Delinquent Account Credit Card
Candlefocus EditorWhen lenders allow delinquent accounts to go unpaid for extended periods of time, credit card companies try to contact and negotiate with the borrower. If that fails, they may turn the delinquent account over to a third-party collection agency or even take legal action. Not only can delinquent accounts result in late payment fees and higher interest rates, but they can also remain on a borrower’s credit report for up to seven years. This can lead to lowered credit scores, resulting in difficulty when it comes to other forms of borrowing.
It’s important for consumers to be aware of their credit score and track the status of their credit card accounts on a regular basis. Staying on top of due dates, paying balances in full when possible, and setting up automatic payments, if available, are all methods of mitigating the risk of delinquency and its associated consequences. By staying informed and organized, you can do your best to keep your credit rating in good standing, preventing any long-term damage.