I have a negative name: will my credit card be blocked?

The number of Brazilians who find themselves in a situation of indebtedness is growing. In fact, a large part of this situation is due to the installments high and overdue credit card bills. Eventually, this implies restrictions for the citizen, which is why many wonder if there is a credit card block because it is negative.

Read more: Check out 4 simple steps to clear your name at Serasa

What happens when I get a “dirty name”

Someone gets a negative name when they fail to pay any debt they have made with a bank or any other financial institution. Most of the people who are left with debts here in Brazil have messed up with credit card installments. They weren't paid on time, so interest accrued.

This is the first big consequence. This causes the debt to increase and become a snowball if the individual does not try to negotiate it. Therefore, the institution to which you owe may put your name on a credit restriction list.

In practice, this means that it will be much more difficult – even virtually impossible – to get new credits, so these citizens will not have access to loans offered by banks or new credit cards. credit. In the long term, this will be responsible for drastically reducing consumer purchasing power.

What happens to credit cards?

The credit restriction will be related to new loan applications that the person requests after having a “dirty name”. This means that there is no blocking of existing cards due to negative results. What can be said is that the accumulation of interest and unpaid debt can lower the card limit considerably.

In this way, experts warn that the best thing to do to keep it is to pay the debts in installments existing ones, because that way you will be complying with the payment agreement and still have some limit available.

Furthermore, once you pay off the debts, your name restriction disappears! That way, you'll be able to recover the possibility of requesting new credits and being able to make your purchases as before.