If you are wondering what happens if i don’t pay my credit card, it means that you are going through a very difficult financial situation, because it is difficult to think that you are not paying because you do not want to, since most of the people who generate a debt with their credit card do not do so on a whim or for lack of wishes but because they are truly unable to cope with their debts.
They can be very different reasons but the truth is that you need to know:
What happens if I don’t pay my credit card: penalties
Many people like you think what happens if i don’t pay my credit card and the first answer they deduce is the fear of going to jail for non-payment.
- However, as it is a civil debt, there is no possibility that you will go to jail if you do not pay your credit card, since article 17 of the civil code of Mexico protects you, unless you have obtained the credit through a crime in which case a legal process for fraud is initiated.
- If your creditor initiates a commercial lawsuit and wins it, he can garnish you, although it is a not very common consequence for non-payment of a credit card.
- If at the bank where you got the piggy card that you are now in debt you signed a contract where you left your authorization for your debts to be collected from your bank accounts, the debt on your card will be charged from those bank accounts that you authorized.
What happens if I don’t pay my credit card in the United States
If you find yourself in the United States wondering what happens if i don’t pay my credit card, you will come across the following:
- With some payments owed, the creditor bank will start sending you letters with the claim.
- In addition to the fact that you will constantly receive letters from the bank or its legal representatives, you will also receive calls every day making a claim for the balance of your debt.
- It is likely that even if it is not legal, they will contact your relatives and employers to inform them about your debt.
What happens if I don’t pay my Bancomer credit card
- If you do not pay your bancomer credit card, the bank will wait three months to call you by phone or will send you a letter offering to negotiate the debt.
- The bank is interested in recovering even some of the money you owe and it will significantly reduce the money you owe, but although it may seem like an attractive offer and you pay what you negotiated, your credit bureau will be affected.
- However, negotiating a reduction of your debt is always more beneficial for you than stopping paying because in the latter case it will be very difficult for you to get another loan.
- Anyway, assuming that you are in a situation in which you prioritize health and therefore the money you owe from your credit card you need to use to solve health problems, you have the Banamex gold card to cover any type of health expense As for example a hospitalization and expenses you can defer them in installments without interest.
- The Banamex gold card is a good option for you to get and reserve its use for emergencies.
After 72 hours
After 72 hours if you do not pay your credit card, in Mexico it is established that new purchases will not be authorized and also the interest rate will increase, that is, your account will have a higher interest rate because you will be considered as a client risky.
After the first 90 days
In Mexico, after the first 90 days that you do not pay the credit card, the bank will inform the credit bureau and they will consider you as a red sign or account that may go bankrupt.
- They will call you and try to contact you by any means possible and will even try to communicate with your references saturating you and your references with daily calls.
- In the United States, if you don’t pay your credit card, after the first 90 days your account will be closed completely and they will wait for you to pay the entire debt.
- Your debt will be sold to a collection agency to prosecute you with legal actions that vary according to each state, as some states may sue you and others will apply a lien on your bank account.
After the first 120 days
- In Mexico, after 120 days of not paying your credit card, they will try to charge you using any method.
- The amount owed is considered a loss and then the bank will contact the collection office to sell the portfolio.
- The collection office will be the sector in charge of collecting, often applying improper and very annoying methods.
- In the United States, after 120 days of your debt, they will be handled as after 90 days by closing your account completely and selling your debt to a collection agency.
Legal consequences of not paying your credit card
- Failure to pay your credit card implies for you the fact that your credit history will be inevitably affected and therefore it may also be that for several years you will not be able to access credit.
- In addition to this, as it will be difficult for you to obtain another credit card, you will have no other option than to manage with a debit card or cash to make your purchases.
- Not only will you have a limit for the payment of common purchases but if you want to hire a service, need to buy a car or think about creating a business, it will be very difficult situations for you if you do not have a credit card.
- In the United States, as in Mexico, there is no possibility of you going to prison because there is no prison for debtors.
- However, your creditor can sue you and go to court.
- If the creditor wins the judgment, he can garnish your property, your wages and assets not exempt from garnishment.
Although if you do not pay the credit card, jail is not a viable possibility in Mexico or in the United States, you will suffer situations that are really very stressful, for this reason it is best that you always have updated information about the balance and charges of your card.