Maybe, it depends on the country you live in. Generally, credit card rewards are seen as rebates (or discounts), and not as income. However, signup bonuses (certainly excessive bonuses) may get taxed as income.
Generally, credit card fees such as annual fees, and interest expenses are tax deductible against business expenses.
Currently, during the COVID-19 pandemic crisis, just about every bank is offering some form of deferral program to avoid consumers from going in to default, collections, or worse, bankruptcy. If you are having difficulty making your payments, work with your bank before it’s too late.
Yes. Since 2008, and to avoid tax evasion, the IRS has been collecting data on credit card spending habits.
Banks can review accounts for a number of reasons. For example, if your credit score changes, if you don’t use your credit card, or you start being late with your payments, it’s possible the credit card company can either lower your limit, or even close your account and demand payment.
It’s certainly within the banks’ right to lower someones credit limit. Reasons for lowering limits include lack or inactive credit use (I.e. not using actually credit card), or if your credit score diminishes. Remember, a bank can even close your credit card account and demand the outstanding balance, at any time.
If you are taken the court for non payment of your credit card, the court may allow your wages to be garnished to pay back the loan.
Credit card debt is usually unsecured debt – or a signature loan. As a result, it would be near impossible for a credit card company to take your house due to non payment.
Yes, especially if you don’t pay what you owe.
Yes, banks can lower your credit limit based on what they see fit.
Yes. If the bank or collections company agrees, (a portion) of the debt can be forgiven. Remember however, the portion of debt that’s forgiven must be declared as income at tax time!
Credit cards are generally unsecured, so unless you used your car as security, they will have an incredibly difficult time convincing a court to hand over your car if you stop paying your bills.