Can I cancel my credit card if I repay it after it is overdue? Beware of "not being innocent" for the rest of your life!

The use of credit cards is closely related to personal information. If the credit card is overdue and reported to the central bank's credit system by the card issuer, bad credit will occur. At that time, you may be denied a loan by the bank to buy a house or a car. . Therefore, some cardholders may ask if they can eliminate bad credit by paying off the credit card debt after the due date and then canceling the credit card. If you really do that, you might not be clean for the rest of your life. Let’s find out together.

Can I cancel my credit card after the payment is overdue?

Many cardholders believe that bad credit can be eliminated by canceling the credit card after overdue repayment. After all, the money owed to the bank has been paid off, and the card will disappear without the bad credit record. It can only be said that this is a stupid approach.

Overdue records will be retained in the credit report for two years, and records within the banking system will stay for up to five years. If the credit card is canceled and no longer used, the corresponding records will no longer be rolled over, but will be saved for a long time. Therefore, when a credit card payment is overdue, it is best not to cancel the credit card immediately after paying off the balance.

If you really cancel your credit card, don’t worry. Find out carefully whether you only canceled the card or the account. If you only canceled the card but not the account, you can apply to the bank to restore the credit card.

If you want to eliminate bad credit, you have to do this:

If you want to eliminate bad credit, canceling the card after it is overdue is obviously not feasible. After all, once the card is canceled, you will lose the correction. Opportunity to check your own credit record. This is like playing mahjong. You lose a hundred yuan as soon as you get to the table, and then you get up and leave without playing. You lose the opportunity for the version forever. The best way is to continue to use the credit card and slowly erase the overdue record through certain card maintenance methods.

If you use it well, you may even receive a credit increase. For example, I once had a colleague whose China Merchants Bank credit card was overdue. After repayment, he did not cancel the card. Instead, he continued to use the card for consumption. He spent 70% of the amount on the card every month and made about 20 transactions. It took about 8 months. The bank raised his limit to 20,000 yuan.

The above is the relevant introduction to "Can the credit card be canceled after repayment is overdue?", I hope it will be helpful to everyone. All in all, after having bad credit, in addition to paying off the credit card debt, you must not cancel the card. You must hold the card for consumption for 2 years. If you cover the overdue records with good card usage records, there will be no problem.

Can I cancel a credit card after it is overdue?

Although you cancel the credit card, the bad record caused by your overdue repayment still exists in the bank.

The best way is to continue to use this card, maintain a good repayment record, and cover the original negative record with a new repayment record. This will generally generate a new one after 24 months. credit history, so that it will not have a negative impact on credit behavior.

If your credit card is overdue, penalty interest will accrue, and interest will be calculated on the full amount, with a daily interest rate of 0.5%. For example, if your credit card is overdue for 5,000 yuan and the number of overdue days is 30 days, the penalty interest is 5,000 × 0.05% × 30 = 75 yuan.

In addition, in addition to interest, overdue penalties will also result in liquidated damages. Different banks have different charging standards for liquidated damages. Generally speaking, most banks’ credit card liquidated damages charging standards are basically set as 5% of the unpaid minimum payment amount.

We know that overdue is a kind of breach of trust. Once a credit card is overdue, the bank will report the overdue record to the central bank's personal credit report. The overdue record will be retained on the personal credit report for five years. During this period, when applying for a bank loan, you may encounter high interest rates, small loan amounts, or even the loan application is directly rejected by the bank.

Credit reports are currently mainly used for various consumer credit businesses of banks. As the social credit system continues to improve, credit reports will be more widely used in various commercial credit sales, credit transactions, recruitment and job hunting. In addition, personal credit reports also provide the inquirer with a way to review and standardize his or her credit history behavior, and form a verification mechanism for personal credit information.

In addition, for those whose overdue circumstances are particularly serious, their travel will also be affected. They will not be able to fly, high-speed rail, stay in hotels, or use mobile phones to make overdraft purchases. Their children will not be able to attend key schools, and it will be difficult to move forward without trust.

Credit card debts are protected by law. If a cardholder maliciously overdrafts and fails to pay overdue, he is suspected of credit card crime and will be punished by law and face jail time. The penalty depends on the overdue circumstances. The more serious the circumstances, the heavier the penalty. If the overdue amount is particularly large, you may even be fined.

Banks are the ones who suffer the most from overdue cardholders. In order to reduce losses, banks will generally reduce the credit card limit of cardholders, or even directly block the card. Once your credit card limit is reduced or blocked, it will be difficult to increase or unblock it. When using a credit card, you must repay on time. Overdue behavior is not advisable. You must not take risks, let alone take chances, otherwise the consequences will be serious.

What should I do if my credit card payment is overdue and it shows that the card has been cancelled?

