Missing a credit card payment happens — life gets busy, payments slip through the cracks, or money is tight. But the consequences stack up faster than most people expect. A single missed payment can cost you hundreds of dollars in fees and interest, and a payment that goes 30+ days past due can damage your credit score for years.
Here is exactly what happens at each stage, what it costs, and how to recover.
Timeline: what happens after a missed credit card payment
| Time After Due Date | What Happens |
|---|---|
| Day 1 | Payment is past due. Late fee charged (typically $25–$30). Interest-free grace period is lost on new purchases |
| Day 1–29 | Interest accrues on the full balance at the purchase APR (typically 19.99%–22.99%). Issuer may send payment reminder by email or text |
| Day 30 | Payment reported as 30 days delinquent to Equifax and TransUnion. Credit score drops 50–100+ points |
| Day 60 | Second missed payment. Additional late fee. Reported as 60 days delinquent. Credit score drops further |
| Day 90 | Account flagged internally. Issuer may reduce your credit limit or suspend the card |
| Day 120–180 | Account charged off by the issuer (written off as a loss). Debt may be sold to a collection agency |
| 180+ days | Collections agency contacts you. Legal action possible. Judgment can lead to wage garnishment |
How much a missed payment actually costs
Here is a worked example showing how a single missed payment compounds on a $4,000 balance with a typical 20.99% APR:
| Cost Component | Amount |
|---|---|
| Late fee (first occurrence) | $29 |
| Interest for the month (on $4,000 at 20.99%) | $70 |
| Interest on new purchases (grace period lost, assuming $500 in new spending) | $9 |
| Total cost of one missed payment | ~$108 |
If you miss a second consecutive payment, add another $30 late fee plus a full month of interest on the growing balance. After two missed payments, the total cost can exceed $250 — not including the long-term cost of a damaged credit score on future borrowing rates.
Late fees by major Canadian issuer
Late fees are set by each issuer and are disclosed in the cardholder agreement.
| Issuer | Late Fee |
|---|---|
| TD | $25 first occurrence, $30 subsequent (within 6 months) |
| RBC | $25 first occurrence, $30 subsequent |
| BMO | $25 first occurrence, $30 subsequent |
| CIBC | $25 first occurrence, $30 subsequent |
| Scotiabank | $25 first occurrence, $30 subsequent |
| American Express | $29 |
| MBNA | $25 first occurrence, $29 subsequent |
| Capital One | $25 first occurrence, $30 subsequent |
Note: Late fees are capped at the minimum payment amount. If your minimum payment due is $10, the late fee cannot exceed $10.
Credit score impact
A missed credit card payment can do significant damage to your credit history, and the impact depends on how late the payment is.
| Scenario | Typical Credit Score Impact | How Long It Stays on Report |
|---|---|---|
| Paid within 30 days of due date | None (not reported to bureaus) | Not reported |
| 30 days past due | -50 to -100 points | 6 years (most provinces) |
| 60 days past due | -75 to -125 points | 6 years |
| 90+ days past due | -100 to -150+ points | 6 years |
| Charge-off or collections | -150 to -200+ points | 6 years from date of last activity |
People with higher starting credit scores tend to experience larger drops. A score of 780 might fall to 680 after a single 30-day late payment, while a score of 650 might only drop to 600.
The good news: the impact of a single late payment fades over time. If you bring the account current and maintain a clean payment history afterward, your score will begin recovering within 6 to 12 months, though the late payment notation remains on your report for the full 6-year period.
Grace period: what you lose
When your account is in good standing, Canadian credit cards give you a grace period — a minimum of 21 days between your statement date and payment due date during which no interest is charged on new purchases. This is one of the most valuable features of a credit card, and you lose it the moment you miss a payment.
Once the grace period is lost, interest accrues on every new purchase from the date of the transaction — not the statement date. To restore the grace period, you must pay your full statement balance in full by the due date, which can take one or two billing cycles to achieve if you are carrying a balance.
What to do if you have already missed a payment
- Pay at least the minimum immediately. Even a partial payment is better than nothing. Making the minimum payment before the 30-day mark prevents the delinquency from being reported to the credit bureaus.
- Call the issuer and ask for a fee reversal. If this is your first missed payment, most issuers will reverse the late fee as a courtesy. Be polite and direct — say you missed the payment by mistake and have already made payment.
- Set up autopay for the minimum. This prevents future missed payments. You can always pay more than the minimum manually, but autopay ensures you never miss the floor.
- Do not close the card. Closing a credit card reduces your total available credit, which increases your credit utilization ratio and can further lower your score. Keep the card open and use it occasionally.
- Stop adding new charges. If you are carrying a balance, avoid new purchases on the card until you have paid it down and restored your grace period.
- Check your credit report. Log into Equifax or TransUnion (both offer free credit monitoring in Canada) to verify whether the late payment was reported. If it was reported in error (for example, you paid within 30 days), you can dispute it.
How to avoid missed payments
- Autopay the minimum on every credit card. This costs nothing and prevents late fees and credit damage even if you forget to make a manual payment.
- Set calendar reminders 5 days before each due date.
- Align due dates with your payday. Most issuers let you change your billing cycle date — call and ask.
- Use your banking app’s bill payment feature to schedule recurring payments.
Related pages
- How to Get Out of Credit Card Debt — strategies for paying down balances
- Minimum Payment Calculator — see how long it takes to pay off at minimum
- Credit Score Explained Canada — how your score is calculated
- Best Balance Transfer Credit Cards — move high-interest debt to a 0% card
- How to Cancel a Credit Card — when closing a card makes sense