What Does Serious Delinquency on Credit Report Mean?

If you don’t have any idea about What Does Serious Delinquency on Credit Report Mean then we will tell you that is one of the statuses which will indicate that your payment is due in the last 30 days or more than that.

Basically, delinquency will affect the credit score of people, and also it will impact the ability of the users to get approved for any of the new credit applications. 

What Does Serious Delinquency on Credit Report Mean?

What Does Serious Delinquency on Credit Report Mean

You need to make a minimum monthly payment by the cutoff time before the due date. At this point, the clock starts ticking toward delinquency. 

What is Credit Card Delinquency?

Basically, the agreement of the credit cards needs the users to make the monthly credit card payment timely in terms to keep their credit card active and in a good standing position. Also, if you don’t make the payment of your credit card for a few days then it will not make it delinquent. Also, you may need to pay some late fees as well. If you fail to make the due payment within 30 days or more then you have to face some serious issues. 

How Credit Card Delinquency Works?

You need to know that the delinquent status is provided by the credit bureau and also it has the credit report as well. It will also add the late payment to your account and also the credit card provider will start calling you or mailing or sending you the letters where they request you to make the payment. 

The credit card issuer allows you to increase the interest rate on the penalty when you didn’t make the payment by 60 days. Also, the rate of penalty will be affected for six months and also if you make 6 consecutive payments timely then it will get back to normal. 

Credit Card delinquency is not the end. The customer will have an option to bring their account back in good condition but it is really costly if you get caught again. You must need to pay the complete due balance and also the interest rate and also the late penalty as well. 

Also, your credit card account will get closed and also charged off when the balance of your account remains delinquent. Also, it mainly takes place at the time when payment is due for 180 days or more than that from the past due. You don’t get the chance to bring your account normal if this thing takes place. Also, the complete due balance will be sent to the collection agency when you are not capable of paying the amount to the real creditor. 

If you want to know the options of getting caught up again when you are not capable of paying the remaining balance, then you have to contact your credit card provider. 

Credit Card Delinquency Rate

As per the indication of national credit card delinquency rates, how households are handling their debts. An increase in the delinquency rates mainly means that the person doesn’t have enough money to pay their remaining debts and it will be a signal of the financial crisis. 

The top commercial bank delinquency rates stood at 2.73% in the first 3 months as per the Federal Reserve Bank of St. Louis. But, significantly this rate would be less in the second quarter of the year 2009 when during the big recession, this rate is towards 6.77%. 

Can It Be Removed From Your Credit Report?

If the negative report is not correct in your credit report then only it will get removed like if it was incomplete, not verified, or also beyond the limit of credit reporting time as well. You can also be able to send the credit report for the investigation and also it will get removed when your credit card reports the credit card delinquency. You need to send the evidence copy in terms to support your claim. 

Also, the credit card provider is mainly allowed to report negative information till it doesn’t get correct. 

Knowing about your payment is really important in terms of keeping your account safe from being charged off and also getting rid of any type of damage to your credit score.

The status of your account will show that you are making the payments on time at the time when you catch up and also the bad or negative details of the account will fall from the credit report after the completion of 7 years. 

Important Notes:

  • Your credit card is delinquent when you don’t make any of the minimum payments from the last 30 days or more than that. 
  • The delinquency of the credit card will appear on the credit report and also it will be there for seven years. 
  • Also, you may face a penalty after 60 days.
  • Your account may get charged off or gets closed if you don’t make any payment within 180 days or above. 

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So now you are completely aware of What Does Serious Delinquency on Credit Report Mean and how you can examine it and fix it. If you still have any queries then you can drop your queries or feedback in the comment section below.

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