If you are planning to acquire a credit card or you already have, then you should be thoroughly acquainted with the concept of Credit Card Delinquency. A credit card holder becomes delinquent, if he fails to pay the credit card bills. When you have a credit card, you are required to pay a certain amount every month to be current on your account. Now, if you do not make the minimum amount payment for the single month, a day after that you will be considered 1 day delinquent.
Basically delinquency is counted by the number of days you miss in making the payments to your credit card bills. So, if you miss your second monthly payment, you will be 30 days delinquent and if you miss it for another month then you will be 60 days delinquent and so on. Generally, you may be given buffer time to improve this situation and your missed payments may not be reported to the credit bureaus till two consecutive payments have been missed. But if you miss your third payment, then your credit score may fall by 125 points. For the fourth time that you miss your payments, your account may be turned to collections and action by collectors may ramp up by the fifth time, and later legal action may also be taken.
Apart from these negative effects, your charging privileges by the card may be suspended till payment of the total amount or may even be revoked permanently. Though all these things may seem quite intimidating, but you may not be in such a bad situation if you take certain steps. Firstly, make sure that you pay the minimum amount on your bill that you have to pay. And do not make the mistake of assuming that you the minimum amount is the total amount. It is the amount you need to make to keep your account current. Pay the entire minimum amount, not less, because that will not help you. Pay the minimum and keep paying your bills on time to stay out of this problem of credit card delinquency.
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