As we all know, credit cards are connected to the personal credit report system. If the cardholder has an overdue problem when using the credit card, it will be displayed on the personal credit report. So if the cardholder cancels the credit card, will its overdue record be eliminated? Let’s take a look with the editor.

Will the overdue record be deleted if the credit card is canceled?

No. When a cardholder's credit card becomes overdue, the overdue record will already be shown on the personal credit report, regardless of whether the cardholder later cancels the credit card. No matter how the cardholder handles the credit card later, the overdue records that have been generated cannot be manually eliminated. Of course, this does not mean that overdue records on personal credit reports cannot be eliminated 100%.

According to relevant regulations, from the date the user pays off the debt, overdue records on the personal credit report will be eliminated after 5 years. Of course, if the user delays paying off the debt and plans to wait for 5 years for the overdue records to be eliminated, that is also impossible. Everyone should be aware of this.

What are the consequences of an overdue credit card?

1 Overdue credit cards will have a certain impact on personal credit reporting.

2 Overdue credit cards may reduce the credit card usage limit. In severe cases, the credit card limit may not be used, or the credit card may be frozen by the bank.

3 Overdue repayment after a credit card overdraft is a breach of contract. The bank can require the cardholder to repay the principal as well as overdue interest, late payment fees, over-limit fees, etc.; if the bank sues in court and wins, the bank can require the cardholder to repay the principal, overdue interest, late payment fees, over-limit fees, etc. The cardholder also has to bear the costs of litigation.

4 You may face debt collection. In the short term, it is usually through SMS, but in the long term, it may be debt collection from higher authorities, or you may be sued.

To sum up, the impact of overdue credit cards on individuals is still very large. It is recommended that cardholders develop good card usage habits to avoid overdue credit cards. If the cardholder is really unable to repay, he should negotiate with the bank in time instead of passively refusing to repay.