Your credit score drops when ready, your card issuer starts calling, and you'll owe more money than you borrowed

When you stop paying a credit card, the damage begins within 30 days. Your card issuer reports the missed payment to the three credit bureaus — Equifax, Experian, and TransUnion — and your credit score falls, often by 100 points or more depending on your current score. You'll also start receiving collection calls and letters. The card issuer will keep charging interest and late fees on top of your balance, so the amount you owe grows even if you never use the card again.

After 180 days of non-payment (six months), the card issuer typically closes your account and sells your debt to a collection agency or writes it off as a loss. At that point, the collection agency owns the debt and can pursue you in court. A judgment against you can lead to wage garnishment, bank account levies, or a lien on your property — the exact tools available depend on your state's laws.

The damage to your credit report lasts seven years from the date of first missed payment. Even after you pay the debt, the late payments and collection account remain visible to future lenders, landlords, and employers who run credit checks.

Key Takeaways

  • A missed payment is reported to credit bureaus after 30 days, dropping your score by 100+ points and triggering collection calls.
  • After 180 days, the card issuer typically sells your debt to a collection agency, which can then sue you for the full amount plus court costs.
  • Late payments and collection accounts stay on your credit report for seven years, affecting your ability to borrow, rent, or get hired.
  • Interest and late fees continue to accumulate on your balance, so the amount you owe grows substantially over time.
  • If you cannot pay, contacting your card issuer early to discuss hardship programs or settlement options is faster than waiting for collection action.

How the first 30 days unfold

Your payment is due on a specific date each month. If you miss that date, your card issuer typically waits until you are 30 days late before reporting the missed payment to the credit bureaus. During those first 30 days, you will receive calls and emails asking you to pay. Your card issuer may also charge a late fee — usually $25 to $40 for the first late payment, and up to $40 for subsequent ones.

Interest continues to accrue on your balance at your card's annual percentage rate (APR). If your APR is 20% and you owe $5,000, you are accumulating roughly $83 per month in interest charges alone. That interest gets added to your balance, so you owe more each month even if you do not use the card.

During this window, your card issuer may also lower your credit limit or close the account entirely. A closed account can actually hurt your credit score further because it reduces the total credit available to you, which changes your credit utilization ratio — the percentage of your total credit limit you are using across all cards.

What happens at 60 and 90 days

At 60 days late, your card issuer sends a second notice, often marked "urgent" or "final notice." Late fees accumulate — you now owe the original balance, plus interest, plus two months of late fees. Your credit score continues to fall. Some card issuers offer hardship programs at this stage, allowing you to pause payments, reduce your interest rate, or set up a repayment plan. If you call your card issuer now and explain a temporary hardship — job loss, medical emergency, divorce — they may work with you rather than escalate to collections.

At 90 days late, your account is considered seriously delinquent. Your card issuer may freeze your account, preventing you from making new charges. The calls become more frequent and more aggressive. Your credit score has likely dropped 150+ points from where it started. At this point, many card issuers begin preparing to sell your debt or file a lawsuit.

The 180-day mark and debt collection

After 180 days (six months) of non-payment, your card issuer typically writes off the debt as a loss and sells it to a debt collection agency for pennies on the dollar. The collection agency now owns your debt and has the legal right to pursue you for payment. They will call you, send letters, and may file a lawsuit in civil court to obtain a judgment against you.

A judgment is a court order stating that you owe the money. Once a judgment is entered, the collection agency can use it to garnish your wages (taking a portion of your paycheck before you receive it), levy your bank account (freezing and withdrawing funds), or place a lien on your home or car (claiming a stake in the property until the debt is paid). The specific tools available depend on your state — some states protect a portion of your wages or bank accounts, while others offer less protection.

You have the right to respond to a lawsuit. If the collection agency cannot prove you owe the debt, you can win the case. However, many people do not respond, and the collection agency wins by default. Once a judgment is entered, it becomes much harder to resolve the debt on your own terms.

