What do you do if you can’t afford to make your minimum payment on your Credit Card? You don’t want to harm your credit with a late payment, so what next? If you make the payment too late (over 30 days past the due date), it will hurt your credit scores, big time. We’re here to teach you valuable tips and tricks so that you can save and regain control of your credit scores.
How To Avoid Getting A Late Payment On Your Credit
If you are positive you may not be able to make a minimum payment, call your credit card company and ask what options you have to protect your credit or to assist with the payment. Banks and credit card companies have many programs available to help you, but the help is only available if you reach out to them. If you don’t call, they assume you’re avoiding them and there will no longer be options as soon as you’re tagged with a 30 days late. Once you’re 30 days past due, they will report a late payment and you’ll be stuck with it for 7 years, unless you hire a credit repair company like us. Of course we want your business, but we also want to teach you how to take preventative measures to protect your credit, so that you don’t need to call us later.
Payment Deferral Programs
Banks will often offer you a payment deferral, which allows you to skip 1 or more payments, but still reports as a positive payment to the three major credit bureaus.
Payment Protection Plans
These are usually purchased when you first open the credit card; it’s called a payment protection plan. It will cover your minimum payments under certain circumstances (Wells Fargo’s plan covers your minimum payment for 1 month in unusual cases such as if you had to spend over $250 on your pet that month, if you had to move, and more.) Most of these plans protect against disability and unemployment, but it never hurts to call and ask.
Payment Forgiveness
Often times Credit Unions will offer payment forgiveness if you call them and notify them that you are having a hard time making your payments. Banks are starting to catch on as well, the key here is communication. You must call them and communicate your concerns. It doesn’t hurt to record your calls (if your state laws allow it) and get documentation from them once you reach an agreement.
Pause Payments
Credit Card Companies and Banks sometimes have the ability to pause your payment for a month or more. Your account will still incur interest charges, but at least you won’t end up with bad credit!
Tricks and Tips to avoid a Late Payment on your Credit Report
Cash Back Rewards Credit Cards
Does your card have cash back rewards? You can call the Credit Card issuer and ask if you have a rewards balance. If you do, ask if you are able to use that balance to make a full or partial payment on the credit card balance.
Balance Transfer to Another Card
This can be a good and bad option. In our opinion, anything is better than getting a ding on your credit that will haunt you for the next 7 years. You can do a balance transfer from one card to another. No, you don’t need to transfer the full amount, transfer just a little more than the minimum payment that is due.
Borrow Money From Someone
Friend, family, neighbor, anyone! Do whatever it takes to save your credit, make sure that minimum payment gets made, and gets made on time.
Secret Credit Tricks Everyone is Scared To Tell You
When doing my research for this article, I was stunned at some of the misinformation I found across the internet. That is exactly why I wrote this article and I’m sure glad you found it. Other articles said, “Stop making your payments and call a debt counselor” <- Horrible Advice, with devastating consequences to your Credit Scores. The following tips and tricks are for your best interest, but are meant to be used only out of sheer desperation to save your credit when you’ve exhausted your other options. Just remember, we love you and you can e-mail us for advice anytime.
Buy Something & Return It
Again, you’re going to have to talk to your bank and make sure this will work, since every bank and credit card company operates differently. If your card isn’t maxed out, you can go to a department store (one with a good Return Policy, like Nordstrom) and spend a small amount more than your minimum payment. Make sure you use the card you want the payment to be credited to. Wait 3-4 days to a week and then return the items. They will put the money back on the card and it will be credited as a payment. Awesome right!?
Buy Something on Your Credit Card and Sell It
You have the option to purchase something valuable at a store with your credit card and sell it to a friend, family member, or a random craigslister. You will usually get less than you paid for the item this way, but at least you will have made that payment!