Last year, more than 11% of the U.S. population missed a credit card payment.

A recent FICO report found that an increasing number of consumers are falling behind on their credit card payments. If you don’t pay your credit card bills on time, you may end up paying late fees and end up with expensive credit card debt that may be difficult to pay off quickly.

Unfortunately, FICO Score data shows that more than 11% of the U.S. population has missed a credit card payment in the past year. Learn more about how these financial mistakes can affect your credit score and why it’s important to pay your credit card bills on time.

Last year, more than 18% of consumers fell behind on their payments.

FICO, the company that provides the most commonly used credit score, known as the FICO® Score, regularly releases reports analyzing consumer credit score data.

In a recent report examining October 2023 score data, FICO found that many U.S. consumers had late payments listed on their credit reports last year.

More than 18% of the population had balances more than 30 days past due on one or more credit accounts. Compared to April 2023 data, the number of missed or late payments has increased by 4%. Consumers were delinquent on a variety of credit accounts, including mortgages, credit cards, and auto loans.

11.2% of consumers were in delinquent credit card payments.

FICO’s October 2023 data shows that mortgage and auto loan missed payments have increased but are still below pre-pandemic levels. However, the number of missed credit card payments has increased and now exceeds pre-pandemic levels.

The latest report shows that 11.2% of the population is 30 days or less behind on one or more credit card accounts. This is worrying compared to 10.5% in April 2023.

As the cost of everyday living becomes higher, many Americans are likely relying on credit cards to cover some of their spending. If you use a credit card, it is important to pay the minimum amount by at least the due date. Otherwise, your credit card issuer will charge you a late fee.

Additionally, you will be charged interest if you have a balance remaining on your credit card account. Credit card interest rates are typically very high (over 20%), so they can get expensive quickly. To avoid interest fees, you must pay your credit card’s monthly statement balance in full.

Paying off your entire statement balance is also a good habit as it can help you maintain a low credit utilization ratio. Credit utilization is the amount of available credit expressed as a percentage. Experts recommend keeping your credit utilization ratio below 30%. This may be helpful if you don’t carry a credit card balance.

Your payment history affects your credit

Late or late payments can affect your credit report and credit score. Your payment history accounts for 35% of your FICO® score, so it’s important to keep your bill payments up to date. If you can afford to pay your credit card bill but forget the due date, consider signing up for automatic payments through your credit card account. This will ensure your bills are paid by the due date.

It’s a good idea to pay attention to your credit

Don’t ignore your credit. Having no credit or a low credit score can make your life more difficult. For example, you may have trouble qualifying for a car loan or mortgage in the future. Reviewing your credit report can help you determine your credit status.

You can request a free credit report from each credit bureau at AnnualCreditReport.com. Your FICO® Score won’t appear on your credit report, but some credit card issuers include credit score tools in their mobile apps. You can use a tool like this to get a free credit score estimate.

If you need to do something about your credit or credit score, making small changes like paying all your bills on time and maintaining a low credit utilization rate can help. Check out our personal finance resources for additional financial guidance.