I have a credit score of 700. What would be the consequences of defaulting on $10,000 in credit card debt?

Answer 1

This would create a serious problem with your credit score. Do you have to do this?

Answer 2

If I had to guess, a recent R9 (default) puts a score around 500?
Is this an isolated account, ie you cosigned or have a dispute? I am assuming all you other accounts will be up to date.

If so then the effects will be broader, all your other accounts will either be closed, severly reduced lines, not renewed after expiration, and for sure given the "Universal Default Rate" of 25-29%. This is when you default on any account your current company can raise your rate on an account with a perfect history.
Oh and now car insurance companies pull your credit report. So you can expect a 10-30% (?) rate hike there. Or they may drop you.
Or are you saying you only have 10k in total CC debt? If so do not default. If your situation is bad, but can turn around go to CCCS and see if you can get reduced payments and interest. Your accounts will be closed, but maybe you can get by until you can make larger payments.

Answer 3

Why would you want to do that? It is going to go down every month the debt is not paid. It will take awhile to get that credit score back up.

Answer 4

your credit score would go down the toliet....then you would not be able to get credit for a long time and you probably would never see a score of 700 again

Answer 5

It would tank your score. Try to avoid this if at all possible (and it is possible, you may have to make some sacrifices but it'll be worth it in the long run)

Answer 6

you would be better off paying the 10k - if you are in bad shape financially i would check out a consumer credit cancelling service

Answer 7

dont do that .this thing will be with you for a long time.It will deminish your ability to do many things including buying a home and applying for certain jobs.