As of 2023, surveys show that roughly 35 percent of Americans hold credit card debt. Credit cards are a great way to ensure you always have a way to pay for things while taking advantage of perks like travel rewards and cash back. But it can also lead to many issues that harm your financial well-being. Get help with paying Bank of America card - regain control of your finances today! Click here for assistance.
Failing to pay your credit card can have a debilitating effect on your financial future. If you need help with paying Bank of America card debt, you must take action to avoid the following pitfalls.
Dings to Your Credit Score
One of the worst effects of late payments is a hit to your credit score. Credit card companies send your payment activity to the three major credit bureaus monthly. A late or missed payment will affect your score, and the longer you wait to get back on track, the worse the effect will be.
These negative marks can stay on your report for several years. That means that any lender you work with in the future can see them. A bad credit score can make getting loans nearly impossible.
Fees and Penalties
If you need help with paying Bank of America card debts, it's better to take action as soon as possible. The most immediate issue you'll have to deal with is fees and penalties. Credit card providers will charge steep fees the day after your bill is due. If you're struggling to keep your head above water, those penalties will make it harder to get back on track.
Charge Offs and Collections
Here's the worst-case scenario. Credit card companies may charge off your account if you fail to pay your credit card bill within 180 days. That means they close your account and mark the debt as a loss.
When that happens, they sell your debt to a third-party collector. That's when things get awful. Collectors go to great measures to get you to pay up. They may even resort to suing you, which could cost you big.
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