What happens if you don t pay credit cards? What will happen to your credit score if you don’t make payments on time? If you have an authorized user on your credit card, you’re responsible for making payments on time. If the authorized user misses a payment, the primary cardholder will still be responsible for the balance. However, the primary cardholder can take legal action to collect the debt.
Whenever possible, make sure you add a co-signer. This way, you can share the responsibility of making payments, even if you don’t know them personally. If you’re adding someone to your account, make sure that they have a good payment history. This is a good idea if you’re worried about your co-signer’s bad credit habits.
If you don’t make the minimum payment, your creditor may charge a late fee. For the first violation, this fee can be as high as $29, and it can reach $40 if you fail to make your payment after six billing cycles. Usually, this late fee is a percentage of the outstanding balance, but the penalty APR is usually higher – up to 30%. This percentage varies from one issuer to the next, and sometimes you can get away with paying a minimum payment but still incur a penalty.
The best way to avoid getting into debt is to teach children healthy money habits from a young age. Most people who are in debt did so because they bought one purchase at a time. You should teach them to think about needs and wants before making a large purchase. You’ll be glad you did. But if your child is the opposite, then you should teach him/her how to make decisions about purchases based on their needs and wants.