ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -From the perspective of a credit card company, a particular credit card is said to be delinquent if the customer in question has failed to make their minimum monthly payment for 30 days from their original due date.

Detailed explanation-2: -Typically, delinquency means the account payment was not made on or before the payment due date. Default signifies the account terms were not met and the lender has determined the debt will not be paid; at that point the lender likely will send the debt to collection.

Detailed explanation-3: -The credit card company is likely to raise the interest rate on your account. It can do that after two consecutive missed payments. The issuer also must inform you how long it will impose the penalty rate. It could be until you have made 12 consecutive on-time payments, or even indefinitely.

Detailed explanation-4: -A delinquency is a late payment that can appear on your credit report once you’re 30 days or more past due on a debt. The consequences of a delinquency can be severe when it comes to your credit score. If you’re having difficulty paying your bills, becoming current on your account can be challenging.