A DELINQUENT CREDIT card account is like having mold in your house. As time passes, they both silently get worse and become more difficult to fix.
When you make a payment after the due date on your credit card statement, you have a delinquent credit card account on your hands. You might think that one missed payment doesn’t matter. In fact, many people seem to believe this.
According to the National Foundation for Credit Counseling’s 2019 Consumer Financial Literacy Survey, 25% of Americans said they didn’t pay their bills on time. While it’s heartening to know that 75% do pay their bills on time, the 25% who don’t are on the way to ruining their credit. One missed payment can escalate into a collection account if you don’t take steps to fix it.
Unfortunately, there’s an upward trend in credit card delinquencies, according to data from the Federal Reserve Bank of St. Louis. In 2009, delinquencies peaked at 6.77% during the recession. By the end of 2015, delinquencies dropped to 2.15%. By the end of September 2019, delinquencies were up to 2.58%.