What happens if I don't pay my credit card bill in full by the due date?

If you don't pay your credit card bill in full by the due date, it can have several consequences:

1. Late Payment Fee: The credit card issuer may charge you a late payment fee, which is a penalty fee for not making the minimum payment on time. The specific fee amount will vary depending on your credit card terms and conditions.

2. Interest Charges: If you carry a balance on your credit card after the due date, the credit card issuer will apply interest charges on the unpaid amount. These interest charges can accumulate over time, increasing the overall balance you owe.

3. Negative Impact on Credit Score: Late payments can have a negative impact on your credit score. Payment history is one of the significant factors in determining your credit score, so consistently paying your bills on time is crucial for maintaining a good credit score.

4. Loss of Grace Period: By not paying your credit card bill in full, you may lose the grace period on new purchases. The grace period is a period during which you can avoid paying interest on new purchases if you pay your statement balance in full by the due date. If you carry a balance from the previous month, interest may be charged on new purchases immediately.

5. Collection Efforts: If you consistently fail to make payments on your credit card, the credit card issuer may initiate collection efforts. This can include contacting you for payment, reporting the delinquency to credit bureaus, and potentially taking legal action to recover the outstanding debt.

To avoid these consequences, it is important to make at least the minimum payment by the due date specified on your credit card statement. However, paying your credit card bill in full each month is recommended to avoid interest charges and maintain a healthy financial standing.