Gaining Insight into Credit Card Delinquency

Utica credit counseling assists with delinquent credit

What is Credit Card Delinquency?

Credit card delinquency is best described as being late on making payments to the credit card company or issuing bank. If you fail to make at least the minimum payment each month, your account becomes delinquent, which is broken down into different degrees based on the actual number of payments that you have missed.

For instance, the first day after not making a payment, your credit card account becomes one-day delinquent. Once a second payment is missed, the account then falls into the full 30-day delinquent category, and so on. Simply put, a single missed monthly payment puts your account in delinquency status. For most credit card companies and banks, late payments are not reported to the credit bureaus until two payments are missed back-to-back.

Understanding the Effects of Credit Card Delinquency

The problem with being reported to one, or all three, reporting agencies is the negative impact this has on your FICO credit score. In fact, if you were to miss three payments in a row, you could see a reduction of your score by as much as 125 points, which is substantial. As imagined, missing four payments would have a devastating effect on your credit and, most likely, result in the credit card account being sent for collections. Depending on the situation, you could also face legal ramifications at this point.

Getting out of Delinquent Status with Utica Credit Counseling

If you are unable to meet the obligations of your bills, rather than miss a single payment, consider talking to a Utica credit counseling professional. If possible, you want to pay the minimum amount each month to avoid being reported to the credit bureaus, but if you are unable to do so, credit counseling in Utica will help.

With professional Utica credit counseling, we will help you determine the best way to get and stay out of debt.

This might entail you filing for bankruptcy, which will stop collections and give you the opportunity for a fresh start. However, because bankruptcy is a major decision, you first need to talk to an attorney who offers credit counseling in Utica. That way, the best solution for your situation can be determined. For assistance with your delinquent accounts, we welcome you to call us today.

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