How One Day Late Payment Affects Your Credit in Canada

Your credit payment is considered late if it was received after the due date or if it is less than the least amount due. Late payment can be a tad bit disturbing as nobody wants a late payment they made years ago to bring their credit score down when they need it the most.

Missing your payment due date by a day usually does not pose a threat to your credit report, as it won’t reflect or impact your credit scores. A one-day late payment does not attract heavier penalties than not paying at all. Though it can have a negative influence on your score, it is not severe.

Penalty for One-Day Late Payment

If you are just a day late, the issue is strictly between you and your lender; it will not be reported to the credit bureaus. This does not mean you would not be sanctioned in other ways. For your first one-day late payment, you could be charged a late fee up to $29-$35, which will reflect on your next billing statement. You can incur an extra late fee up to $40 every time you pay late within six successive billing cycles.

High-Interest Rate

Another penalty could be an increase in your interest rate. A credit card issuer has the right to increase your rate if you pay after your due date. This will affect you if you took a zero-interest balance transfer to avoid interest on another credit card. While a one-day late payment will not be included in your credit report it has the power to affect your bottom line.

What to Do If You Missed a Payment with a Day

Do not freight if your payment is one day late. There are instant steps to take to lessen the risks linked with a missed due date. They include:

Instant Payment

Once you realize your payment is late, contact your lender or pay your bill online immediately. Sending the payment by check might delay it further as if not received and processed immediately, it could add extra days to your late payment.

Request for a Waiver

Once your payment has been approved, contact your lender and speak with your account officer. If you have a genuine reason for paying late, explain to your account officer. Politely request the late fee be waived, if you have been maintaining your account well, most lenders will grant your request immediately.

Automate Your Payment

The most common reason why people pay their bills late is that they forgot. If you automate your payment, you do not have to worry about posting yourself. Your payments are automatically submitted on your behalf on the day of the month you set.

The good news is that any late payment that is less than 30 days won’t have a lingering effect on your credit score. Regardless of how late you are; one hour, one day, or a few weeks late, you can still improve your credit score with your lender as long as you pay the least amount due.

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