What happens if credit card bill is not paid?

You must be aware that there are a number of disadvantages to paying your credit card bill late. I also defaulted on a loan that I had taken because of some financial issues. It decreased my CIBIL score. It puts financial pressure on you, which harms your CIBIL Score. So you must know what happens if we don t pay credit card bill. Use your credit card to pay utility bills on NoBroker and get assured cashback. Check your eligibility and get approved for a home loan from NoBroker here.

What will happen if credit card bill is not paid?

Your interest rate will increase, you'll be fined late fees, and your credit rating will decline if credit card bill not paid on time. If you consistently make late payments, your credit card may be stopped. Your account may be turned over to a debt collection company, and the collection agency may file a lawsuit against you and take your property.

What happens if credit card bill is not paid?

1) People who don't make credit card payments frequently end up on a blacklist maintained by banks and lending institutions. 2) If a credit card payment isn't made on time, legal action may be taken. This can be turned into a civil dispute, and a lawsuit can be brought against the other party. 3) Your information will be placed on a blacklist, making it challenging for you to obtain a credit of any kind in the future, including loans. 4) Your credit card will be blocked by the bank to stop any further purchases using it. You won't be able to use the card to make any purchases. The card will not be used again unless all debts are paid in full and the bank is satisfied. 5) Your interest rates on credit cards will be much higher if you have a history of missing payments for a large amount of time. 6) It's the worst-case possible and only occurs at the very end. The bank may transfer money to pay off the outstanding debt if it has reference to your savings account or other accounts. In addition to this, certain banks may take your personal property to cover their losses. You must have understood what happens if we don t pay credit card bills. Read More: What is the unbilled amount in credit card? How to pay credit card bill through credit card? How to convert ICICI credit card bill into EMI? How to pay credit card bill through debit card?

Due to some financial problems, I failed to pay my credit card bill on time during COVID. I visited the bank because I did not want to get marked as a defaulter and asked an official about what happens when credit card bill is not paid. I was relieved to learn that missing the first bill payment does not make one a defaulter. 

What Will Happen if Credit Card Bill not Paid?

If a person fails to pay the credit card bill for one or two months, he/she has to pay an extra fee for the default as per the terms and conditions agreed upon while availing of the credit card. Issuers impose late payment fees, increasing the overall amount due. But there are some other downsides to this that I learnt:

• Credit Score Impact: 

Non-payment of credit card bills negatively affects credit scores, limiting future borrowing capabilities.

• Collection Calls: 

Card issuers may engage in collection efforts, including calls and letters.

• Legal Action: 

In extreme cases, creditors may pursue legal action to recover the debt.

• Card Suspension: 

Non-payment can result in the suspension or cancellation of the credit card.

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So this is what I learned from the bank official about what happens if credit card bill not paid on time. I hope I will not repeat the same mistake again and make all my payments on time.

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