Your card issuer reports the missed payment to credit bureaus within 30 days, your interest rate can jump to a penalty rate, and the debt can be sold to a collection agency — but the timeline and what you owe depends on which step you're in and whether you contact the issuer first.
Missing a credit card payment triggers a chain of events that starts when ready but unfolds over months. The first consequence is internal to your account: within one to three days, the issuer charges a late fee (typically $25 to $40 for a first offense, higher for repeat lates). Your interest rate does not automatically jump on day one, but most card agreements allow the issuer to raise it to a penalty rate — often 29.99% or higher — once you are 60 days late. The damage to your credit report begins at 30 days past due, when the issuer reports the delinquency to Equifax, Experian, and TransUnion.
After 180 days of non-payment, the issuer typically closes your account and charges off the debt — meaning they write it off as a loss on their books and usually sell it to a debt collector. This does not erase what you owe; it transfers the right to collect to a third party. A collection agency can then sue you in court, garnish your wages, or place a lien on your property, depending on your state's laws and the size of the debt. The entire sequence can happen without a single phone call from you, which is why understanding the stages and your options at each one matters.
Key Takeaways
- A late fee hits your account within days, but the credit damage does not appear until 30 days past due.
- Your interest rate can jump to a penalty rate once you are 60 days late, making the debt grow faster.
- After 180 days of non-payment, the issuer charges off the account and usually sells the debt to a collection agency.
- Contacting your issuer before you miss a payment or when ready after can sometimes prevent the penalty rate or reduce the late fee.
- A collector can sue you, and a judgment against you can lead to wage garnishment or bank levies depending on your state.
The first 30 days: late fees and the start of credit damage
Your first missed payment costs you money when ready. Most issuers charge a late fee within one to three days of the due date passing. For a first late payment, this fee is usually $25 to $40. If you miss the next payment cycle as well, the fee can increase to $35 to $40 or more. These fees are separate from interest and are added directly to your balance.
The credit reporting happens at day 30. If your payment is 30 days late, the issuer reports it to the three major credit bureaus. This delinquency stays on your credit report for seven years from the date of first delinquency — not from the date you eventually pay it. A 30-day late payment typically lowers your credit score by 60 to 100 points, depending on your starting score and credit history. The impact is when ready and visible to any lender who pulls your report.
During this window, you still have leverage. If you call the issuer and explain the situation — job loss, medical emergency, temporary cash flow problem — some will waive the late fee or work with you on a payment plan. This conversation is worth having before day 30 if possible, because once the delinquency is reported, the damage is done. The issuer is not required to waive the fee, but many will for a first offense if you have been a good customer.
Days 60 to 180: penalty rates, account closure, and collection preparation
At 60 days past due, the issuer can explore a penalty rate to your account. This is a higher interest rate — often the maximum allowed under your card agreement, which can be 29.99% or higher. The penalty rate applies to your entire balance, not just new charges. If you owe $5,000 at 18% and the issuer raises it to 29.99%, you are now paying roughly $125 more per month in interest alone. The debt grows faster, making it harder to catch up.
Between 90 and 180 days past due, the issuer's internal collection team intensifies contact. You will receive calls, letters, and emails asking you to pay. These are still from the card issuer, not a third-party collector. If you answer and negotiate a payment plan, the issuer may pause the calls and agree to accept partial payments. Some issuers will also remove the penalty rate if you bring the account current, though this is not may provide.
At 180 days (six months) of non-payment, the issuer typically charges off the account. This is an accounting action: the issuer removes the debt from their active accounts and writes it off as a loss. The charge-off appears on your credit report as a separate negative item. Importantly, charging off does not forgive the debt. The issuer usually sells the account to a debt collection agency, which then owns the right to collect from you. Some issuers keep the account in-house and use their own collection department, but third-party sales are common.
After charge-off: debt collectors, lawsuits, and wage garnishment
Once a collection agency owns your debt, they can contact you by phone, mail, or email. Under the Fair Debt Collection Practices Act (FDCPA), they cannot call before 8 a.m. or after 9 p.m. in your time zone, cannot call your workplace if your employer forbids it, and cannot threaten you or use abusive language. They can, however, sue you in court to collect the debt.
Whether a collector sues depends on the debt size, your location, and the collector's practices. Smaller debts (under $1,000) are less likely to be sued on because the cost of litigation exceeds the recovery. Larger debts are more likely to end up in court. If the collector sues and wins a judgment, they can then pursue collection through wage garnishment, bank levies, or liens on property — but the rules vary by state. Some states protect a portion of wages from garnishment; others allow collectors to take up to 25% of disposable income. Bank levies can freeze your account and transfer funds directly to the collector.
