While credit cards provided to the citizens by various conditions such as postponing payments, making shopping easier by paying in installments, on the other hand, pose certain risks in cases such as business deterioration and non-payment of debts.
Credit card shoppers receive one statement each month and the total amount of their debts and minimum payment amount are written on this statement. In order for the citizen to fulfill his obligation to the bank, he must pay the total amount of debt written on the statement or at least the minimum payment amount. If the payment is made below the credit card minimum or if no payment is made, various sanctions may be faced.
What happens if a credit card minimum payment is made?
Pay the minimum amount of credit card debt:
- It brings some disadvantages.
- First of all, when the minimum amount is paid, the interest begins to be processed for the remaining debt and the debt to the bank slowly swells.
- In addition, your credit rating will decline as long as you pay the minimum amount instead of paying the entire debt. Naturally, this may cause you some problems if you want to get a credit card or credit in the future.
The damages of paying the minimum amount of the credit card are not limited to these. As a credit rating is an assessment criterion that makes banks trust you, the downgrade will cause you to have difficulties in attracting credit in the future. On the other hand, if you pay less than the minimum amount three times in one year, the bank will close your credit card until all your debt is closed.
What happens if a credit card minimum payment is not made?
In the event that a lower amount than the minimum amount stated on the credit card statement is paid or no payment is made, the process will proceed as follows:
- If the minimum payment amount of the credit card is not paid or delayed for three consecutive months, the card will be closed for use.
- All debts must be paid in order to re-use the closed credit card.
Is it Possible to Pay a Minimum Amount of Credit Cards Continuously?
It is possible to pay the minimum amount of credit card debt continuously. Although payment below the minimum amount will result in the closure of the credit card after a period of time, there is no case of closing the card if the minimum amount is paid. In this case, only disadvantages such as credit rating decrease and extra interest obligation arise.
Credit Card 3 Times What happens if a minimum payment is made?
There is no harm in paying the minimum amount of your card debt three times.
When paying your credit card debts:
- If you pay less than the minimum amount three times in one year, your bank will close your credit card.
- This means that your credit rating will be dropped and you will not be able to make any purchases using your card.
- Therefore, if you have paid less than the minimum amount twice within a year, it is better for you to take care not to have a third.