Credit cards require you to make a minimum payment on your balance at the end of each billing cycle. But what happens if your credit card payment is late? Whether you're short of funds or you just forgot, let's look at what happens if you pay your credit late one month.

ClearScore is a credit broker, not a lender.

Late or Missed Credit Card Payment: What Happens

Missing a payment can have significant consequences, particularly for someone working to improve their credit score. Here's what can happen if you make a late credit card payment:

• You may be charged late payment fees (typically £12 per late payment)

• Your standard interest rate may increase

• You may lose any 0% interest rate promotions, with interest reverting immediately to your standard rate^

• Your standard interest rate may increase

• Your late payment may be added to your credit history and can harm your credit score

• You won't be eligible for a grace period on interest charges the next month

^In the current 2026 market, the standard representative APR for many cards has climbed to 24.9%, while the overall average UK credit card interest rate hit 24.66% in early 2026 - the highest in over 30 years.

Let's take a look at the financial implications of each of these situations, and discuss what you need to know.

Late Payment Fees

Your credit card agreement will include a set of default fees that are charged for various circumstances, such as late payment, returned payment (e.g., a bounced cheque), and going over the credit limit. Most cards charge £12 for a late payment.

For smaller balances this fee represents a substantial proportion of your total balance. In fact, a single late payment charge can cost as much as nearly a full year's worth of interest. Of the three potential repercussions of paying late, the penalty charge is typically the smallest and is a one-off cost, unlike the other two.

You can find the default charges in your terms & conditions, or by checking the bottom section of the Summary Box on your credit card's web page. A Sample default charges section of a Summary Box is shown below, so you know what to look for.

Higher Interest Rates

A single late payment can have an outsized cost on a 0% promotional card. Many lenders can revoke a promotional 0% rate as soon as a payment is missed, reverting the balance to the card's standard rate — currently averaging 24.66% across the UK market. Because the gap between 0% and the standard rate is so large, a single missed payment can turn an interest-free balance into an expensive one almost overnight.

Credit card companies generally don't raise the stated interest rate on your credit card without giving 30 days' notice, and typically only do so after the first year. These practices aren't set out in binding legislation for every scenario, but are widely followed across the industry as part of lenders' broader obligations to treat customers fairly, including under the FCA's Consumer Duty rules. Full details of when and how a specific card's interest rate can change will be set out in that card's terms and conditions.

There are some major exemptions to the soft "rules" that your credit card company shouldn't increase your rate in the first year or without notice:

• Interest rates set to directly track an index (e.g., the base rate)

• A promotional interest rate that has reached the end of its natural duration, or has been revoked early by

• the cardholder (e.g., due to a late payment)

• Interest rates may be subject to risk-based re-pricing due to late or missed payments

Adverse Effects on your Credit Report and Credit Score

Late payments may be reported to the credit agencies and stay on your record for six years, so they can have a lasting impact on your ability to get future credit from prospective lenders. Some providers offer a short buffer period before a late payment is reported, and contacting the provider promptly to explain a payment is on its way can, in some cases, prevent it from being reported at all.

Beyond being a mark for potential lenders to see and use, late payments within the past 6 months may decrease your credit score. The impact will depend on a number of factors including the frequency of your missed payments, the "lateness" of late payments (i.e., the number of days late), and other elements of your credit history. As this late payment "ages" it will have less impact on your score.

Paying on time affects more than the immediate late fee. Late payments lead to a lower credit score, which can reduce the chances of being accepted for a credit card, loan, or mortgage. Where an application is still approved, a lower credit score may result in a higher interest rate being offered, adding to the cost of borrowing over time. The effect on your credit score can vary between credit reference agencies, and lenders may use different scores and other information when making decisions.

Interest-Free Grace Periods

Another way that a late payment can cost you is that late payments make your next payment ineligible for an interest-free grace period on new purchases, which you might otherwise get if you pay off your full balance (including any balance transfers and money transfers) by the payment due date. Why? To get the grace period you also need to have paid your previous month's balance in full by the due date.

FAQs

When is a credit card payment late?

A credit card payment is considered late for the calculation of the late payment fee if it doesn't arrive by the due date. In terms of your credit file, you typically get a longer buffer. For example, Barclaycard says that as long as you were up to date last month, you have up to 14 days after the payment due date (which counts as day one) before your credit file is be affected. This can vary by provider.

What happens when you make a late credit card payment?

When you make a late credit card payment, you're typically charged a late payment fee of around £12 - but this can vary by provider. The credit card provider may report your late payment to the credit agencies, which can affect your credit score - but if you call them and get the payment in quickly they might not report you. Additionally, you might lose any 0% promotional periods or rewards and your interest rate could go up. Plus a late payment will have a negative impact on your interest charges for the next month because a late payment typically means you aren't eligible for grace periods on interest the following month.

How long do late credit card payments stay on report?

According to Experian, late payments stay on your record up to six years.

Can credit card companies remove late payments?

You can ask the relevant credit reference agency to add a Notice of Correction of up to 200 words to your credit report.