1. What does credit card securitization mean? We all know that many people owe money to banks. If the bank cannot collect it, it will become non-performing assets. Banks are definitely not willing to suffer losses for such non-performing assets, and will package them and issue them in the form of securities. Selling them to the market at a high price to recover funds is the so-called securitization of non-performing assets. These non-performing assets can be classified according to category. For example, credit card debts are called credit card non-performing assets securitization. In short, it is just a means for banks to dispose of non-performing assets, and it can also be regarded as a way to dump the blame. , people who buy bonds become the new takers, and the money owed by cardholders to the bank becomes money owed to investors. However, it should be noted that the biggest highlight of credit card securitization is pricing. After the bank sells the securities at a low price, the receiver can set the price freely and then sell it to others. Anyway, the securities can continue to circulate in the market.
2. What are the consequences of credit card securitization? Even if a credit card is securitized, you still have to repay it, but the creditor has changed from the bank to the person taking over. Although the debt relationship with the bank has been terminated, if you continue to fail to repay, the bad record on your credit report will not be Automatic cancellation may even last a lifetime, and the cardholder may also be subject to various means of debt collection by creditors. Therefore, we should try our best to avoid this situation, and we must find ways to repay the credit card after it is overdue.