Consequences of an overdue credit card:

1. If the credit card is not repaid on time, liquidated damages will be incurred, which is generally the minimum repayment amount and 5% of the unpaid portion.

2. If the credit card is not repaid on time, high interest will be generated, and the interest will be compounded. If the debt is large, the interest will be a lot.

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.

Note: Overdue credit card repayments have serious consequences, so overdraft consumption should be moderate. Although the biggest feature of a credit card is its overdraft function, it actually constitutes a loan relationship between the customer and the bank. Failure to repay when due may not only cause legal disputes, but also bear high penalty interest, and most importantly, Forming a bad credit record will have a negative impact on future work and life.

Extended information:

Notes on overdue credit cards:

Cardholders should pay special attention to the last repayment date of their credit card, which means interest-free repayment. The last day of the loan period, before which repayments are interest-free. Overdue, all consumption payments will no longer enjoy the interest-free repayment treatment. The bank will calculate interest on a daily basis from the day when the consumption occurs, using the consumption amount as the principal. The daily interest Five ten thousandths, compound interest will be calculated on a monthly basis, and late payment fees will also be charged.

Credit card late payment fees refer to the situation where the cardholder’s actual repayment amount is lower than the minimum repayment amount on the due date of the credit card, and the cardholder must pay late payment fees for the unpaid portion of the minimum repayment amount, which is generally the minimum payment amount. 5% of the unpaid portion of the repayment amount, but due to different policies of each bank, the minimum amount set is also different. Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the cardholder has a certain credit limit and can consume within the credit limit and then repay.

A quasi-credit card refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve as required. When the reserve account balance is insufficient to pay, the card can be overdrawn within the specified credit limit. The so-called credit card generally refers to a credit card only. People without financial income, such as students, should not apply for a credit card easily. Even if they do not use the credit card, they still have to bear the annual fee and other items.

Credit card holders should give up using their credit cards and go through the card refund procedures in a timely manner. Otherwise, various credit card fees and subsequent interest, late payment fees, etc. will lead to personal economic losses and reduced credit, which will affect other loans. , such as home loans, car loans, etc.

Baidu Encyclopedia - Credit Card

Baidu Encyclopedia - Overdue

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Baidu Encyclopedia - Credit Card Repayment