Missed credit card payment could total £278
Published On 5 February 2007
Consumers who miss a credit card payment could be liable for a £278 fee, according to new figures. A study by moneysupermarket.com discovered that many consumers may not be aware they can lose their introductory offer through skipping just one repayment notice.
With 62 per cent of credit cards offering a nought per cent balance transfer into period, consumers are sometimes unaware that if one payment is missed the product will automatically revert to the typical APR.
This could cost an unwitting consumer up to £278 in the space of just 12 months, the company says.
On top of this, consumers risk having all other introductory card benefits removed as well as a less than attractive credit profile.
Rob Kenley, moneysupermarket.com spokesman, explained the severe penalties consumers could be facing.
He said: "These credit card holders could be stung with unexpected interest payments if their credit card is one of the 31 cards that automatically revert back to the typical APR after defaulting on one repayment.
"People also need to be aware that failing to make a repayment could also have a negative effect on their credit profile. This could make obtaining credit for everything from mobile phone contracts to mortgages much harder. Additionally, when they are accepted for a financial product it is likely they will be offered a higher rate.
"To avoid missing any payments it is vital people set up a direct debit to repay the minimum sum required each month against their balance. They should also make additional payments whenever possible."
