When you use a credit card often, you must be responsible. One of the most important things you can do to ensure that you don’t ruin your chances of getting a new credit card in the future is to pay your bills on time.
Debt collectors:
If you do not settle your loan debt on time, the bank will hire debt collectors to call you all day and hound your office all night in order to get you to pay your bills. They will continue to contact you and attempt to convince you, either respectfully or forcefully. To get the debt collectors off your back, it’s always a good idea to reach an agreement with the bank.
Deposits of your security cheques:
You will be asked to send a blank cheque to the bank while applying for a credit card. The bank is free to take advantage of this opportunity to redeem the sum owed to them from the blank check that was given to them. This is completely at the bank’s discretion and can be used if you fail to deposit or clear your unpaid debts after repeated requests.
Cheque bounce:
A police report would be filed against you if the check you wrote to the bank bounces. You won’t be prosecuted if you bounce a check because it’s a civil offense, but you’ll have to pay a hefty fine to get out of it.
The police get involved:
The police are still in charge of outstanding debts that have been unpaid for an extended period of time. Police and immigration programs will often pursue you for payment and will use a variety of legal means to ensure that you settle any unpaid debts. You are still not protected if you leave the country with an unpaid credit card debt. Local debt collectors and bank representatives contact you in foreign countries to convince and solicit the payment of outstanding bank debt. The bank would go to any length to reclaim its funds, so paying on time is usually a good policy.
Damaged Credit score :
Your credit score is heavily influenced by your ability to repay debts and your payment history. Your credit score is affected a little if you have unpaid credit card debt. If the remaining debt is not paid off for an extended period of time, the credit score will quickly deteriorate. This drop would have an effect on your potential ability to obtain a loan, new credit cards, or other lines of credit from a bank or financial institution.
Future loan Applications:
Banks and financial firms would be unable to lend you money if your credit score is harmed by your unpaid debt. If you have a poor credit score, it means you have a history of not repaying your debts. As a result, no bank can readily lend to you. If you ever want to get a mortgage for a house or a car loan, or anything similar, this might hurt your financial chances.
Increased penalties:
And if you don’t pay your credit card bill for a long time, the interest will continue to accrue. Compound interest, as well as fines and costs that keep adding to the principal sum, will end up costing you much more than you originally planned. Pay the bills on time to stop this.
What happens if credit card bill is not paid on time?
If you don’t pay your credit card bills on time, you’ll be charged late fees, interest rates will rise, and your credit score will suffer. If you continue to miss payments for an extended period of time, your card will be frozen, and your debt will be sold to a collection agency.
How long can you go without paying a credit card bill?
If a credit card payment is 30 days past due, it is considered late, but it will not appear on your credit report until then.
Is it possible to go to prison if you don’t pay your credit card bills? Is it possible to go to prison if you don’t pay your credit card bills?
You can’t go to jail for nonpayment, but when your security cheque is bounced, Bank will file a police case. then you have to visit the police station.In Dubai, If the cheque amount is less than Dh200,000, the punishment may be by fine and the fine may vary between Dh2,000 and Dh10,000 depending on the cheque amount.
