What happens if you don t pay credit cards? If you don t make your payments, your credit card issuer can charge your account off and close it to future purchases. However, you are still responsible for the balance. You can also let the card issuer sell your account to a third-party debt collector, which will then charge you fees. This can affect your credit and will show up on your credit report for 7 years.
If you have a joint account with another person, you can add them as authorized users. Authorized users can rack up a lot of credit card debt. This can push the primary cardholder closer to the limit. This can negatively affect the credit score of the primary cardholder. Authorized users can also strain the relationship between the primary cardholder and the authorized user, so they should pay the bill on time.
Late fees start at $29 per missed payment and can go up to $40 for repeated violations in six billing cycles. You may also be charged a penalty annual percentage rate, which is often close to 30%. Late fees vary by card issuer, and some don’t even charge late fees! If you are struggling to make your minimum payment, consider contacting your lender and seeking financial assistance. Once you have a credit card that has no late fees, you can start to make your monthly payments on time.