The Downward Spiral of Making Late Payments on Credit Cards
Some people don’t seem to worry too much if they are habitually late on one of their credit card payments as long as their other accounts are paid to date.
If that is your habit, you may risk having your interest rates increased and your credit limits lowered, even on your current accounts. You may even lose them entirely. Thus, it is important to make sure your cards are up-to-date across the board.
Other credit card providers will get word of the late payments you are making to another issuer. These delinquencies can show up on your credit report. Issuers will become concerned about how capable you will be of continuing to make timely payments to them. If you pose too great a risk to the issuer, your interest rate could increase. The issuer could also decrease your credit limit, or they may cancel your card altogether. You could be left with much less credit to rely on than you once had.
Credit card companies have the right to cancel any accounts they feel pose a threat to their company, meaning that they can shut down your account if they feel you are no longer capable of making your payments or carrying your limit.
That doesn’t mean you will lose your cards with late payments. It is just something you need to be aware of. In most cases, the credit card company will focus on the fact that you are making good payments to them. But if you happen to get one of your accounts cancelled, you now know why that may have occurred.