How long can I stay without paying my credit card?
If 180 days go by and you still haven't paid your credit card's minimum payment, the issuer can charge off your account. This means that the creditor closes your account to future purchases and writes your debt off as a loss. You're still responsible for paying the amount owed, though.
That said, keeping your head in the sand for a few more years doesn't necessarily mean you're home free. The other risk you take by ignoring your debt is that your creditor — or a third-party collection agency that has taken over your debt — could sue you for the amount you owe, plus interest and penalties.
"Many will charge off accounts after six months, while others might wait 12 months or longer," he says. A charge-off is a big negative mark that stays on your credit report for seven years.
If you miss the next payment, and you're reported as 60 days past due, your credit card interest rate may increase, you'll be charged a late fee and interest, and your credit score will drop some more. At 90 days past due, all of the above happens, and the issuer may close your credit card.
You're still responsible for debt if you leave the country. If you stop making payments, it can ruin your credit score, and your creditors could also sue you to potentially garnish U.S. assets and wages.
In most states, a credit card company can't sue you for debt that still has not been paid after seven years. However, the statute of limitations varies from state to state. Certain actions can restart the clock and add additional time during which the creditor can sue as well.
Consequences for missed credit card payments can vary depending on the card issuer. But generally, if you don't pay your credit card bill, you can expect that your credit scores will suffer, you'll incur charges such as late fees and a higher penalty interest rate, and your account may be closed.
If you don't pay your credit card bill for more than three months, your credit score will go down, your account might be closed, and your credit card company might take legal action against you.
If you stop using the card altogether, there's a chance that your account will be closed (typically after at least 12 months of inactivity). This will appear on your credit report and could drop your score, so it's vital to keep your account active and make the payments needed to keep your account in good standing.
In addition to a late fee, you may face a penalty APR, which often hovers around 29.99 percent. If you have a promotional APR, one late payment could cancel your promotional APR and your interest rates could balloon to the max amount, depending on your credit card agreement.
What happens if I don't pay my credit card for 2 years?
Your lender will contact you to demand the missing payments are made. Then if you don't make the payments they ask for, the account will default. And if you still don't pay, further action may be taken, such as employing debt collection agents to recover the money you owe them.
It's important to pay off your debt as soon as possible because if you miss two consecutive monthly payments (so, if you're more than 60 days late), the issuer can apply this penalty interest rate to your existing balance as well.
It might take three to five months of strong payment history to get the score to turn around, Jackson says. Missed payments will stay on your credit record for seven years from the date of activity, "but that doesn't mean the impact on your credit score is there for the duration of the seven years," McClary says.
The best way to maintain your credit while living abroad is to continue using your U.S. credit cards. However, to keep your existing cards, and to maintain your U.S. bank account or other financial accounts, you need a U.S. address.
While debt technically won't follow you abroad, you may suffer several consequences for trying to flee from it: you may be sued and have your wages garnished; your credit score will suffer; you may have to pay taxes on your debt. These are just a few consequences of leaving the country with unpaid debt.
The longer you go without paying, the more likely you are to rack up fees, damage your credit score, see your interest rate soar, be harassed by debt collectors, and even face legal issues.
Most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit scores may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
A lost or stolen card sometimes triggers an account review. If the credit card company notes delinquent payments or a lower credit score, you may no longer qualify for their credit.
Failing to do so can result in late fees, potential damage to your credit score and even having your account closed and turned over to collections. In other words, if you don't have the cash to cover your credit card bill, the solution is not to simply skip your payment and hope for the best.
What happens if I don't use my credit card for a year?
Most credit card issuers will overlook a few months of inactivity, but if you go six months to a year without charging a single item to your card, the issuer will likely cancel it for you. Each company sets its own rules for how long it will wait before it cancels an inactive card.
You'll still need to pay your annual fee
Some credit card companies charge annual fees that you must pay in order to use their cards. You'll still have to pay a fee if you do not use the card. Choosing to stop using your credit card so that you can avoid this fee won't do you any good.
If you never use your credit card, you could be facing consequences down the line. Let's say you've stopped using a credit card to make transactions. Months go by, then a year or even longer. Credit card issuers may lower your credit limit due to inactivity before closing.
The Bottom Line. Making timely payments for the full or minimum amount due is always a good idea. Partial payments are usually considered late or missed payments, which can impact your credit—and not in a good way.
Unless you've reached a prior agreement with the credit card company, partial payments will not satisfy your account's minimum payment requirements. Even if you pay a little money, your account will become delinquent, and the credit card company will report the late payments to the credit bureaus.
