A credit card overdue is a situation in which you fail to pay your balance on time after the last payment date on your bill. Overdue can lead to a range of undesirable consequences, including:
1.Penalty interest and late fees
Banks charge overdue users additional penalty interest and late fees, which add to pre-existing debts and accumulate during the overdue period.
2.Impaired credit scores
Late payments can have a negative impact on an individual's credit history and lower their credit score. This can affect future credit applications, renting, loans, and even jobs.
3.The account is frozen or closed
The bank reserves the right to temporarily freeze or close overdue accounts and stop the use of credit until the outstanding amount is paid off.
4.Legal proceedings
Serious overdue payments may lead banks to take legal action to enforce the recovery of arrears through the courts, which can lead to litigation and legal disputes.
5.Affect daily life
Late payments can lead to a negative impact on an individual's creditworthiness, affecting renting, employment, and other financial transactions in everyday life.
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