Failure to pay your credit card bills can have serious consequences for your financial health. Below we detail the main repercussions that may result from this:
by 2001 online
1. Damage to your credit score:
Late payments negatively affect your score.
Delays of 30 days or more may make it difficult to obtain new cards, loans, and other financial products.
Negative information stays on your credit record for up to seven years.
The higher your score, the greater the late penalty.
2. Late fees:
The card issuer can charge you up to $30 for your first late payment, and $41 if you're late again within six months.
In addition, interest and other penalties may apply.
3. Increase in the annual interest rate:
If the delay exceeds 60 days, the issuer may increase the interest rate applied to you.
This means you'll pay more for your credit and future purchases.
Some banks offer the ability to return to the original APR if you make timely payments for a certain period of time.
4. Source warnings:
You will receive notifications after 30 days of non-payment.
The bank will offer you solutions to catch up.
Do not ignore the caller's calls, this will only make the situation worse.
5. Closing the account:
If you do not make the minimum payments for 180 days, your account may be cancelled.
You will not be able to use the card and the outstanding debt will be recorded as a loss.
The issuer can sell the debt to a third-party collector.
This will further impact your credit score.
6. Demand for Debt Collection:
If you don't pay the balance due within 180 days, the issuer or aggregator can sue you.
If you lose the case, your wages and property may be garnished, along with interest and penalties.
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