How to deal with bad debts to eliminate them

Bad debts are bad records formed when credit card or loan repayments are most overdue. For many people, they are very unwilling to face them. , so what should we do after it is overdue? How to eliminate bad debts? Bad debts mainly refer to situations where the overdue amount has exceeded the minimum repayment amount and has not been repaid for more than two years. So do you know how to deal with bad debts? 1. Settle the debt

First of all, your credit card is overdue and has incurred bad debts. Then you should go to the bank to settle the debt, and then you negotiate with the bank. After paying off the debt, you will enter the credit reporting system to eliminate the bad records.

2. Negotiate repayment with the card-issuing bank

When the bank tells you that it needs to be repaid, it usually requires a certain amount of interest to repay the bad debt. However, it is not ruled out that some banks can negotiate directly, so that the debt can be paid off smoothly. If the bad debt is caused by a third party, repayment can be negotiated.

3. Apply to the bank to extend the repayment time, which can be extended for up to two years.

If you still have a longer repayment period, you can apply to the bank. If you request an extension of the repayment period, if there are sufficient reasons, the bank will generally approve it, and then it will repay all the debts incurred after your application. In this way, the bad debts will be eliminated.

If a credit card is overdue, the bank will only record it in the credit card personal credit system. If the payment is not repaid for a long time or there are other reasons that cause it to be overdue, it is impossible to eliminate it. However, if the overdue amount is not large, the bank will generally grant a certain grace period and interest-free period, and the grace period and interest-free period can to a certain extent reduce the bad credit record caused by the overdue credit card. Therefore, if you want to completely eliminate bad credit history on credit cards, you must leave sufficient repayment records with the bank. The current credit report is for bad debts, how can we eliminate bad debts

1. General bad debts: overdue payments

For bad debts due to debts, please pay off all debts in time. Of course don't pay more. You can go to the bank to apply for a non-malicious debt certificate, and try to communicate with the bank whether the bad debt record can be deleted, or wait for the credit record to be revised after five years, so that it will not affect future loans.

2. Bad debts with overpayment: overpayment when due

Compared with general bad debts, bad debts with overpayment are easier to deal with. You only need to withdraw the money, clear the account, and then ask the bank to update the records.

According to the provisions of Article 16 of the "Credit Reporting Industry Management Regulations", the credit reporting agency's retention period for personal bad information is 5 years from the date of termination of the bad behavior or event. If it exceeds 5 years, should be deleted.

The starting point of 5 years referred to here is from the date the bad behavior or incident terminates, not from the date the bad behavior occurs. In other words, if one of your loans is overdue, it can only be deleted after 5 years after the debt is repaid, instead of being automatically eliminated after 5 years from the overdue date.

Extended information

When the information in the personal credit report is incorrect, there are two ways to deal with it: bring the original and copy of the valid ID document and the personal credit report to the location Submit an objection application to a branch of the People's Bank of China; or directly contact the bank that handles banking business.

After receiving the objection application, the Credit Information Center of the People's Bank of China and the handling bank will immediately verify the objection application, correct the incorrect information, and respond within 20 days.

In addition, given the rapid development of online communications and financial services, repayments can be made in other places through Alipay, WeChat, mobile banking, online banking and other methods. At the same time, we also remind everyone to keep their personal credit reports to prevent information from being leaked or used unreasonably by other institutions or individuals.

How can I ask the bank to eliminate bad credit records in advance after paying off the bad debts? Teach you step by step

Many people do not repay their credit cards on time, and the overdue time is relatively long. The bank may deal with bad debts. Once there is a record of bad debts on the credit report, you will not be able to handle any financial business unless it is eliminated. of. Many people will ask how to get the bank to eliminate bad credit records in advance after paying off the bad debts? Today I will take you to understand it and see how to operate it.

After paying off bad debts, how can I ask the bank to eliminate bad credit records in advance? Credit card debts cannot be recovered after repeated collections and remain sluggish for a long time. Banks will identify accounts that have not been paid off for a long time as bad debts and report them to the credit reporting system. Bad debts are far more serious than overdue ones. As long as the bad debts appear in the newspaper and are not cleared, whether it is a loan or a credit card, you will be rejected. Paying off arrears is a prerequisite for eliminating bad debts. In addition to repaying the principal, overdue expenses are also included. Note that bad debts will not be automatically eliminated after they are paid off. You still need to contact the card issuing bank for processing. Otherwise, you may find that bad debts are still retained when you check your credit later. Therefore, after the credit card holder has paid off the bad debt, he contacts the bank and provides proof of repayment settlement. The bank will ask the cardholder to submit an objection application on the credit reference center website, and then the commercial bank will submit a corrected personal credit report. , waiting for a reply from the Credit Bureau. If the credit bureau agrees, the bank will deal with the bad debt within 20 days. Note that dealing with bad debts does not directly eliminate bad credit, but changes bad debts to overdue, and it will take 5 years to truly restore credit. Although the overdue record is still there, as long as there are no bad debts, there is still a chance to apply for loans and credit cards. Especially if you have maintained a good record for 24 months, the pass rate will be relatively high. The above is the relevant introduction on "How to ask the bank to eliminate bad credit records in advance after paying off the bad debts". I hope it will be helpful to everyone. Can bad debts on credit cards be eliminated?

Yes, but it is difficult because banks generally will not agree. After a bad debt occurs on a credit card, interest will be charged every day based on 10,000 percent of the penalty interest rate. The interest rate is legal and reasonable. The bank will definitely not easily agree to reduce such a large amount of overdue penalty interest. If the negotiation for principal repayment is unsuccessful, the user can apply for a suspension of interest and account suspension. After the application is successful, no penalty interest will be calculated later, but the interest accrued before the application still needs to be repaid

1. Different ways of forming bad debts lead to different ways of handling them

The first point: overdue bad debts. The best and only way to deal with overdue bad debts is to pay off the debt as soon as possible. Remember after repayment Do not cancel the card immediately, but continue to use the credit card. As we all know, credit card overdue records will exist for 5 years, but after using the card for 2 years, the old bad records can be overwritten with new usage records. Generally, banks will focus on the records of the past 2 years when checking credit reports.

Second point: Annual fee bad debts. For credit card bad debts caused by arrears of annual fees, it is recommended that users repay in time. After repayment, if the card is no longer used, the account can be canceled, and the credit card bad debts will become Overdue records. It should be noted that some credit cards will incur annual fees even if they are not used after activation, so cardholders should pay attention after applying for the card to avoid unnecessary debts that lead to overdue bad records.

The third point: overpayment of bad debts. The method of dealing with overpayment of bad debts is very simple. You only need to withdraw the overpayment. After taking it out, you can cancel the credit card and other related accounts. Finally, you can also ask the bank to cancel the bad debt record on your credit report.

Suggestion: In summary, after the credit card bad debts are dealt with, it is recommended that the cardholder check his credit report one month later to confirm whether the bad debts have been eliminated.

2. The impact of bad credit debts

Compared with overdue repayment, bad credit debts are a more serious overdue situation. If the words "bad debt" appear in your credit report, then you will be insulated from the bank, and you will not be able to get approval whether you apply for a credit card or a loan. If left unaddressed, bad debts will remain on your credit report and follow you throughout your life. Even if the credit cleanup period of 5 years has passed, it will not be eliminated.