Many cardholders often complain that if they use their credit cards (debit cards) well, why do their personal credit reports go bad for no reason? In fact, there are many friends who have experienced this and have questions. Let’s take a look at how the “bad credit record” of credit cards (debit cards) arises.

Under normal circumstances, the reasons for bad credit records due to credit cards (debit cards) are:

1. Overdue, due to various reasons, the repayment date or tolerance date has reached. If you forget to repay and the repayment amount does not reach the minimum repayment amount, the bank will treat it as overdue and report it to the credit reporting system to form a bad credit record.

2. Malicious overdraft, overdraft exceeding the limit or period specified by the card issuing bank, illegal possession of the overdraft funds or illegal activities, and failure to return the overdraft within 3 months after two collections by the bank, except In addition to a bad credit record, you may also be jailed.

3. The annual fee is in arrears. Some friends like to leave unactivated credit cards (debit cards) aside and ignore them. However, they do not know that some "sleeping" credit cards (debit cards) made of special materials can also be deactivated. There will be an annual fee, and if it is not paid, there will be an overdue record, resulting in bad credit.

Under special circumstances, the reasons for bad credit records caused by credit cards (debit cards) are:

1. The credit records have been queried many times, the loan has not been successful or the application has failed. For unactivated credit cards (debit cards), the bank will proactively check these records the next time a credit is issued. If your credit records are checked by multiple banks in a short period of time, the bank may judge that you are in urgent need of money recently and give you credit. Applications and credit reporting will also be affected.

2. Credit card (debit card) has been stolen without the knowledge of the card holder due to loss of password and card. In the case of overdue payment, it will bring bad records to the credit report.

3. Guarantee error. As a third-party guarantor, you guarantee loans for others. If the lender is overdue, the guarantor will bear joint liability, and personal credit records will also have bad records.

4. For spouses’ credit issues, if the spouses are not divorced and the loans and credit cards (debit cards) operated by one spouse are overdue and refuse to repay, the other spouse has a joint and several obligation to repay. , credit reporting will also be affected.

As above, if the above situations occur, how can we save the credit report?

1. Remember not to cancel the card. Once the above situation occurs, do not think that canceling the card will solve the problem.

2. Find different solutions to different causes of “bad credit reporting”. For example, the bad credit reports caused under normal circumstances are all issues of principle, and generally the results cannot be changed. We can only eliminate bad records by continuing to use the "problem" card with good habits. For several situations caused by special circumstances, we can explain the reasons to the bank, file a complaint or negotiate to solve the credit problem.

3. Under normal circumstances, bad credit records will be automatically cleared within 5 years, but the premise is that the "bad records" are filled with "good records" and similar problems do not occur again.

How can we prevent "bad records" from occurring when using credit cards (debit cards)?

1. Develop good credit card (debit card) usage habits, such as correct consumption, on-time repayment, etc. Remember one thing, just follow the bank's "high-quality customer" route;

2. Don’t apply for too many credit cards (debit cards). Multiple cards are not only difficult to manage, but also easily cause overdue credit, and the accumulated “limit” makes us more likely to have high debt;

2. Develop a good habit of checking records regularly, learn the skills of checking personal credit records online, and check personal credit records regularly so that you can find countermeasures in time after discovery.

3. Don’t trust online advertisements, such as: “Easy to increase credit limit”, “Clear bad credit report”, “Application for credit card (debit card)”, etc. These traps will not bring us “solution” "Method" will only affect credit reporting in a worse way.