1. Liquidated damages are incurred, which are generally 5% of the unpaid portion of the minimum repayment amount.

2. The interest is high, and the interest is compounded. The interest rate is very scary when the debt is large.

3. Overdue credit records will be stained, resulting in the inability to handle financial needs such as house purchases and loans within the next two years.

4. If the payment is overdue for more than 3 months, and the amount exceeds RMB 10,000, and the bank has failed to pay multiple reminders, you will not only have to bear the repayment, but may also bear criminal liability.

Extended information:

With the continuous improvement of the social credit system, 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.

The main factors that may affect personal credit risk scores are: there have been overdue repayments on loans, or credit card overdrafts have not been repaid within the agreed time limit and repayment amount, or there are too many loan accounts and credit cards, etc.

The People's Bank of China issued the "Notice on Preparing for Personal Credit Reporting Business" (hereinafter referred to as the Notice), requiring eight institutions including Sesame Credit and Tencent Credit Reporting to make preparations for personal credit reporting business , which means that the personal credit market is "opening."

This time eight private companies have entered the personal credit reporting market. Compared with the central bank’s credit reporting services, experts point out that private credit reporting data collection sources are wider and will penetrate into the details of people’s lives, and their credit report scores The level of credit will also affect individuals' renting a car or buying a house. "In the future, credit will become more and more important, and those without credit will have a hard time moving forward."

Personal credit report data comes from the details of people’s lives, and will eventually be used in every detail of people’s lives.

Reference materials: Baidu Encyclopedia-Credit Card

Baidu Encyclopedia-Personal Credit Report