When Does a Credit Card Company Consider You Delinquent?

When your credit card bills start stacking up, it can become overwhelming to open the envelope and look inside. The number grows higher, equal to the level of your stress. But if you ignore your balance for 180 days, or six months, your account can be considered delinquent by the company and that could begin a whole new set of problems.

After Six Months

Credit card companies will usually consider your account delinquent after six months and will likely then engage a collection agency to get its money back. You can expect to receive letters and phone calls from creditors requesting repayment. As your delinquency grows, the interest on the outstanding amount will continue to grow, meaning the longer this goes on, the more you will owe.

Consequences on Credit Score

Your ability to pay bills on time makes up 35 percent of your credit score. Missing even one credit card payment will immediately impact your score, so imagine the damage to your score if you end up missing six months of payments and become delinquent. Furthermore, an additional 30 percent of your score is affected by your debt level. Carrying debt for an extended period of time that doesn't shrink also negatively impacts your score. However, after seven years of uninterrupted delinquency, this item must be removed from your credit report, under the Fair Credit Reporting Act.

Debt Settlement

If your debt has become too much and you want to negotiate a lower amount, then not paying for six months is an important step. Despite the hit to your credit score, non-payment for six months indicates to the credit card company that you are unwilling or can't afford to pay the balance. The company may be willing to enter into a debt settlement negotiation period to come to an agreement out of fear that you may file for bankruptcy and it may not get any of that money back.

Statute of Limitations

Each state has different rules for statute of limitations that pertain to how long creditors can chase after you for delinquent accounts. Refer to the website of your state's attorney general. If your state says the statute of limitations on debt expires after three years and it's been longer, then that prevents creditors from going to court to recoup the credit card company's money.