Credit cards are undoubtedly one of the best credit instruments available in the market. They are different from loans in terms of usage. They are much beneficial in many ways. First of all, credits are available easily, even if you don’t have a credit score. There is high flexibility in its usage and the car holder can swipe it multiple times without any restriction. It can be used to convert payments into EMIs in order to dodge payment of a massive chunk at once. On top of all these, one also gets ample repayment window to clear dues. However, things don’t pass smoothly in every case, and there is no denying the fact that one can miss out on a payment. What should you do next for a credit card? And what if you are missing multiple payments one after another?
Keep one thing in mind: missing a credit card payment is not the end of everything. Moreover, being unable to pay multiple dues, at some times, may push you into a financial abyss. The case worsens if you have a secured credit card that puts the security deposit at risk. Hence, follow the guide carefully to learn the ways of tackling such situations without losing much.
Preventing your credit score from slumping
Banks usually keep reminding you of an approaching payment deadline and also keep sending updates of the fine/penalty, which you would be paying after missing the due date. However, even if you fail to make the payment before the last date, do it as soon as possible, at least within 30 days of the deadline. A little bit of penalty will save you from losing valuable credit ratings. If the payment is made just after the deadline, contact your bank and request for the exemption of the penalty. If you have a good-looking credit record, you may not lose anything after the first missed a payment.
Missed the first 30 days? Try not repeating it further
Payment done within 30 days of the deadline can save from losing credit points as banks do send credit reports to CIBIL regularly but not daily. However, if you have even missed the first 30 days, there is no need to panic as this won’t affect much. Look further and make sure that you don’t miss the upcoming payments. Missing a payment does have a negative impact on your credit score but missing multiple payments will worsen it to a level, from which, it would be difficult to recover.
In case you are unable to pay at all
Financial crunches are always unfortunate and affect you from all sides. In such cases, it is more than likely that you won’t be able to pay your credit card bills for a certain period. In this case, look out for other means of getting out of the situation. Pay at least the minimum due amount so that you can extend payment further. You can also try a credit card takeover loan, in which you only have to pay the due amount along with minimal interest to the lender.
Using your credit cards properly can keep these ills out of your way. However, financial emergencies can hit anyone, which can be critical in some cases. Be wise and proceed cautiously. Follow the suggestions mentioned above to assuage the situation and for getting out of it easily.