If the overdue credit card payment shows that the card has been cancelled, it is best for the customer to call the card-issuing bank and ask the staff about the situation. Because banks will not cancel a customer's card without any reason. Generally, the customer has to submit a cancellation application to the bank before the bank will cancel the card. Moreover, it is impossible to successfully cancel a card if there is an overdue balance. The card must have no overdue balances or overpayments before it can be successfully canceled.

So it is best for you to ask the bank staff to see if there is something wrong with the card, and it is best to bring your personal ID card and card to a bank branch for repayment.

Don’t think that since the display card has been cancelled, you don’t have to pay back the money. You still have to pay back what you owe, otherwise if it continues to be overdue, the consequences will become more and more serious. At that time, not only will the penalty interest increase, which will lead to increased repayment pressure, but personal credit will also be severely damaged. Later, applying for credit cards and loans may also be hindered by credit problems.

The consequences of overdue credit cards are: high fees, impact on personal credit, and legal risks.

1. High fees

If your credit card is overdue, you will have to pay back the overdue interest and overdue fees. Generally speaking, this fee will be higher than the normal repayment fee because its interest rate is very high. Generally speaking, the interest rate for overdue credit cards is 0.05% per day. This interest rate is compared with bank deposits and bank deposits. In terms of loan interest rates, this interest rate can be said to be very, very high. If the overdue benefits are too late to repay the interest, it may become more and more, like a snowball, getting bigger and bigger. In the end, it will really be impossible to pay off, so credit cards If it is overdue, be sure to pay it back as soon as possible, otherwise the fees may be too high and you will really be unable to pay it off.

2. The impact of personal credit

Overdue credit cards will be recorded on the credit file of the overdue person. When you use a credit card at a credit bank, there will be a problem with your credit and you will not repay it in time. Loans will have an impact on future personal credit and work, and will even have a serious impact on future home loans, car loans, and work and life. I believe many people are aware of the importance of personal credit. In today's information age, people without credit can hardly get anywhere, and the credit report is also very important for personal credit. Once your credit card is overdue, your credit report It will show that you have had an overdue credit card, which will be very serious.

3. Facing legal risks

When a credit card is overdue, you should be very proactive in repaying the overdue amount, otherwise the bank will have the right to file a complaint through legal channels, or even To freeze assets, just a bank credit card will face legal risks. What's more, real estate can be frozen and real estate auctioned. It will lead to more personal losses, so if you owe money on your bank credit card, you must take the initiative to pay it back in a timely manner. And while you are spending money, you must pay attention to your financial ability, and never let your bank credit card become overdue.

Can a credit card be canceled after it is overdue and paid off?

Whether a credit card can be canceled after it is overdue and paid off depends on two situations. The first situation is to repay within the grace period. In this case, the overdue record will not be reported to the credit reporting center, so there is no problem in choosing to cancel. Another situation is to repay beyond the grace period. At this time, the overdue record has been uploaded to the credit reporting center. Even if the card is canceled, the overdue record still exists. It is recommended to continue to use the card and cover the previous one with a good repayment record in the future. Overdue records.

Disadvantages

The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis, but the purpose of banks issuing credit cards is to make money. Once the interest-free repayment time is exceeded, , a high amount of interest will be charged, usually 50,000 per day.

Swiping a card for blind consumption is not like spending money one by one like paying with cash. Once you swipe it, you feel nothing, just a few numbers, which leads to blind consumption and money flowing like water.

Excessive consumption of laptop installments, digital camera installments, and smartphone installments. While enjoying your favorite items in advance, you must also consider whether you are able to repay them.

High Interest Rates If you don’t know how to take care of your credit card and cannot repay the loan as scheduled when the final payment date comes, the bank will charge you high interest rates. (The minimum repayment for the first month of a credit card shall not be less than 10% of the overdraft amount of the month) [8]

Credit cards that require annual fees basically have annual fees, but there are basically annual fee-free ones. For example, China Construction Bank only needs to swipe the card three times a year to waive the fee; but if you do not swipe the card the number of times specified by the bank in a year, an annual fee will be charged.

Basically, by default, stolen credit cards allow you to use the card without a password. This makes it easy for someone else to use your credit card when it is lost or stolen, causing unnecessary trouble or losses; but in fact, you can also apply for a credit card. Spending by swiping the card with the password - this depends on how you manage your credit card. Of course, many people lack experience in this area and do not close the account after canceling the credit card. Some criminals re-apply for a credit card overdraft and lose money in vain. , very not worth it.

Affected personal credit record Long-term malicious arrears will naturally affect personal credit record and even be blacklisted by the bank. If you want to apply for a bank loan to buy a house or a car in the future, you may be rejected by the bank.

