generate a penalty interest and charge 5% interest. Although the policies of each lending institution are different, on the whole, banks will be more accommodating than small lending companies. If the credit loan is overdue, the lending institution will call the loan first to remind the borrower to repay, and the interest rate will rise as a daily penalty. Penalty interest varies from lending institution to lending institution. For example, Citibank will charge 5% interest on the basis of the original interest rate, and some small lending companies may charge more liquidated damages. This means that you have borrowed an estimated 1, yuan, but if you don't pay it back for more than three months, you may end up paying more than 1, yuan in interest and late fees.

creating a bad credit record will affect future loans and handling credit cards. Every day after your overdue, your name will appear in the internal system of the bank at the same time, which will be seen by the president and risk control later. After overdue, the credit report will inevitably leave a bad record. Once left, it may be kept for 3 to 7 years. If you want to borrow money from other banks in the future, you may not be able to apply easily because of bad credit. If the overdue circumstances are serious, mortgage and car loan will be affected in the future. Penalty interest is only a loss of money, while bad credit records are a loss of intangible assets, and the impact is irreparable by money.