A credit agreement that allows you to repay credit in regular payments over a specified time. If you miss the due date, the account is considered past due and you may be charged a fee. Your credit report may reflect late payments, and if you have made a habit of paying late, creditors may be dissuaded from granting additional credit. A charge added to an account if a required payment is not received by a specified date. A court verdict that requires a person to do something, such as pay a debt.
Liability refers to the responsibility for what is charged onto an account.
Generally, a cardholder agrees to be liable for any charges to his or her account, including purchases, fees and finance charges. Two people who apply for a card together may both be responsible for the entire balance. Your liability is described in the cardholder agreement you receive from the issuer. Be sure to read it carefully. The smallest payment you can make to maintain your account on current status.