What is a default on a credit card?

A default on a credit card is when a borrower fails to make payments or is otherwise unable or unwilling to abide by the terms of their credit card agreement. In California, a default can be triggered when a borrower misses their minimum monthly payment for more than 45 days, defaults on their payments for more than 60 days, or pays their credit card bill with a check that is returned for insufficient funds. Once a default is triggered, the creditor can take several legal actions to collect the money owed. These legal actions include suing the borrower for the debt, putting a lien on their property, and possibly garnishing their wages. They may also report the borrower to the credit bureaus, which will negatively affect their credit score. The consequences of defaulting on a credit card can be serious, as the debtor may face difficulty getting credit in the future and may also be liable for interest fees, late fees, and collection fees. To avoid this situation, borrowers should ensure they make their minimum monthly payments by the due date, and should make sure to read their credit card agreement thoroughly before signing it.

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What is a default on a credit card?

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