Credit card default in online shopping

 

"I don't shop online. I am always scared to put my credit card on the internet." 

                             -   Kristine Cavallari

We have come across the world where everyone suits to pursue online shopping from a tiny pin to a big car. We pursue different online shopping apps like flip kart, Amazon, lime road, etc. for it. We can sell or buy the articles through this online shopping. But how we could pay for it. We simply take out the credit/ debit cards and pay the amount. Have you ever thought if your credit card defaults, then what you would do? 

Credit card default 

A credit card default happens when you fail to make any payment towards your credit card outstanding bill for a long period of time. It will also happen even if you fail to make the minimum payment towards your credit card for about six months in a row. 

Process 

Whenever you accept a credit card, you agree to certain terms and conditions including the minimum payment that you have to pay with the due date listed on your credit card statement. 

When you miss the minimum payment by 6 months, your credit card defaults. 

In such situations, your credit card issuer will send you notices ,via, email or SMS and call you to make the payment. If you don't make the payment, they will close your account and report the default to the credit bureaus. 

Once you are listed as a credit card defaulter, you became as a risk of any credit obligation. 

Consequences 

Credit score will be impacted as credit rating agencies regularly receive reports about your payment history. 

Banks and credit card companies tend to blacklist people who fail to make payments to their credit cards. 

The bank will block your credit card in order to prevent any further transactions from the card. 

Legal action  can be taken in case of credit card payment default. This can be made in a civil dispute. 

Loans will not be processed or any other way to credit in the future. 

Options for dealing with credit card defaulter 

Pay the amount in full to recover your credit score. 

You can register bankruptcy to restructure your debt depending on the extent of default. 

You can transfer your balance to the account of other bank and pay through EMI. 

Take a personal loan to pay off your debts. 

Request the bank to convert the due amount into EMIs. 

Conclusion 

The credit card default is not a serious note if you are aware of its rules and regulations. Always record your credit dues to avoid such default and consult time to time with bank regulatories. And more importantly, while consulting any terms and conditions, go to a proper check for it so that you may not come under any malpractice of the bank authorities. 

Stay smart, stay safe, stay satark..