Credit Card Applications: Issues with Repayments
If you decide to submit a credit card application then it is important to ensure that you are in a financial position where 1) you can afford to keep a credit card in the first place and 2) should there be any repayments, you can keep up to date with them to prevent any blemishes on your credit record.
There will be some individuals who could experience issues with trying to keep up with repayments and there is nothing worse after completing and sending a credit card application and that it has been approved that you cannot keep up the repayments.
Such a situation should be approached carefully and can easily be prevented with advanced planning and thought.
The first tip in this type of scenario is to:
Not spend any of the credit card limit, if you have already done so then don’t spend any more. There is no point making a bad situation worse.
If completely possible and to prevent temptation, destroy the card, this will guarantee that no further spending will occur which in turn will lead to higher repayments and larger interest payments on any outstanding amounts.
I am having problems what can I do?
Don’t panic, there is no need to worry because if you are having issues then by being honest with the lender, they can be very forthcoming and will advise you on the best course of action to take.
When you submitted that credit card application, you become their customer and most will do everything in their power to prevent a poor outcome, after all they are at risk as well should you experience financial problems?
At the first sign of a potential problem, however slight, contact the lender / s involved and explain the exact scenario and remember to be honest because by doing so will help plan a suitable course of action which will subsequently please all parties and prevent any further action to recover any debt due.
Ignoring a situation will only make it worse and result in more interest being added.
This is where payment protection can come in handy because should you experience any problems with the repayments because this policy can cover you for most eventualities and in the long run, it can save a lot of time and hassle worrying and trying to find alternatives to ensure payment is made.
If you require any information on the payment protection plan then this will be provided most commonly when you submit a credit card application but even after this, more details can be provided and best of all, you can sign up for the service at any time so what do you have to lose?