What exactly Past Due means & how it affects me?

[Anonymous]

Hello Folks - Happy Holidays to you all.

A newbie to this forum. Went to length & breath of google search & couldn't find a satisfactory answer, so hoping this forum can be my last stop.

I basically want to understand what exactly is past due amount & how different delinquency buckets are defined based on that. I'll try to put a basic example:

Let's say that I applied for a new credit card. The fresh statement is generated on 1st of every month & the credit issuer puts my Due Date to 25th of each month.

Now let's say that I spent a $1000 during a month. When my statement generated on 1st, my Minimum Due was $25, Statement Balance was $1000 & Current Balance was $1000.

Comes the 15th of this month, & I only have $20 so I pay that off. So hoping that Credit Issuer will consider that payment into my Min Due amount & will put a note in their system that I now need to make an additonal payment of $5 by my due date (25th of the month).

Suppose I'm not able to pay off this remaining $5 by the 25th of the month. When my next statement generates, what exactly do I expect to see in my statement? Can a below assumption fir enough?

Past Due Amount = $5 + Any Fees due to being late ( Assume its $5)

New Minimum Due = Past Due Amount + Minimum Due of my current spending (Assume that I didn't spent anything) + $5 (Last Fees - Assume for simplicity that Credit Issuer charge this fee)   = $10. 

My question is : If the above understanding is correct at a Basic Level, and I do pay off $5 before my next statement generates, will I not be considered delinquent at the moment this $5 payment of past due posts to my account?  Or do I need to pay off the fees plus any interest that may be charged also to be considered out of delinquency?

These terms baffles me so pls be kind with me in case I have mistaken the whole system of credit card payments.

[Anonymous]

"Past due" means you didn't pay your minmuk Hy the due date. Fees and higher interest may apply and be due.

30D past due means just that: you didn't pay your minimum due by the due date or 30D after. Fees and higher interest may apply and be due.

So if you owe $25 minimum and only pay $20, you're past due but not 30D late until the 30th day happens. By the next statement your minimum may includes late fees and a higher interest rate so you may owe more than $25+$25=$50-$20=$30 expected.

[Adidas]

As a follow up how late do you have to be for it to affect your credit score? Does it have to be more than 30D? In other words if you miss a payment but pay it off before 30D the only harm is the fees?

[marty56]

May 120 day lates on my CR was because the minimum payment from my DMP program was not enough to pay the BofA payment when the dropped me from the program.  Past due wise, missing 1 cent is just as bad as not paying anything.  That is another reason to avoid OTL fees since it rasies the minimum payment.

[MakingProgress]

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@Adidas wrote:
As a follow up how late do you have to be for it to affect your credit score? Does it have to be more than 30D? In other words if you miss a payment but pay it off before 30D the only harm is the fees?

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It will not show on your credit report if you are less than 30 days late, but once you hit the 30 day mark it WILL be on your CR and it WILL effect your credit scores both FICO and FAKO.

[marty56]

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@MakingProgress wrote:

It will not show on your credit report if you are less than 30 days late, but once you hit the 30 day mark it WILL be on your CR and it WILL effect your credit scores both FICO and FAKO.

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Some CCCs - Synchrony only report if 60 days late but I would not test them or anyone else.

[RobertEG]

A late becomes reportable to a CRA once it is 30 days past the billing due date.

It need not be over 30 days.

As an example, if a billing notice sets a billing due date of Sept 1 and you pay prior to Oct 1, you are delinquent under your account agreement, and thus subject to any fees or other penalties under that agreement, but the delinquency does not become reportable to a CRA as a 30-late until Oct 1st (30 days after Sept 1).