Dr. Rikard Bandebo, Chief Strategy Officer and Chief Economist at VantageScore®, recently spoke with The Associated Press to advise consumers who may find themselves struggling with credit card payments this year.

For consumers struggling to meet their credit card obligations, preventing delinquencies from progressing is an important tactic in limiting the damage to their credit score. “Do whatever you can not to get to the next stage. If you’re 30 days late, try to avoid getting to 60 days and absolutely try to do everything you can to avoid getting default,” said Dr. Bandebo.

Defaulting on a credit card will mean serious consequences for your credit score, and that will limit how much you will be able to borrow in the future and how much it will cost you. If you don’t pay your credit card bill for a month, your credit score will likely fall between 60 and 100 points,” said Dr. Bandebo.

Although some consumers may not see an alternative to missing a payment, it can have a long-lasting impact on their credit score. “While there is not a specific amount of points that your credit score will fall should you default, it will appear on your credit score for seven years,” concluded Dr. Bandebo.

Read full article here:

https://apnews.com/article/credit-card-default-51f76dea3666e9b2d95156b47c8092cd

Visit VantageScore’s consumer section for additional resources on being credit-healthy in 2025: https://www.vantagescore.com/consumers/