What Happens If You Miss a Credit Card Payment in Canada?

The effects build the longer the payment is late. Paying the minimum within a few days usually limits the damage to interest; at 30 days or more, it can affect your rate and your credit report.

It can. Many cards set a higher rate after missed payments; check your card’s information box. On one TD credit card, if the minimum isn’t received within 30 days of the due date, the rate rises 5 points: purchases from 19.99% to 24.99% and cash advances from 22.99% to 27.99%. Scotiabank’s unsecured cards can get a higher rate after 2 missed minimum payments in 12 months.

A payment that’s a few days late usually isn’t reported. A payment 30 or more days late can be reported to the credit bureaus, and payment history is the biggest factor in your score. Late payments can stay on your report for up to 6 years, though their effect fades as you add on-time payments.

Pay at least the minimum right away, then call your card issuer: if it’s your first slip, ask whether they can waive the interest or keep your rate. Set up automatic minimum payments so it doesn’t happen again, and check your credit report a couple of months later.

Call your issuer before the due date and ask about a payment plan. Look at lowering your rate with a balance transfer or consolidation loan, and talk to a non-profit credit counsellor if the debt is more than you can manage.