{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/what-is-credit-card-delinquency\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/what-is-credit-card-delinquency\/","headline":"What is Credit Card Delinquency?","name":"What is Credit Card Delinquency?","description":"When you sign up for a credit card, you agree to pay back the money you owe. The card-issuing bank funds your credit card spending. Hence, you are responsible for paying them back what you owe on time.  If you fail to pay the minimum amount due on your credit card by the due date,...","datePublished":"2024-06-19","dateModified":"2024-06-19","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/delinquency.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/delinquency.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/what-is-credit-card-delinquency\/","about":["Categories","Manage your Finance"],"wordCount":1042,"keywords":["credit card"],"articleBody":"When you sign up for a credit card, you agree to pay back the money you owe. The card-issuing bank funds your credit card spending. Hence, you are responsible for paying them back what you owe on time. If you fail to pay the minimum amount due on your credit card by the due date, you may face credit card delinquency. If you do not pay your credit card bills (for several months) even after a delinquent status on your card, you may be termed a credit card defaulter. Hence, being aware of credit card delinquency and how to avoid such a situation is crucial. Read on to learn more. Understanding Credit Card Delinquency in DetailThe following illustration provides a brief overview of how a credit card account can become delinquent:Let\u2019s assume you have a credit card with a payment due date on the 10th of every month. Now, if for some reason you are unable to make the payment by the due date, the following occurs with each set of days after the missed payment:In the first 30 days, a missed payment can lead to your credit card account being declared delinquent. Your bank will send you a notice about this status. Also, a delinquent credit card account means that its holder must incur late fees. Your credit card-issuing bank will also inform the relevant credit bureau. This will have a negative impact on your credit score.If there is no payment even after two months, your credit card account will be marked 60 days delinquent. The late fees and the interest on the pending credit will also increase.In case of non-payment even after two months and beyond, the bank might close your account or approach a debt collection agency. If they choose the latter, you will have to face numerous calls and visits from the debt collection agency.If the cardholder does not pay the dues even after six months, the bank may declare them a defaulter. It can lead to severe repercussions.Now that you know what delinquent debt is and its consequences, let\u2019s look at how to avoid it.Also Read: What Happens When You Default on Credit Cards?How to Avoid Credit Card Delinquency?To ensure you do not have to face a delinquent credit card account, keep the following points in mind:1. Automate Your Credit Card Bill PaymentsSetting up autopay for your credit card bills can ensure timely payments. Even if you forget the due date, the autopay system will ensure that the payment happens on time.2. Use Your Credit Card CarefullyThe chances of credit card delinquency are higher if the bill amount exceeds your repayment capacity. Hence, use your credit card with care. Create a budget, control your spending, and prudently use your credit card. Also, review your credit card statement regularly to verify the total dues.3. Reach Out to the BankIf you know you will find it difficult to clear the upcoming credit card bill, connect with your bank. Inform them about the reason for late payment. Enquire if there are any adjustments or alternative payment plans to avoid delinquency.ConclusionBy understanding what delinquent debt is and ways to avoid it, you can maintain a positive credit score and have a smoother financial journey.Also, choose the right banking partner for a smooth and seamless banking experience. With IndusInd Bank, you can enjoy a 100% digital credit card application process, excellent customer service, and a host of rewards, offers and privileges to make your lifestyle easier.Apply Now for IndusInd Bank Credit Cards today!DisclaimerThe information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.Share This:"}