How your credit report is affected

A late payment appears on your credit report as soon as it is reported (usually at 30 days). The report shows the number of days late: 30, 60, 90, 120, 150, or 180+. Each additional month of non-payment is a separate negative mark. After 180 days, the account is typically listed as "charged off" — meaning the card issuer has given up on collecting and written it off as a loss.

A collection account also appears on your credit report and is visible to any lender, landlord, or employer who pulls your credit. Collection accounts are weighted heavily in credit score calculations, often causing more damage than a late payment alone. Even if you later pay the collection agency in full, the account remains on your report for seven years from the original missed payment date.

The impact on your credit score decreases over time. A late payment from two years ago hurts less than one from two months ago. However, the account stays visible for the full seven years, and lenders can see the entire payment history. After seven years, the account falls off your report automatically.

Options if you cannot pay

If you are struggling to pay, contact your card issuer before you miss a payment. Explain your situation — temporary job loss, medical bills, reduced income. Many card issuers have hardship programs that allow you to pause payments for a few months, reduce your interest rate, or set up a lower monthly payment plan. These programs are not advertised widely, but they exist, and card issuers prefer to work with you rather than send your debt to collections.

If you have already missed payments, you can still negotiate. A collection agency may accept a settlement — a lump sum payment for less than the full amount owed — to close the account. For example, you might owe $5,000 but settle for $3,000. Get any settlement offer in writing before you pay, and make sure the agreement states that the account will be marked as "settled" or "paid in full" rather than "settled for less than owed" (the latter still damages your credit, though slightly less than an unpaid collection account).

Another option is a debt management plan through a nonprofit credit counselor. These organizations work with your card issuers to reduce your interest rate and set up a repayment schedule, usually over three to five years. You make one monthly payment to the counselor, who distributes it to your creditors. This approach stops collection calls and prevents lawsuits, though it does appear on your credit report and requires you to close the cards involved.

Debt collection lawsuits and your rights

If a collection agency sues you, you will receive a summons and complaint in the mail. You have a limited time to respond — usually 20 to 30 days depending on your state. If you do not respond, the collection agency wins by default and can pursue wage garnishment or bank levies without proving you owe the debt.

If you do respond, you can challenge the collection agency's right to sue. Many collection agencies buy debt in bulk and do not have complete documentation proving you owe the specific amount claimed. You can request that the agency produce the original credit card agreement, statements showing the charges, and proof that they own the debt. If they cannot produce this documentation, you can win the case.

Some states have strong consumer protections against debt collection. For example, some states limit wage garnishment to 25% of your disposable income, while others protect a larger portion. Some states do not allow collection agencies to garnish wages at all. Research your state's debt collection laws or speak with a legal aid attorney — many offer free consultations to people with low incomes.

Frequently Asked Questions

Will I go to jail for not paying a credit card?

No. Debt collection is a civil matter, not a criminal one. Creditors cannot have you arrested or 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 of court charges, which carry different penalties. Always respond to a lawsuit if you receive one.

How much will my credit score drop?

A single missed payment typically drops your score by 100 to 150 points, depending on your current score and credit history. Multiple missed payments, a collection account, and a judgment all cause additional drops. The exact impact varies by scoring model and your individual credit profile.

Can I remove a late payment from my credit report?

You can dispute inaccurate information with the credit bureaus, but an accurate late payment cannot be removed until seven years have passed. Some people successfully negotiate with their card issuer to remove a late payment in exchange for paying the balance in full, but this is not may provide and depends on the issuer's policies.

What if the collection agency cannot find me?

A collection agency can still sue you even if they cannot reach you by phone. If you ignore the lawsuit, they win by default. The judgment remains valid for many years — in some states, 10 to 20 years — and can be renewed. Ignoring the problem does not make it go away; it makes it worse.

Is it better to pay the collection agency or let it age off my report?

Paying a collection account stops future collection calls and prevents wage garnishment, but it does not remove the account from your credit report. However, a paid collection account is viewed more favorably by lenders than an unpaid one. If you have the money, paying is usually the better choice. If you do not, the account will fall off your report after seven years, though the collection agency can still sue you during that time in most states.