What Happens On Non-Payment of My Credit Card Bills?

Today, Everyone is under the stress of economy recession. Individual`s need can not come to an end. Every one want to fulfill his all desires with all available resources. Credit Cards also provide you some extra money for your needs. Initially it looks good and attractive, but later on it makes you under so much burden.

After a certain time when you are not able to pay credit cards bills. Then a very scary type of question arises “ What will happen now? ” or “ Can it put me in the jail ? ” Here are some contingencies that what happen if you don`t pay your credit card bills.

Bad Credit Rating

The nonpayment definitely lowers your credit score. On failure of bill payments, the concerned credit card company will surely go to the Central Credit Bureaus for their claim. A Bad Credit Score is not good thing for you. This bad credit will certainly effect your future rating.

If Anytime in future you have to apply for some job or any kind of loan like for your house, education, auto or any type of insurance. Then this Credit history will make huge problems for your approval.

Recovery Team

A huge harassment is possible when on non-payment of credit card bills, A recovery team from credit card company visits your place. Their calls and visits are very hard things to tackle. They use many psychological ways to get your accounts information. Don’t get yourself frightened by them. You have your Basic rights, so don`t worry and seek the police`s help.

Higher Interest Cost

The non-payment also led you towards high interest cost. After your first absence from payment, your interest rate will increase by the “Default Rate” Plus the charge or penalties for late bill submission. This eventually increase your financial burden. By closing of your credit card account, you can avoid that increment of interest rate.

Legal Action

When your credit card becomes delinquent, the Credit Card companies can take some legal course of actions against you. Although companies usually avoid to go in courts due to tiring long process. But they have their right. When the Court gives the decision against you, then bank is ordered to freeze your accounts. But you still have some ways of help through different agents and middle-men.