Credit cards themselves encourage overdraft consumption. It is a payment method that consumes first and repays later. The bank will give the credit card holder a certain credit limit, and then the credit card holder can use the credit limit. consumption within the scope. So will credit card overdraft consumption affect your credit report? Let’s find out together.

Does a credit card overdraft affect your credit score?

Whether a credit card overdraft affects your credit score depends on whether the credit card holder repays the credit card on time. Credit card overdrafts have a fixed repayment date every month. If the credit card holder fails to repay on time on the repayment date, it will have a negative impact on the credit report. Once the payment is overdue, the overdue record will be Reporting to the credit reporting system will not only affect the continued use of credit cards, but also affect future bank loan applications. After overdue repayment of a credit card overdraft, the overdue record will always be retained on the credit report. Even if the user completes the repayment, the overdue record will be retained for five years.

The above is an introduction to the impact of credit card overdrafts on your credit report. I hope it can be helpful.