What happens if I don’t pay my credit card late? Currently, most adults consider that a credit card is a very useful resource, because it offers opportunities in terms of acquiring material goods. The banks that issue this resource, request certain requirements to get this benefit. Among them, is the payment of the previously established quotas up to date.
Not fulfilling this responsibility can bring a series of consequences. If you have a credit card or wish to opt for one at the bank of your choice, It is essential that you inform yourself about these penalties, so you can avoid them at all costs. In this article, we will share about that point.
Negatively influence your reputation
In some cases, banks create files in which they communicate the breach of some type of contract. This it can be detrimental to your reputation, not just with your card issuing bank but with other entities, preventing you from receiving another type of credit.
The interest rate can be increased if I pay my credit card late
Another of the disadvantages that you can suffer by not meeting the responsibility of paying your credit card is a considerable increase in its interest rate. When this situation occurs, you will have to cancel a greater amount of money, at the moment in which you are going to cancel the owed installments. These increases can be quite large, depending on the contract with the bank.
The card can be disabled
This can be quite detrimental, since you will not be able to use it again in any commercial establishment until you have canceled all of your debt.
In some cases, in addition to increasing the percentage with respect to the interest rate, banks may also choose to demand extra commissions, as a penalty method for non-payment of credit cards. This results in a large amount of money having to be paid to the bank, by adding these penalties with the interest on the card.
What if I don’t pay my credit card late? Does it bring me great benefits?
Making credit card payments in the time established by the bank provides many advantages. Among them is maintaining a good reputation.which can be used for the bank to make more loans, even for larger amounts.
By fulfilling these types of responsibilities, banks can offer many other benefits such as cash loansfinancing, mortgages, among other similar advantages, which can expand your economic opportunities.
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