1. What are the consequences of credit card arrears in Canada

The severity of the consequences of non-repayment on a credit card depends on the degree of arrears and the amount of arrears.

1. The first impact of non-timely repayment of credit card is poor credit record. The specific number of overdue times will be recorded in the central bank’s credit system. The number of overdue times will accumulate to 6 times or the number of overdue times will reach 3 consecutive times. Then they may be included in the list of users with bad credit, which will affect future loans. In serious cases, they will be included in the list of bad credit users and cannot use airplanes, high-speed rail, etc. to travel;

2. In addition to bad credit, non-repayment will also cause It generates interest of 0.05% per day, and it is compound interest;

3. If the credit card defaulter is malicious and the payment period is too long and the amount is too large, the bank can file a lawsuit with the People's Court. If repeated calls for payment fail, the court has the right to initiate civil proceedings against the debtor. If there is a suspicion of malicious cash-out and overdraft, it will be escalated to criminal proceedings.

2. What are the solutions to overdue credit cards

1. As a credit card holder, once you are unable to repay the loan on time due to unemployment, illness or other accidents, in the end Before the repayment period arrives, cardholders are advised to proactively call the bank's credit card center to state their financial situation, affirm that they do not owe money maliciously, and apply for delayed repayment and interest discounts.

2. In view of the cardholder’s active performance and previous good credit record, the bank will often agree to defer the repayment, and work with the cardholder to agree on a mutually acceptable repayment plan, delay period, and interest discount , monthly repayment amount, etc. In this way, if you proactively contact the bank and get the bank's consent to defer the repayment, you will not be recorded as a bad record, but it should be noted that you will be guaranteed to repay as agreed in the future.

3. If you forget to repay due to negligence, you must repay as soon as possible after it is overdue, preferably in full. Then call the bank's credit card center and state that the debt is not malicious. If the record has been good in the past and the overdue time is short, and it is found that the repayment is good after the overdue period, it may not be recorded as a bad record. Don't be careless in the future. Be sure to pay attention to the bank's bill notifications and collection information to avoid overdue payments.

4. Credit card repayment information will be recorded by the central bank's credit reporting system on a rolling basis for 24 months. That is to say, bad credit records caused by overdue credit card repayments will be kept in the credit reporting system for two years. If terminated with a card, the corresponding records will no longer be scrolled, but will be saved for a long time. Therefore, after overdue repayment of a credit card, it is best not to cancel the credit card immediately after paying off the debt. Instead, you should insist on using the card for more than two years and keep your credit in good condition during the period. In this way, you can rely on rolling records to remove bad records from your credit report. Remove it from the system.

If your credit card is overdue and cannot be repaid, you must try to communicate with the bank. Whether it is a foreign credit card or a domestic credit card, as long as there is intentional failure to repay, it will not only accrue high interest, but also cost yourself Your credit report will be damaged, so when applying for a credit card, you must make sure that you have the ability to repay the loan, and you must repay it within the specified time, so as not to cause unnecessary trouble.