When it comes to credit cards, people who use them well will think they are an "artifact", while people who use them poorly will be in awe of them. Why are some people so "awe" of credit cards? The main reason is that excessive credit card swiping in the early stage caused the credit card to become overdue, which resulted in high penalty interest and also caused a lack of credit.

But do you know? There is another situation that is more serious than an overdue credit card, and that is bad debts. So what are bad debts?

Bad debts refer to accounts receivable that have passed the repayment period, and the overdue cardholders still refuse to repay despite repeated collections by the bank, and then remain in a sluggish state for a long time (more than 3 years).

Then why does it lead to bad debts? This is divided into general bad debts and premium bad debts.

General bad debts

Bad debts will form when a credit card is overdrawn and not repaid for a long time.

Bad debts on premiums

Bad debts will also form if the credit card repayment exceeds the debt limit and is not dealt with for a long time.

What adverse impact will bad debts have on overdue cardholders?

We all know that once a credit card is overdue, it will be reported on the credit report. Similarly, bad debts will also be on the credit report, and the impact is no less than overdue ones. It can be said to be extremely powerful. When bad debt creeps up on our credit record, the bank will raise an alarm line on us and treat us as a "bad guy". In the future, whether it is buying a house, buying a car, applying for a credit card, a loan, or traveling, You will be blocked at every turn, and during the bad debt period, if you want to handle business, no matter which agency you use, it will be very difficult.

I remind

In order to avoid forming bad debts, it is best for us to repay the debt in time, and also to sound the alarm to ourselves, and never let it happen again. He fell into the "lao lai" controversy. After all, it is not very fun to go out on the street with such an identity.