What are the ramifications of defaulting on a credit card?

Answer by  bac (20)

Defaulting on a credit card is a major blemish on one's credit report. The consequences could range from reporting a delinquency to credit reporting agencies to garnishing of wages. Upon which, one may be denied credit on any future applications for credit or offered an account at extremely high interest rates.

Answer by  pious57 (112)

When I default payment of credit card dues, first thing is my reputation is at stake. My credit card limit will be blocked till I clear the dues and will not be renewed further on expiry. I will have to pay Penal Interest I cannot enjoy the credit facility any more. I will be included in the defaulters list.

Answer by  John (9008)

First of all, your credit rating will drop dramatically, making it harder to get new credit, find housing or, sometimes, even find employment. The credit card company could sue you; if they win a lawsuit, they can garnish your wages and seize your property.