Definition
An account is delinquent when the required minimum payment has not been made by the due date.
Analysis
Credit card accounts are considered delinquent when the consumer is late on payments, up to 180 days past due. Once an account reaches 180 days delinquent, the account goes into default.
Account holders may restore a delinquent account to current status only by repaying the missed payments plus any late fee penalties imposed on the account. Account privileges can be restored by the credit card issuer once the account is brought current. In some cases, the card issuer may elect to inactivate the account, which terminates the user’s ability to use the card while still requiring repayment of the debt balance.
Account holders that are delinquent or fear they will soon fall delinquent should seek the assistance of reputable credit counselors before their financial situation deteriorates further. Credit card companies often allow for re-aging and other beneficial concessions that can help cardholders restore the account to current status.
Mortgage loans and vehicle loans are also delinquent when a payment has been missed. Immediate action is required to prevent real property going into foreclosure or for repossession of a vehicle.
