devon forgets to pay his credit card bill for three months. which of the following statements is true?
LectureNotes said Devon forgets to pay his credit card bill for three months. Which of the following statements is true?
Answer:
The situation described indicates that Devon has missed paying his credit card bill for three consecutive months. In this case, several possible scenarios could unfold based on the credit card issuer’s actions and Devon’s credit history.
-
Negative Impact on Credit Score: One true statement could be that Devon’s credit score might be negatively affected due to the missed payments. Payment history is a significant factor affecting credit scores, and late payments, especially if they continue for several months, can lower credit scores.
-
Accumulation of Late Fees and Interest: Another true statement could be that Devon may have accumulated late fees and interest on the unpaid balance. Credit card issuers typically charge late fees for missed payments and apply interest to the outstanding balance, increasing the amount owed.
-
Risk of Account Closure: If Devon continues to miss payments, there is a risk that the credit card issuer may decide to close his account. Persistent delinquency can lead to the issuer taking measures to limit their risk, which may include closing the account.
-
Communication from the Credit Card Issuer: Devon is likely to receive communication from the credit card issuer regarding the missed payments. This could include reminders, notifications of late fees, and warnings about the consequences of continued non-payment.
In conclusion, the true statement would depend on the specific actions taken by the credit card issuer, Devon’s credit history, and the consequences faced by Devon as a result of missing his credit card payments.