What is Credit card default? What happens when you default?
By Editorji News Desk
Published on | Sep 04, 2023
What is Credit card default?
Credit card defaults occur when cardholders fail to make the minimum required payments on their credit card balances
Late Fees and Interest Charges
Credit card issuers often add late fees and high interest rates to the outstanding balance, leading to a substantial increase in the total debt
Negative Impact on Credit Score
Credit card defaults harm your credit score, making it harder to secure loans or credit in the future, often with less favorable terms
Collection Efforts
Credit card issuers may hire collection agencies to recover debt, employing tactics like calls, letters, and legal actions to collect owed funds
Legal action
In some cases, credit card issuer may take legal action to recover the debt. This can lead to a court judgment, wage garnishment, or liens on property