What Happens If I Miss an IncrediPay Payment?
IncrediPay is a convenient feature designed to help you manage and pay all your credit card bills in one go. While it simplifies your payment process, it’s important to understand the implications of missing an IncrediPay payment and any credit card payments in general. Here’s a detailed overview of what happens if you miss a payment and what steps you can take to mitigate any negative effects.
Consequences of Missing an IncrediPay Payment
If you miss an IncrediPay payment, that means your credit cards will need to be paid manually or directly to your credit cards. You can do this via Pay Now or you can do this using your credit card providers online portal.
However, if you miss an IncrediPay payment and also don't arrange to pay your credit cards directly, there can be severe consequences, including:
Please note the below are true if you miss your credit card repayments. IncrediPay isn't a credit product so there are no fees associated with missing a payment. However, as it's intended to be used to pay your credit cards, you must ensure you either select a bank to automatically pay your card using IncrediPay, or ensure you remember to manually deposit each month.
1. Late Fees and Penalties
• Credit Card Interest Late payment Fees: Your credit card provider may charge a late fee. You may also use any promotional interest rate on your credit cards.
2. Interest Charges
• Accrued Interest: When a payment is missed, interest charges will begin to accrue on the outstanding balances of your credit cards. This can lead to a significant increase in the amount you owe.
• Increased APR: Some credit card issuers may increase your annual percentage rate (APR) if a payment is missed, leading to higher interest costs on future balances.
3. Credit Score Impact
• Negative Reporting: Credit card issuers typically report late payments to credit bureaus after 30 days. This can negatively impact your credit score, making it harder to obtain new credit or loans in the future.
• Credit Utilisation: Missing a payment can also affect your credit utilisation ratio, which is the amount of credit you’re using compared to your total available credit. High utilization can negatively impact your credit score.
Long-Term Consequences
1. Account Restrictions
• Reduced Credit Limits: Credit card issuers may reduce your credit limits if you consistently miss payments, further impacting your credit utilization ratio.
• Account Suspension: Repeated missed payments may result in your credit card accounts being suspended or closed.
2. Debt Collection
• Collections Agencies: If payments remain unpaid for an extended period, your debt may be turned over to a collections agency. This can further damage your credit score and result in additional fees.
3. Legal Actions
• Lawsuits: In extreme cases, credit card issuers may take legal action to recover the outstanding debt. This can result in wage garnishments or liens against your property.
Steps to Take If You Miss a Payment
1. Make the Payment as Soon as Possible
• Immediate Payment: As soon as you realize you’ve missed a payment, make the payment to minimise late fees and interest charges. You can use Pay Now to pay your cards directly.
• Partial Payments: If you can’t afford to pay the full amount, make a partial payment. This shows good faith and can help reduce penalties.
2. Contact Credit Card Issuers
• Explain the Situation: Contact your credit card issuers to explain why you missed the payment. They may offer assistance or temporary relief.
• Request Waivers: Some issuers may waive late fees or penalties if you have a good payment history and this is your first missed payment.
3. Seek Professional Help
• Credit Counseling: If you’re struggling to manage your debts, consider seeking help from a money charity like StepChange. They can offer advice and help you create a debt management plan.
If you have any further questions or need assistance, please contact customer support using the app or emailing [email protected]