When the matters related to the credit card are concerned , ” past due” is not considered to be a good status for your credit card. It is worse for you as it is going to affect your account. If the past due is for a prolonged period. Let’s have a bird’s eye view on what “past due” is .
If you are being past due, it means that you did not have made payment within due date. Technically , your account is past due from the day you are late in making payment. And your account remains in the past due status until and unless you make payments. Once the account is past due. You have charged a late fee along with some interest charges. You will not be able to make any purchases and your credit score will fall also. You will also loose a reward that you have.
What to do when you are Past Due
Since, your account is past due but actions will not have taken immediately. If you are unable to make payments 30 days late. So, you have sufficient time before that to make payment in order not to affect credit rating. Moreover, your credit report will not manifest that if you are not 30 days late. But if, the matter has reported to the credit bureaus, it will affect your credit score. The lazier you will be, the more affect on credit score will be.
Moreover, you have charged late fee each month if you are past due. If you are 180 days past due, then , your credit card will have charged off. Then, you will not have a chance to pay the amount and get back to the regular minimum payments. Rather, you have left with an only option to pay the balance in full. Or you can be charged high. If you prolong the situation, your interest rate will be augmented.
What is in the Past Due
The amount of past due is more than the payment as it includes the sum of the minimum payment and the late fee charges since your last payment due date. The billing statement will include the past due amount.In order to gain access to your account, you have to pay the past due. In order to avoid this all, pay your dues on time.
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