At present, many small partners have the problem of overdue credit cards. However, after the credit card is overdue, if the cardholder does not want to continue to default on the debt, he can also consider applying for suspension of repayment. Let's talk about the significance of suspending the use of credit cards.

What is a credit card suspension charge?

In fact, it means that consumers don't pay off the arrears in the last bill before the credit card bill expires, but choose to hang the arrears in their own accounts and pay them off again when the next bill arrives. The suspension of credit card use and overdue credit card will have an impact on personal credit information.

Although the credit card will not generate interest during the suspension period, it needs to repay part of the principal and handling fee every month according to the agreement. After the account is suspended, it will be displayed in the personal credit report.

According to Article 70 of the Measures for the Supervision and Administration of Credit Card Business of Commercial Banks, under special circumstances, if it is confirmed that the amount owed by the credit card exceeds the cardholder's repayment ability and the cardholder is still willing to repay, the issuing bank can negotiate with the cardholder on an equal footing and reach a personalized installment repayment agreement. The longest term of personalized installment repayment agreement shall not exceed 5 years.

The harm of credit card suspension;

1. Banks charge high interest: due to the high interest rate of credit cards, the amount of arrears will increase rapidly, and the late payment fee will double day by day, resulting in the final repayment amount of consumers reaching an amazing amount.

2. Affect personal credit records: If consumers often stop paying interest and hang up their accounts, then banks will think that their credit rating is low, which will have a negative impact on their credit records. Once the credit record is damaged, it will affect consumers' personal image and economic activities.

3. Credit cards, bank loans and other businesses may be rejected, because stopping paying interest is also an untrustworthy customer in the eyes of banks.

4. Credit card withdrawal will be refused. When applying for withdrawal, the bank will check the personal credit report, and there will be a suspension of payment in the credit report, indicating that the personal repayment ability is not good, the withdrawal will fail and the amount may be reduced.

That's all. I hope it helps you.