Cancellation Trouble CCTV once reported that a cardholder still received bank statements several months after canceling his credit card after paying off all the outstanding balances. What happened after that made him miserable. This famous article For "Credit Cards That Can't Be Repaid", he exposed the shortcomings of today's credit cards.

Although there is an interest-free period for credit cards, it is only for card consumption. There is no interest-free period for cashing out, and handling fees are also charged.

How to cancel a credit card if it is overdue

The normal process of canceling a credit card is to clear the account, that is, pay off the debt, settle the balance, and ensure the credit limit on the card and bank credit Only when the amount is the same can you cancel it. But if there is an overdue credit card, even if the balance is paid off, it is best not to cancel it.

After all, canceling a credit card cannot eliminate the bad records caused by overdue credit cards. Many cardholders cancel their credit cards after they are overdue. After checking the credit report, they found that the overdue records are still kept, and the cancellation of the account freezes the status of the credit card. Your credit report will not be restored after 5 years.

So before canceling a credit card, it is best to check the overdue record of the card. If there is an overdue card in the past 5 years, do not rush to cancel the card. It is best to continue to use the credit card for 2 years and use a new one. The records should overwrite the bad records, and wait for another 5 years before the bad records disappear completely before deregistering.

As for those who have no bad records within 5 years, you can cancel it, but you must also consider several issues:

One is the difficulty of applying for a card after cancellation, such as credit cards from state-owned banks. It is not easy to apply for a card. If you finally get the card approved and then cancel it, you may not be able to get it approved next time. If you are really dissatisfied with your credit card, you don’t need to cancel it. You might as well apply for another credit card first, and then cancel this card; Do you want to cancel all the cards, or only one of them? For the former, you can choose to cancel the account, and for the latter, you can choose to cancel the card.

Credit card product types:

1. According to different card issuers, they can be divided into bank cards and non-bank cards

Bank cards. This is a credit card issued by a bank. Cardholders can shop at the card-issuing bank's special merchants, and can also withdraw cash at any time at any branch of the card-issuing bank or at places with ATMs.

Non-bank card. Such cards can be specifically divided into retail credit cards and travel and entertainment cards. Retail credit cards are credit cards issued by commercial institutions, such as department stores, petroleum companies, etc., which are specially used for shopping in designated stores or refueling at gasoline stations, etc., and are settled regularly. Travel and entertainment cards are credit cards issued by the service industry, such as airlines, travel companies, etc., and are used for purchasing tickets, meals, accommodation, entertainment, etc.

2. According to the different objects of issuance, it can be divided into corporate cards and personal cards

Corporate cards.

Company cards are issued to various industrial and commercial enterprises, scientific research and education institutions, national party and government agencies, military units, groups and other legal entities.

Personal card. Personal cards are issued to urban and rural residents, including workers, cadres, teachers, scientific and technological workers, self-employed households and other adult urban and rural residents with stable sources of income. A personal card is applied for in the name of an individual and he/she bears all responsibilities for using the card.

3. According to the credit status, status and other credit conditions of the cardholder, it can be divided into ordinary cards and gold cards.

Ordinary cards. Ordinary cards are issued to cardholders with average financial strength, credibility and status, and their various requirements are not high.

Gold Card. A gold card is a high-end credit card that pays high membership fees and enjoys special benefits. Cards are issued to those with higher credit standing, stronger repayment ability and credit, or those with a certain social status. The authorization limit of the gold card starts from a higher level, and the additional service items and scope are much wider, so the requirements for relevant service fees and security deposits are also relatively high.

4. According to different repayment methods, credit cards can be divided into credit cards and quasi-credit cards

Credit cards. When the card-issuing bank provides bank credit, it is first used as an overdraft, and then repaid or paid in installments. Most of these cards are used internationally. That is to say, the way that cardholders are allowed to pay off their credit card accounts without deposits is "spend first, deposit later". Most of these cards are used internationally.

Quasi credit card. It is a credit card issued by a bank that allows you to deposit money first and spend later. When applying for a credit card, cardholders need to deposit a certain amount of money in the card-issuing bank for backup. Cardholders need to use the deposit balance as a basis when using the card. Overdrafts are generally not allowed.

5. According to the different circulation scope of credit cards, they can be divided into international cards and regional cards

International cards. An international card is a credit card that can be used outside the country of issue and is accepted worldwide. The five major overseas groups (MasterCard, Visa International, American Express, JCB and Diners Club) issued MasterCard, VISACard, American ExpressCard and JCB respectively. (JCBCard) and DinersClubCard are mostly international cards.

Regional card. A regional card is a credit card that can only be used within the issuing country or within a certain region. Most of the various credit cards issued by commercial banks in my country are regional cards.

That’s it for the introduction of canceling credit card payments after overdue payment.