A history of past due credit accounts will have a negative impact on your ability to take out KoraCash and Recharge.
You’re probably reading this because your Recharge offer expired due to a recent change on your credit report. Your credit report has likely been affected by a delinquent card account.
In order to become eligible for Recharge, you must remediate the issues described below. Your Recharge eligibility will be automatically assessed every 30 days.
What is a delinquent credit card account?
In the credit card industry, any account past due is a delinquent account. But many creditors won’t report an account as delinquent to credit bureaus until at least 30 days after the missed due date. And if you’ve previously had a clean payment history, your creditor might not report the delinquent account until after two consecutive missed payments.
There are multiple levels of delinquency that may be reported on your credit reports.
A debt can be reported as 30, 60, 90 and then 120 days late. Multiple delinquencies or a longer period of delinquency can affect your credit scores much more negatively. For example, your credit scores could drop as much as 125 points after numerous missed payments are posted to your credit reports.
The impact of credit delinquencies can extend seven years into the future.
Even after you’ve fully paid off these debts, the missed payment information on your credit reports may still remain for up to seven years, signaling potential irresponsibility to future creditors.
This is why it’s in your best interest to fulfill at least the minimum payment due each month, and, if you do end up with delinquent accounts, to eventually pay those off, especially if they’ve gone into collections.
Bottom line: Paying off delinquent accounts will increase your chances for KoraCash eligibility and Recharge.