What Happens If You Don’t Pay Your Credit Card
## Direct Answer
If you don’t pay your credit card, you’ll face late fees, interest charges, and a negative impact on your credit score. Your debt may be sent to collections, and you could be sued by the credit card company.
## Step-by-Step Guide
Here’s what happens when you don’t pay your credit card:
1. **Late Fee**: You’ll be charged a late fee, typically $25-$38, for missing a payment.
2. **Interest Charge**: You’ll be charged interest on your outstanding balance, which can range from 15% to 30% APR.
3. **Credit Score Impact**: Your credit score will drop, making it harder to get approved for credit in the future.
4. **Collections**: If you’re 60-90 days late, your debt may be sent to collections, which can further damage your credit score.
5. **Lawsuit**: If you’re 180 days or more late, the credit card company may sue you for the debt, which can lead to wage garnishment, asset seizure, or a court judgment.
## Frequently Asked Questions
### Q: Can I negotiate with my credit card company?
A: Yes, you can try to negotiate a payment plan or settlement with your credit card company.
### Q: Will my credit score recover if I start making payments again?
A: Yes, your credit score can recover over time if you start making payments again and keep your credit utilization ratio low.
### Q: Can I be arrested for not paying my credit card debt?
A: No, you cannot be arrested for not paying your credit card debt, but you can be sued and face financial penalties.
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