What is a credit card default?
A default occurs when a cardholder fails to make the minimum required payments on their card account for an extended period of time, typically 180 days or more.
What happens if my Yonder credit card goes into default?
If you do go into default, we’ll need to report the delinquency to the UK credit bureaus, and may initiate collection efforts. Don’t worry, we won’t charge late fees or penalties, and will have frozen interest rates to stop your debt from growing.
How does a credit card default affect my credit score?
A default can really damage your credit score, potentially making it more difficult to obtain credit in the future. So you know, defaults stay on your credit file for 6 years.
How can I avoid a credit card default?
The best way to avoid a default is to make timely repayments on your balance. You should also monitor your spending to ensure it aligns with your ability to repay, and seek assistance from credit counselling services or financial advisors if you encounter difficulty managing your debts.
Can I get any help from Yonder if I find myself in financial difficulty?
Absolutely! We’re always here to help if you’re finding your debt difficult to manage, or have had an unexpected event affecting your ability to repay. Pop us a message in the app, and we’ll discuss how we can help get you back on track.