What is a credit card default?
A default happens when a cardholder does not make the minimum required payments on their credit card account for an extended period, usually 180 days or more.
What happens if my Yonder credit card goes into default?
If your account goes into default, we will report this delinquency to the UK credit reference agencies. We may also begin collection efforts to recover the balance.
Good to know:
We do not charge late fees or penalties
Interest rates will be frozen to prevent your debt from increasing further
How does a credit card default affect my credit score?
A default can seriously damage your credit score and may make it harder for you to get credit in the future. Defaults remain on your credit file for 6 years.
How can I avoid a credit card default?
The best way to avoid default is to:
Make your payments on time, at least the minimum amount due
Keep track of your spending to ensure you can repay your balance
Seek help early from credit counselling or financial advisors if you’re struggling to manage your debts
Can Yonder help if I’m in financial difficulty?
Yes! We’re here to support you. If you’re having trouble managing your repayments or have experienced an unexpected event impacting your finances, please get in touch through your app. We’ll work with you to find the best way to get you back on track.