Extended information:
Credit card, also known as credit card, is a credit certificate issued by commercial banks or credit card companies to eligible consumers. It is in the form of a card with the name of the issuer, expiration date, serial number and cardholder's name printed on it. Magnetic stripe and signature strip on front and back.
Consumers with credit cards can go to specialized commercial service departments for shopping or spending, and then the bank will settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.
Consequences of overdue credit card:
I. Penalty interest
If the credit card is overdue, there will be a penalty interest, and the interest will be paid in full, with a daily interest rate of five ten thousandths. For example, if your credit card is overdue for 5,000 yuan and the overdue days are 30 days, then the penalty interest is 5,000× 0.05 %× 30 = 75 yuan.
In addition, in addition to interest, overdue payment will also generate liquidated damages. Different banks charge different liquidated damages. Generally speaking, most banks' credit card liquidated damages are basically set at 5% of the outstanding minimum repayment amount.
Second, bad credit reporting.
We know that overdue is an act of dishonesty. Once the credit card is overdue, the bank will report the overdue record to the central bank's personal credit report, and the overdue record will be kept in the personal credit report for five years. During this period, applying for a bank loan may encounter high interest rate and small amount, and even the loan application is directly rejected by the bank.
In addition, for those who are particularly overdue, their travel will also be affected. They can't spend their overdraft money on airplanes, high-speed trains, hotels and mobile phones. Children can't go to key schools, and it is difficult to walk without faith.
Third, investigate criminal responsibility.
We know that credit card arrears are protected by law. If the cardholder maliciously overdraws and fails to pay it back within the time limit, it will be suspected of credit card fraud, and will be punished by law and face jail.
According to the overdue situation, the more serious the circumstances, the heavier the punishment. Those who are seriously overdue may even be sentenced to life imprisonment.
4. Credit cards are reduced or frozen.
Cardholders overdue from the bank, the biggest loss. In order to reduce losses, banks generally reduce the credit card limit of cardholders, and may even directly seal the cards. Once the credit card limit is reduced or blocked, it is difficult to withdraw cash or unblock it.