates

If your payment is more than 60 days past due, your credit card company can assess a penalty interest rate. While your typical credit card interest rates hover between 14% and 27%, penalty APRs can easily exceed 30% and stick around for six months. The higher interest rate means less of your monthly payment goes toward the principal and will make it harder to pay off your debt.

Lower Credit Score

It can’t be emphasized enough — payment history makes up a large portion of your credit score. Once your payment is 30 days past due, the creditor reports it to the credit bureaus, which can bring down your credit score.

Frozen Rewards

If you have a rewards card offering airline mileage or cash back, the credit card company may freeze those points until your bill is paid in full. Or you may lose points you earn during the unpaid billing cycle.

Lower Credit Limit

After 90 days of missing payments, your credit card issuer can lower your credit limit. This may impact your ability to access money in an emergency.

Danger of “Charge-Offs”

If an account reaches 180 days past due, your debt can be sold to a collection agency and the card issuer can write off your debt as a financial loss, noted on your credit report as a “charge-off.” A “charge-off” can stay on your credit report for seven years and is a red flag to future potential creditors who will be hesitant to lend to you.

If you’re struggling to make your credit card payments on time, take our free online financial review. You’ll receive a personalized budget and recommended debt solution.