The statute of limitations for suing on a credit card debt varies by state, typically between three and six years from the date of first delinquency. Once the statute of limitations expires, the collector can no longer sue, but they can still contact you and the debt still appears on your credit report. Paying the debt or making a payment can restart the statute of limitations in some states, so if you are considering payment, understand your state's rules first.
What you owe at each stage
The amount you owe grows as you move through the delinquency stages. Start with your original balance. Add the late fees (which compound if you miss multiple payments). Add the interest that accrues at your regular rate until day 60, then at the penalty rate after that. If the debt is sold to a collector, you may also owe collection costs or attorney fees, depending on your state's law and the collector's practices. Some collectors add interest to the debt after they purchase it; others do not.
The total can be significantly higher than your original balance. A $3,000 balance with 24% interest and a $40 late fee, left unpaid for six months, can grow to roughly $3,400 to $3,500 before a collector even takes over. After that, collection costs and additional interest can push it higher. This is why addressing the debt early — even with a partial payment or a payment plan — is usually cheaper than waiting.
Your options before and after charge-off
If you are behind but not yet at 30 days late, contact the issuer and ask about hardship programs. Many card issuers offer temporary interest rate reductions, waived fees, or modified payment plans for customers facing financial difficulty. These programs are not advertised widely, but they exist. You will need to explain your situation and may need to provide documentation (proof of job loss, medical bills, etc.). Approval is not may provide, but the conversation costs nothing.
If you are 30 to 180 days late, you can still negotiate with the issuer or their collection department. Some will accept a lump-sum settlement for less than the full balance — often 40% to 60% of what you owe — if you can pay it within 30 to 90 days. This stops the calls and removes the debt from their books. Get any settlement offer in writing before you pay, and understand that the settled amount may be reported to the IRS as forgiven income (though this varies by circumstance).
After charge-off and sale to a collector, your options narrow. You can still negotiate a settlement, but the collector has less incentive to reduce the amount since they bought the debt at a discount. You can also dispute the debt if you believe it is inaccurate — for example, if the balance is wrong or if the debt is not yours. Send a written dispute to the collector within 30 days of their first contact, and they must stop collection efforts while they investigate. If they cannot verify the debt, they must remove it from your report.
How non-payment affects your credit and borrowing
A single missed payment lowers your score, but the impact depends on your starting score and history. Someone with a 750 score might drop 60 to 100 points; someone with a 650 score might drop 40 to 60 points. The higher your score, the more damage a late payment does. A 30-day late payment is less damaging than a 60-day or 90-day late, which is less damaging than a charge-off.
The damage fades over time but slowly. After two years, the late payment has less weight in scoring models. After seven years, it falls off your report entirely. During those seven years, you can still get credit — secured cards, subprime loans, and some issuers will approve you despite the late payment — but the rates will be higher and the terms less favorable. Rebuilding your score requires on-time payments on whatever credit you can access, which takes time and discipline.
Frequently Asked Questions
Can the credit card company sue me if I don't pay?
The card issuer can sue, but they usually do not. Instead, they charge off the debt and sell it to a collection agency, which then has the right to sue. Collectors are more likely to pursue litigation on larger debts. If they win a judgment, they can garnish your wages or levy your bank account, depending on your state's laws.
Will I go to jail for not paying my credit card?
No. Debtors' prisons do not exist in the United States. You cannot be jailed for owing credit card debt. However, if you ignore a court order or fail to appear in court after being sued, you could face contempt charges, which can result in jail time. The debt itself is not a criminal matter.
What is the difference between a charge-off and a write-off?
A charge-off is when the issuer removes the debt from their active accounts and reports it to credit bureaus as unpaid. A write-off is an accounting term meaning the issuer has decided the debt is uncollectible and removed it from their books for tax purposes. Both happen around the same time, but charge-off is the credit reporting event that damages your score.
If I pay the debt after charge-off, does it come off my credit report?
Paying a charged-off debt does not remove it from your report. It will still appear as a charge-off, but it will be marked as paid. A paid charge-off is less damaging than an unpaid one, but it still counts as negative history. The item stays on your report for seven years from the original delinquency date, regardless of whether you pay it.
Can a debt collector contact me if the statute of limitations has expired?
Yes, they can still contact you. The statute of limitations prevents them from suing you, but it does not prevent them from calling or sending letters. However, if you tell them in writing that you dispute the debt or ask them to stop contacting you, they must comply. The debt also remains on your credit report until seven years have passed since the original delinquency.