Your card issuer will start contacting you, then report the missed payment to credit bureaus
When you miss a credit card payment, the first thing that happens is your card issuer tries to reach you. Most issuers call or send notices starting around day 15 after the due date, though some begin earlier. They want the payment, and they want to know if there is a temporary problem or a larger one.
By day 30 past due, the missed payment shows up on your credit report. This single late payment can drop your credit score by 100 points or more, depending on your score before the miss. The damage is real and immediate, but it is also not permanent — the impact lessens over time, especially if you catch up.
After 60 days, the issuer typically increases contact attempts and may threaten to close your account. After 90 days, most issuers charge off the account, meaning they write it off as a loss on their books and may sell the debt to a collection agency. A charge-off does not erase what you owe — it just means the original issuer has given up trying to collect directly.
Key Takeaways
- Your card issuer will contact you starting around day 15 and report the miss to credit bureaus by day 30, which damages your credit score immediately.
- After 90 days, most issuers charge off the account and sell the debt to a collection agency, which then pursues you for payment.
- You remain legally responsible for the full balance plus interest and fees, even after a charge-off.
- Contacting your issuer before or shortly after missing a payment can sometimes result in a hardship plan or temporary relief.
- The debt can appear on your credit report for up to seven years from the date of first missed payment, even if you pay it later.
How interest and fees pile up while you are behind
The moment you miss a payment, interest continues to accrue on your balance. Most credit cards charge a penalty interest rate — often 29.99% or higher — once you are 60 days late. This means your debt grows faster the longer you do not pay.
Late fees also stack up. Your first late fee is typically $25 to $35, and a second late fee (if you miss the next payment) is often $35 to $40. Some issuers cap late fees at two per billing cycle, but the fees still add hundreds of dollars to what you owe over time.
If your card has an annual fee, that continues to be charged even while you are behind. Over-limit fees may also apply if your balance plus interest and fees pushes you over your credit limit. The total amount you owe can grow significantly faster than the original balance.
Collection agencies and what they can legally do
Once your account is charged off, the debt is often sold to a third-party collection agency. This agency now owns the right to collect from you. They will contact you by phone, mail, or email, and they will be persistent.
Collection agencies are bound by the Fair Debt Collection Practices Act (FDCPA). This law prohibits them from calling before 8 a.m. or after 9 p.m. in your time zone, calling your workplace if your employer forbids it, harassing you, making false threats, or contacting you after you have sent a written request to stop. If a collector violates these rules, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or sue the agency.
What they can do legally is sue you for the debt. If they win a judgment, they can pursue wage garnishment (taking money directly from your paycheck) or bank levies (freezing and taking money from your bank account). The rules for garnishment vary by state — some states protect a portion of your wages, and some protect certain types of income entirely.
Your credit score and how long the damage lasts
A single missed payment can lower your credit score by 100 to 180 points depending on your starting score and payment history. The newer your score, the bigger the hit. If you have a strong history, the damage is often larger because the miss is unexpected.
The late payment stays on your credit report for seven years from the date of the first missed payment. This does not mean your score stays damaged for seven years — the impact weakens over time, especially if you make on-time payments on other accounts. After two years, the effect is usually much smaller. After four or five years, it is often minor.
A charge-off also appears on your report for seven years. Even if you pay the debt later, the charge-off remains visible, though some lenders view a paid charge-off more favorably than an unpaid one. Paying it does not erase it, but it does show you eventually settled the account.
Options if you contact your issuer before or shortly after missing a payment
If you call your card issuer before your payment is due or within a few days of missing it, you have more options than if you wait. Some issuers offer hardship programs that temporarily lower your interest rate, waive fees, or reduce your monthly payment for a set period — usually three to twelve months. These programs are not automatic; you have to ask, and you have to explain your situation.
You can also ask for a one-time fee waiver or a late fee reversal if this is your first miss. Many issuers will do this once, especially if you have been a customer for years. The key is calling before the account is reported to credit bureaus or before it goes to collections.
Some issuers will accept a partial payment or a payment plan if you cannot pay the full amount. This keeps the account from going to charge-off and shows the issuer you are trying to resolve it. The sooner you contact them, the more flexibility they usually have.
When debt settlement or bankruptcy might be an option
If your debt is already with a collection agency and you cannot pay the full amount, you can try to negotiate a settlement. This means offering to pay a lump sum — often 30% to 60% of what you owe — in exchange for the collector agreeing to mark the account as settled and stop pursuing you. Get any settlement offer in writing before you pay.
Settlements hurt your credit score, but less than an unpaid charge-off does. The settled account still appears on your report, but it shows the debt was resolved. Collectors are often willing to settle because they bought the debt for far less than the full balance and any payment is profit.
Bankruptcy is a legal process that can discharge (eliminate) unsecured debts like credit cards. Chapter 7 bankruptcy can wipe out credit card debt entirely, while Chapter 13 creates a repayment plan over three to five years. Bankruptcy is a serious step with long-term credit consequences, but it stops collection calls immediately and can give you a fresh start. Consult a bankruptcy attorney to understand whether it makes sense for your situation.
Steps to take right now if you are behind or about to be
First, call your card issuer today if you have missed a payment or know you will. Explain your situation honestly. Ask about hardship programs, fee waivers, or payment plans. Document the name and date of anyone you speak with.
Second, stop using the card. Continuing to charge while you are behind makes the problem worse and signals to the issuer that you are not taking it seriously.
Third, if you have other debts, prioritize which ones to pay. Secured debts like mortgages and car loans should come first because the lender can take the house or car. Credit cards are unsecured, so they come after housing and transportation.
Fourth, if you cannot reach an agreement with your issuer and the account goes to collections, do not ignore the collector. Respond to written notices and consider consulting a credit counselor or attorney. Many nonprofits offer free or low-cost credit counseling through the National Foundation for Credit Counseling (NFCC).
Frequently Asked Questions
Will my credit card company sue me if I do not pay?
They may, especially if the balance is large and you have not made any payment attempts. Credit card companies and collection agencies sue regularly, and they often win because the debt is documented. A judgment allows them to pursue wage garnishment or bank levies. The likelihood increases the longer you go without paying or communicating.
Can a collection agency contact my family or employer about my debt?
No. Under the FDCPA, collectors cannot discuss your debt with family members, friends, or your employer. They can contact your employer only to verify you work there, not to discuss the debt. If a collector violates this, report them to the CFPB or consult an attorney about suing them.
If I pay off a charge-off, does it disappear from my credit report?
No. A paid charge-off remains on your report for seven years from the original missed payment date. However, paying it does improve your credit score somewhat compared to leaving it unpaid, and some lenders view a paid charge-off more favorably when you apply for new credit.
How long do I have before a collection agency can no longer sue me?
This depends on your state's statute of limitations, which ranges from three to ten years from the date of the last payment or charge-off. Even after the statute expires, the debt still appears on your credit report and the collector can still contact you — they just cannot sue. Check your state's specific rules or consult a local attorney.
What is the difference between a charge-off and a settlement?
A charge-off is when your issuer gives up and writes off the debt as a loss. You still owe it, and a collector may pursue you. A settlement is when you and the collector agree you will pay a reduced amount to close the account. Settlement is better for your credit score and stops collection efforts, but it requires you to pay a lump sum.