Credit Card: If any incident happens without paying the credit card bill, who will pay the bill, know the update..

Credit Card Updates: In today's time, the facility of credit cards has made the life of common people a little easier. Or let's say that it works like a short-term loan when needed in an emergency.

But have you ever thought that if any incident happens to a person without paying the huge bill of credit card (Credit Card Updates), then who will pay that outstanding amount? Let us know in the news what is the rule in this case.

What is an unsecured credit card?

First of all, you should know that credit cards come under the category of unsecured loans. An unsecured Credit Card means that banks give you this card only when your income, credit score, and repayment history are checked. Not only this, by giving these cards, they do not ask for anything to be mortgaged in return.

What are the rules related to credit cards?

There are some rules related to credit cards and according to the rules, the responsibility of paying the bill of an unsecured credit card is completely of the cardholder.

However, if the cardholder dies without paying the bill, then in such a situation the bank cannot legally put pressure on any member of the deceased's family to pay the dues, because they do not have any personal liability in this.

What does the bank do in such cases?

If there is any such case, then the bank first tries to recover its dues from the deceased's estate. But if there is any property, bank balance, or invested amount in the name of the deceased, then the bank can claim its money by adopting the legal process (bank loan legal process).

But if there is no property in the name of the deceased and there is no money left to pay the dues, then after making all efforts, the bank has to finally write off these dues. That is, in simple language, the bank compensates for this loss itself.

What are the rules of a Secured Credit Card?

On the other hand, those who have a poor credit score or do not have a fixed income, then those customers are offered a Secured Credit Card by the bank. These Secured Credit Cards are given in exchange for Fixed Deposit.

But yes, in the case of a Secured Card, the bank has a security guarantee in the form of a Fixed Deposit. If the Secured Credit Card holder dies without paying the bills and the bill is pending, then the bank does not need to chase the family members.

In such a case, the bank has the right to liquidate the fixed deposit and pay the outstanding amount of the credit card, and the remaining amount is given to the legal heir.

Information about personal loans and other loans

A personal loan is also an unsecured loan like a credit card. Therefore, the same rule applies to personal loans. In such a case, after the death of the loan taker, the bank does not take money from the family members and finally writes off the loan.

But home loans and car loans are secured loans because in this loan the house or car is mortgaged with the bank, and only then the loan is available. In such a condition, either the family members have to pay the EMI of the loan or the bank recovers its money by selling that property.

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