Compensation refers to the behavior that the borrower can't repay the debt on time, but the third person or the court repays the debt on his behalf. Compensation in credit information refers to the borrower's compensation, which will have a negative impact on personal credit records.

First of all, the compensation on credit information will reduce the borrower's credit rating. Credit rating is based on personal credit record and repayment, while compensation means that the borrower can't repay on time. Banks and other financial institutions will record this information in the personal credit report as a reference. Therefore, when applying for a loan or credit card, the borrower's credit rating will decline due to compensation, thus affecting the success rate of loan application.

Secondly, compensation will affect the borrower's borrowing ability. Because compensation means that debts cannot be repaid on time, banks and other financial institutions will question borrowers' borrowing ability. After the compensation records appear in the credit report, it may be more difficult for borrowers to apply for new loans. The bank may think that the borrower's repayment ability is unstable, thus restricting or rejecting his loan application.

Finally, compensation may also lead borrowers to face higher interest rates and stricter borrowing conditions. Banks and other financial institutions may take salary records as a reference in the process of loan approval and impose stricter conditions on borrowers. In addition, borrowers may need to pay higher interest rates to make up for banks' concerns about their credit risks.

To sum up, compensation has a negative impact on credit reporting. It will reduce the borrower's credit rating, affect the ability to borrow, and may lead to higher interest rates and strict loan conditions. Therefore, borrowers should strive to keep a good repayment record to avoid compensation.

Extended data:

Compensation is a solution when the borrower cannot repay the debt on time. Banks and other financial institutions usually reach a compensation agreement with borrowers, and the third party or the court will repay the debts on their behalf. Compensation usually occurs when the borrower defaults or defaults, such as failing to repay on time or being unable to repay debts. Compensation can temporarily reduce the repayment pressure of borrowers, but it will have a negative impact on personal credit history and borrowing ability. Therefore, the borrower should try to avoid compensation and keep a good repayment record.

Note: The above information is for reference only. Please refer to relevant institutions and laws for details.