What happens if I miss a credit card payment?

Missing a credit card payment, or a few payments, can feel overwhelming. With household debt at record highs and interest rates still elevated, Canadians are under more financial pressure than ever. 

The key to protecting your financial health comes down to what happens after you miss a credit card payment and how to set yourself up for future success.

The immediate impact

The moment your due date passes without at least the minimum payment, your credit card issuer will apply:

• Late payment fee: Can vary based on your credit card so make sure you know the fee structure of your card.
• Loss of grace period: Interest starts accruing immediately on new purchases
• Penalty interest rate: Your APR can jump significantly, making it harder to catch up

Credit score impact

If your payment is more than 30 days late, your lender reports it to Equifax and TransUnion. A single missed payment can:

• Drop your score anywhere from 50-100 points
• Stay on your credit for up to six years, potentially impacting your ability to get loans, mortgages, or even rent a home.

After 60-90 days

If your payment remains unpaid for two to three months you can expect:

• Persistent calls and letters from your creditor’s in-house collections team
• Your account may be assigned to a collection agency which will also call and send written demands for immediate repayment

After six months

If you haven’t made a payment for six months, your credit card issuer has a few options and will likely do one or more of the following:

• Continue collection efforts using their in-house collection department
• Assign your file to a collection agency for collection on a commission basis
• Arrange to sue you for repayment – though lawsuits are rare and typically reserves for high-value accounts
• Sell your outstanding account to a debt buyer

In some instances, your creditor might choose one option and if your account remains unpaid after several months or years, might choose another option. For example, your creditor might assign your account for collection to a third-party agency and after a period of months or years might then sell your account to a debt buyer.

Know your rights

Calls from your creditors can be overwhelming and all-consuming. It’s important to note you have protections as set out by the Financial Consumer Agency of Canada (FCAC) to protect you.

• Collectors must identify themselves and cannot harass or threaten you
• You have the right to request written verification of the debt
• Provincial laws impose stricter disclosure and limit unfair practices so be sure to know the laws in your province

Missing a credit card payment is about more than just a late fee – it can trigger higher interest rates, long-term credit damage, and aggressive collection efforts.

With rising delinquencies and tighter lender risk strategies, acting early is critical. If you’re struggling with paying your debt, contact your local MNP advisor to discuss your options before things spiral out of control.