For a long time, Chinese residents have relatively conservative consumption concepts, and the savings rate of Chinese residents has always been among the best in the world. However, in the past two years, this phenomenon has changed. With the popularity of credit cards and the rise of various loan-like online platforms, such as flower shops and loan shops, the "bad trend" of excessive consumption has also emerged in China.

There are many young people nowadays, and most of their monthly income is used to repay various debts. Including online loans, Huabei, etc. And a large part of it is credit cards. Compared with the past, the threshold for applying for a credit card is getting lower and lower now. To some extent, this is one of the main reasons for the prevalence of advanced consumption in China.

According to statistics released by the People's Bank of China, as of the end of the third quarter of 2020, the number of credit cards used in China has reached 766 million. Based on China’s population base of 1.4 billion, there is an average of one credit card user for every two people. It is worth mentioning that the average credit limit of credit cards in my country is 24,300 yuan.

The above data all illustrate a phenomenon: the phenomenon of Chinese residents spending in advance is becoming more and more serious. In the past, when people needed money urgently, they applied for credit cards to solve their "urgent needs" and then paid them back quickly afterwards. However, the main purpose of many people now applying for credit cards is to meet their own needs for advanced consumption. Many cardholders even choose to cancel their credit cards directly after the payment is overdue.

But there is no doubt that it is absurd and unrealistic to cancel a credit card to avoid repayment. Canceling a credit card does not mean that the money owed will be cancelled, but will be credited to the bank account. If there are multiple overdue payments or long-term non-payment, it will directly affect the individual's credit score.

In addition, credit cards cannot be canceled casually. If cardholders cancel their credit cards at will, they may encounter the following two major problems.

First of all, after you cancel your credit card, it is not that simple to apply for it again. Many banks will conduct more stringent review procedures when facing customers who have canceled their credit cards but are re-applying for them. In order to prevent cardholders from canceling their credit cards at will, many banks have issued relevant regulations similar to "You are not allowed to apply for a credit card again within six months after withdrawing the card." If you cancel your card after the deadline, you may even be permanently ineligible to apply for a credit card.

Secondly, in fact, for cardholders with overdue status, the usage of credit cards is not small. As mentioned above, canceling your credit card does not "wipe off" your debt. If there is a late payment, timely repayment with a credit card is the right choice.

At this time, the cardholder needs to "maintain the card." That is, spend reasonably and pay off your credit card in a timely manner. Only in this way can you leave a good record in your personal credit report. On the contrary, if the cardholder chooses to cancel the card when it is overdue, it will not only fail to solve the problem, but will also have a negative impact on the personal credit report.

Once your credit report is damaged, the problem is not just that you can no longer apply for a credit card. It is extremely difficult for residents with bad credit information to apply for housing loans and car loans. It will have a significant impact on all aspects of social life.

To sum up, canceling a credit card will not solve the overdue problem. Everyone should consider their own actual situation. If you really don’t need to use the credit card and there is no outstanding balance on the card, you can cancel it. If you want to cancel your credit card to avoid repayment, you will face a series of troubles. Related Q&A: Canceling a credit card has serious consequences

Generally speaking, when canceling a credit card, it is required that the card has no arrears and no overpayment, which means that the card cannot owe 1 cent or more. 1 cent more. Therefore, if you want to cancel a credit card, you can first stop using the card. After the bill is issued, repay the bill according to the bill amount before the repayment date, and then cancel it. If the credit card is canceled when there is a balance in arrears, it will have a negative impact on the user's other bank business in the future.

Another thing to note is that when you plan to cancel a credit card, you need to ensure that the card has no annual fee or has been used enough times to waive the annual fee. If the requirements for annual fee exemption are not met, the annual fee payable will be Fees may still be charged after the card is canceled. If not paid in time, it will be overdue and affect the credit record.