@Anonymous wrote:Our business has been badly impacted, I've take a new job but it doesn't pay what I used to make.
ive fallen behind on a credit card. My report shows this and it's possible this will go to collections.
does anyone know how my other card provider will respond to the negative on my report? I have 2 cards with them and am able to make those payments. Have never had an issue with them before, always paid on time. Is there a chance they would cancel the cards in response to me defaulting with another card provider? I'll just have to suck it up if so but it would have an impact on whether we'll ever be able to reopen the business as having no credit line would be an issue.
thanks.
It's certainly possible, though usually they'll start by minimizing their risk, which means they'll start by lowering your credit limits down to a very low level.
What creditor are we talking about?
@Anonymous
Defaulting in an account is a symptom of financial distress, if we add that the use on the rest of the cards is too high, this will attract even more attention.
If you have no other alternative, continue to do your best to save your finances and credit while keeping a low profile; I suggest you do not risk asking for a limit increase to remedy utilization, or applying for new accounts unless it's for consolidation purposes[PL- check Marcus].
Try not to default, 7 years will be a long time to carry that burden. It's my recommendation.
@Anonymous wrote:Our business has been badly impacted, I've take a new job but it doesn't pay what I used to make.
ive fallen behind on a credit card. My report shows this and it's possible this will go to collections.
does anyone know how my other card provider will respond to the negative on my report? I have 2 cards with them and am able to make those payments. Have never had an issue with them before, always paid on time. Is there a chance they would cancel the cards in response to me defaulting with another card provider? I'll just have to suck it up if so but it would have an impact on whether we'll ever be able to reopen the business as having no credit line would be an issue.
thanks.
Yes there is a good chance the other lenders would take adverse action.
I'd almost guarantee that you'll be balance chased. I'd do all I could to at least keep making minimum payments. If you've already begun to have latest reported, the cat is out of the bag.
@Anonymous wrote:Our business has been badly impacted, I've take a new job but it doesn't pay what I used to make.
ive fallen behind on a credit card. My report shows this and it's possible this will go to collections.
does anyone know how my other card provider will respond to the negative on my report? I have 2 cards with them and am able to make those payments. Have never had an issue with them before, always paid on time. Is there a chance they would cancel the cards in response to me defaulting with another card provider? I'll just have to suck it up if so but it would have an impact on whether we'll ever be able to reopen the business as having no credit line would be an issue.
thanks.
@Anonymous if I'm reading your question correctly, you have two cards with the same lender and you have already defaulted on one card?
I would suggest talking to The creditor to see what options you have for both accounts. Some lenders are willing to offer lower apr's and or smaller payments... some require the accounts be closed, while others will suspend the ability to make additional charges while in a repayment plan.
I also wonder, is your business a Corporation/ LLC or sole proprietary business structure? Some lenders are more forgiving to Corporation's and LLC's provided they have a reasonable path to solvency. The downside is corporate credit blemishes are permanent and don't age off... however, the sting minimizes as you get back to paying your business debts in a timely fashion.
Best of luck, I hope you are able to get your business up and running profitably again quickly.
