1. Bad debts only pay the principal. When the overdue records in the user's credit report become bad debts, after consultation between the user and the lending institution, the bad debts can only repay the principal as long as the other party agrees to repay only the principal. After the bad debts are settled, the records will be kept for 5 years, and the records will be automatically eliminated after 5 years. If the repayment is not made, the bad debt record will remain in the credit report all the time, which will lead to credit stain and affect the user's credit business in the future.

2. Legal basis: Article 196 of the Criminal Law of People's Republic of China (PRC).

Under any of the following circumstances, it constitutes the crime of credit card fraud, and if the amount is relatively large, it shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan or confiscated property:

(a) using a forged credit card, or using a credit card fraudulently obtained with a false identity certificate;

(2) Using an invalid credit card;

(3) Fraudulent use of another person's credit card;

(4) malicious overdraft.

The term "malicious overdraft" as mentioned in the preceding paragraph refers to the behavior that the cardholder overdraws beyond the prescribed limit or time limit for the purpose of illegal possession, and refuses to return it after being urged by the issuing bank.

Whoever steals a credit card and uses it shall be convicted and punished in accordance with the provisions of Article 264 of this Law.

Second, what will be considered as bad debts?

The following situations will be regarded as bad debts:

1. The borrower or guarantor goes bankrupt and the residual value after liquidation is not enough to pay off the loan;

2. Loans that cannot be paid off after the borrower is declared dead;

3. The borrower encounters a major natural disaster or accident, resulting in huge losses, no compensation and inability to repay the loan;

4. The products under the loan name are still insufficient to pay off the loan after being disposed of according to law;

5. Other loans approved for write-off by State Taxation Administration of The People's Republic of China.